In the previous article we saw how technology is defining the future trends in businesses. Looking at the key technologies which will be instrumental in creating this effect, According to a pwc study, mobile technology is likely to have highest positive impact in businesses in the next 5 years. This will be followed by cloud computing and business analytics. Social media will have 4th highest positive impact in businesses.
These technologies when combined together are popularly known in the business world as SMAC. As an acronym, it stands for SMAC – social, mobility, analytics, cloud. For a consumer, SMAC is something all of us are interacting with everyday. Explaining it further,
- Social helps you understand the customer preferences.
– Mobility is like internet of things
– Cloud is to minimize your dependence on hardware, enabler to handle large volumes of data
– Analytics is useful in decoding the behaviour to address the goals of your customers
In business, it’s important to understand what the customer needs, deliver it to him with the help of adequate technology. SMAC allows for this efficiently. It is also important to remember that SMAC will be a hygiene factor and not a differentiating factor. To be able to succeed, companies will have to build on their strengths and provide a differentiating value to the customers backed by SMAC. i.e. It is a means to achieve success and not a reason for success by itself.
Although SMAC paints a rosy picture of the future potential in businesses, it is important to keep in mind the risks & challenges associated with it:
- Although it is a great empowering tool for the companies it can also cause great damage if not utilised efficiently.
- Although we use technology to simplify solutions, the software and procedures to implement SMAC are fairly complex and hence you need to make sure the results will justify the cost.
- SMAC can’t be a standalone, processes in the company need to be integrated enough to support and harness the power.
- When dealing with bigdata analytics, analysis may reflect unexpected results which may be confuse the analyst.
- It is important to keep in mind that the “one size fits all” approach should not be followed. Different adaptations of the strategy need to be used as per the prevailing situations.
- Before implementing a new technology it is vital that proper assessment is made keeping in mind the ROI of the suggested plan.
- Design of the product is as important as the product itself. Hence it is important to make use of SMAC in the best possible way.
Few of the ways we can exploit the potential of SMAC:
- SMAC can be used to test launch a product.
- Can also be used to gauge the customer perception and make sense out of the feedback received from them.
– SMAC needn’t be used conventionally, it can also be used in a disruptive way, e.g. Pacemaker, foetal monitoring
What do you think about the potential of SMAC? Do you think it is transforming the businesses around us?