The world is becoming more digital. Businesses that aren't leveraging emerging technologies like blockchain will be left behind, and meanwhile every industry today can benefit from revolutionary distributed ledger technology and its role in digital transformation.

Digital transformation has become a catchphrase that describes how businesses, organizations, governments and other organizations across industries must use evolving digital technologies if they are to both thrive and enjoy a competitive advantage.

Every so often a technology comes along that fundamentally changes how we work in an industry or society. Video streaming technology has been popularized by services like Netflix led by pioneers in the video rental industry like Blockbuster who were lagging behind due to their inaction in using the novel technologies coming into the industry. It is a common story of tragedy throughout the modern digital age that we can allude to and will likely continue as a story of those who cannot keep up with the march of progress.

Technology is at a constant rate of evolution. It doesn't sleep and it doesn't wait for anyone. If you're not paying attention, you could miss out on opportunities that could position you as a leader in your industry and reap the rewards. One of the latest digital technologies being adopted by a growing number of businesses, organizations and even governments is distributed ledger technology aka blockchain technology.

What is digital transformation? 

Before we proceed, it is important to first understand what digital transformation means and what are the overall benefits of digital transformation.

Simply put, digital transformation is when a business integrates digital technology into everything it does as an entity. This includes adopting a customer or client-driven digital-first approach.

It just goes a long way to go paperless. You have blockchain technology, machine learning, edge computing, automation and many other emerging technologies that will help your business become a disruptor in your niche. There will be a fundamental shift in how you operate your enterprise and deliver value to your customers.

Going digital is growing rapidly in all industries and has already changed customer expectations, putting even more pressure on companies to adopt digital technologies. As these expectations rise, we also see new business opportunities being created, and it's a win-win. Current trends show that the higher a company's digital maturity, the higher its profit margins. 

How companies are responding to an increasingly digital world

The late 20th century saw a significant acceleration of digitalization across all industries, with adoption skyrocketing in the early 21st century (mostly during the 2020-2022 COVID-19 lockdown period).

Now that we are approaching 2030 (the oft-cited target date for various ambitious goals), the need to integrate emerging digital technologies is more important than ever. Ignoring the very clear and obvious digitization of everything in society spells bad news for anyone looking to succeed in their industry, field or niche.

"We've been given a glimpse into the future, and organizations that accelerate their digital transformation now will be poised for success in the data age unfolding before our eyes."

     -Michael Dell, Chairman and CEO of Dell Technologies

This sentiment is echoed by many enterprise leaders. In fact, when Dell Technologies released its Digital Transformation Index 2020, we learned that an impressive 79% of businesses are reinventing their business models to become more digital. 

This is based on the fact that nearly one in three companies are worried they will not be able to survive in the next few years. 60% of companies that believe they will survive are preparing for a reality where it will take years for them to start making profits again. Yes, Covid has played a big role in this fear, but with digitization accelerating rapidly, this fear is a present danger for businesses that are not modernizing their operations. 

It doesn't have to be this way. Regardless of the industry or sector you work in, embracing the digital technologies available to you right now will give you an exceptional opportunity to stay on the leading edge and reap the rewards that come with such a savvy position.

Benefits of digital transformation 

Is it really worth going digital in every aspect of your business? Here is a list of key benefits of digital transformation that should answer that question for you.

Advanced skills 

Integrating digital solutions streamlines processes and eliminates the need for manual tasks as well as automated routines resulting in significantly improved efficiency and productivity, resulting in lower costs.

Improved customer experience 

The customer experience can be greatly improved thanks to the digital tools available today. This means a business can provide its customers with a more personalized experience, faster response times, and 24/7 availability. This translates into increased customer satisfaction and loyalty.

Improved decision-making and agility 

Get real-time data and analytics that will ensure your business can make the best-informed decisions possible, as well as respond quickly to market changes and demands, as well as competitive pressures.

At low cost 

Save money by reducing human labor, customer churn, operational costs and optimized resource allocation.

Income increased 

Watch your revenue grow, run the business more efficiently and open new channels for a better customer experience

Enhanced cooperation 

Wherever you are in the world, take advantage of digital tools that make collaboration seamless and communication more effective.

Greater innovation 

Going digital encourages more innovation as it provides new opportunities to develop and deliver products and services to an ever-evolving customer base.

Improved security 

Enhance your business security using digital technologies such as encryption, blockchain, authentication and real-time monitoring.

Competitive advantage 

Differentiate your business from its competitors by being more innovative, agile and customer-centric.

The list goes on but by now you can reflect on how clear it is that adopting a successful digital transformation can be a boon for your business. 

Blockchain – A Digital Transformation Revolutionary 

One of the most promising emerging technologies in this digital era is blockchain technology. True to its inception with the launch of the Bitcoin cryptocurrency in 2009, it has since expanded into a universe of over 1,000 different blockchains and nearly 20,000 active cryptocurrency tokens.

What is blockchain technology? 

In short, blockchain technology is similar to a database but is actually a distributed ledger that communicates with a decentralized network of computers and stores data in data (transaction) blocks.

Each computer (peer/node) has a copy of the ledger and that ledger is constantly updated and verified by the entire network. This ensures that every transaction is accurate and secure. This process is called the consensus algorithm.

The lack of a centralized entity ensures that the entire network is trusted (aka trustless) and harbors no single point of failure, making it exceptionally secure. Transactions on the blockchain are transparent, immutable, and secure.

A mature emerging technology 

The level of excitement within the blockchain industry is rarely seen in other areas of the digital space…and for good reason. It promises nothing less than a fundamental redesign of society's underlying digital architecture – where centralized points of failure rely on trust and are shifted to decentralized and distributed networks that are trustless and permissionless. This means that blockchain technology promises us a future where society is more just, prosperous, and secure.

Although currently a tiny fraction of the world's estimated 27 million software developers, the blockchain space continues to grow every year, with more than 61,000 new developers becoming part of this revolutionary digital space in the "Crypto Winter" year of 2022. Drives developers toward distributed ledger technologies that can offer tremendous potential and real-world improvements to all industries.

Although it is still in its infancy, it is beginning to mature. After all, over a billion people have used it in some way over the past decade, usually through the use of cryptocurrencies, especially in developing countries with weak fiat currencies. This adoption is expected to go much further as the benefits of blockchain technology are too attractive and beneficial to ignore. 

Blockchain optimizes digital transformation 

A digital transformation strategy is critical, and indeed necessary, to stay agile and ahead today. However, without integrating distributed ledger technology into that strategy, businesses, and even governments are not optimizing their digital shift. 

·        Decentralization – Transactions are distributed across a network of nodes, which prevents manipulation or corruption

·        Transparency – All transactions are irreversible, visible, and traceable

·        Security – Advanced cryptography secures transactions, ensuring data is tamper-proof

·        Efficiency – Transactions are typically executed in seconds to minutes and are less costly than conventional methods while eliminating intermediaries.

·        Traceability - Any product, asset, or transaction can be tracked and traced from end to end, thereby improving supply chain management and reducing fraud.

·        Trust – Smart contacts allow transactions to be performed in a way that makes them trusted by all parties

·        Programmability – Smart contracts can be programmed, customized, and upgraded to match specific needs

·        Accessibility – Smart contracts can be accessed by anyone, enabling them to be a global solution for public and private sector transactions.
 

This is by no means an exhaustive list of what blockchain technology has to offer, but what it does do is provide insight into how it can optimize your digital transformation strategy.

Conclusion 

The world is ever-changing, and with that comes the constant need to adapt or lag behind. Instead of being yesterday's blockbuster, it's possible to be tomorrow's Netflix. Countries like Singapore are leading the way as visionaries of what digital transformation technologies like blockchain can do for commerce, industry, governance, society, and more, and are becoming welcoming environments for innovation.

Digital transformation and emerging technologies like blockchain offer an antidote that essentially says we can enjoy a better life thanks to innovative software. More opportunities, greater benefits, and increased resilience await us in a complex and changing world. Yesterday was the best time to start using the digital technology available today. The next best time is today.