2023 Technology Trends London Businesses Need To Take Notice Of
UK businesses had a total turnover of more than £4 trillion in 2022.
Businesses increase revenue by improving productivity, developing new products and increasing their customer bases. Technology has disrupted traditional working models and levelled the competitive landscape, offering powerful, accessible tools for every business.
With London home to 1 million businesses, competition is fierce. In the digital age, it’s the companies that are agile and responsive to changing customer habits and market conditions that succeed.
As such, businesses need to take notice of the latest technology trends that are shaping their industry. From artificial intelligence to edge computing, innovations are transforming the way businesses operate and creating new opportunities for growth. Below are some of the top technology trends that London businesses need to take notice of in 2023.
AI is already transforming business operations. Whether it’s automating admin tasks or analysing data, AI can provide deeper insights and faster processing than a human.
New AI models, such as ChatGPT, promise to revolutionise business processes across industries. Everything from copywriting to accounting is benefiting from the generative power that AI brings.
One of the main areas that AI improves is efficiency. Businesses can streamline their operations, such as inventory management, production planning, and supply chain management. An AI model can help identify the optimal way to organise the workforce, inventory and production, saving businesses time and money.
Microsoft’s Power BI is an AI-powered application that gives leaders deeper insights into their operations. Near real-time metrics and AI capabilities mean businesses can create dynamic charts and track how services, products and workforces are performing. A Forrester study on the economic impact of Power BI found that the potential return on investment reaches as high as 381%.
AI has also transformed how businesses interact with their customers. Chatbots talk with customers in real time and provide automated responses to their questions. Simple issues are resolved quickly, while more serious problems are referred to human employees. This reduces waiting times and ensures that staff can focus on solving complicated issues.
As AI models become more advanced, businesses will be able to implement more powerful chatbots and customer service tools that will reduce the need for outsourced call centres.
Internet of Things
The Internet of Things (IoT) is a network of devices that can ‘talk’ to each other. It encompasses everything from sensors in monitoring stations to smartwatches.
The IoT offers new opportunities for businesses across every industry, but especially helps those in areas like manufacturing or farming.
IoT-enabled devices automate routine tasks, such as monitoring and maintenance, improving efficiency and allowing employees to focus on more productive work. Through automated monitoring, IoT devices can provide real-time data on a range of variables, such as production processes, supply chain logistics, and customer behaviour. This data then helps businesses make more precise decisions and develop more effective strategies.
IoT-enabled devices can also improve safety and security. Manufacturing facilities contain heavy machinery that can be deadly if it malfunctions or is used incorrectly. By monitoring equipment and identifying potential hazards, IoT devices can help managers develop better maintenance protocols and training materials.
For instance, a company used MachineMetrics Predictive to help avoid costly machine failures. The company was accepting that tool failure was simply a cost of business. MachineMetrics Predictive was implemented to diagnose, predict and automatically prevent failures. With the IoT-connected devices, the company is now saving an average of around $72,000 on maintenance and equipment replacement.
Blockchain technology has gained traction in recent years alongside cryptocurrencies and is beginning to be seen as a game-changer. This decentralised and distributed digital ledger records transactions in a secure and transparent manner, so parties can access and verify data without the need for a central authority.
One of the key benefits of blockchain technology is its ability to provide enhanced transparency. Users can create a tamper-proof, decentralised ledger that records every transaction made on it. Businesses can provide greater transparency to customers and regulators, while also removing the cost of middlemen overseeing transactions.
Blockchain technology has the potential to help businesses increase efficiency in areas like supply chain management. With a shared ledger that all parties can access, businesses can action fast and efficient transactions and reduce the risk of errors.
Efficiency is also helped by smart contracts. These are self-executing contracts with the terms of the agreement between buyer and seller directly written into lines of code. This eliminates the need for intermediaries like lawyers and banks, saving time and money on transactions.
Blockchain technology enables businesses to offer new, personalised products. For instance, businesses are creating digital tokens that represent assets, such as shares or real estate.
Non-fungible tokens (NFTs) have exploded in popularity in recent years. These digital assets are stored and traded on a blockchain. NFTs are unique, and their ownership and provenance are securely tracked and verified on the blockchain. Companies like Mcdonald’s and Nike have already created NFTs, and this digital phenomenon is set to grow through 2023.
Customer demands are changing as society moves increasingly online. Amazon has normalised next-day delivery for products, forcing retail companies to adjust their strategies to incorporate online deliveries. In finance, online banks have disrupted traditional branches and forced mainstream banks to offer their own online services.
As we move through 2023 and into the future, digital services are going to increasingly become a core part of every business’ strategy. However, the Internet provides plenty of opportunities for growth and revenue generation.
Digital services can provide customers with convenient and seamless experiences, such as 24/7 access to services and self-service options. This can improve customer satisfaction and loyalty.
Well-maintained websites can also serve a far wider pool of customers than brick-and-mortar stores or locations. By leveraging digital marketing strategies, businesses can target customers more effectively and increase their brand awareness.
Digital services can enable businesses to create new revenue streams, such as subscription-based models and online marketplaces. For instance, Netflix was a trailblazer for online streaming, seeing huge success after moving from mail-order DVD renting to an online model.
Edge computing is a new development in cloud computing that is set to revolutionise businesses in the future. Edge computing involves processing data near the source (like an office), rather than sending it to a centralised cloud.
One of edge computing’s main benefits is that it gives businesses faster processing speeds by processing data near the source. This is particularly beneficial for businesses that require real-time data processing, such as those in the healthcare and manufacturing industries.
By processing data near the source, edge computing also improves security by ensuring that sensitive data is kept local, rather than being sent to a centralised cloud. If the central cloud is breached, the risk of sensitive data being compromised is reduced.
Like cloud computing, edge computing helps businesses save costs by reducing the need for expensive infrastructure like servers. SMEs in particular benefit from subscription models that allow them to quickly scale up resources based on usage.
Technology is the future of business
The technology landscape is constantly evolving, and it’s important for London businesses to stay up-to-date with the latest trends to remain competitive. The right technology gives businesses a competitive advantage by improving their services and products, enhancing data security, increasing operational efficiency, and unlocking new revenue streams.
However, technology doesn’t solve every issue, and businesses must carefully evaluate the potential benefits and drawbacks of adopting new technologies before making any investments.
By taking a strategic approach and partnering with the right technology providers, businesses can effectively leverage innovative solutions and thrive in the competitive landscape of 2023 and beyond.
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