In the last 25 years, digital technologies have driven the creation of value through data. Although the times of the World Wide Web, back in 1990, may seem distant, all this has evolved into the interactive Web 2.0, social networks, eCommerce and today, in which we are already talking about Cloud Computing, virtual reality, robots and artificial intelligence. Although it may seem that all these phenomena are isolated technological innovations, together they form part of a concept known as the Digital Density Index.
What is the Digital Density Index?
Controlling electricity and water consumption Digital Density Index The number of connections and data that can be exchanged through the technologies available for each unit of social activity, understood as a person, a family, an organization, a sector, a market, a country or any segment of the population, is calculated through the number of connections and data that can be exchanged through the technologies available.
Being able to remotely access data, not only generated by individuals and organizations, but also by devices, sensors or any IoT object, regardless of their location and with the ability to interact with them, has potentially increased data density.
Digital transformation and digital density
The percentage of connected data per unit of social activity is used on numerous occasions. to generate a new business model or measure the potential that a new market may have. As Digital Density intensifies, the lines defined as the digital and physical worlds begin to blur and create an environment that blends the two and is commonly known as the Digital Transformation.
Increasing Digital Density can have several effects, but we will focus on a few:
- The company discovers its ability to monetizing and transforming your value proposition. A clear example of this is the effect of Amazon in the publishing sector or Netflix in the entertainment industry.
- The organization create a totally new business model and inconceivable until now. An example of this is Uber, which through an already created technology (smartphones) connected drivers and passengers in real time.
- Some companies have already transformed its physical sales due to the influence of the digital world.. For example, the automotive sector has adapted its sales outlets for a buyer who has previously crawled the web to make the decision even before going to the dealership.
Digital Transformation is directly related to Digital Density and whether the business model transforms or evolves to a new one depends on it. A thorough analysis of the architecture of Digital Transformation and its Digital Density can provide some insight into where an organization must go to remain competitive.
In the Zemsania Group, through our division Digital Transformation Solutions, We have innovative and comprehensive solutions to transform the business models of companies and turn them into digital enterprises.
Article source: IESE Insight