Why Some Businesses Are Not Ready For Digital Transformation

Digital transformation, as the world knows it, is an exciting concept, especially when companies that succeeded without it make the transition into utilizing digital platforms. However, when it comes to integrating new processes in any business, there is going to be a lot of gray area that needs attention and support. 

Any change that’s worth undergoing demands businesses to step out of their comfort zone and embrace it fully.

A great example of this is IKEA which traditionally required customers to visit physical stores to embark on the customer journey. Flash forward to now, with all the IT innovation the company has implemented, it is said that about 80% of customers start their buying experience with IKEA online.

Change in an organization is never an overnight effort and some studies even suggest it takes upwards of 5 years to a decade for significant change to unfold in a business. Obviously, in 2023, this isn’t an amount of time that any company could survive without implementing some form of digital solutions which means that the demand for guidance with IT solutions is beyond significant. 

With that said, the first thing we need to cover is some of the common struggles businesses generally face when beginning their digital transformation journey:

1. The leadership team may not fully understand or support the implications of digital transformation, making it difficult to get the necessary funding or resources for the project.

2. Some businesses may have an outdated IT infrastructure that cannot support their digital transformation goals.

3. Employees may be hesitant to adopt new technologies or processes, or they simply may not have the necessary skills or training.

4. Companies that lack proper data management processes and tools will struggle to handle the vast amount of data that digital transformation requires.

5. Some companies may be hesitant to invest in new technology or processes because they simply don’t have the budget or don’t know how much ROI they will see. 

6. Companies that are not prepared to handle cybersecurity risks may be hesitant to undergo digital transformation.

7. Businesses that lack a clear vision for either what they want to gain from digital transformation or how they will implement it are simply not ready to take it on. 

The common thread in all of these scenarios is the need for proper planning. Companies in any industry can mitigate these risks by simply delving deep into analyzing three things:

• Infrastructure

• Current processes

• Resources

With these aspects clearly identified, the organization can start to develop that vision for its digital transformation. When we talk about the “vision” for digital transformation, we’re talking about the big picture. This change is something that everyone in the organization must be aligned with for it to work. 

When we think about the companies who’ve completely remodelled the idea of how they deliver their service (like that of IKEA), we’re looking at companies who’ve done significant analysis and research of their market and resources at their disposal. With that in mind, now it’s time to go over what needs to be considered during analysis and how the findings will lead to execution.

Plan, Then Do

Analysis: The key inspiration for digital transformation is usually a belief that certain processes aren’t as simplified as they should be. Analyzing everything from the back-end infrastructure to the end of the customer buying journey will help identify the pain points. This analysis should ideally involve collecting and analyzing data on:

• Market trends

• Customer behaviour 

• The organization's operations

Execution: Once the analysis is complete, the next step is to create a roadmap for digital transformation that outlines the specific steps and timelines needed to achieve the vision. This roadmap should include:

• A prioritized list of initiatives and projects

• Required resources

• Potential risks

• Clear metrics and goals to track progress and ensure that the digital transformation is on track (KPIs and benchmarks for each initiative)

This breakdown gives a general sense of the ideal way a company would set itself up during their transformation but it is certainly not set in stone. Every organization has a unique vision and there are going to be points where they need to pivot and re-evaluate their purpose.

The Takeaway

Ultimately the most ROI from digital transformation stems from this aspect of the process, returning to the vision and understanding all the facets of the organization that need to work together. A solid IT infrastructure can only succeed if it’s aligned with the organization's overall business strategy and goals. 

No matter if we’re talking about a start-up, or a fortune 500 business, guidance when integrating IT services is something everyone will benefit from.

Written By Ben Brown

—

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

Strategizing With Cloud Deployment Models: Hybrid Vs. Multi-cloud

Cloud computing is a necessity when it comes to business development for a variety of reasons. Specifically, when we take into account the fluctuating demand for data management during platform growth, we understand that there are many moving pieces during this stage. 

Cloud computing adds the much-needed structure to the platform and allows it to perform at a standard that ensures a quality user experience.

However, there need to be parameters put in place that cater to various needs of the platform such as storing data, managing resources, and ensuring that what’s being built is accessible and scalable. 

Simply put, whatever vision there is for a platform (website, web app, mobile app, etc), there are options that need to be weighed, especially when it comes to the integration of cloud computing tools. 

Cloud tools can make or break the performance and sustainability of your platform. What needs to be taken into account when weighing options for the best tools includes the following:

• What specific needs does the platform have? How can certain cloud services assist these needs? Why?

• Is the cloud provider reliable? Examine the past experiences of businesses that have used the cloud service. 

• How much security and protection does the service provider offer?

• Is the tool scalable? Flexible? Can changes be made?

• What’s the company's budget? Is the tool financially viable?

When a company looks at that list, it may seem obvious that choosing the right cloud service provider is no small task but still they may not be clear on their options. In 2023, cloud computing services are the most advanced they’ve ever been, and innovation is only becoming more rampant.

Company “Needs”

You hear “it depends on the company's needs…” all the time, but what are these needs exactly? Well, in the case of cloud computing, the typical needs being filled are based on daily processes. 

For example, a healthcare organization may need cloud computing to manage patient data, store digital health records, or even facilitate secure communication. An e-commerce store may need cloud computing to handle its online transactions, manage inventory, and ensure data security for its customers' personal and financial information.

When it comes to strategizing how a company will structure their platform using cloud services, the two main deployment models are either hybrid cloud or multi-cloud, so with that said, here’s how to find the best option:

Multi-cloud? Hybrid Cloud?

The way a business chooses to structure its cloud systems is completely subjective. When it comes to choosing which tool to use and when to use it, there are a few things that need to be considered:

Multi-cloud: As the name implies, this feature utilizes multiple cloud services from various providers, as opposed to relying on just one provider to tend to all of the platform's needs. When it comes to flexibility and efficiency, multi-cloud is a great choice. 

For example, an organization can use Amazon Web Services (AWS) for data storage, Google Cloud Platform (GCP) for machine learning functions and analytics, and also Microsoft Azure for application hosting.

Hybrid Cloud: The “hybrid” refers to balancing private and public cloud systems. The difference between these systems is simply dictated by what the provider of each service offers (each comes with unique benefits). 

For public cloud - third-party providers use the internet to provide scalable resources to their users.

For private cloud - the computing infrastructure is owned and operated by the organization itself or by a third-party provider but is used exclusively by that organization.

An example of a hybrid cloud in action could be a business that uses a private cloud to store confidential data, while also using a public cloud service such as GCP or AWS to store non-sensitive data along with applications that need to have flexibility.

What this does is allow the organization to be more in control of their data security measures while at the same time having the privilege of the scalability aspect of a public cloud. 

Choosing One

When an organization chooses between these models, there’s one key determining factor behind the decision: the type of data being stored.

Different companies have specific data that needs to be secure and other data that needs to be accessible to users. So if an organization is looking to prioritize security, then a hybrid cloud model will be beneficial to organize as well as categorizing sensitive and non-sensitive data. 

On the other hand, if a company wants a platform that’s super flexible and that they plan on growing long-term, then multi-cloud could be a great option to recruit services that can handle a bigger influx of data and add-on features. 

What’s Next?

Inevitably, the long-term vision of the brand is a necessity when releasing any sort of digital platform. 

What is the goal when it comes to user experience? 

That is the key question that needs to be answered before resorting to cloud computing options. What happens once an organization has this answer is weighing the pros and cons of each solution as it will determine the logistics surrounding UI/UX design, the tech stack used, and the overall architecture of the platform.

Written By Ben Brown

—

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

Embedded Finance: The Key to Scaling Your FinTech Startup in 2023

For FinTech startups in 2023 and beyond, conventional banking methods may not even be on the radar anymore in terms of the services they offer. The focus is now on digital options that provide value to users both in terms of experience and financial well-being. Users need that extra bit of motivation not only when making investment decisions but when purchasing anything. 

Embedded finance is the change that’s made this shift away from conventional banking not only a viable option but a necessity for most consumers which has forced action from financial service providers. 

To put it simply, the concept behind embedded finance is to get consumers to use FinTech services that are already present on the platforms they use daily. For example, if you’re using an e-commerce platform like Amazon and you have the option to use BNPL, that is an example of an embedded finance feature. 

It is utilizing the banking tools offered by non-banking platforms (e-commerce, social media, ride-sharing apps, etc.) so that the consumer can get the full benefit of what the platform provides. 

Why is This Important to Know?

Understanding how to use embedded finance as a start-up or mid-size company in any industry is crucial to achieving scale. You’re not going to be making millions just by sending “hey we noticed you abandoned your cart…” emails because many consumers act on impulse. 

By non-banking platforms integrating financial services, they are providing value to their customers that is without a doubt going to be the separator between them and the competition. 

If we were to break down some of the key impacts embedded finance will have on the financial industry, the ones that stand out the most might look something like this:

User Experience:

First and foremost, the number one factor driving a successful platform is based on how much users - well, enjoy using it. What embedded finance does very well, in this case, is offer a seamless experience that is convenient and compatible. Without having to rely on a third-party provider, curious prospects are more likely to convert to paying customers when everything along the buying journey flows smoothly. 

Financial Awareness:

With the vast amount of features in embedded finance, users can view insights on their spending and saving habits. With this, platform providers can offer suggestions to their users. For example, a budgeting app could create a savings plan based on the data it collected from the users spending trends.

Revenue:

As mentioned earlier, prospects are more likely to convert when there are strategically embedded financial features in the platform. When the customer journey is good, the level of trust increases which makes the platform's value stand out to its users which keeps them coming back, and ultimately turns them into paying customers. 

Retention:

Building off the last point, having a solid user base is one thing. But the biggest issue FinTech companies will always argue about is how fast-paced and therefore competitive the industry is. With embedded finance, you’re more likely to have repeat customers and draw attention to your platform.

The Focus of Embedded Finance

You’ll notice most of this is focused on the user's benefits and that is because embedded finance offers nothing but benefits to consumers. The tricky part is how well non-banking platforms integrate the systems to make the vision a reality. For this reason, software development makes it possible to materialize the vision for the platform into reality. 

Software development for embedded finance can look different based on the goals of the platform but some essentials include the following:

• API Development: A staple in any software development project for embedded finance, API development is what allows data to be exchanged and users to interact with the platform. 

• Mobile: Accessibility is so important for users in 2023 especially when it comes to banking. Research is showing that a significant portion of the global population relies on mobile banking day-to-day (millennials especially).

• Machine Learning: Since data analytics are at the forefront for effectively providing useful information to users, finding the shortcuts to efficiency like machine learning is important for businesses. What machine learning does is use algorithms to provide valuable suggestions to users by analyzing the patterns identified in their spending habits.

• Payment Gateway: This is especially important for e-commerce platforms. Payment gateways are the IT systems that enable secure transactions between users and the platform. This is where private information will be stored (card details, authentication, encryption, etc.) which puts a lot of emphasis on quality software.

• Compliance: When it comes to FinTech services, especially embedded finance, there are certain rules and guidelines that cannot be violated. KYC is a very useful and important aspect in this sense as it will mitigate risk and build trust between users and platforms. 

The Takeaway

Digital transformation is one thing, dominating the virtual marketplace is a whole other when it comes to the financial service sector. Embedded finance is not just a key component but a fundamental asset when it comes to running a successful platform. For any platform to be successful, custom software that is tailored to its needs can be the differentiating factor that keeps users coming back.

Written By Ben Brown

—

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.