Becoming a modern digital business in 2020

Article

Digibee, 06/08/2020

Over the last 30 years, globalization has become a reality. The race to new market frontiers is more competitive now than ever before. Strong business alliances have formed between companies on a global scale, creating more economic opportunities to exploit. Digital integrations were established to tie this global economy together with an infinite amount of data constantly being generated and collected.

In the age of globalization, data and information about the end-user is more readily available as the consumer adoption of electronic communications has increased significantly. With this shift in consumer adoption of digital products, data has become one of the most valued global commodities.

Why is data a valued commodity?

Most corporations are familiar with buying data for market research, taxation regulations, HR best practices, financial markets performance, production benchmarks, etc.. However, most companies will freely distribute data to other research companies when asked, but very few companies sell this valuable data for profit. Oddly enough, very few companies use their own data to inform strategic decision-making processes and enable business agility.

Companies are quickly realizing the power of data and harnessing it for internal use.

The CEO of a manufacturing company gave Digibee some insights on why this happens within their organization: “Data was not our core business, producing and selling goods was.” A similar answer was given by a large retailer: “Our business is to make products available to consumers, they will come.”

These are a few examples of how known capital resource restrictions impact data availability and usage based on the focus of the organization. This was the state of business prior to the age of digital transformation. Additionally, the COVID-19 pandemic disrupted everything overnight as it quickly reached the US and a State of Emergency was declared in all 50 states.

What has been the impact of COVID-19?

A Bank of America Research report from March shows that at the beginning of the government declared lockdowns, there was a complete change to consumer behavior. As people were forced to stay at home, spending reductions caused the hospitality and travel industries to suffer, while grocery stores actually saw an increase in growth.

Source: BofA Global Research

In an effort to flatten the curve and avoid overloading the healthcare system, everyone including company leaders and employees were encouraged or required to stay at home. Social distancing changed the lives of many and would prove to have a significant impact on the economy over time.

The US government recognized there was a significant risk to businesses and offered low-interest loans for companies in need in conjunction with another loan designed to help maintain people on the payroll for a longer period of time . Although this relief was available, not every company needed a loan from the government. In fact, some companies reached exponential growth during the pandemic. The “Zoom Boom” is an exaggerated example of a relatively unknown video conferencing company reaching a market valuation of almost 50 billion dollars. As of May 2020, this is higher than the seven largest airline companies in the world combined.

Source: The Visual Capitalist

Have we entered the “The Great Separation”?

The new normal is changing the way people interact personally and professionally. This new focus on the use of technology to facilitate social interactions has resulted in a digitally enhanced business to consumer business model. The Bank of America refers to this moment as the “Great Separation”.

The “Great Separation” recognizes that there will be a chasm in the economy with an estimated 10% GDP reduction in the 2nd quarter, a very stagnant 3rd quarter, the separation valley, and a 4th quarter economic rebound.

The companies that will drive the economic re-growth will have:

  1. Survived the crisis
  2. Adapted and adopted new electronic strategies, becoming a digital-first e-everything company

Source: BofA Global Research

How to Become “Digital-First”

There is not a single company today that does not have a legacy technology inventory; being it hardware (servers, network, desktops, etc), software (ERP, CRM, BPO, office packages, etc.) or cloud-based as-a-service systems in place.

In order to become a digital-first company and be e-everything, companies need an integration strategy that leverages both past investments and new technology, connecting the information technology to allow the business to become more agile, nimble, dynamic, cost-effective, crisis-proof, and profitable.

How do you become digital-first?  INTEGRATION.

The dictionary defines integration as adding parts to create a whole. In technology, systems integration is an adage that started when the second computer was created and needed to exchange information with the first one.

Modern systems integration strategy requires careful consideration of all the existing technology assets, how they will work with the current business model, keep up with new business, and support the integration of innovative and disruptive technology that has yet to be created.

Integrate without a single line of code with a Digibee’s HIP.

Reboot your IT Strategy with a HIP

A digital-first strategy is why the Hybrid Integration Platform concept was created. The HIP model can connect past and future, local and remote, on-prem and cloud systems, or any cloud system enabling complete end-to-end integration on ONE platform.

Any user can develop and deploy connections leveraging Digibee’s simple drag and drop canvas where the system will automatically manage and enhance data flows, and balance loads faster than ever before. Digibee’s platform will enable users to complete these integrations with armored security 10x faster than any other process or platform available today.

A self-service integration platform helps to reboot the IT strategy and brings immense value to the business in many different ways. Accelerating the pace of Digital Transformation will strengthen the agility of an organization in times of crisis, and can be leveraged for growth to power innovation.

Digibee Case Study

Industry: Retail

Triggering Event: New POS to meet tax compliance requirements

Project Initiative: Connect 68 stores, some with gas stations on premise, to the new POS system. Integrations include:

  • ERP on the back end
  • Retail POS
  • New Gas station
  • Tax settlement platform
  • New cloud-based CRM
  • Third-party e-commerce platform

The Result:
By using Digibee, this complex integration scenario was connected and up and running in 48 hours. All invoices from the POS and e-commerce were posted to the back office and to the taxation system for audits. The system currently processes over 2 million invoices per month. Additionally, they rely on Digibee to be future proof as the platform can create and link new systems as needed.

In Summary

The “Great Separation” and a rapidly changing consumer landscape are forcing companies to accelerate the rate at which they adapt, and adopt a digital-first business model across the enterprise.

The battle to integrate legacy systems and new technologies together is an incredibly complex and expensive task that proves to be a daunting challenge for many companies. The “old way” of doing business has become unsustainable as competition and market pressures increase.

With the emergence of Hybrid Integration Platforms, like Digibee, companies can quickly enable an end-to-end integration architecture that ensures success as we face the “Great Separation”. Which side of history will you be on?

Blog

The home office race: when the giants felt like startups and accomplished more

Read more

Reboot and Accelerate your Digital Transformation Strategy

Read more

Becoming a modern digital business in 2020

Read more

4 COVID-19 lessons that has changed eCommerce forever

Read more