Around 80% of businesses have adopted personalisation with the help of emerging technologies like artificial intelligence (AI), data analytics, blockchain and Internet of Things (IoT), according to a survey by software services firm Tata Consultancy Services (TCS).
More than 1,200 large enterprises across 18 countries were surveyed and classified by TCS as leaders, early adopters and followers, according to the extent to which these firms were implementing 'Business 4.0', the company said in a statement. Technology adoption and implementation of digital strategies were key for companies to reach 'Business 4.0' maturity, the company said in the statement.
Under 'Business 4.0', TCS maps businesses’ adoption of four critical behaviours: Driving mass personalisation, creating exponential value, leveraging ecosystems, and embracing risk. These behaviours TCS called as the necessary factors that enterprises need to thrive in the modern-day economy even as customer expectation grows dramatically.
Almost 10% of them were leaders implementing all the three parameters required to be leaders in adopting ‘Business 4.0’ strategy. Sixty per cent of the companies globally that have adopted the full range of business behaviours expect growth of over 10% in the next three years.
European businesses accounted for the most number of leaders, followed by the Asia-Pacific and North America, the survey found. Leaders are three times more likely than followers to be implementing emerging technologies, TCS said in the survey.
“The study reveals a strong link between Business 4.0 maturity and technology adoption. Leaders are more likely than other participating companies to have driven digital growth and realised double-digit revenue gains,” said K Ananth Krishnan, chief technology officer at TCS.
Krishnan added that agile methodologies, cloud, automation, and AI are the technology pillars that enable leaders to change course and adapt to shifting market dynamics much better than companies with inflexible idea-to-execution time frames of months or years.
TCS said that enterprises had taken to mass personalisation ahead of other business processes, which allowed companies to offer personalised products and services at scale, significantly improving the customer experience and leading to higher revenues. More than three-quarters (78%) of all survey participants claimed they could customise experiences at individual transactions leading to higher profitability and customer retention.
According to the survey, businesses could drive more value from a single transaction, using the power of data analysis, IoT and AI to forecast future customer needs and points of engagement. However, 40% of the firms said that data security was a barrier for increased adoption.
"By integrating digital or online channels and creating new business models, organisations can unlock new revenue streams and expand their customer base by shifting from selling one-off products to offering subscriptions to products and associated services," the survey said in its findings.
TCS said that implementation of technology by partners of large enterprises was also making the proposition easier. More than half (54%) of the businesses surveyed were found leveraging their wider ecosystem by collaborating with multiple partners to create new products and services.
The surveyed firms had revenue ranging from $500 million to $5 billion. The study was conducted late last year.