How enterprises create new business value through digitalization – part 3

The strive towards increased business value creation is nothing new, however the ways to achieve it are constantly evolving!

This research aims to support enterprise decision-makers and communication service providers by outlining the opportunities and challenges involved, as well as the role of enabling technologies in enhancing business value creation, with a particular emphasis on the longer-term evolution.

To achieve this, the research investigates current enterprise digitalization, both generally and more specifically in the form of use cases that are relevant across a wide range of industry segments, by surveying 9000 decision-makers and employees across 15 markets around the world to answer questions such as:

• What type of business value creation do the enterprise decision-makers and employees attach to digitalization in general, as well as to each of the use cases?
• What roles do cellular connectivity, cloud, AI, digital twins, and immersive technologies play as enterprises implement their digital transformation strategy, and how is this expected to evolve going forward?
• What is the effect of incorporating telecom APIs on the value added by enterprise digital services, both currently and in the future?
• Are there differences between the viewpoints of decision-makers and employees regarding the opportunities and challenges involved?
• What sustainability implications from a triple bottom line (i.e., environmental, social & economical) are associated with the studied use cases?

To truly cover this rather extensive topic, this research has been divided into three different reports.

This is the third and final report and serves in part as a summary, drawing on reflections from report 1 and 2. It also provides a longer-term foresight, by outlining the future vision of enterprise digitalization and business value creation but also the relationship between sustainability and digitalization.

The first report was a global, cross-industry analysis of business value opportunities, focusing on cellular and cloud-enabled IoT use cases like Remote control, Asset monitoring, and Connected offerings. It includes qualitative insights from industry experts and a case study of Motor City Wash Works (Cradlepoint/Ericsson), highlighting how cellular and cloud tech enhance agility and resilience

In the second report, an analysis of human-centric value opportunities, specifically in remote meeting, digital product development, and remote education was made. It includes qualitative insights and a case study of Túlka (Vonage/Ericsson), showcasing telecom API integration to disrupt the interpreter services market.

As we conclude this report on the future of enterprise digitalization and value creation, it is evident that the landscape of business operations is undergoing a profound transformation. The shift from traditional value chains to dynamic, interconnected ecosystems is one of the most significant developments observed. However, this shift also introduces complexities, particularly in the areas of trust and data privacy, which demands robust frameworks for data sharing and stringent cybersecurity measures.

Digitalization, spearheaded by advancements in AI, is another key driver reshaping enterprises. AI's role in enabling mass customization and enhancing customer experiences is becoming increasingly apparent. The report also highlights the link between sustainability and digitalization. Environmentally proactive companies are not only investing more in digital projects but are also more likely to report financial success.

 The key findings in this report were:

Trust is redefining value creation in the journey from value chains to interconnected value ecosystems

• 57% of decision-makers use tools that allow them to share content between development collaboration partners for their digital product development 
• However, 65% of decision-makers say there is not enough trust between the company and their customers (e.g., buyers' privacy concerns) to have connected offerings

Is Artificial Intelligence finally making mass personalization possible?

• In 10 years’ time, 78% of decision-makers expect to have implemented AI powered customized connected offerings based on customer behavioural data
• 55% of decision-makers in manufacturing industries think the battleground for successful production/manufacturing is about having the best algorithms for deep-learning and decision-making in autonomous operations by the year 2030

Human-centric use cases and IoT-centric ones is expected to converge

• While human-centric use cases have 10% points higher current utilization levels compared to IoT-centric ones, these differences are expected to shrink in the coming 7 to 10 years. Interestingly, the willingness to invest in these 6 use cases is high across the board!
• 76 percent of decision-makers expect IoT technology to be used to enhance human-centric use cases in the coming 7-10 years, and similarly, 70 percent of decision-makers expect human-centric technology to enhance IoT-centric use cases in the same time frame.

Environmentally sustainability and digitalization investments go hand in hand

• The share of sustainability frontrunner companies investing heavily in digital use cases is more than 4 times higher than amongst their sustainability laggard counterparts.
• When it comes to waste minimization, 74% of financially successful companies always conduct this activity, but only 50% of less financially successful ones do that

On-demand connectivity is here. This will boost value creation in enterprises.

• 77 percent of decision-makers agree their employees must have access to a stable and consistent internet connection to perform their work
• Consequently, enterprises would like to enable a guaranteed or higher performance from the network. In fact, almost one third of enterprises consider it important to have a dedicated portion of the network, or even an private network

Looking ahead, enterprises are encouraged to invest in robust digital infrastructure, foster ecosystem collaborations, embed sustainability into their core business practices, and leverage AI for customization and efficiency. These strategic directions are essential for harnessing the full potential of digitalization and for navigating the complexities of the interconnected business environment.

In conclusion, the journey towards a redefined value creation in enterprises is paved with opportunities and challenges. By strategically embracing digitalization and fostering sustainable practices, enterprises can position themselves at the forefront of innovation and growth in the digital era. This transformative journey will not only reshape business models but also redefine the competitive landscape, promising a future where technology and human ingenuity converge to create unparalleled business value.

Ericsson Consumer & IndustryLab explores the future of technology for consumers, enterprises, and a sustainable society. We deliver world-class market research, actionable insights and design concepts to drive innovation and sustainable business development. We provide a scientific fact-based analysis regarding environmental, social, and economic impacts and the opportunities of ICT.

Our knowledge is gained from global consumer, enterprise, and sustainability research programs, including collaborations with leading customers, industry partners, universities, and research institutions. Our research programs cover in-depth studies and over 100,000 interviews with consumers, working people and decision-makers each year, in 30 countries – statistically representing the views of 1.1 billion people.

Our reports can be found at IndustryLab.

Quantitative data was collected through an online survey with 9,000 respondents aged 18 and older in Australia, Brazil, China, Germany, India, Indonesia, Japan, Malaysia, Singapore, South Africa, South Korea, Sweden, Thailand, the UK and the US. The seven industry segments covered in this study comprise asset-, site-, infrastructure-, finance-, consumer-, society- and service-centric companies. These segments may be referred to throughout the report as, for example, “finance companies”. Of the respondents, 4,500 were decision-makers in companies with 50 or more employees. The remaining 4,500 respondents were employees. The early-adopter profile of many of these respondents makes them important when it comes to exploring the future evolution of enterprises. The online survey was conducted between July 27 and September 8, 2023.

Qualitative insights were gathered through 37 telepresence interviews with decision-makers, subject matter experts and academic researchers in the US and Europe. These interviews were conducted between January 12, 2023, and March 11, 2024.

In this study, a decision-maker is a person with the final say-so or significant influence on strategic ICT and/or business development decisions and are considered to represent the company they work for. Questions related to specific use cases have been answered by a random selection of decision-makers and employees, that have classified that particular use case as a top two priority for their companies (decision-makers) or for their own work roles (employees).

Included markets in this study

• API - Application Programming Interfaces - is a way for two or more computer programs or components to communicate with each other. 
• Case study - A description of a real-life company having implemented one or several use cases, often outlining both what they wanted to solve, and what the outcome of the implementation was
• CPaaS - Communication Platform as a Service, a cloud-based platform allowing developers to build real-time communication features into applications
• Digital tools and components - Applications, features or capabilities used to enhance a use case beyond its most basic functionality
• Digital twin - Real-time digital replicas of physical objects or processes, often used for simulations
• Technology enabler - A high-level set of technologies that act as the prerequisite, foundation or facilitator of digital use cases. For example, cloud computing or cellular technology
• Telecom APIs - Application Programming Interfaces that enable developers to integrate communication services, such as voice, text and video, into applications and digital offerings
• Use case - A set of actions performed by an actor (human or machine) when interacting with a product or system to achieve a specific task. A use case can be expanded by adding different digital tools and components. This report focuses on six use cases: remote meetings, digital product development, remote education, asset monitoring, connected offerings and remote control