Hyperconnectivity: Everyone has access to everything

According to “Digital Disruption: How digital technology is transforming our world” (SAP, 2016). Hyperconnectivity describes the rapid growth of interconnectedness between people, objects, and technology. People have access to more data and information than ever before, and they have the ability to develop and maintain more social and business connections across the globe than at any other time in history. Hyperconnectivity has come about thanks to three phases of technological advancement:

1. The Internet enables all computers to connect on a single platform. Without the Internet, we wouldn’t be digitally connected.
2. Mobile Technology continues to grow exponentially, which accelerates hyperconnectivity worldwide.
3. The Internet of Things is the next wave of advancement, and will take interconnectedness to an unprecedented level. Within the next three years, the data created by IoT devices will reach 403 trillion gigabytes annually.

With mobile technology at an all-time high and the Internet of Things on the upsurge, the economic impact of hyperconnectivity on gross domestic product (GDP) is rising. A recent study using data from the World Economic Forum and other sources concluded that in the G20 countries, the GDP related to the Internet or digital activity is worth approximately $4.2 trillion U.S., roughly 3.5 times more than what the oil and gas industry generates. Growth is at about 8% in developed countries; growth in developing countries is escalating even faster, at roughly 18%.

For business, hyperconnectivity means quicker, easier global connections and innovation throughout the entire business ecosystem in today’s networked economy. In a global survey of 561 executives by The Economist Intelligence Unit the data revealed:

• 69% of business leaders believe their companies are adapting well to hyperconnectivity
• 47% say business processes have accelerated as a result
• 45% say collaboration, both within and between divisions, has improved because of hyperconnectivity
• Only 33% say it presents more threats than opportunities

In addition, (Capgemini, 2015) finds that 64% of executives say Big Data is changing traditional business boundaries and enabling nontraditional providers to move into their industry. Over 50% expect to face increased competition from start-ups enabled by data and 24% of companies report disruption from new competitors moving into their industry 

More than a technological trend, hyperconnectivity is a cultural condition to which businesses must adapt. Today’s businesses operate in a digital world – one that’s faster and more volatile than ever before. Those companies that are willing to radically transform and disrupt their memory computing and digital accelerators like social, mobile analytics, and cloud computing, can create faster, smarter, more agile, and better connected enterprises. Companies that are quick to adopt digital technology and become disruptors in their industry are reaping rewards such as:

• Quicker time to market
• Increased customer satisfaction
• Competitive advantage

Comments

Post a Comment

Popular posts from this blog

EOQ Calculations in Excel

Image
Last week in Operations Management we used Excel to calculate the Economic Order Quantity and graph Carrying Costs, Ordering Costs, and Total Costs. The Economic Order Quantity or "EOQ" is the order size that "minimizes" Total Costs. Any more or less and you are spending too much on ordering or too much on keeping inventory. For example, in the Excel spreadsheet below, if you had an Annual Demand of 12000 units, Ordering Costs of $10 per order, and Holding costs of $4 per unit per year, the EOQ would be 245 units and Total Costs would be $980.00: We used the following formula in Excel to calculate EOQ: =SQRT((2*B2*B3)/B4) And the following formula to calculate Total Costs at this point: =$B$6/2*$B$4+$B$2/B6*$B$3 To create the graph, we used the following formulas and simply copied them over a range of 100 to 500 units. Ordering Costs: =$B$2/D2*$B$3 Holding Costs: =D2/2*$B$4 Total Costs: =F2+G2 Looking at this chart, we can clearly see that our order size of 245 is
Read more

Reliability Calculations in Excel

Image
In Operations Management today we used Excel to calculate product reliability. Reliability is defined as "the ability of a product, service, part, or system to perform its intended function under a prescribed set of circumstances" (Stevenson, 2009). In order to calulate reliability over a given length of time we need to use the following formula: P(no failure) = e -t/MTBF where: e = 2.7183 t = Length of service before failure MTBF = Mean Time Between Failures One of the cases we did in class involved an auto detailing company that wanted to calculate the reliability of its vacuum cleaners. Excel provides an "EXP" funtion that we can easily apply here. After entering all data for the problem as shown on the spreadsheet below, we type the formula =EXP(-A5/$B$2) in cell B5 and copy down. Next we plot the distribution for t=0 to the maximum life expectancy of 20 years using a line graph. What we end up with looks like a classic case of "ex
Read more

“How Are We Doing?” Efficiency, Utilization, and Productivity

Image
In business, knowing how we are performing in relation to our competition is vital. Internally we want to know if we are using resources effectively and getting the most out of what we have. Efficiency and Productivity are two calculations that are fundamental to the success of any organization. While the calculations are simple, choosing what measures to use and collecting the necessary data requires a thorough understanding of your industry. To calculate Efficiency you will have to first decide what to use as a base for comparison. Does your company already have a “target” of some kind? Like total units produced? If so then you can compare everything to that. Once you have that, there are a couple of basic formulas that can be used: Efficiency = Actual Output/Effective Capacity X 100% Utilization = Actual Output/Design Capacity X 100% Design Capacity is the maximum output achieved under ideal conditions. Effective Capacity is always less than Design Capacity because of factors
Read more