Businesses today face a choice in the rapidly evolving technological landscape; to stay where they are, or adopt modern technologies (digital transformation) to try and maximise a competitive edge.
With business confidence as low as it is currently, the temptation to stick might seem wisest. But, if there is any way possible, now is a good time to invest in technology and business improvement, ready to reap the maximum benefit of increased demands that will come.
We understand that the thought of investing when businesses are facing increasing costs, such as National Insurance payments, may seem scary, but when done well, digital transformation can help you to start reducing costs whilst also increasing productivity.
As we start another year and look towards the future, we look at three key areas that are poised to drive this transformation: Artificial Intelligence (AI), supply chain innovations, smart manufacturing/Industry 4.0.
In this blog, we review these and see what they could mean for you in 2025.
Industry 4.0 & Smart Manufacturing
Industry 4.0, as a term, has been around for some time. This is all about transforming traditional manufacturing processes through the integration of digital technologies.
Technology such as AI, IoT (Internet of Things), robotics, etc are enabling the creation of smart factories and smart manufacturing processes which are changing the way manufacturing businesses work.
This will eventually lead to increased productivity, reduced downtime, and the ability to customize products on-demand. What is also exciting in this area, is the advancements in additive manufacturing and 3D printing, which will enable more localized and on-demand production, reducing the need for large inventories and long supply chains.
The future of Industry 4.0 will see even greater integration of these technologies, leading to more autonomous and self-optimizing production systems. This will not only enhance operational efficiency but also enable new business models and revenue streams.
Artificial Intelligence (AI)
AI is at the forefront of the current conversation around digital transformation. With many analysts talking about how it can revolutionise the way businesses operate and make decisions, AI can enable companies to harness vast amounts of data to gain insights, automate processes, and enhance customer experiences.
In the future, AI is expected to become even more integrated into business operations, driving efficiencies and enabling new business models. For example, AI-powered chatbots and virtual assistants will continue to improve customer service, while advanced algorithms will optimize everything from marketing strategies to supply chain logistics.
Supply Chain Innovations
Over the past few years, we have seen how critical supply chain vulnerability can be to businesses. Global events have caused chaos in some industries, such as the chip shortages which affected the automotive industry. As a result, supply chain robustness is another area undergoing significant transformation.
Digital technologies are enabling more efficient, transparent, and resilient supply chains. Innovations such as blockchain, IoT, and AI are providing real-time visibility into supply chain operations, reducing risks, and improving decision-making.
In the future, we can expect supply chains to become even more interconnected and intelligent, with predictive analytics helping companies anticipate disruptions and respond proactively, ensuring smooth operations.
What could this mean for you?
As with any emerging technology, there is a lot of interest around these three subjects. Which horse is best backed? Different analysts or agencies may favour one over the other, or encourage you to do all three! We would, however, encourage anyone who is starting their digital transformation journey to be more considerate about where to put their time and energy. Resources and time may be scarce in our current business environment, so judicial use of what you have is vital.
It is important to look at any new technology with a critical eye, not because of it being a bad thing, but because the temptation can be to rush ahead into using something when the business need is not entirely clear. These technologies are not cheap when you seek to apply them at scale. So start small and make incremental gains.
We always encourage our clients to look at what their business strategy is first, really delving into that, before looking at what technology they need or could use to support it. Doing it the other way around can often lead to costly mistakes and white elephants!
Even now, at the start of the year we can already see that for some UK businesses, things are going to be tough. There will be a choice to be made about how digital transformation sits within the business. For some, it may well be that significant investment in new technology needs to take a back seat. However, for others, it may well be that this journey is one that needs to be continued, albeit in a slightly different direction.
We’d always encourage you to find out where your priorities are. One way of doing this is our Business Systems Health Check. This “short, sharp” service offers you a chance to step back and take stock, giving you a considered starting point and a strategy to move forward.
It may be that AI isn’t what you need right now, and BI tools would be better suited to your current needs and economic outlook. However, until you check, you could just be blindly following the latest trend!
If you’re interested in finding out more about what we can do for you on your digital transformation journey, then please get in touch!