Abstract
There have been several studies on the digital trends in digital transformation and how these trends affect various industries in the world. This fact has prompted our study into various trends in digital transformation, like IoT, AR, cloud computing, and big data analytics, which are the most commonly used ones. We will also look into various industries and companies such as Amazon, Netflix, H&M Group, and Boeing to see how at least one of these technologies has affected their operations. However, these trends have challenges and opportunities during implementation, which we will also look into while remembering best practices for their implementation. Finally, we will provide various recommendations for each trend to help companies know how to use the technologies and make them bring more benefits than adverse effects.
Introduction
Technology is taking over the world, and today, everywhere we walk and go, we use, eat and drink because of technology. Therefore, this necessitates studying the various trends in technology and how they affect the various industries since everything comes with adverse effects. Giving recommendations to the companies on the best practices on how to use these technologies is also essential. This study will focus on Amazon, Netflix, H&M Group, and Boeing and their IoT, AR, cloud computing, and big data analytics implementation.
Augmented Reality (AR)
In recent years, there has been a significant increase in the adoption and utilization of Augmented Reality (AR) technology, particularly since 2020. AR refers to the incorporation of digital technology into the user’s surroundings in real time. According to Bellalouna (2021), individuals utilizing AR technology typically possess a real encounter with the produced sensory data and accompanying information superimposed onto their physical environment. AR pertains to the utilization of data and information in real-time, which is presented through various virtual enhancements such as audio, graphics, text, and other elements integrated within tangible objects in the physical world.
Industries and Organization That Uses It
Various industries utilize AR, such as healthcare, education, and manufacturing. This facilitates the manufacturers’ ability to access automated data and manual processes simultaneously. In recent years, the fashion retail industry has frequently utilized this trend to transform how customers engage with their merchandise (Latsyshyn et al., 2020). The implementation of Augmented Reality (AR) technology has facilitated the fashion industry by enabling its constituent companies to establish their brand by providing an immersive and authentic experience. Fashion retail corporations such as H&M employ augmented reality (AR) technology to enhance their entertainment and innovation capabilities. Through the utilization of this trend, the corporation can effectively foster greater customer engagement. The clothing items are produced using 3D and animation design software. Furthermore, patrons have the opportunity to don virtual garments through the use of air and other gaming avatars. In addition, the company utilizes GPS-integrated augmented reality (AR) applications to showcase its latest collection to its clientele.
The implementation of augmented reality technologies within the company has resulted in an enhancement of the overall customer experience and a notable increase in sales. As per Smith’s (2022) findings, the H&M group’s net sales in 2021 amounted to approximately 22 billion USD. According to Shearsmith’s (2022) report, the company disclosed its financial outcomes for the initial half of 2022, indicating a 20% surge in net sales. At present, the organization possesses a brand valuation exceeding 7 billion USD. H&M has increased its customer engagement, resulting in a significant upsurge in sales.
Challenges and Opportunities
The utilization of AR) technology poses a variety of prospects and challenges for enterprises such as the H&M Group. A significant obstacle lies in creating AR applications and merging them with pre-existing technological frameworks. Moreover, the level of user adoption of Augmented Reality AR needs to be improved, posing a challenge for organizations to rationalize their investment in AR technology. One of the challenges that need to be addressed is the guarantee of accessibility and user-friendliness of AR experiences for all customers, including those with disabilities.
Nonetheless, there exist noteworthy prospects for enterprises that effectively execute AR. AR can improve the customer experience by offering a heightened level of immersion and engagement during the shopping process. The implementation of augmented reality technology can enhance sales and revenue by allowing customers to visualize products in their own surroundings, thereby facilitating more informed purchasing decisions (Mekni & Lemieux, 2014). AR has the potential to furnish businesses with significant data insights, including but not limited to identifying the most popular products and analyzing customer interactions with products.
Best Practices and Success Factors
In order to effectively execute Augmented Reality (AR) technology, enterprises must adhere to established guidelines and protocols. To commence, it is recommended to establish clear business objectives and subsequently evaluate the potential of AR technology in accomplishing them. Consider the user experience and design augmented reality applications that are user-friendly and straightforward. In addition, it is recommended that enterprises prioritize the integration of augmented reality (AR) technology into their current customer journeys and touchpoints instead of developing independent experiences.
The successful implementation of AR is contingent upon several factors, including the presence of a specialized team equipped with the requisite technical and creative proficiencies and a disposition towards experimentation and iterative refinement of AR applications. Assessing the influence of AR on key performance indicators (KPIs) is a crucial aspect for businesses, as it enables them to adapt their strategies accordingly. The H&M Group has effectively integrated AR technology into its operations through collaborations with technology firms to create AR applications that augment the customer experience. One such example is their virtual dressing room app. Incorporating AR into their marketing strategies and in-store encounters showcases their dedication to remaining technologically advanced and innovative within the retail sector.
Recommendations
The increasing utilization of augmented reality (AR) across various sectors necessitates the consideration of optimal strategies and suggestions to ensure effective integration. At first, enterprises must ensure that the utilization of Augmented Reality (AR) is congruent with their broad business goals and customer requisites. It is imperative to consider the intended audience while designing an AR experience, ensuring it is user-friendly and accessible. Furthermore, it is imperative to give precedence to safeguarding data privacy and security while also adhering to pertinent regulations. It is imperative for enterprises to consistently assess and appraise the efficacy of their augmented reality (AR) integration while also making essential modifications and enhancements to optimize its influence.
Internet of Things (IoT)
According to Alam (2020), the Internet of Things (IoT) is a network of interconnected devices that facilitates communication and data transfer without requiring explicit human or computer interactions. Numerous entrepreneurial ventures have formulated their operational strategy based on this particular technology. It offers organizations novel prospects for cultivating a more immediate rapport with their clientele.
Industries and organization that uses IoT
The technology currently benefits the leading industries of finance, manufacturing, health, hospitality, and agriculture. According to Korchagin et al. (2019), Boeing has implemented IoT technology to enhance its manufacturing efficiency. This individual is a trailblazer in the field of aviation. The company is additionally augmenting the quantities of the interconnected detectors that are integrated within its aircraft. The implementation of this technology has facilitated the company in gaining a comprehensive understanding of its clientele’s purchasing habits and favored consumer trends. Through the utilization of this technology, enhancements have been made to air traffic communications and the overall in-flight experience. The company’s adoption of digital transformations has resulted in a steady annual revenue growth of 7% amidst a surge in sales (Korchagin et al., 2019).
Challenges and Opportunities
Implementing the Internet of Things (IoT) within the aerospace industry, focusing on Boeing, poses various challenges and opportunities. Integrating IoT devices and systems with pre-existing aircraft infrastructure poses a significant challenge due to its intricate nature, necessitating comprehensive testing and validation measures to ensure the safety and dependability of the system. The implementation of IoT in the aerospace industry raises significant concerns regarding data security due to the potentially catastrophic consequences of any breach or failure (Stankovic, 2014). The expenses associated with executing a plan can be substantial, and the return on investment may need to be more readily discernible.
Nevertheless, the integration of IoT presents significant opportunities for Boeing and the aerospace sector. IoT sensors can offer instantaneous monitoring of crucial systems, facilitating prognostic maintenance and mitigating the likelihood of equipment malfunctions. These outcomes may result from this approach, namely enhanced safety, decreased periods of inactivity, and diminished expenses associated with upkeep (Stankovic, 2014). The implementation of IoT technology has the potential to improve the overall passenger experience by facilitating real-time updates on flight status and enabling passengers to access in-flight entertainment and services.
Best Practices and Success Factors
In order to effectively integrate IoT technology within the aerospace sector, it is imperative to adhere to established best practices, such as placing a premium on safeguarding data security and privacy, instituting clear governance and policies, and guaranteeing seamless interoperability across devices and systems. Moreover, it is crucial to comprehensively comprehend the gathered data and its application in enhancing operational efficacy, ensuring safety, and augmenting the customer experience. The success of IoT implementation is contingent upon collaboration with technology partners and suppliers.
The successful implementation of IoT in the aerospace industry is contingent upon several factors, including an innovative and agile organizational culture, a readiness to allocate resources towards IoT technologies, and the capacity to manage and analyze substantial volumes of data efficiently. Furthermore, it is imperative to uphold a robust dedication to safety and adherence to regulatory standards to sustain confidence in the utilization of IoT within the aerospace sector.
Recommendations
The efficacious implementation of Internet of Things (IoT) technology is contingent upon meticulous strategizing and implementation, alongside strict adherence to optimal methodologies and suggestions. Initially, enterprises must guarantee that their IoT strategy aligns with their comprehensive business objectives and goals. Furthermore, they should meticulously assess the probable influence on their business processes and operations. Ensuring data privacy and security is crucial, and this involves prioritizing the implementation of strong authentication and encryption mechanisms. Furthermore, enterprises must establish clear governance and policies to guarantee the efficient utilization of IoT resources and foster interdepartmental collaboration. It is imperative for enterprises to consistently oversee and assess their IoT integration, encompassing the collection and examination of data insights to foster ingenuity and enhance operational efficacy.
Cloud Computing
Many people see cloud computing as the backbone of digital transformation. Computing services, such as databases, pharma servers, software, networking, intelligence, and analytics, are provided through the Internet under this model, allowing for greater scalability and speedier innovation. IT resources are available through the Internet whenever and wherever they are needed.
Industries and organization that uses it
Companies in the financial sector rely heavily on this technology to help them identify and prevent fraud in real-time. The construction, communications, waste, water management, manufacturing, and energy-generating sectors are just some of the many that use this technology. Companies like Apple and Amazon Web Services are among the most well-known adopters of cloud computing. Mbunge and Muchemwa (2022) include Netflix, GE, and eBay as the companies using cloud computing the most globally. Netflix, for one, uses cloud computing and storage exclusively because of its scalability requirements. The transporting and recommending features and other associated Netflix app features are all kept in the cloud, together with the app’s business logic, big data processing, and distributed databases.
With cloud computing services, businesses may access their data and apps from any internet-connected computer or device. It lessens the burden on individual companies to invest in and manage their own internal IT systems. Over the years, Netflix has seen a rise in its bottom line, with revenue growth of 5.91% or more each year shown in recent publications (Güngör, 2020). The numbers indicate the firm’s overall revenue is about $7.93 billion.
Challenges and Opportunities
Cloud computing implementation offers Netflix and other enterprises several challenges and opportunities. Existing application and data migration to the cloud is complicated and must be carefully planned and executed to prevent business impact (Sadiku et al., 2014). Data security is a significant worry when moving to the cloud because of the gravity of the implications associated with a failure or breach. The return on investment (ROI) may be obscure right once, and the cost of implementation might be substantial.
However, businesses that can adequately use cloud computing stand to gain a great deal. Cloud computing, for instance, allows for the quick and economical scaling of an organization’s infrastructure, resulting in more adaptability and responsiveness (Sadiku et al., 2014). The expenditures of both hardware and upkeep might be minimized as a result. With data safely saved in the cloud, cloud computing may help enhance disaster recovery and business continuity.
Best Practices and Success Factors
The effective implementation of cloud computing necessitates adherence to best practices such as meticulously evaluating the business case for cloud adoption, selecting an appropriate cloud provider and implementation model, and guaranteeing data security and compliance. Furthermore, enterprises must give precedence to the portability of applications and data to evade the issue of vendor lock-in. Additionally, it is crucial to establish clear governance and policies to guarantee the efficient utilization of cloud resources.
Implementing cloud computing is contingent upon several success factors, including a well-defined strategy and roadmap for cloud adoption, a proficient and committed team to oversee cloud infrastructure, and the capacity to monitor and manage cloud resources efficiently. Netflix has effectively utilized cloud computing to transform the media sector, serving as a noteworthy illustration of this technological advancement. The organization has migrated its complete infrastructure to the cloud and has devised novel technological solutions, such as the Chaos Monkey software, to assess and enhance the robustness of its cloud-based infrastructure. Netflix’s ability to rapidly expand and provide exceptional customer service, coupled with a reduction in expenses and an increase in operational efficiency, has been made possible by this development.
Recommendations
The adoption of cloud computing by businesses can yield numerous advantages. However, adhering to established guidelines and protocols is crucial to mitigate potential obstacles and guarantee a prosperous implementation. At first, it is imperative for enterprises to meticulously assess their rationale for embracing cloud technology, encompassing a comprehensive analysis of the expenses, hazards, and advantages of diverse cloud implementation approaches. In addition, enterprises should opt for a trustworthy cloud service provider that can cater to their distinct needs and guarantee high data protection standards and adherence to regulatory standards. In addition, it is recommended that enterprises give precedence to the concept of data portability and refrain from being constrained by a particular vendor by embracing open standards and retaining authority over their data. In fourth place, it is recommended that businesses establish clear policies and governance frameworks to guarantee the efficient utilization of cloud resources and reduce the likelihood of risks such as data breaches or service outages. It is recommended that businesses allocate resources toward enhancing the proficiency and knowledge of their workforce in cloud computing. This will enable them to oversee their cloud infrastructure and applications proficiently. By adhering to these guidelines, enterprises can effectively utilize cloud computing to enhance organizational flexibility, streamline operational efficacy, and foster ingenuity.
Big Data Analytics
Uncovering information like correlations and hidden patterns in massive data is challenging. Informed business choices may be made with the use of big data analytics (Feroz, Zo, & Chiravuri, 2021). In order to speed up their analytics projects and business intelligence, many organizations are using this technology as an alternative to the traditional data warehouse.
Industries and Organization That Uses It
Insurance, healthcare, education, finance, dot com retail and wholesale, and the media and entertainment are just a few sectors that employ big data analytics. Amazon, Facebook, Apple, and Starbucks are leading corporations embracing big data analytics. By analyzing all of the available data, Amazon’s big data determine which warehouse is geographically nearest to the consumer, hence cutting down on delivery costs.
As of this writing, Amazon is the world’s third-largest publicly-traded firm.S Amazon’s product pricing is another area where big data is proving useful, helping the corporation attract and retain more consumers. It boosts the company’s bottom line (Varian, 2014).
Challenges and Opportunities
Implementing big data analytics poses challenges and opportunities for businesses such as Amazon. One primary obstacle is the extensive quantity, rapid pace, and diverse range of data that necessitates processing and analysis. Furthermore, ensuring the quality and accuracy of data can pose a difficulty, alongside apprehensions regarding data security and privacy (Fan et al., 2014). The expenses associated with executing a plan can be substantial, and the return on investment may need to be more readily perceivable.
Nonetheless, noteworthy prospects exist for enterprises that effectively execute big data analytics. Using big data analytics empowers enterprises to acquire significant insights into customers’ behavior, inclinations, and necessities, thereby enhancing the customer experience and propelling business expansion. Moreover, it facilitates enhanced decision-making capabilities and aids enterprises in optimizing operational efficiency while minimizing expenses.
Best Practices and Success Factors
The successful implementation of big data analytics necessitates adherence to recommended procedures such as establishing clear business objectives, choosing appropriate tools and technologies, and assembling a proficient team with the requisite knowledge in data science, machine learning, and statistics. Moreover, enterprises must give precedence to the quality and governance of data and formulate clear protocols and methodologies for the management and analysis of data.
The success factors for implementing big data analytics entail fostering innovation and experimentation, demonstrating a readiness to allocate resources toward new technologies, and effectively communicating and visualizing data insights to stakeholders. Amazon has effectively utilized big data analytics to revolutionize the retail sector, serving as a noteworthy illustration of this phenomenon. Sophisticated algorithms and machine learning models have been developed to offer personalized recommendations to customers and optimize supply chain operations. These circumstances have enabled Amazon to provide outstanding customer satisfaction and uphold its dominant status as a frontrunner in the electronic commerce sector.
Recommendations
The practical implementation of big data analytics necessitates meticulous strategizing and implementation, alongside strict adherence to established guidelines and suggestions. Initially, it is imperative for enterprises to establish their business objectives and guarantee that their data analytics approach is congruent with these objectives. In addition, it is imperative that they accord priority to data quality and governance by instituting clear policies and procedures for the management and analysis of data. In addition, it is recommended that enterprises allocate resources towards acquiring appropriate technological infrastructure and skilled personnel, such as proficient data scientists and advanced analytics software, in order to scrutinize and construe their data proficiently. In addition, enterprises must accord precedence to safeguarding data privacy and security by incorporating proper authentication and encryption mechanisms. It is imperative for enterprises to consistently assess and appraise the efficacy of their big data analytics implementation while also making requisite modifications and enhancements to optimize its influence.
Conclusion
In conclusion, the need for new technology and the changes it has brought cannot be taken for granted, but there must be measures to regulate these effects, even though most are positive. Companies have to thoroughly research these technologies before implementation, and even after implementation, they need monitoring and evaluation to evade any danger. However, technology is good and change is inevitable however they need to be used with moderation and caution.
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