Many businesses are facing situations in which they must reconfigure and update their processes to keep pace with new customer expectations and marketplace demands. Digital transformation initiatives and emerging technologies, such as blockchain, can help organizations keep up with these changes. This is particularly evident in an example from the air freight sector.
How air freight is an example of the need for innovation
In a broad sense, the air freight sector is expected to see a fairly consistent increase in the volume of goods it will handle moving forward, McKinsey explained. The increase will likely continue to 2025 and quite possibly 2030, but this isn't necessarily good news.
The problem, according to the report, is that while volumes are increasing, cargo price shifts will also occur at approximately the same rate. When combined with general operational hurdles, the pricing change could completely counter any potential gains that come from higher shipping volumes.
In short, air-freight forwarders are facing a huge crunch in which heightened competition will make revenue growth difficult. Digital transformation could prove critical in helping organizations overcome these challenges by allowing them to upgrade their processes and capabilities to drive efficiency, eliminate cost sinks and generate revenue through cost-cutting measures.
"Many sectors are facing the challenge of needing to improve internal capabilities and customer relationship."
Blockchain may be essential in this situation, as McKinsey envisions a future in which track-and-trace offerings allow air-freight organizations to get better data about shipments without having to invest so heavily in public data sources.
Learning from air freight
Many sectors are facing the challenge of needing to improve internal capabilities and customer relationships if they want to grow. Digital transformation is essential here and blockchain can help. Cisco reported that the digital ledger technology can create transparency and openness that makes it much easier to control the entire supply chain and foster digital transformation.
The challenge for businesses that must improve operations dramatically through digital transformation is the need for leadership that understands the interplay between the technology stack and the work getting done every day. If CEOs, HR leaders and similar executives lack an awareness of what emerging solutions can accomplish for them, they may struggle enacting the cultural and technical changes a business requirements. This is one area where YES Partners can help.
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