© 2019 Futurum Research • FuturumResearch.com

THE INTELLIGENT ENTERPRISE FOR HIGH TECH

It has long been understood that with great opportunity comes great responsibility, but the statement takes on a new, more impactful, meaningfor high tech companies in the data-driven digitalera. In today’s world, we aren’t just driving towardthe most innovative products and services, but we are measured by how we make our customers feel; the experience economy. Here technology producers are not only charged with creating the products and services that will help drive digital transformation and ensure trust and deeper connection for customers,but they must transform themselves as well, or suffer the penalties of failing to do so.

This necessitates more holistic points of view and new ways of operating given that economies are increasingly being seen as circular. The modern workplace often requires skill sets that reachbeyond a single profession. In addition, product design must be agile enough to quickly adapt to new regulations as well as to insure data privacy and protection of intellectual property, and trust is an essential component of successful multi-tier and multi-vendor supply chains. Falling short of any of the aforementioned creates both business risks and opportunity gaps for competitors to encroach andtake away business. In addition, modern end users, whether they are businesses, organizations, or consumers, demand experiences that cater to them specifically and individually.

In order to deliver on all of this successfully, high tech companies must be mindful of larger industry trends. These include:

• Customers choose how they consume from a variety of different options. These include renting, timeshare, as-a-service, paying-as-you- use, etc.• Experience is weighed heavily into design, production and lifecycle support to create a deeper and longer-lasting customer relationship.• Elasticity by default is key, as agility and scalability are the new normal. Providers must be ready to scale from zero to 1 million plus, profitably and with little notice.• The concept of “intellectual property inside” is key to brand product differentiation, as well as the ability to charge a premium.• Industry regulations, tariffs, and rules of accounting change regularly. Companies must engage in a process of continuous monitoring and be ever responsive to changes in the environments in which they operate. Equally as important, they must be vigilant and proactive around their customers’ expectation of and right to data privacy.

High tech companies must also take a keen look at how new technologies such as Artificial Intelligence (AI), blockchain, machine learning, Internet of Everything (IoE,) and analytics can transform their businesses into what SAP calls Intelligent Enterprises.

© 2019 Futurum Research • FuturumResearch.com

A) Provide outcomes, not products and services. The modern user isn’t interested in long, risk filled, and what can seem to be tedious, costly processes like buying hardware, software and configuration services and then hoping to get great results. What they want instead are outcomes, now. They are seeking the new a-a-S, Experience as a Service. The challenge is how do we get from where we are now to there. The answer may lie in transforming relationships and processes from quote to cash.

B) Move from linear supply chain models to intelligent, trusted networks. In order to thrive in the digital economy, High Tech companies must reimagine themselves in a world where the winners will leverage Artificial Intelligence (AI), machine learning, and blockchain to facilitate trust, transparency, and collaboration.

C) Produce digital smart products. Modern customers don’t feel well-served when they get products that can’t be reconfigured on the fly to meet their ever-changing needs. In order to win and retain customers, high tech companies need to build products that are easy to personalize and customize on-the-fly.

D) Build lifelong relationships through customer intimacy. Putting customers at the center of all interactions is easier said than done. High Tech companies, whether they are dealing with other businesses or consumers, must get to know them based not only on CRM data, but also information stemming from customer interactions, offline and online streaming from devices and more. Insights can then be used to help create individualized experiences across channels.

SAP’s vision for Intelligent Enterprises in High Tech calls on companies in this sector to abandon the idea that a single successful product or point application can set them up for long term success and instead move to strategies around platforms or subscription-based models. The thinking here reaches beyond simply how a product is consumed and monetized to what it can actually offer. SAP suggests that products can become platforms and then serve as commerce hubs or generate additional revenue via innovation by business partners. This is where high-tech firms have the opportunity to drive experiences that supersede transactional product/service relationships. Other ways of monetizing might include offering outcome-as-a-service. The unique differentiator is the intellectual property within or around these reimagined products.

But while the vision for High Tech companies—moving from legacy to platform and subscription models that make way for greater customer intimacy, easier scaling, all while ensuring data privacy and compliance with regulations, among other things—is clear, getting there from here can seem challenging. That said, SAP offers the following guideposts for transformation:

High Tech companies who want to thrive versus fight for survival in the years to come should focus on these priorities, while at the same time embracing the safe and ethical use of intelligent technologies. Those that succeed will emerge as intelligent enterprises which, by definition, have the ability to learn from their environment, to make better decisions based on that learning, and to deploy fixes even before problems occur.

It goes without saying that the time for digital transformation is now. The strategy, tools and guidance specifically geared toward High Tech is available. SAP recommends leveraging a gamut of enabling experiences, digital technologies, and a rich ecosystem of enabling vendors, as well as a step-by-step plan. Though the task ahead may seem large and complex, there is a simple way forward. Ready to take the next steps to transform your High Tech organization into an Intelligent Enterprise? Download this white paper and you’ll be on your way.