Systems, Application, and Products in Data processing (SAP) has revolutionized how businesses operate within their spheres. This ingenious mode of operation has not only brought disruptions in whole universe in industries but also morphed some other industries to have unique competitive advantage, creating even barriers to entry for novice entrants. Derek Klobucher succinctly opines how digital transformation is used to innovate existing markets for incredible competitive advantage without upsetting an industry.
In his speech, Mike Flannagan, senior president of SAP Leonardo Data and Analytics, describes a better number of contemporary companies’ digital drive are more focused on improving processes and enhancing efficiencies, and less innovating. The National Hockey League putting this into action by “launching a stats section on its website”, creating a stream of boost of about 25% of individuals that visit the site (Klobucher). United Parcel Service (UPS) has also been enjoying benefits of using digital transformation, saving millions in its wake. The company employed advanced data analytics to figure best routes for its drivers as well as Internet of Things sensors to minimize idle time for drivers to drop parcels and go back to the trucks. This move has made it have low cost effective operations and maximum profits. Any new competitor that would like to mirror what UPS does would find it rather difficult to gain entry into the market.
The National Hockey League Digital Business Development team combined digital analytics to come up with a user friendly interface with great display of statistics citations of the various teams within the league. Such a tool saw them increase also the time of engagement the visitors of their site had with the website. UPS on the other hand tactfully infused SAP Controlling in order to find best routes for its drivers plus minimize time of idleness of the drivers.
- Klobucher, Derek. “Sapvoice: Why Your Digital Transformation Should Focus On Growth Not Disruption”. Forbes, 2018, https://www.forbes.com/sites/sap/2017/11/07/why-your-digital-transformation-should-focus-on -growth-not-disruption/#5b7559896798. Accessed 16 April 2018
