Why Connectivity is the Key to Profitability in 2023

We hear about the benefits of digital transformation in the workplace from every angle and most organisations are beginning to embrace the digital revolution to varying degrees.

In many cases, “digital transformation” as a term is conflated with “implementing technology” rather than the overlapping trio of platforms, people and processes that need to be considered for success in this area.

Even with this in mind, some statistics on digital transformation are incredibly compelling:

  • A survey by PwC found that 72% of companies have implemented or are in the process of implementing a digital transformation strategy.
  • According to a study by McKinsey, companies that have fully embraced digital have seen revenue growth that is 26% higher and EBITDA that is 32% higher than their peers.
  • A report by IDC predicts that global spending on digital transformation technologies will reach $2.3 trillion by 2023.
  • A study by Deloitte found that digital transformation increases the probability of a company achieving above-average profitability by 53%.
  • Research from the MIT Center for Digital Business found that companies that have undergone digital transformation are more likely to be in the top quartile for overall performance.

It’s worth noting that the definition of digital transformation and the way it is measured is still evolving and these numbers can vary by industries and companies, but generally, it’s considered a positive change that can lead to better performance and efficiency.

When considered as a culture and competency (people) process and technology platform rethink – digital transformation can be incredibly powerful as a concept.

However, we believe that at the top of the list, often hidden from view, is that all of these factors rely on one anchoring element – connectivity.

The Fourth Utility

In the modern business environment, with more reliance on data transfer, cloud platforms and collaboration to get ahead, we strongly believe that connectivity and communications networks are the fourth utility.

Business connectivity, or the ability of a business to connect and communicate with its customers, employees, partners, and other stakeholders, all have a significant impact on profitability. A reliable and efficient connectivity infrastructure is essential for many businesses, as it allows them to exchange information, process transactions, and collaborate with others in a timely and effective manner. This is is especially true in the construction and utilities sectors where collaboration and quick, effective sharing of information are key to project success.

How Connectivity Improves Profitability through Productivity

Taking the most simplistic view, time is money and technology is, at least in principle, designed to deliver productivity benefits.

Productivity refers to the rate at which goods or services are produced by a person, group, or organisation and is usually measured by output per unit of input, such as labour or capital.

So this means doing more, with the same or less and connecting your employees to the systems designed to make them more efficient and connecting them together to achieve more than the sum of their parts as individuals is essential in 2023.

Connectivity Increases Efficiency

A reliable and efficient connectivity infrastructure can help businesses streamline their internal operations and reduce the time and effort required to complete tasks. This can help increase productivity and efficiency, ensuring projects complete on time and are successful for all parties.

Enhanced External Collaboration

Good business connectivity can help businesses collaborate more effectively with their partners, suppliers, and other stakeholders, which can help improve the overall efficiency of their operations and increase profits.

How Connectivity Improves Profitability Externally

Two more ways that connectivity can increase profitability are through external factors that aren’t immediately obvious but can be massively impactful to the bottom line

Improved customer satisfaction

Good business connectivity can help businesses provide better service to their customers, which can lead to increased customer satisfaction and loyalty. This can help businesses attract and retain more customers, leading to higher profits. Connectivity is directly linked to providing customers with project updates as they happen, reports and other relational communications that will benefit a collaborative relationship. This focus on longer-term retention and maximisation of current customers also has the downstream impact of less spend acquiring new customers – compounding the effects on profit.

Greater competitiveness

A reliable and efficient connectivity infrastructure can help businesses stay competitive in their industry by enabling them to take advantage of new technologies and business opportunities as they arise. In industries where margins are paper thin, forward-thinking technology matched with connectivity can deliver agility to be responsive to market movements and trends and an evocative differentiator vs. the competition. The effects can be seen by having connected supply chains and logistics powered by the Internet of Things and robust and resilient connectivity to deliver efficient and effective operations that are less reliant on human resources and support customer objectives.

Join the Revolution

Digital technology is revolutionising almost every discipline within most sectors and organisations, from sales being connected to a CRM, to IoT-connected machines and sensors or autonomous construction plant machinery remotely controlled by operators in other regions.

Unfortunately, connectivity is the forgotten piece of the puzzle and ambitious plans for technology platforms all rely on this crucial element to function. It’s fine to have the aspiration and understand the benefits of 4K resolution streaming live security video for a construction site but it’s another thing to achieve this in the Outer Hebrides!

Connectivity is the glue that sticks your technology and people together and binds potential to profitability. Business connectivity is an essential component of a successful business, and having a strong and reliable connectivity infrastructure can be a key factor in driving profitability.

Onwave is vastly experienced in achieving your connectivity goals by having a deep understanding of the technology involved, and the demands of the modern, digitally transforming business. We have a pragmatic and creative approach to not only making connectivity work for you cost-effectively but also keeping it running and improving as you scale with our professionally managed service – ensuring we adapt to your market demands. Get in touch today and we’d love to start working with you on your projects.


Let Us Help You Get Started

Recommended Posts