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View | This is how traditionally non-tech industries are transitioning to software-driven business models

View | This is how traditionally non-tech industries are transitioning to software-driven business models

View | This is how traditionally non-tech industries are transitioning to software-driven business models
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By CNBCTV18.com Contributor Nov 18, 2022 10:56 PM IST (Published)

Today, non-tech companies find their traditional business models challenged due to rapid technological evolution, changing business dynamics, shifting consumer needs, and constantly changing geopolitical situations.

"Every company is a software company. You have to start thinking and operating like a digital company. It's no longer just about procuring one solution and deploying one. It's not about one simple software solution. It's really you yourself thinking of your own future as a digital company." – Satya Nadella, CEO of Microsoft.

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Technology adoption has become imperative for organisations across industries to thrive and evolve. Entities previously considered non-tech, such as the automobile, healthcare, banking, and hospitality industries, have embraced technology to drive growth and secure competitive advantage. It has also enabled them to improve operational efficiency, deliver personalised customer experiences, and explore new revenue streams. More importantly, technology-enabled businesses are able to collaborate better with their customers, almost in real-time.
Software-driven business model: A key agent of change
A software-driven business model is essential for non-tech companies for two primary reasons. First, companies need to stay relevant in a competitive business environment, and second, they must cater to rapidly evolving consumer needs. Simply put, unlocking new business models and expanding the customer base via a software-driven business model is critical for overall business transformation. In some cases, organisations are able to create a completely new business model when driven by software.
For example, automobile manufacturers today leverage technology innovation to offer smart, connected vehicles that provide a holistic experience. The car owners can access multiple technology-enabled features remotely including locking/unlocking, operating the sunroof, and controlling the temperature. Moreover, connected cars are known for their elevated safety and security features. The best part is that these cars come with automatic software updates that allow users to access new features in their existing vehicles instead of buying a new one. These advancements have undoubtedly caught the imagination of today's automobile buyers, who are increasingly purchasing smart vehicles.
Another example is the healthcare industry, which has benefitted substantially from adopting a software-driven business model. Momentum picked up during COVID with a rise in telemedicine and Remote Patient Monitoring (RPM), trends that are here to stay. Technology breakthroughs have enabled healthcare providers to analyse patient data and other critical information for efficient screening and more accurate diagnosis. Access to all patient data on a single platform allows healthcare providers to detect ailments early on and offer the fastest care possible. In fact, telehealth is now enabling a much higher patient reach for solving mental health issues which are on the rise — traditional models have failed to reach the deep ends of our society and citizens. That's why non-tech companies are now adopting software-driven business models.
A well-thought-out approach: The need of the hour
To achieve business transformation via digitisation, non-tech companies must do away with a drag-and-drop configuration mindset. This means that they will not be able to create a new business model or reach new customers if they use what’s already available but instead embrace an engineering mindset to create and deploy innovative software and other technology. An engineering mindset allows businesses to leverage various technologies to create something new. 
Digital Engineering: The real differentiator
For many players in the non-tech industry, embarking on a digital journey can feel like a daunting task. Many will be hesitant to replace their existing legacy business models, solutions, and technologies. Ideally, instead of changing everything in just one go, organisations should adopt a layered, phased approach to modernisation.
For instance, Persistent has built a Digital Front Door (DFD) using low-code platforms to assist several traditional organisations. With a global analytical instruments manufacturing company, we didn't just replace their legacy application because the DFD works across heterogeneous order capture/fulfilment systems. It allows them to stay on top of market changes faster across all levels — order/account management, product insights, etc. This allows the organisation to not only accelerate its current business processes but also create newer business models, and cater to new customers in different geographies — transforming itself into a software-driven organisation.
Today, non-tech companies find their traditional business models challenged due to rapid technological evolution, changing business dynamics, shifting consumer needs, and constantly changing geopolitical situations. While many organisations have successfully transformed with the right set of technology solutions and an innovation-driven mindset, many companies across industries are increasingly investing in digital transformation. That's why, today, viewing any company as a non-tech company is a wrong approach. 
— The author, Vijay Iyer is the Senior Vice President, Digital Transformation and Consulting Services at Persistent Systems. All views expressed are personal.
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