Technology Modernization: Punching Above Its Weight

 Technology Modernization: Punching Above Its Weight

Businesses have a clear line of vision from technological modernization to tangible business value. If the pandemic breaks out, modernization goes from essential to absolutely necessary.

The terms “technological modernization” and “digital transformation” are so slow to be used that it is easy to confuse the two. For the record, modernization means upgrading technology or replacing it with something new. The digital transformation is broader; its meaning may vary, but for the most part, it is about integrating digital technology within a business to change the way we work or create value for customers; importantly, digital change calls for changes in culture and status quo.

While modernization is not the same as change, is exactly the engine that drives it. If there was any doubt about this before Covid-19, now there is none; Indeed, in the post-pandemic world, the influence of modernization is felt even more in the technological aspects.

See also: Importance of Application Modernization for Business

Modernization leads to value beyond business

For several years now, businesses have had a clear line of vision from technological modernization to tangible business value. For example, in an April 2020 global survey of business and IT, a leading analyst found that in the past 24 months, nearly 60 percent of company respondents had seen at least a moderate impact of inflation. -or technology to create new revenue streams, while about 75 percent saved costs (~ 30 percent reported significant savings). Programs that use advanced technologies, such as the Internet of Things and edge computing, save more costs for their businesses (44 percent registered significant cost reductions).

But when the pandemic breaks out, modernization goes from essential to absolutely necessary. A survey found that 80 percent of businesses were accelerating their digital transformation programs, and 89 percent said the pandemic was fueling the need for more agile and scalable technology.

The need for speed, flexibility, and innovation is probably even higher in the field of public service. As long as the pandemic persists and, in the years after, governments need strong, agile systems to manage public health initiatives, repeated vaccinations, and programs that offer financial support to individuals and businesses. Modernization of government technology systems is essential to that agenda.

See also: FinServ App Modernization Is Essential to Dealing with New Players

Digitalization sustains supply chains

Supply chains suffered greatly during and after the pandemic because the world’s transportation and logistics systems experienced unprecedented devastation. It is estimated that travel hours around the world have increased by a whopping 25 percent.

Moving to work remotely is also a significant challenge for supply chain professionals. The research findings are roughly divided in half on how well businesses are managed. In one study, which was more optimistic about the outcome, respondents who were able to plan good supply chain activities despite working from home could do so because their organizations invested in modern digital solutions. , advanced analytics, remnant.

With digitization clearly linked to supply chain performance, businesses across the board are increasing their investment in digital supply chain tools. There is an upward trend in adopting even more advanced technologies, such as 3D printing (think medical equipment companies) and augmented reality, in manufacturing and distribution operations. . Logistics operations will continue to automate immediately so that they can withstand future risks.

Digital technology sustains remote lives and livelihoods

Currently, the greatest value of modern post-pandemic technology is that it allows life and work to continue, even remotely. While an increasing number of distributed workers have been on the cards for a long time, especially in the high-technology domains, no one is ready for it to happen overnight. But once employees have the tools and technology they need to work from home, they can move quickly and be productive.

Admittedly a hybrid model of work is here to stay. And it can inspire other trends, such as building an expanded business on a modern technology foundation, where a digital platform can enable remote customer support and service, the cloud will host many business workloads, and digital productivity tools support online learning and collaboration. , and the latest AI-enabled security tools will protect them all.

This will provide a great opportunity for completing the digital transformation of businesses by making other necessary changes-for example, in culture, thinking, change management, digital literacy, and methodology. to change. There is no saying that these changes – and consequences of digital change – need to be driven from above.

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