Hyperconnected technologies change how companies do business and create value, by gathering more precise insights for better decision-making. In the era of hyperconnected business, we have an unprecedented amount of data available. This means that we are able to coordinate resources and produce value in new ways.
Through hyperconnected technologies, the amount of data on how and why things happen increases drastically. This shapes how we and the organisations we form use and spend resources, while at the same challenging the old business playbooks.
Our research on hyperconnected business produced four findings that everyone interested in the future of organisations and businesses should be aware of:
1. Value creation needs to happen inside planetary boundaries.
From the point of view of companies, digitalisation and other driving megatrends such as resource scarcity and climate change require more resource-efficient ways of operating that allow value creation within planetary boundaries. Companies in all industries are affected by this change. New technologies offer tools to solve this challenge.
2. Various novel value creation models become common through hyperconnected technologies.
The New Competitive Environment is defined by the opportunities created by hyperconnectivity. The internet of networks, people, things, machines, and computers enable intelligent operations using advanced data analytics and redefine the landscape for individuals and organisations alike.
Hyperconnectivity allows for various new ways to create value that can be applied to different aspects of businesses to develop them in novel ways.
3. Creating actionable insights is where the value lies – hyperconnected technologies enable the move from hunch to insight.
With the advent of better measurement technologies and understanding of the complex causalities between actions, decisions and their results, the success of our technologies, our actions and our organisations can be measured better and judged by their actual impact. This will result in better use of natural and human resources.
This a clear change from the educated guessing of the industrial era, replacing reliance on intuition and a limited amount of information with an abundance of information. The real challenge now is the ability to connect the right pieces of information to yield decisions based on fact and data. The ability to create these actionable insights provides the greatest amount of value for an organisation.
4. Hyperconnected business will challenge the old business playbooks and shape competition in a way that challenges industrial forms of organisation.
There’s a great amount of companies playing with the old business playbook of creating products and services, and hoping that that will be enough. The possibilities provided by technological development will reshape the business landscape so much that old tricks will not be enough. All companies are affected by these radical technologies – some will be overtaken by competitors who enter their field with the knowledge of how to use them.
This blog series presents four theses on how to make sure that the future is a hyperconnected paradise rather than a dystopia. Each post presents one of the four theses that bring to life the Nordic promise of a hyper-connected society:
Introduction: How to build trust in the world, where tech giants are more powerful than governments?
Blog 1: It’s not enough to develop technology – If we want to benefit new technology, we need to shape the societal institutions
Blog 2: We let platforms govern our lives but how to govern platforms?
Blog 3: Limited Liability Corporation is Dead, Long Live Responsible Ownership
Blog 4: Hyperconnected technologies change how to do business – six value creation models that are successful in the future
Writer: Risto Lätti
Please have a contact with Risto if you want to discuss the theme and how digitalisation changes your organisation.
This blog series is based on Demos Helsinki’s publication “The Nordic Digital Promise: Four Theses on a Hyperconnected Society”