Traditional enterprises are often slow to adapt and weighed down by their legacy infrastructures.
This is according to Maurizio Canton, CTO for TIBCO Software EMEA, speaking ahead of the TIBCO D2 Seminar to be held in Johannesburg next month.
In contrast, new businesses harness the power of new technologies to challenge traditional businesses in record time, he says.
"Look at Uber, which has become a major taxi company without owning any taxis, or Netflix - a major entertainment player that does not own any movies.
"These new businesses are eating into traditional business markets simply by making optimal use of data and digital technologies," says Canton.
He points out a key factor slowing down traditional businesses is the way in which they use their data, adding traditional enterprise is saddled with legacy applications and silos of data.
Most will collect all their available data in huge data warehouses, then run a report on it. This gives them a view of the past, not insight into what is happening right now, says Canton.
In contrast, a modern digital enterprise will integrate all tiers of the ecosystem, and all data sources, including geographic and social media data.
"Once you have all this data available, you can look at it from an historical and analytical point of view, and combine that insight with what is happening right now, and act on it," he notes.
This allows for any number of innovations to improve customer service and increase market share, adds Canton.
For example, a loyal customer might be rewarded with a compelling offer while still in a branch; or a theatregoer might be offered an upgrade to better seats via mobile as they enter the theatre. A bank or telco might use customer behaviour patterns to predict churn and make a relevant special offer designed to retain the customer.
Once it understands the customer and the market, by using data faster and more effectively, the traditional business is able to respond quickly to changing patterns, and enhance the customer experience, says Canton.
In 21st century business, the ability to offer personalisation and a superb customer experience is the biggest competitive edge a business can have, he adds.
Canton points out new players emerge quickly and customer loyalties change easily in the new business environment - traditional enterprises need to compete on an entirely new playing field.
"If you know your competition, you can strategise accordingly. But if your competition does not exist yet, how can you prepare?" says Canton.
According to Canton, for traditional enterprises to survive in future, they have to reinvent themselves, break down data silos, integrate all channels and put themselves in a position to act on current data immediately.
This new infrastructure must support agility and underpin real-time decision-making, he says.
"The days of printing hundreds of pages of historical reports are over. The 21st-century business can't survive using 20th century tools and strategies."
Canton will be among the TIBCO experts addressing South African enterprises on the digital enterprise and how to harness Fast Data, at the TIBCO D2 Seminar in Johannesburg on 4 June. For more information about this event, click here.
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