Technological trends in the industries

Technology trends in industries, guest Domen Rakovec, Director for Service Industries, MEE SAP

During the meeting, the guest presented technology trends as monitored and forecasted by SAP, a leading European technology company. After the opening presentation, he highlighted the differences in approach to the introduction of new technologies across the companies in the regions covered by the company. In terms of speed of response and knowledge of new technology trends, the Western countries, Switzerland and Germany are leading the way, where the decision and implementation of new solutions is made in 4-5 months, and the further east one goes, the longer this time increases. In Slovenia, too, this time is definitely too long.

The following technological trends are currently being highlighted around the world:

1. Cloud computing
2. Artificial Intelligence (AI) and Machine Learning (ML)
3. Internet of Things (IoT)
4. 5G technology
5. Sustainable technologies
6. Blockchain
7. Cybersecurity
8. Augmented Reality (AR) and Virtual Reality (VR)
9. Edge computing
10. Robotics and automation

The following trends and their opportunities were presented in more detail:

The world is witnessing a major migration of applications and data to cloud services. The cloud has many advantages over the old “on-prem” concept.

In particular:

• Sharing and accessing data across locations and devices.
• Increased efficiency by allowing businesses to leverage hardware, data storage and computing power on demand.
• Cost reduction, as businesses can avoid the high costs of maintaining and upgrading their own hardware – instead paying for the use of services on a usage basis, allowing for better financial predictability.
• Scalability, as the cloud allows you to quickly adapt your infrastructure as your business grows.
• Advanced analytics and processing services integrated in the cloud allow businesses to take advantage of advanced analytics to improve processes, optimise production and make informed decisions.
• High data availability and security, including regular backup, access control and security protocols that go beyond the capabilities of many stand-alone systems.
• Rapid implementation and updates enabled by cloud services without the need for physical hardware upgrades, allowing businesses to remain competitive and adapt quickly to market changes.

Artificial Intelligence (AI) has generated the most debate.

It was pointed out that AI will not only destroy jobs, but will create many new ones. However, it will be necessary to adapt, monitor and deploy this new technology. Among other things, it makes it possible to automate various processes in industry. With the ability to learn and adapt automatically, artificial intelligence systems can carry out tasks that have traditionally required human interaction. This helps to increase efficiency and reduce human error.

Artificial intelligence enables deep analysis of large amounts of data, which helps to identify patterns, trends and important information. This is particularly useful for industries that generate large volumes of data, as advanced analytics can help to better understand processes, optimise production and make fact-based decisions.

Artificial intelligence enables the development of predictive maintenance systems that predict the need to maintain equipment before a breakdown occurs. This reduces downtime, increases equipment availability and reduces maintenance costs.

Artificial intelligence plays a key role in the development of autonomous vehicles and robotics in industry. Autonomous systems can perform tasks that are hazardous or require high precision, contributing to increased safety and efficiency.

An AI system can adapt production processes to changes in demand, availability of raw materials, energy prices and other factors. This allows for greater flexibility and responsiveness to changing market circumstances.

Artificial intelligence is used to detect anomalies in production or safety. The system can detect unusual patterns or behaviours, allowing rapid response to potential problems or security threats.

Artificial intelligence enables the personalisation of products and services, as it can analyse data on consumer preferences and behaviour. This allows products and services to be better tailored to customers’ needs.

The guest considered that the importance of 5G technology in industry is too often overlooked and used only for personal use. 5G technologies allow for significantly faster data transfers compared to previous generations of networks, with low latency and the ability to provide bandwidth. This is crucial for industry as it enables faster information transfers, which is particularly important in real time. Key benefits of 5G:

• Low latency;
• Increased device connectivity (IoT);
• Higher network capacity;
• Better reliability;
• Support for advanced technologies as 5G enables support for advanced technologies such as robotics, autonomous vehicles and advanced control systems.
• Advanced security solutions.

Progressive companies are focusing on conserving natural resources, not least because it is increasingly important for consumers. Sustainable technologies often allow for better efficiency in the use of natural resources, helping to conserve precious resources such as water, wood, minerals and fossil fuels.

The move towards low-carbon or carbon-neutral technologies helps to reduce greenhouse gas emissions and contributes to the fight against climate change.

Sustainable technologies can lead to cost reductions, especially in the long term, as they can contribute to greater energy efficiency, waste reduction and optimisation of production processes.

Investing in sustainable technologies can help industrial companies to comply with stricter environmental regulations and standards set by national and international authorities.

Consumers increasingly value sustainable practices and companies investing in sustainable technologies can gain a competitive advantage in the market.

Sustainable technologies contribute to corporate social responsibility by improving relations with the communities in which they operate and reducing negative impacts on human health and well-being.

Investing in sustainable technologies stimulates innovation, which can lead to new business opportunities and increased competitiveness in the market.

Sustainable practices and the use of sustainable technologies can have a positive impact on a company’s reputation, as customers, employees and investors are more likely to trust companies that are committed to sustainable development.

Sustainable technologies help to create a more sustainable business model that can ensure the long-term stability and success of a company. Investors, employees, customers and local communities increasingly expect companies to operate sustainably. Investing in sustainable technologies helps to meet these expectations and build positive relationships with different stakeholders.

Tips on how to carry out a business transformation were also presented.

1. Set clear objectives: clearly define the objectives and purposes of the digital transformation. Understand what you want to achieve and how it fits with your core business strategy.

2. Leadership commitment: Get leadership commitment and support. Digital transformation requires a cultural shift, so it is crucial to have leaders who will support the change.

3. Assess your current situation: Thoroughly assess your current technology infrastructure, processes and workforce skills. Identify areas that need improvement and determine your readiness for digital transformation.

4. Develop a roadmap: Create a detailed roadmap outlining the steps, milestones and timeframe for digital transformation. Prioritise initiatives according to their impact on business objectives.

5. Involve and train employees: Involve employees from an early stage. Organise training to improve digital skills and ensure the workforce is ready for change. Encourage a culture of continuous learning.

6. Choosing the right technologies: Choose technologies that fit your business objectives. Whether it’s cloud computing, artificial intelligence, data analytics or the Internet of Things, choose technologies that address specific business challenges.

7. Data governance: develop a robust data governance strategy. Ensure data quality, security and compliance. Use data analytics to gain insights and support decision-making.

8. Integration and interoperability: Ensure that new digital systems integrate seamlessly with existing ones. Interoperability is key to a smooth transition and efficient operations.

9. Customer-centric approach: Prioritise a customer-centric approach. Understand customer needs and expectations and use digital technologies to improve the customer experience.

10. Project management with agile methodologies: Adopt agile project management methodologies. Break digital transformation into smaller, manageable projects with iterative development and continuous feedback loops.

11. Implement robust security measures to protect digital assets and sensitive information. Security is a key aspect of any digital transformation initiative.

12. Monitoring and measuring progress: Define key performance indicators (KPIs) to monitor and measure the progress of the digital transformation. Regularly assess whether the transformation is being delivered in line with the set objectives.

13. Iterate and improve: Digital transformation is a continuous process. Continuously gather feedback, learn from experience and internalise strategies. Be open to adapt as business needs change and technology advances.

14. Communication: Maintain transparent and consistent communication across the organisation. Clearly communicate the benefits of digital transformation, address concerns and celebrate achievements.

15. Culture change: Foster a culture of innovation, collaboration and flexibility. Encourage employees to embrace change and open up to new ways of working.