How Technology Is Transforming Traditional Business Operations
How Technology Is Transforming Traditional Business Operations
Businesses, regardless of sector, are living, breathing, and operating in an environment where
information technology is changing the landscape around them, transitioning from the back
room of an organisation into the hands of customers, employees, and society. There is a
continual shift towards a service economy, with services ever more tailored and personalised for
the customer.
As technology has advanced over the last 10 years, a number of phenomena have emerged
that, when combined, have rapidly and radically transformed the ability of businesses to
construct customer services and products. Most importantly, the speed at which innovation and
incremental improvement can occur has also increased. If you prefer to read an e-book, please
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When information technology was introduced to businesses over 30 years ago, it was such a
specialised topic that organisations created new departments with the remit and responsibility
for managing it. This resulted in the birth of the IT department, which was seen by many as a
pure support function and separate from the business.
Large amounts of effort have been spent since in trying to “contain” information technology,
ensure that it is under the watchful eye of IT teams and that spend is controlled. Of course, cost
control is still a major required discipline, however, digital has unleashed technology and made
it widely available, meaning it can no longer be efficiently controlled by a single department.
Today’s technology function should work alongside all business areas to make their skills
available, whilst embracing those disciplines of customer focus, revenue generation, and
product development from other parts of the organisation. This is not a one-way conversation –
marketing teams, for example, need to embrace the technology management skills available to
them to prevent runaway costs or implementation of solutions that cannot interact with others
across the internal ecosystem.
Many organisations have found themselves in limbo – somewhere between the digital
revolution and the status quo. They lack the capability to integrate incremental improvement
with disruptive digital innovation. To frame the challenge, business technology introduces three
core elements as illustrated in the picture below.
Emerging technologies are accelerating digital transformation, requiring business and process
development and forward-looking governance. Business capabilities are the sum of all
processes and assets (systems and data) within the company and comprise the entire business
organisation, including any supporting functions within the organisation. Business capabilities
are the key for developing the business and for utilising technology in the best possible way.
Transformation comprises of the parts and processes of an organisation that are engaged in
improving business capabilities. Interested in developing your skills related to business
capabilities and transformations? Check our certification trainings.
Digital frontline
Digitalisation provides new business opportunities and requires consistent design thinking on
how to face customers, partners and employees in a networked multi-channel world.
The digital frontline can be defined as any digital means that connects the company to the user
and is visible to the user, whether the user is a customer or a partner, or whether the customer
is internal or external.
Customer experience is at the heart of all digital frontline activities. Digital frontline is a crucial
area as it is the key area where the emerging business focus and growth possibilities reside and
where digital transformation happens through speed and agility. Digital apps and web, as well
as digital enterprises, enable the creation of new business possibilities around customer
experience, digital business and internet of things (IoT) services.
Technology backbone
Traditional information technology management function (or IT) should be the technology
backbone that is responsible for development, and management of digital and administrative
solutions in a professional way. The technology backbone consists of all information technology
systems and processes that support the running of the businesses operations, through the
management of end-user services, plus enterprise and business applications. It is where the
essential business asset of a company resides, and the purpose is to provide operational
efficiency to the company through reliability, security and scalability.
Technology domains
Technology exists within many areas of the enterprise today. Often this technology is outside of
the influence of the traditional CIO and technology function. Every business is different, and the
type, location and amount of technology will rightly vary within each area.
The key characteristic of this technology type is interaction with the customer and the
technology centres around the customer experience. Customer interfacing technology is all
about the digitalisation of customer facing processes and services. Thus, it is in this area where
digital initiatives have an obvious and direct impact. Improving or implementing these
technologies drives a need to review end to end customer journeys. When these solutions are
developed, the business should ensure that their strategy is not constrained to digital channels
only. This constraint can be acceptable as a short-term strategy. However, as previously
discussed, digitalisation is a much broader topic and needs to be viewed as a broader strategy.
Product technology
This area consists of information technology embedded within the products the company sells:
technology that can be operated, monitored and/or interfaced remotely and can interact with
its environment 24/7. Thus, only the technology component of the product that fulfils these
criteria can be seen as product technology, not necessarily the whole product itself. For
example, a lawn mower itself does not fulfil these criteria, but in a robot lawnmower the
embedded technology enabling its remote control and operation fits the product technology
definition.
Whilst customer interfacing technology provides the gateway for interaction with your
customers, it is often the technology within your product, whether it be a banking product,
electronic goods or professional services to name a few, that provides the real value to
customers. Technology innovations within this area are fast moving with new rich sources of
data and new techniques such as rapid prototyping, agile development and new business
models such as the “as-a-Service” model often used.
Operational technology
Operational technology contains all information systems used for managing, operating and
monitoring automation systems and other “shop floor” systems. Information technology is
expanding into this area even more than before. Many previously low-tech or even manual
operations today start with an information technology enabled check, such as the servicing of a
car. What used to be a purely manual operation is now assisted by operational technology such
as a laser assisted wheel alignment machine as an example.
Business Process Technology consists of information technology and solutions that are used for
managing business processes and executing business transactions, i.e. systems that support
day-to-day business operations. Classic examples of business process technology are the
enterprise resource planning (ERP) and customer relationship management (CRM) systems used
in organisations.
In many organisations, the cooperation between the business and technology functions is not
optimal and could enable greater business outcomes. To overcome this, business leaders must
embed a culture of cooperation within the organisation so that technology management skills
are fully applied as needed across all business units.
This shifting landscape demands that your business is organised in a way that allows you to
maximise business potential, reacting rapidly to opportunities, and driving continuous
improvement and change.
Transforming from traditional, siloed business and technology functions into business
technology organisation also presents a fantastic opportunity to leverage technology
management practices directly in the business teams where it can have the largest impact.
Business technology will ensure that businesses are able to derive real value from technology,
and ultimately, to better serve their customers.
Cost Reduction: Automation leads to significant cost savings by minimizing manual labor
and increasing productivity.
Enhanced Analytics: Advanced analytics tools process vast amounts of data to provide
insights into customer behavior, market trends, and operational performance.
Predictive Insights: Businesses can forecast demand, manage inventory, and personalize
marketing strategies based on data analysis.
24/7 Support: Chatbots and virtual assistants provide round-the-clock customer service,
enhancing customer satisfaction.
Communication Tools: Applications like Zoom, Slack, and Microsoft Teams facilitate
seamless communication among remote teams.
Online Presence: Businesses are expanding their reach through e-commerce platforms,
enabling them to serve customers beyond geographical boundaries.
Digital Marketing: Utilizing SEO, social media, and email marketing to attract and retain
customers online.
Platform Economy: Companies like Uber and Airbnb have disrupted traditional
industries by creating platforms that connect service providers with consumers.
In Summary: Technology is not just an operational tool; it's a strategic asset that enables
businesses to innovate, adapt, and thrive in a rapidly changing environment. Embracing
technological advancements is crucial for staying competitive and meeting evolving customer
expectations.
Here are some innovative tech business ideas that are currently underexplored and hold
significant potential:
Develop an educational platform that utilizes artificial intelligence to adapt to individual learning
styles, providing personalized learning paths for students of all ages. AfroTech
Create a virtual reality platform offering immersive skills training for various professions, such as
construction, healthcare, or mechanics. This approach allows for hands-on practice in a safe,
controlled environment. Spocket
Implement AI and IoT devices to enhance agricultural practices, providing farmers with data-
driven insights to optimize crop yields, reduce waste, and manage resources efficiently. AfroTech
Create AI-powered cybersecurity solutions that can predict and prevent cyber threats in real-
time, providing advanced protection for businesses and individuals. AfroTech
These ideas leverage emerging technologies to address current gaps in various industries.
In Kenya Now
Why It’s Underexploited: While agriculture is a significant part of Kenya's economy, many
farmers lack access to timely and personalized information.
Potential Impact: Enhances crop yields, reduces losses, and empowers farmers with data-driven
decisions.
Overview: Create a telemedicine platform that connects patients in remote areas with
healthcare professionals through mobile devices.Today Africa
Why It’s Underexploited: Healthcare access remains limited in many rural regions, and
telemedicine adoption is still in early stages.
Potential Impact: Improves healthcare accessibility, reduces travel costs, and enables early
diagnosis and treatment.
Why It’s Underexploited: Most e-learning platforms focus on academic subjects, leaving a gap
in vocational training.
Potential Impact: Equips youth with practical skills, enhances employability, and addresses the
skills gap in various industries.
Overview: Create an app that connects households and businesses with waste collection and
recycling services, promoting proper waste disposal.
Why It’s Underexploited: Waste management remains a challenge in many Kenyan cities, and
digital solutions are scarce.
Potential Impact: Promotes environmental sustainability, creates jobs in the recycling sector,
and improves public health.
Potential Impact: Improves mobility, reduces transportation costs, and fosters community
connections.