Digital Transformation Enables Industry Insights
Boom Year for Disruptive Technologies
Early in 2016, Huawei and other Information and Communications Technologies (ICT) solution providers began a number of joint ventures with ecosystem partners to explore how best to transition customers to innovative ICT technologies. Each of the joint venture members realizes that no single vendor can deliver the digital transformation for entire industries. Instead, solutions require a ‘cloud-pipe-device’ collaboration that combines open, scalable platforms that are flexible and yet highly secure. The government, finance, energy, and manufacturing sectors in particular have undertaken disruptive ICT solutions toward an end goal of operating state-of-the-art information and communication infrastructures.
Meanwhile, innovative ICT for enterprises — such as cloud computing, Big Data, Software-Defined Networking (SDN), mobile networking, and the Internet of Things (IoT) — continue to disrupt traditional business practices. For example, the retail banking market anticipates that USD 405 billion in total potential revenue is up for grabs from 2015 to 2017, and 90 percent of that projected value will be generated from opportunities empowered by an all-digital transformation.
Global ICT Voices
Kenya, which means ‘God’s Resting Place’ in the three major indigenous languages, has embraced the national strategic benefits of the recently deployed Safe City platform. The Kenyan government sees it as a model for improving security protection for cities across the country. Throughout 2016, the Kenyan government integrated a series of solutions, including a Computer-Aided Dispatch (CAD) system, Geographic Information System (GIS), video surveillance, a communications platform for handling alarms, and videoconferencing and broadband trunking systems. The overall solution has improved the efficiency of emergency response communications between police and medical, fire, and other municipal departments.
In 2016, Ikeja Electric, Nigeria’s largest power distribution company, also achieved large-scale ICT breakthroughs with its Advanced Metering Infrastructure (AMI) solution. The system resolves many problems arising from practical operations, such as high line losses, undetected power theft, long payment cycles, and slow return on investment. The company implemented a smart meter network, installed smart metering terminals, and created an IT-based application system, all to improve its operational efficiency.
The financial industry’s portfolio of on-demand, mobile, and customized banking products now includes Virtual Teller Machines (VTMs), cloud computing, and Big Data analytical tools. London-based HSBC, one of the world’s largest online financial institutions, is committed to creating a more personalized customer experience through digital channels. This year, HSBC successfully rolled out its VTM Remote Banking project to expand its digital offerings.
Manufacturing giant General Electric (GE) is realigning its global production by combining physical, mechanical, and analytical techniques. In 2016 alone, GE saved USD 500 million by taking advantage of initiatives that utilize smart devices; this figure is expected to double by 2020. In keeping with the company’s goals, GE is committed to designing a digital operating system for the worldwide market.
Enterprise ICT Experts
The biggest obstacle to digital transformation is not technology but, rather, lack of insight and expertise in each market. In the future, ICT enterprises will become industry experts with a deep understanding of customers’ core businesses and expectations. Ultimately, these enterprises will be able to provide customers with the most valuable transformative solutions based on ICT capabilities and industry knowledge.
As we enter 2017, enterprise digital transformation will continue to gain momentum. ICT device-pipe-cloud collaboration will also help enterprises gradually evolve from support systems into core production systems. According to analysis from an international source, China’s ICT market most likely will reach USD 6 trillion from 2016 to 2025, with an average annual growth rate of nearly 7 percent.
As Huawei’s rotating CEO Ken Hu said: “Our forever-increasing intelligent world will bring about enormous changes to connect society. We simply have no way of knowing how deep and far-reaching these changes will be. However, we can be sure of one thing: ICT will be the cornerstone.”