Introduction
In the contemporary business landscape, the digital transformation of organizations is both an imperative and a challenge. This article aims to provide an insightful overview of the opportunities and hurdles that businesses face during the process of digital transformation. We will also delve into how Project TANGO is poised to offer a comprehensive cross-sector solution to support businesses in their journey toward digital transformation, creating significant value for their customers.
The Digital Economy and Digital Transformation
The concept of digitization has been a prominent topic on political agendas for several years, gaining traction since the end of the last decade. In 2015, the Organization for Economic Co-operation and Development (OECD) published its inaugural “OECD Digital Economy Outlook” report, which explored the potential opportunities presented by the emerging digital economy. This report highlighted how the digital landscape could offer substantial opportunities for growth and innovation
Since then, the relentless march of technology has led to a profound shift in the global economy, with digital transformation becoming increasingly ubiquitous across all sectors. It is essential to clarify some key terms to better understand this transformative process. The concept of the “digital economy” defies a single definition, as it evolves depending on one’s perspective. Initially tied to the advent of the internet, the digital economy has expanded to encompass various emerging technologies. Deloitte defines it as “the economic activity resulting from billions of daily online connections among people, businesses, devices, data, and processes” [3]. This interconnectedness, driven by the Internet, mobile technology, and the Internet of Things (IoT), forms the backbone of the digital economy.
McKinsey, in a June 2023 article, defines “Digital Transformation” as the rewiring of an organization with the goal of creating value by deploying technology at scale. It emphasizes that digital transformation is not just a competitive advantage but essential for the survival of organizations.
The recent COVID-19 pandemic exemplifies how digitization has reshaped our lives and business operations. The pandemic compelled individuals and businesses to rely extensively on digital technologies for productive activities, work, and the purchase of goods and services. From a business standpoint, embracing digitization is not merely a choice; it has become an inevitability in the evolving global economic landscape. Approached strategically, with the right tools and vision, digitization can yield tremendous benefits in terms of productivity, customer satisfaction, and environmental impact.
Business Opportunities and Challenges
A successful “digital transformation” journey is not solely about adopting a plethora of digital technologies within an organization. The foundation for success lies in the formulation of a well-thought-out strategy that envisions the future development of the business and effectively translates available technologies into a value proposition. There is no one-size-fits-all strategy for digital transformation, as each company and industry possesses its unique characteristics. However, there are common objectives and challenges that cut across sectors, offering opportunities for development and value creation for customers.
Companies explore and employ technologies to innovate across three main areas:
Customer Experience Improvement
Business Model Optimization
Operational Process Enhancement
Digital skills and capabilities underpin these areas of innovation. Moreover, as organizations embark on digitization journeys, sustainability objectives must be integrated. Digital technologies play a pivotal role in achieving the sustainability goals of initiatives like the European Green Deal. Organizations must leverage these technologies to make a positive societal impact while ensuring eco-efficient infrastructure that optimizes resource utilization and minimizes pollution.
The formulation and execution of a clear and shared strategy entail organizational change and the integration of data and technology. This approach leads to a successful digital transformation that improves consumer experiences, enhances efficiency, facilitates better decision-making, fuels innovation, and ultimately, boosts profits.
Nevertheless, alongside the rewards, the digitalization journey brings its own set of challenges, some of which are inherent to the digital economy:
Technology-Related Risks: Ensuring the ethical and sustainable use of emerging technologies such as the Internet of Things (IoT) and artificial intelligence, as well as infrastructure considerations like blockchain, cloud computing, and distributed computing.
Data Governance Risks: Protecting privacy and personal data, ensuring robust cybersecurity measures, and respecting data sovereignty.
Executive Risks: Addressing skill gaps, addressing cultural challenges, and effectively managing information technology.
It’s worth noting that many industries involve the transfer of data between companies through business partnerships, making transparency, privacy protection, and accountability paramount concerns. A well-crafted digitization strategy can provide solutions to mitigate these risks and take actions that satisfy and protect customers.
In the current landscape, consumers are increasingly conscious of the ethics of the entities they choose to engage with for goods and services, whether public or private. The proliferation of personal data collected by companies has raised concerns among individuals, driving the demand for enhanced privacy protection and ethical data usage. Europe, in particular, has enshrined data protection in its charter of fundamental rights. The General Data Protection Regulation (GDPR), implemented in 2018, seeks to establish a standard for data protection principles, accountability, security, and a “privacy by design and by default” approach, applying to all businesses processing personal data of individuals within the European Economic Area.
TANGO’s Solution
Given the backdrop outlined above, there is a growing need for solutions that transcend organizational boundaries and facilitate secure data management while prioritizing the citizen’s perspective. Project TANGO is poised to deliver such a solution, focusing on secure, trustworthy, and environmentally sustainable data management in a citizen-centric manner, thereby promoting cross-sector data sharing. The innovative platform developed by TANGO rests on three core pillars:
Technology: The project aims to create trustworthy, accountable, and privacy-preserving digital tools that enable seamless cross-sector data sharing.
Data Governance: TANGO seeks to establish a framework that ensures green data management while safeguarding data provenance and ownership.
User Experience: The project will deploy advanced tools and approaches to enhance the user experience across identity management, data ownership, and usability.
By harnessing the potential of digital technologies, TANGO envisions designing a trusted environment that acts as a gatekeeper for information and data flows. This environment empowers citizens, public and private organizations to engage and interact, contributing data both online and offline. The project’s effectiveness will be rigorously assessed through six pilot studies across different European countries, involving organizations from diverse sectors, supply chain software development company,including smart hospitality, retail, banking, public administration, smart manufacturing, and self-driving vehicles. These pilot studies will evaluate the platform’s applicability for data management in real-world scenarios.
In summary, TANGO aims to provide a solution that enhances the efficiency and responsible use of cutting-edge digital technologies while ensuring the protection of citizens, public and private enterprises from privacy risks. The project’s ultimate goal is to leverage these new technologies to meet the evolving needs of businesses and their customers through sustainable data management encompassing collection, access, and processing, all while complying with existing and emerging regulations.
Conclusion
In the ever-evolving digital landscape, businesses must embrace digital transformation to thrive. While this journey presents both opportunities and challenges, strategic planning and the right tools can lead to significant rewards. Project TANGO emerges as a beacon of hope, offering a cross-sector solution that prioritizes secure, citizen-centric data management in the digital age. By harnessing advanced technologies and fostering collaboration, TANGO aims to pave the way for a sustainable and prosperous digital future, where innovation and privacy coexist harmoniously.
