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[ BLOG CATEGORY ] - Detail Template { Global }

[ AUTHOR ] - Detail Template { Global }

Roxana Nagy

Text

モンスターラボがミッション・バリューに込めた思いと目指す世界

2021年2月に、モンスターラボグループのミッション・バリューを改訂しました。その背景にあったのは、創業以来拡大してきたグローバル展開。代表取締役社長である鮄川（いながわ）が創業以来抱き続けている思いを、世界中のメンバー、そしてステークホルダーに向けて2021年、改めて「再翻訳」しました。

Generative AI entered our lives with a bang and, over the past year, it has
 touched many aspects of our day-to-day lives. From using it as a writing
 assistant and brainstorming tool, all the way to generating Christmas rhymes
 in Mariah Carey's style to be a highlight of a family celebration.&nbsp;


 But the most profound impact of this cutting-edge technology might be felt in
 the fields based around other cutting-edge technologies, as the progress
 compounds and drives innovation forward in ways not previously thought
 possible.


 In this article, we will explore just a few of the nigh-infinite possibilities
 that Generative AI brings to the fields of augmented reality (AR), virtual
 reality (VR) and the metaverse.&nbsp;

 
<h3>Content Generation at Scale&nbsp;</h3>

 In my role leading Immersive Technologies at Monstarlab one of the most common
 dealbreakers I see when discussing client ideas has been the costly 3D content
 creation process.&nbsp;The time and money needed to produce high-quality 3D
 models for virtual objects and to build detailed virtual environments has
 always been considerable.


 And while some technologies like photogrammetry have created new
 opportunities, nothing comes close to the impact that generative AI is about
 to have.&nbsp;


 3D models, 2D textures, natural animations — all created in a matter of
 minutes will accelerate development and change the definition of what is
 feasible. Some companies like NVIDIA, Roblox, and Unity are already exploring
 this space, and even in our team here at Monstarlab we are using Unity Muse as
 a productivity booster.&nbsp;


 <img
 src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F65f50167d1804f1b83c5f7464a836047"
 />


 Faster and more efficient content generation will give businesses a chance to
 be more ambitious with their projects. Across all industries from
 entertainment to healthcare daring VR and AR projects could be dusted off to
 deliver stunning user experiences.


 And besides the obvious benefit – saving money – the increased efficiency
 might be beneficial for the planet as well. Imagine a carbon footprint
 difference between a prototype that takes weeks to develop and one that was
 created in mere hours.&nbsp;


 According to a recent report, the demand for Generative Artificial
 Intelligence in Media and Entertainment will exceed $1 billion in 2024 and is
 likely to grow as much as $11 billion by 2032.[1]

 
<h3>Interactive storytelling</h3>

 You might have played video games where you interacted with a non-playable
 character (NPC). They would deliver lines of dialogue and give a few fixed
 options on how to respond. After seeing the possibilities of tools like
 ChatGPT, you can see how limiting the old storytelling model is. Now picture
 yourself in a virtual world, in the metaverse. Imagine a gamified experience
 where you will be able to freely respond to the NPCs in any way you wish and
 they will reply to you within the context of the experience.


 A practical, real-world example of that can be seen in the modded version of
 The Elder Scrolls V: Skyrim. Modders were able to integrate in-game NPCs with
 Large Language Models allowing in-game characters to go far beyond the
 dialogue that was written for them, allowing them to discuss almost any topic
 with the player. Characters give different responses based on their role and
 profession in the virtual world, and depending on the player's own inputs, can
 either immerse them in a fantasy world, creating emergent narratives, or
 entertain with endless stream of hilarious responses.&nbsp;


 This combination of natural language processing and virtual reality turned a
 13-year-old game into a totally new immersive experience.


 If you want to test this concept, without needing to rely on expensive
 hardware and paid products, you can try out AI Dungeon, a text-based
 adventure-story game you direct (and star in) while the AI brings it to life.


 <img
 src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F5578104c2fd94f80a332a24f7ece4a1f"
 />

Screenshot of AI Dungeon
<h3> </h3>
<h3>Hyper personalization</h3>

 With the power of generative AI, not only will we have experiences created
 faster and with more interactive storytelling – there will also be a level of
 hyper-personalization for our avatars.


 Ready Player Me has launched an experimental trial where the users would be
 able to describe the texture they would like to see on their avatar's clothes
 and the design comes to life. Pretty cool!


 <img
 src="https://cdn.builder.io/o/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fa78150a4d1984f90a8980827732f2c6f%2Fcompressed?apiKey=2d7df8e6524a48bd949e5b99dd082786&amp;token=a78150a4d1984f90a8980827732f2c6f&amp;alt=media&amp;optimized=true"
 />

Ready Player Me Custom Avatar Creator

 At Monstarlab, we explored the concept of hyper-personalization with a Mixed
 Reality Prototype built on the HoloLens 2. Imagine you are entering a hotel
 and instead of walking to the reception or looking for somebody to help you
 out, a digital concierge would be your companion from the moment you enter the
 lobby. Using generative AI, you can have a natural conversation from
 requesting information on where the pool is located all the way to
 personalized recommendations of what you can explore in the city; and the
 context of previous conversations and shared information will be available for
 the digital concierge to make replies even more accurate and useful.&nbsp;

<iframe
 class="ql-video"
 frameborder="0"
 allowfullscreen="true"
 src="https://www.youtube.com/embed/iky1Q6SIbho"
 height="400px"
 width="100%"
></iframe>
Monstarlab POC

 AI's ability to facilitate user interactions can completely change how we
 think about interfaces. The concept of "speaking to your computer" which was
 long seen only in the realm of science fiction can quickly become a part of
 user expectations, the same way that smartphones quickly turned from a
 technical novelty into an integral part of everyday life.&nbsp;

 
<h3>Ethical considerations</h3>

 We all know the saying “with great power comes great responsibility”.
 Deploying generative AI in applications that involve content generation or
 decision-making processes brings a lot of new ethical considerations.


 The most important one is of course privacy. When AI algorithms interact with
 user data it's extremely important to make sure that the data is aggregated
 and stored securely, to avoid possible breach or misuse, and also experience
 builders must take great care to anonymise data points to prevent
 back-tracing.&nbsp;


 Compliance with regulations set forth by privacy legislations across the
 globe, like GDPR in Europe, creates numerous challenges when the operating
 mechanism of many AI models is a so-called black box, where it's hard to tell
 what exactly prompted a given response.


 By the same token, intellectual property rights create numerous challenges in
 applications of generative AI. Establishing clear guidelines around AI content
 creation and IP is necessary to make sure the implementation of the AI model
 doesn't infringe on anyone's rights and doesn't create grounds for legal
 action.&nbsp;


 Another issue that is important to consider is bias. Generative models inherit
 bias from the training data, causing the AI-generated outputs to be
 discriminatory or overtly stereotypical.&nbsp;


 But no doubt, with increased transparency comes increased adoption. As the
 role of generative AI increases, regulations, best practices and trust
 frameworks will underpin future implementations.


 Just recently, the European Parliament passed a landmark AI law putting forth
 safeguards on artificial intelligence applications and banning exploitation
 and malpractices[2], and it's safe to assume other jurisdictions will follow
 suit.


 Awareness of the key ethical considerations allows us to build clear AI
 policies that in turn, help navigate the convergence of generative AI.&nbsp;


 <img
 src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F8cbda33055ea44bfa4b87a8c9c1064e1"
 />

Image generated by Midjourney
 
<h3>Conclusion</h3>

 While we are still in the early days of advanced natural language processing
 and AI-generation capabilities in the space of Immersive Technologies, one
 thing is certain, with the increased adoption of those technologies, we will
 see a revolution in virtual worlds. Environments becoming more engaging,
 interactive and personalised, pushing the boundaries of what is possible,
 blurring the line between virtual environments and the physical world.&nbsp;


 If you have questions about Immersive Technology capabilities and want to know
 more about solutions that are possible today or will be possible in the near
 future — reach out through Linkedin or the contact form below.&nbsp;

 
References:

 [1] <a
 href="https://www.globenewswire.com/news-release/2023/12/07/2792257/0/en/Generative-AI-in-Media-and-Entertainment-Market-Business-to-Reach-USD-11-570-million-by-2032-Amid-rising-demand-for-virtual-reality-VR-and-gaming-industries.html"
 rel="noopener noreferrer"
 target="_blank"
 >Generative AI in Media and Entertainment Market Business to Reach USD
 11,570 million by 2032 | Amid rising demand for virtual reality (VR) and
 gaming industries</a
 >, GlobeNewswire, December 07, 2023.

 

 [2] <a
 href="https://www.europarl.europa.eu/news/en/press-room/20240308IPR19015/artificial-intelligence-act-meps-adopt-landmark-law"
 rel="noopener noreferrer"
 target="_blank"
 >Artificial Intelligence Act: MEPs adopt landmark law</a
 >, European Parliament Press Release, March 13, 2024

[ BLOG ] - Detail Template { Global }

The Impact of Generative AI on VR/AR

Nikita Baydyuk

Paul Gosnell

It is a known fact that lifespan increases with each generation. For baby boomers, the average life expectancy is 70 years, for Gen X its 85, and newer generations like Gen Z and Alpha will likely exceed the 100-year mark.&nbsp;Despite fluctuations from factors like a recent global pandemic, so far humanity has enjoyed a steady life expectancy growth over time, and there doesn’t seem to be a hard limit to a potential human lifespan.[1]But additional years aren’t all there is to it. Healthspan, the number of years a person enjoys good health, mobility, and doesn’t require constant medical care, doesn’t always directly correlate with longevity. One study from England indicated that for the Gen Xers who participated in the survey, more years of bad health were on the table than for the previous generation unless something gets done to counteract the trend.[2]Technology stands at the intersection of lifespan and healthspan, by both enabling medical breakthroughs that treat chronic conditions and by giving people tools and data to make impactful lifestyle improvements.In this article, let’s look at how modern tech will make our lives not just longer, but better.&nbsp; <h2>The Evolution of Personal Healthcare</h2>In the past healthcare was reactive. It focused on intervention to mitigate symptoms and disease therapy. Technology-enabled healthcare is proactive, leveraging new technologies to prevent symptoms, improve quality of life and drive better health outcomes.Technologies like <a href="https://monstar-lab.com/global/generative_ai" rel="noopener noreferrer" target="_blank">AI</a> and machine learning completely transform drug discovery, clinical trials, and treatment, but the impact is also felt in the patients’ day-to-day life.Wearable devices and health apps can monitor our well-being in real-time, tracking biomarkers, and activity levels, as well as gathering valuable data that can help treat and prevent chronic and age-related diseases.The data individuals generate daily—from step counts to sleep quality data—is growing exponentially. This phenomenon, known as the "Quantified Self," is revolutionising how we understand our bodies and minds. Besides individual health awareness and health literacy, this data potentially holds critical insights.The biggest question is how this data can be used ethically and safely. <h2>Data Utilization</h2>Data collection is just the first step. The real value lies in turning this data into actionable insights.&nbsp;On their own, tracking metrics like heart rate, blood pressure, or calorie intake can prompt individuals to change their habits for the better, but when made available to clinicians and caregivers this data can be even more impactful.Wearables already play a crucial role in combating Alzheimer's and Parkinson’s. [3] [4]Wearables, like smartwatches, allow for around-the-clock monitoring and assistance outside of the hospital or lab setting. This way, even though it’s less disruptive for the patient, the technology enables doctors to have a better understanding of how these conditions affect a particular individual and react quicker, in case intervention is required.Of course, the accuracy of the data has to be very high to be clinically useful. This underpins a key difficulty in transitioning to newer technologies — a well-planned and well-researched methodology is needed to minimise errors and false positives.Still, wearable sensors open up novel ways to detect and address symptoms(for example utilising artificial intelligence) while not really interfering with traditional methods of medical examination.&nbsp;Big data can also serve as a basis for personalised treatment. By cross-referencing data obtained from wearable devices with clinical history with the help of machine learning algorithms, intelligent systems can help medical practitioners create targeted plans, to tackle anything from poor sleep quality to specific illnesses.&nbsp;Timely implementation of these measures elevates the quality of life, elongates healthy years and promotes healthy ageing. Digitally integrated, intelligent personal healthcare isn’t science fiction; it is already possible with current technology. <h2>Monstarlab's Vision for a Healthier Future</h2>At Monstarlab, we're not just observers of this global shift towards a healthier, data-driven lifestyle; we're active participants. As we look to the future, we aim to integrate personal healthcare technologies with broader healthcare systems, creating a seamless flow of data and insights. This will enable individual well-being and more efficient health strategies for both public and private sectors. Integrated systems like Electronic Health Records (EHR) coupled with other telemedicine solutions provide an opportunity to facilitate a collaborative care model, where clinicians, physicians, researchers and other healthcare providers can exchange information effectively to the patient’s benefit.&nbsp;However, data privacy concerns challenge technology providers. HIPPA in the USA, Health Data Law in the UAE, GDPR in the EU — all of these regulations recognise the critical importance of protecting personal medical information. When we build our solutions, whether we work on a <a href="https://monstar-lab.com/global/cases/empowering-patients-and-professionals-with-transformative-technology" rel="noopener noreferrer" target="_blank">patient experience </a>or <a href="https://monstar-lab.com/global/cases/leveraging-technology-to-upgrade-dental-care-routines" rel="noopener noreferrer" target="_blank">collaborate with R&amp;D</a>, we never forget that this work is ultimately focused on the well-being of millions of people worldwide.&nbsp;<h3>Closing the Gap between Healthspan and Lifespan</h3>Technology to address the disparity between healthspan and lifespan is 100% there. It’s the futuristic, cutting-edge solutions that will make the most difference, but smartphones, wearables, and utilisation of existing data. By focusing on preventative care, personalised health recommendations, and public health initiatives, those extra years of life expectancy become healthier and happier.&nbsp;The recent COVID-19 pandemic taught all of us what humanity is collectively capable of when it comes to public health. And increasing healthspan is a global challenge no different from smallpox or polio—or other lingering issues that humanity has successfully eradicated through progress and innovation.An investment in health always brings a return. As the productive part of life gets longer economies grow, opening up opportunities for new improvements.&nbsp;Through our work in Health and Life Sciences around the globe, we are committed to pioneering solutions that close this gap. We envision a future where the years gained are fully lived, healthspan meets lifespan, and each individual can look forward to a life of sustained well-being.If you are exploring digital transformation and innovation in Health and Life Sciences, <a href="https://monstar-lab.com/global/contact" rel="noopener noreferrer" target="_blank">reach out to us</a> for a 1:1 consultation. <h4>References</h4> [1]&nbsp;W.Zuo, S.Jiang, Z. Guo, and <a href="https://www.pnas.org/doi/full/10.1073/pnas.1812337115#con5" rel="noopener noreferrer" target="_blank">S. Tuljapurkar</a>,<a href="https://www.pnas.org/doi/full/10.1073/pnas.1812337115" rel="noopener noreferrer" target="_blank"> Advancing front of old-age human survival</a>, PNAS, Vol.115,&nbsp;2018 [2] S. Jivraj, A. Goodman, B. Pongiglione, G. B Ploubidis, <a href="https://pubmed.ncbi.nlm.nih.gov/32659174/" rel="noopener noreferrer" target="_blank">Living longer but not necessarily healthier: The joint progress of health and mortality in the Working-age Population of England</a>, Popul Stud, 2020 [3] C. Sotirakis, Z. Su, M.A. Brzezicki, <a href="https://www.nature.com/articles/s41531-023-00581-2#citeas" rel="noopener noreferrer" target="_blank">Identification of motor progression in Parkinson’s disease using wearable sensors and machine learning</a>, NPJ Parkinsons Disease, 2023 [4] W. Salehi, G. Gupta, S. Bhatia, D. Koundal, F. Mashat, A. Belay, <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9054450/" rel="noopener noreferrer" target="_blank">IoT-Based Wearable Devices for Patients Suffering from Alzheimer Disease,</a> Contrast Media Mol Imaging, 2022

Bridging the Gap: How Modern Tech is Shaping the Future of Healthspan and Lifespan

Monstarlab Marketing

This year <a href="https://monstar-lab.com/global/generative_ai" rel="noopener noreferrer" target="_blank">AI</a> is one of the biggest topics on every public platform. The technology is gathering momentum, introducing sweeping changes across sectors. However, for manufacturing, which has been going through the 4IR (the Fourth Industrial Revolution) for some time now, this pace of rapid innovation is a familiar sight.&nbsp;&nbsp;Modern manufacturing is extremely advanced, complex, and competitive. A myriad of processes, technologies, and people – all working together in harmony. There is constant pressure to keep up with technological advancements to increase efficiency and stay ahead of the curve.From robots on assembly lines to automated supply chain and warehouse management platforms – the factories of today are already utilising an array of cutting-edge tech. To tie all this new technology together, manufacturers need a cornerstone, and that’s AI and machine learning.&nbsp;<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fff561a7d1b134532bd4fd89d84958a60"><h2>Unlocking the True Value of Data through Deep Learning</h2>There is a lot of value hidden in unstructured data, and as businesses generate more and more of it, it becomes more difficult to tap into that resource with traditional analytics and research methods.Deep learning (a subset of machine learning) works by feeding raw data through an algorithm that excels at looking for patterns and turns big data that gets collected at all stages of the manufacturing process into actionable insights. Deep learning takes inspiration from the human brain, allowing the system to learn as it gets more data.<h3>Simulation and Automation</h3>Industrial Internet of Things (IIoT) applications are making a big impact across industries, from automotive to energy to aerospace. Data, collected from machinery, sensors, cameras, and various other devices holds immense potential for optimisation of manufacturing processes and workflows.&nbsp;One way to leverage it is to connect all this technology to a Digital Twin, which is a virtual model that receives real-time data and acts as an accurate digital representation of a physical asset. It takes into account everything from performance metrics and energy output of individual machines to weather conditions and interactions of different assets.Implementing digital twins for specific production lines or for entire factories connects a variety of sensors to provide a bigger, more complete picture of what’s happening.&nbsp;Not only does it grant an increased degree of control over the manufacturing process – it opens up possibilities for digital experimentation.A potential impact of different configurations and process changes can be analysed before committing budget and resources, while running what-if scenarios can help anticipate possible problems.Predictive maintenance can lower downtime by half and increase the lifespan of industrial machinery by as much as 40%[1] . After all, it’s cheaper and less disruptive to keep hardware operational with timely service than to repair it when it breaks down.Coming back to the manufacturing process itself, artificial intelligence and robotics work hand-in-hand. AI-driven platforms can learn to perform traditionally manual tasks that previously required human interaction: from connecting cables to assembly, picking parts, and more.Robotic process automation empowered by AI solutions can increase yields by as much as 30%[2].Working in conjunction with automation, AI technology is a step towards fully digitised smart factories, leveraging data to maintain and improve performance, drive down costs of production, and increase profit margins.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fd6c313f46ca34d5dbf74952728433c41" alt="AI has the potential to transform many manufacturing businesses. It brings with it an imperative to start data capture early and make that data available to your data teams and reimagine established processes to fully leverage the capabilities that data creates. However it will also change the nature of risk, and leaders should consider potential mitigations. At Monstarlab, we believe a human-centric approach is key to ensuring data success from the shop floor to executive decision-makers. Alexander Milodowski Data Lead at Monstarlab"><h3>Supply Chain &amp; Quality Control</h3>Of course, there is more to a manufacturing business than production lines. It needs supply chain, logistics, and inventory management — all of which can be made considerably more efficient with applications of AI and machine learning.Thanks to real-time smart tracking, warehouse and inventory management can be streamlined making sure every item, every vehicle, and every pound of material is accounted for. Any bottlenecks in the process can be quickly detected and eliminated, leading to faster delivery times, and the highest possible efficiency.Price forecasting and analysis of vendor information let manufacturers be more agile and respond quickly to changing market conditions.Visual inspection through computer vision is also a powerful tool for quality control. Deep learning algorithms can be trained to detect defects and faults which leads to mitigating risks, reducing costs, and increasing the overall quality of the output.<h3>Data for Pivotal Business Decisions</h3>Every product is made with a customer in mind. End-user satisfaction is what differentiates great brands from good ones. AI can help analyse customer data and support leadership to swiftly react to market changes.AI-enabled product development can fastrack prototyping – saving time and money on testing thanks to advanced algorithms and simulation, and help engineers innovate and deliver better products.AI can also help optimise buyer journeys and the customer experience the same way it helps optimise a production line. Everything from historic sales data to industry and geographical region is taken into account while leveraging predictive analytics enables manufacturers to effectively engage target buyer personas. More accurate demand forecasting translates into better long-term sustainability and growth.By learning how customers buy and use products, manufacturers can use this rich data to build trust, remove friction and turn first-time buyers into repeat customers and loyal brand advocates.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F053ce62dbb32404c8271c4e11d68544b"> <h3>Addressing Health and Safety</h3>On the shop floor, there is no bigger priority than health and safety. Factory employees work with dangerous machinery every day, and even when all safety regulations are followed, their jobs are not without risk.Machine learning applications prevent accidents by analysing data from camera feeds and IoT devices, tracking workers’ location and vital signs – and even monitoring the proper use of personal protective equipment.&nbsp;If a dangerous situation occurs, AI can react much quicker than a human worker, turning off machinery and ensuring a rapid response that lessens the potential impact of the accident.Besides detecting if people on site are wearing hard hats and reflective vests, and if the machines are in order, properly trained and fine-tuned machine learning algorithms can be used in predictive analytics and scenario modelling to determine the root causes of past accidents and prevent future ones.AI allows manufacturers to proactively address safety concerns by addressing the underlying cause of the issues, instead of being purely reactive. The result: lower injury frequency rates, less lost productivity time, and faster incident resolution.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fe61b20fc90bc4aba9244cf23a449a875"> <h2>Future of AI in Manufacturing</h2>The full potential of AI is still uncharted territory. The technology is developing faster than ever, bringing value to manufacturing on every level: cutting costs, enabling automation, boosting efficiency and safety.&nbsp;Theoretically, factory automation guided by AI solutions can reach unprecedented levels of productivity, operating around the clock with so little human oversight, maybe one day there won’t be a need to turn the lights on. According to an article published by&nbsp;MDPI,&nbsp;digitisation and artificial intelligence already makes a huge impact on energy efficiency[3], helping enterprises lower consumption and intensity while maintaining quality and increasing volume of the output.But for now, applications of AI technology are aimed at making sure people – both decision-makers and workers on the factory floor – have all they need to do their jobs efficiently, safely, and in perfect synergy. Every bit of data becomes a useful resource, setting up enterprises on a journey of improvement.The biggest benefit of AI lies in a deeper understanding of the business. It enables manufacturers to have unprecedented control over every process and in partnership with technology experts, can open new horizons for digital transformation and comprehensive modernisation.In a world of increasing competition and increasing demand for quality and safety, applications of Artificial Intelligence and Machine Learning offer a way toward increased profit and sustainability without sacrificing quality and customer satisfaction.To learn more about AI and ML applications visit our&nbsp;<a href="https://monstar-lab.com/global/service/data/" rel="noopener noreferrer" target="_blank">Data</a>&nbsp;and&nbsp;<a href="https://monstar-lab.com/global/service/technology/" rel="noopener noreferrer" target="_blank">Technology sections.&nbsp;</a><h3>References:</h3>[1] V. Dilda, L. Mori, O.Noterdaeme, and C. Schmitz,&nbsp;<a href="https://mck.co/3DPm7SH." rel="noopener noreferrer" target="_blank">Manufacturing: Analytics unleashes productivity and profitability,</a>&nbsp;McKinsey[2]&nbsp;<a href="https://www.mckinsey.com/~/media/mckinsey/industries/semiconductors/our%20insights/smartening%20up%20with%20artificial%20intelligence/smartening-up-with-artificial-intelligence.ashx" rel="noopener noreferrer" target="_blank">Smartening up with Artificial Intelligence (AI) – What’s in it for Germany and its Industrial Sector?</a>, McKinsey Digital[3] X. Zhang, P. Liu and H. Zhu,&nbsp;<a href="https://www.mdpi.com/2071-1050/14/12/7219/pdf" rel="noopener noreferrer" target="_blank">The Impact of Industrial Intelligence on Energy Intensity: Evidence from China&nbsp;</a>

How Artificial Intelligence Transforms Manufacturing

Technology has been a transformative force across sectors for decades. So much so, that the philosophy of ‘every company is a technology company’ became a standard way of thinking in many industries.&nbsp;&nbsp;&nbsp;But for practical reasons, always staying ahead of the curve is a daunting task. Businesses see technology as a tool and don’t think twice about modernisation as long as the system continues to work.However, accelerating progress means that with every passing year, the gap between old and new grows wider. The organisation becomes entrenched in the processes that rely on decades-old infrastructure; built on technology that is slow, expensive to maintain, and profoundly unsecure.In this article, we are looking at the main obstacles in the way of moving from legacy systems, as well as possible solutions to these key issues.<h2>What is a Legacy System?</h2>We can call any old technology a legacy system, but ‘old’ is a relative term.&nbsp;A system is considered legacy if one or more of the following applies:<ul><li>Technology has reached its end of life and is no longer supported or updated;</li><li>Technology is functionally obsolete, a different solution performs the same function in a better way;</li><li>Technology can’t be effectively scaled;</li><li>Technology can’t easily interface with modern systems and/or relies on outdated data storage methods.</li></ul>There are a number of reasons why relying on legacy systems is unsustainable. They are often inefficient and complex. They require costly maintenance and rely on people with a very specific skill set to manage them.This creates a lingering technical debt: business processes become dependent on outdated systems even if they no longer bring value to the organisation.A lack of effective tools for data management creates data siloes. Because of this isolation, every time there is a need to integrate with a modern system or a new application, an API has to be built from the ground up.&nbsp;Even when integration is achieved, large quantities of unstructured data end up unusable or require complicated migration procedures.Certain simple legacy processes, like organising tasks with a spreadsheet are just inherently inefficient. The same objectives can be achieved easier and faster, and with less room for error, by a modern application, at the same time making the data accessible and usable for strategy and analysis.<h4>Legacy Systems in Public Administration</h4>Unlike commercial enterprises, which are driven by growth and profit, the public sector operates on a different logic. They serve the community and are aimed to provide the most effective and pleasant experience to the citizens.Legacy systems hold these improvements back, often making it impossible to introduce cheaper, easy-to-implement, low-cost solutions to keep up with the times. This way even if the voters are making a big decision, it’s simply impossible to put the plans into action.&nbsp;Addressing this problem often requires a decisive, systemic change.<h4>Legacy Systems in BFSI</h4>Banks, financial institutions, and insurance companies handle enormous amounts of data.Stability and accuracy are an absolute priority.The IT infrastructure often reflects that: decades-old, on-premise, and often proprietary.&nbsp;Even the biggest companies in the BFSI sector are traditionally reluctant to upgrade and move on from legacy systems since their core operations are often deeply dependent on existing infrastructure.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F38729a7b441a4cf89b6db25492f76ac7?format=webp">However, the biggest pressure comes from the end customers. Many industries underwent a significant digital transformation in the past decade, offering their users a digitised experience: sticky responsive apps, instant access to services, and increased convenience.Banks or insurance companies struggle with introducing these new features and functions because their legacy systems can’t interface with new applications and the data is locked in siloed systems.&nbsp;According to a survey conducted by Talend, the banking sector considers ageing legacy infrastructure to be one of the major hurdles. More than half of the respondents identified it as a main obstacle on their path to digital transformation.[1]<h4>Legacy Systems in Pharma and Life Science</h4>Despite the fact that pharmaceutical and life science companies develop cutting-edge, clinical trials – a crucial step in the process that often directly impacts new medicine’s time to market – still often rely on legacy technologies.&nbsp;Data management systems that have been in use since the 1990s impact the entire process. It is slower, more prone to error, and less convenient and attractive to potential trial participants.&nbsp;Unstructured, manually gathered data also complicates regulatory approval – ​​a final stage of the drug discovery process. All in all, this creates a bit of a paradox: companies leverage modern digital tools and AI in their R&amp;D, only for the entire process to be bogged down in the final stages.Remove the legacy element from the equation – and the product hits the market faster and starts bringing a return on investment.&nbsp;<h4>Legacy Systems in Manufacturing&nbsp;</h4>According to an independent survey conducted in the UK, 73% of manufacturers still rely on legacy workflows, like using simple spreadsheets for project management.[2]&nbsp;This trend is in contrast to the continued digitisation and modernisation of the manufacturing sector that has been going through&nbsp;the Fourth Industrial Revolution&nbsp;in the past decade.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fba5d4f687f5141b6b91a0653498656c6?format=webp">Manufacturers invest heavily in automation, the Industrial Internet of Things, and recently – AI.But to leverage these technologies effectively, a company needs a certain level of digital maturity, or a large portion of business-critical data ends up being underutilised. The main value of Industry 4.0 solutions lies in connectedness and ageing legacy infrastructure is a major roadblock that prevents manufacturers from reaching peak efficiency.<h4>Legacy Systems and Cybersecurity</h4>Cybersecurity is one of the biggest operational risks when relying on legacy systems in any sector. Troves of sensitive data including customer details, financial data, and trade secrets can be stolen, destroyed, or held for ransom in a cyberattack.Breach prevention is, in many ways, a technological race with malicious actors.They look for vulnerabilities and vectors of attack, while software developers and cybersecurity experts try to patch them.Older systems are more familiar to cyber criminals and can become a weak link. Infrastructure that is no longer updated and supported, or uses less secure methods of communication is exactly what attackers are looking for. One of the biggest cyberattacks in recent memory,&nbsp;Wannacry ransomware attack,&nbsp;showed that organisations that neglect updates and use infrastructure that is past its end-of-life are extremely vulnerable to large-scale cybersecurity incidents.Legacy systems not only lack modern security features – they create legacy dependencies that hold organisations back from updating other software and hardware. This stops an organisation from being proactive and puts it on the back foot.Large organisations become targets of cyberattacks for obvious reasons (they have a lot to lose and have resources) but the reality of cybersecurity is that hackers often go for the easiest targets.Almost a quarter of attacks are aimed at the public sector, according to ENISA Threat Landscape Report(ETL).[3] Small and mid-size organisations are not safe either – according to Verizon’s data breach investigation report, only 5% of data breaches affect large organisations.[4]<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fcc4549ffaa2449c4a87aa93c3ef0a245?format=webp"><h2>Three Main Barriers to Digital Transformation</h2>Moving on from legacy systems is not a trivial task. It requires careful planning and a solid digital transformation strategy. Processes that rely on older systems are very often business-critical and can’t be stopped, as the cost of potential downtime is simply too high – this is the case for every sector. However, relying on legacy systems puts the organisation on a timer. With every passing year, the technology becomes less usable and harder to maintain. Most CIOs and CTOs would agree that the change has to come eventually. What are the biggest barriers? Here at Monstarlab, we identify three main ones.<h3>Barrier №1: Change Resistance</h3>The first barrier to digital transformation is a perceived lack of urgency. The philosophy “if it’s not broke don’t fix it” has worked for ages and seems perfectly logical on the surface. Many executives can’t justify expensive modernisation projects when the existing process ‘works like a well-oiled machine.’ Add to this a risk of delay or data loss — and the migration to new functionality seems to be not worth the trouble.The truth is that when the legacy infrastructure breaks down completely, it’s going to be too late.&nbsp;The goal of digital transformation is a smooth transition – avoiding loss of data and business capabilities at all costs. Every piece of technology is slowly drifting towards obsolescence, and the shift into a critical state is very easy to miss.When it comes to efficiency, old technology gets replaced for a reason: new solutions are cheaper, faster, more reliable, and more secure. They don’t require expensive maintenance and don’t need personnel to possess niche technical skills.<h4>Solution:</h4>To effectively transition to the new architecture, an organisation needs a good digital transformation plan that takes into account a specific business case.&nbsp;Migration and modernisation projects are always tailor-made.In many ways, legacy modernisation is not a technology issue. It’s informed by strategy and the business processes.<h4>Barrier №2: Unstructured Data &amp; Legacy Processes</h4>Data that builds up over the years often holds immense value for the organisation.&nbsp;However, when it’s locked in the old databases that are inaccessible to modern applications, it becomes difficult to harness it.It’s especially true if the data management involves manual data entry, or if it’s based on outdated proprietary technology.&nbsp;This creates a vicious cycle: because of outdated technology, the processes become needlessly convoluted and complex, which makes it harder to introduce new upgrades.The key problem is that&nbsp;an organisation has limited control&nbsp;over its data.&nbsp;Decision makers can’t use it to make fast, informed decisions, IT resources are spent to keep the system working, and insights that could be critical for strategy remain siloed off.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F4d373bbe86b64926bfab41d2770f0897?format=webp"><h4>Solution:</h4>There are two main ways to escape the deadlock of outdated data management:&nbsp;<ul><li>The first option is a gradual digitisation and transformation of data policies, making sure input, storage and data management are brought to a new standard. Sometimes the old and new systems can even run in parallel before the transition is finalised.&nbsp;One example of this is the&nbsp;Strangler architectural pattern&nbsp;in which the old system is put behind a facade, and old services are gradually replaced by new ones.</li><li>The second option is a&nbsp;big bang method, where data migration happens quickly and seamlessly. Users leave for the weekend and come back to a brand-new system the following Monday.&nbsp;</li></ul>What is preferable depends on the organisation. Big Bang works great for small and medium implementations of legacy software. Bigger solutions usually require a slower transition with careful planning and execution.<h3>Barrier №3: Learning Curve</h3>Conversations about technology and modernisation are often focused on software and hardware, but it’s leaving out the most important part – people.According to experts the lack of willingness to adapt to new technologies is one the biggest roadblock on a path of moving away from legacy systems.[5]Consider the following steps:<ul><li>Communicate the need for a change</li><li>Remind people of all the hassles they had to go through, doing things the old way. Explain how the new tools are going to make their lives easier.</li><li>Ask the stakeholders</li><li>Technology has to solve real problems and challenges. The best modernisation practice is always to listen to the people who will be working with the new service. Let them give you a better idea what the new system should be capable of and what kind of user experience they expect.</li><li>Don’t leave people on their own</li><li>Teach people to work with the new systems, and give them time to adapt.</li></ul>Even when the new way of doing things is faster and better, the lack of familiarity with the new processes can lead to delays, mistakes and frustration. To avoid this, make sure to invest time into helping people become proficient with the upgraded infrastructure.&nbsp;<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F85e249894c7d46958ed5a5260c005020?format=webp">A move from legacy systems is often hard but ultimately inevitable.&nbsp;The nature of hardware and software is that, sooner or later, it becomes inadequate or obsolete, destined to be replaced by newer, better technology.Does it mean that the systems implemented today will in the same manner become a burden in the future? Not necessarily.&nbsp;There are ways to make IT future-proof. To accomplish that, the system has to be built with an understanding that individual components depreciate over time.To reflect that, engineers apply the following principles:<ul><li>API-first</li><li>A functioning API is always a priority, making sure the components of the system are not isolated and can be integrated with a variety of applications.</li><li>Cloud-native</li><li>A system that is specifically designed with the cloud solutions, like Azure and AWS, in mind is more stable and requires less maintenance. Hardware upgrades are no longer a problem, and an organisation always has room to grow.</li><li>Headless</li><li>When front-end and back-end portions of the architecture are disconnected — changes to one can be made without impacting the other. That means front-end teams enjoy full design freedom, and developers can work without worrying about impacting the users.&nbsp;</li><li>Services-centric</li><li>Instead of dealing with a monolithic architecture, adopting an approach based on self-contained services that can be deployed, scaled, and upgraded independently avoids the risk of technological deadlock. Eventually, as the components age and business needs change, a new system can adapt gradually – no need to migrate to yet another infrastructure or refactor its entire code base.&nbsp;</li></ul>Modular architecture and emphasis on the observability of data guarantee that when upgrades or alterations are needed, they can be performed without rebuilding the entire ecosystem from the ground up. Moreover, because data is available throughout the organisation, management has the knowledge to enact change in a timely manner.<h3>The Next Steps</h3>A move from legacy systems requires an experienced team, but it’s not only about technical skills and know-hows.Tech is only a part of a larger picture. The best-case scenario of a Digital Transformation is a thorough, systematic improvement of the entire business.&nbsp;The best way to do it – based on our research, experience, and analysis – is to take a technology-enabled approach that focuses on the needs of the specific business case, and make sure the people – be it an employee, an end-user or a decision maker – are happy.&nbsp;This is a holistic approach to change.&nbsp;If you want to see these principles in action, check out our&nbsp;<a href="https://monstar-lab.com/global/cases/" rel="noopener noreferrer" target="_blank">case studies,</a>&nbsp;like the digital architecture transformation we have done for&nbsp;<a href="https://monstar-lab.com/global/cases/cafu" rel="noopener noreferrer" target="_blank">CAFU</a>&nbsp;,&nbsp;the modernisation of the global product ecosystem for&nbsp;<a href="https://monstar-lab.com/ae/cases/abi/" rel="noopener noreferrer" target="_blank">AB InBev</a>, or the digitisation of a legacy purchasing system for&nbsp;<a href="https://monstar-lab.com/global/cases/kakujoe/" rel="noopener noreferrer" target="_blank">Kakujoe</a>.<h3>References:</h3>[1] V.Vahromovs,&nbsp;<a href="https://www.fintechfutures.com/2021/11/legacy-systems-in-banking-the-major-barrier-for-digital-transformation/" rel="noopener noreferrer" target="_blank">Legacy systems in banking: the major barrier for digital transformation</a>, Fintech Futures, 2021[2]&nbsp;<a href="https://easyfairsassets.com/sites/208/2022/05/DisconnectedDataReport.pdf" rel="noopener noreferrer" target="_blank">Is disconnected data holding your business back?</a>,&nbsp;by Infoware and Surveygoo, 2022[3]&nbsp;<a href="https://www.europarl.europa.eu/news/en/headlines/society/20220120STO21428/cybersecurity-main-and-emerging-threats?&amp;at_campaign=20234-Digital&amp;at_medium=Google_Ads&amp;at_platform=Search&amp;at_creation=RSA&amp;at_goal=TR_G&amp;at_audience=cyber%20security%20threats&amp;at_topic=Cybersecurity&amp;at_location=CZ&amp;gclid=CjwKCAjwjMiiBhA4EiwAZe6jQ29FcsrEAoCOcQMz_n8U2W8HMIp6EdhKQjovvtYwkv0Ow1WDbCjhEBoCErMQAvD_BwE%20[4]https://www.verizon.com/business/en-gb/resources/2022-data-breach-investigations-report-dbir.pdf" rel="noopener noreferrer" target="_blank">ENISA Threat Landscape Report(ETL)</a>[4]&nbsp;<a href="https://www.verizon.com/business/en-gb/resources/2022-data-breach-investigations-report-dbir.pdf" rel="noopener noreferrer" target="_blank">Data&nbsp;Breach&nbsp;Investigations&nbsp;Report</a>, Verizon, 2022[5] A.Alexandrova, L. Rapanotti, I. Horrocks, The legacy problem in government agencies: an exploratory study, Association for Computing Machinery, New York, NY, United States

Moving from Legacy Systems: Key Obstacles and How to Overcome Them

Large language models are taking the world by storm. They are in the news and on social media, discussed by professionals across a variety of industries and sectors.&nbsp;&nbsp;ChatGPT (and its close competitors Bing and Bard) are bringing to reality a concept that was for decades purely in the realm of science fiction: having a conversation with a computer.Language models can generate text, write code, explain scientific and mathematical concepts, give language lessons, write poems, give music recommendations — the list goes ever on.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F56ccd1723c63409c8fdc0313e9ab3eae?format=webp">The <a href="https://monstar-lab.com/global/generative_ai" rel="noopener noreferrer" target="_blank">AI</a> chatbot generates responses almost instantaneously, maintains a conversational tone and answers follow-up questions. It can break down big topics into manageable chunks and give detailed step-by-step instructions.However, its knowledge is mostly limited to the time before 2021, its responses are not always accurate, and the text it generates sometimes has a monotonous, epitomizing feel. Numerous metrics can illustrate the difference between the text that is produced by a human, and the one generated by language models. One of the tools,&nbsp;<a href="https://gptzero.me/" rel="noopener noreferrer" target="_blank">GPT Zero</a>&nbsp;developed by a Princeton University Student Edward Tian analyzes perplexity to determine if the text is AI-generated or contains AI-generated segments.&nbsp;<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F8a9556733e46455590a0a19d0de307a4?format=webp">Perplexity is a measure of randomness in a text, and typical output generated by the LLMs is pretty uniform compared to the unique way each person writes and builds their sentences. For example, this article’s average perplexity score is 344, while a document produced by a generative AI dealing with a similar topic could have an average score of 16 or lower.&nbsp;ChatGPT is a large language model, which in simple words, tries to predict the most statistically likely output in response to a given input. Depending on the data that was used to train it, this output can seem more or less natural, but at its core, it treats text as a string of probabilities and tries to predict the next “correct” word in a sequence.This means that the model doesn’t strictly speaking ‘know’ the topic it’s explaining, rather it creates an output based on how it thinks an explanation should sound, based on its training data.This principle is illustrated well by asking language models math questions: it can be of help relying on tutorials and explanations from its training data but doesn’t do any actual calculations.&nbsp;&nbsp;<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fcfe07f89ab604f0f81b4abb7b2b72f8d?format=webp"><img src="https://monstar-lab.com/global/assets/uploads/2023/03/how-large-language-model-works.jpg.webp" alt="An infographic describing how larnge language model works: turns text into tokens, assigns probability, and leverages training data to generate an output."><h2>Capabilities of Generative AI Tools</h2>Unlike ChatGPT, Bing – Microsoft’s flagship AI project – had access to the internet and had a lot fewer safeguards in place, which led to very unique and unexpected results. It’s capable of using real-time search engine searches to augment its output.Some users made Bing do and say things that some found amusing, and others — frightening.Besides simply giving instructions and summarizing information, Bing was prone to arguments, accusations, and even made claims of sentience [1].&nbsp;That being said, Bing is powered by the same language model as ChatGPT (<a href="https://blogs.bing.com/search/march_2023/Confirmed-the-new-Bing-runs-on-OpenAI%E2%80%99s-GPT-4" rel="noopener noreferrer" target="_blank">GPT-4</a>), and at its core has similar capabilities and functionality [2].This example is an excellent illustration of the fact that even with similar technology under the hood the final solution can be very different in both reliability and application.<ul><li>Generative Artificial Intelligence Frequently Asked Questions:What is Generative AI?</li><li>Generative AI is an artificial intelligence that makes use of generative models to output text, images, or other media in response to a prompt. One example are the large language models like GPT-3 and GPT-4.</li><li>What does GPT stand for?</li><li>GPT stands for Generative Pretrained Transformer.</li><li>How do Large Language Models operate?</li><li>Models use multi-layered neural networks in a process called deep learning(a subset of machine learning) to analyze text and make predictions. The process is extremely complex and uses numerous algorithms to transform words into numeric data, help Artificial Intelligence focus on specific parts of the text and interpret it.</li><li>Language models track meaning mapping words on vectors (words with similar meanings are mapped close to each other) and assign probabilities to every word in a sentence to come up with its most statistically likely continuation.</li><li>How are LLMs trained?</li><li>Large language models are trained on huge data sets, or text corpora which contain billions of words. After unsupervised training, models go through fine-tuning, where they are trained on smaller data sets with limited scope and get feedback from human users.</li><li>As an example, GPT-3 was trained on Wikipedia, books and internet data aggregated by&nbsp;<a href="https://commoncrawl.org/" rel="noopener noreferrer" target="_blank">Common Crawl.</a></li><li>There are also smaller open data sets to train artificial intelligence, for example, LAION-400M and COYO-700M.</li><li>What are the key limitations of Generative Artificial Intelligence?</li><li>Two limitations that are discussed the most are susceptibility to bias and artificial hallucination. AI amplifies biases found in its training data, and ‘hallucinates’ unreal, but plausible-sounding facts.</li></ul><h3>Text-to-Image Generation</h3>While the release of ChatGPT certainly attracted the most attention, the first sign of large-scale AI disruption happened a few months prior when the public debated the merits of AI-generated art.AI-generated images started appearing on platforms like ArtStation, in late 2022 transforming the industry landscape.The impact of the technology goes far beyond creative industries: it can be theoretically used for advertising, marketing, and commercial content creation.Conceptually, the idea of AI-made graphics wasn’t new, after all This Person Does not Exist and Art Breeder (both based on the StyleGan model, developed by Nvidia) existed since 2018.But Dall-E (and similar technologies like Midjourney and Stable Diffusion), blew them away by giving anyone the ability to generate an image based on a text prompt.The outputs are absolutely striking. At first glance, many generated images look like paintings, professional portraits, or works of a graphic designer, but the details evoke signature strangeness associated with AI-generated imagery: warped proportions and unnatural or hard-to-discern details.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F8d52a4c4a2b4479e8000c9474d111b6d?format=webp">Example of portrait images produced by Art Breeder<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Ff19a58b136924a6a9e921172b360ac69?format=webp">An image generated by Midjourney<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fa81c949952f741369a27589171c26ff4?format=webp">An art generated via Stable Diffusion by Stable AI<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F676da627d04b463cbedcf3ce55338590?format=webp">A poster for the “Bioinspiration” exhibition in Technisches Museum in Vienna, Austria featuring AI-generated imagery.The influx of AI-generated art caused controversy among the artists whose work was used to train the models with no compensation, and whose recognisable styles got emulated by targeted text prompts.&nbsp;Some companies like Shutterstock and Getty Images, which millions of businesses use as a source for stock images, have banned posting and selling of AI-generated images; the former introduced their own AI-powered text-to-image solution soon after.<h3>Rights and Ownership</h3>Text – or any other AI-generated media – raises interesting questions of ownership. Who owns AI-produced output: the company that developed the AI or the author of the prompt, and do the people whose work has been used to train the model have any claim on the end result?While ChatGPT doesn’t break any laws by writing a short story “in the style of Stephen King”, if a company were to train a language model purely on Mr King’s works in an effort to perfectly imitate and iterate his books — would this be an infringement of intellectual property rights?For companies that are looking to harness ChatGPT’s ability to quickly generate everything from proposals to social media content, this poses a serious legal question: to what extent do they own that material?&nbsp;In education and publishing, language models highlighted numerous problems with plagiarism.It was verified in a blind test that ChatGPT can attain low but passing grades in exams in law and business schools, and numerous students used it to effortlessly get passing grades on college essays, papers, and other written tasks [3].An online publisher Clarkesworld made the news by closing their submissions for paid short stories due to a deluge of AI-generated content. And while detection methods do exist, deal with a large enough volume of submissions, and the cost of processing becomes too large to make publishing the submitted material commercially viable [4].&nbsp;<h3>Ability and Responsibility</h3>While OpenAI’s ChatGPT is perfectly capable of talking about various concepts with confidence, it’s bound by a lack of hands-on experience.When proactively corrected by a human, it can rectify mistakes and give alternative answers that come closer and closer to the truth, but a person using the model as an introduction to a topic or as an instruction manual to perform a task wouldn’t be able to give these corrections.This brings into question a potential use case for writing technical documentation or creating interactive user manuals. In many industries, the cost of a potential mistake can be very high, or can even result in a risk of injury.&nbsp;Trustworthiness of information, transparency of sources, and reliability of AI-Solutions are critical to big businesses, so it’s very unlikely that companies will suddenly start replacing crucial specialists with AI chatbots. In the long run, every organisation and team is somebody’s responsibility.&nbsp;<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fa3de20c31c0a4533afa507ca6f16d23e?format=webp"><h3>Language Models and Code</h3>Programming languages are informed by similar principles to regular languages.They have&nbsp;syntax,&nbsp;semantics,&nbsp;and even&nbsp;dialects,&nbsp;so it comes as no surprise that text-based AI systems can write code as easily as it does in English or Spanish.Numerous tests proved ChatGPT was doing well with Leet interviews, with some people going as far as to claim the online assessment format is ‘dead’ now that anyone can use ChatGPT for help.ChatGPT can easily find solutions to common problems, using mostly well-known information, and can absolutely crush any question for an entry-level interview. However, ChatGPT is unable to check if something works or not, makes mistakes, and lacks the ability to approach difficult, unique problems illustrating that the most likely use case for its abilities at this time, is to use it to automate simple repetitive tasks or use it for brainstorming.It’s worth noting that capabilities currently available for public use are a far cry from what a dedicated model can achieve, provided it’s trained specifically to write and review code.<h2>Co-Pilot not Autopilot</h2>While the idea to let AI do everything, letting humans sit back and relax, reaping ample benefits is appealing to many, the biggest potential benefit of AI technology lies in its impressive computational power and ability to query terabytes of data, to help a human specialist deal with a problem.AI language models can help with initial research and can be leveraged effectively to quickly gain access to information tied in unstructured and fragmented data sources.&nbsp;All in all, AI solutions that are tailored to solve specific business challenges are not new. Monstarlab’s own projects often rely on Artificial Intelligence implementations like a web app we’ve developed for&nbsp;<a href="https://monstar-lab.com/global/cases/using-ai-technology-to-mitigate-costly-returns/" rel="noopener noreferrer" target="_blank">Uni-Mate</a>.In manufacturing, language models can help workers perform tasks safely, access relevant parts of documentation on the fly, and help break language barriers.In smart city and smart building, applications of AI models include predictive maintenance and new ways to work with numerous data streams coming from applications and IoT sensors.In healthcare, chatbot solutions can help patients efficiently share information and empower clinicians by saving valuable time.In life science, powerful transformer LLMs are able to work with proteins and chemicals to accelerate drug discovery and make R&amp;D cheaper and more effective.Beyond computer vision, automation control and robotics, potential applications with Augmented and Virtual Reality are potentially limitless.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F7672dc71ff584524b174b56877974de6?format=webp">Where OpenAI’s GPT-3, GPT-4, and similar models really created a revolution is accessibility. If before AI discussion was mostly restricted to information technology and B2B applications, now everyone can try it and discuss it on social media and other public platforms. On one hand, the technology finally received the attention it deserves, but on the other, there are a lot of misconceptions around what it is and how it works.It’s the case for most industries, that companies would require reliable solutions developed specifically for their needs, tailor-made to solve pressing issues and drive desirable outcomes.&nbsp;This way, having been built with security and safety in mind, AI solutions can be an immense asset, making people’s lives better across the board.&nbsp;<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F4f49948be5a44aae82adbe3b99fd6259?format=webp">AI technology is here to stay. And it’s going to cause changes in your industry.If you want to keep on top of the changing digital environment across sectors, keep an eye on our&nbsp;<a href="https://monstar-lab.com/global/thoughtleadership/expertinsights/" rel="noopener noreferrer" target="_blank">Thought Leadership</a>&nbsp;section where we discuss industry trends, cutting-edge technology applications, and insights from leading experts.<h3>References</h3>[1]C.Roach,&nbsp;<a href="https://www.digitaltrends.com/computing/microsoft-chatgpt-bing-becoming-ai-nightmare/" rel="noopener noreferrer" target="_blank">ChatGPT Bing is becoming an unhinged AI nightmare</a>, Digital Trends, 2023.[2]Y.Mehdi,&nbsp;<a href="https://blogs.bing.com/search/march_2023/Confirmed-the-new-Bing-runs-on-OpenAI%E2%80%99s-GPT-4" rel="noopener noreferrer" target="_blank">Confirmed: the new Bing runs on OpenAI’s GPT-4</a>, Microsoft Bing Blog, 2023.[3]S. M. Kelly,&nbsp;<a href="https://edition.cnn.com/2023/01/26/tech/chatgpt-passes-exams/index.html" rel="noopener noreferrer" target="_blank">ChatGPT passes exams from law and business schools</a>, CNN Business, 2023.[4]M. Loh,&nbsp;<a href="https://www.businessinsider.com/chatgpt-ai-written-stories-publisher-clarkesworld-forced-close-submissions-2023-2" rel="noopener noreferrer" target="_blank">The editor of a sci-fi magazine says he’s getting flooded […]’</a>,&nbsp;The Insider,&nbsp;2023.

CHAT GPT and The Dawn of Generative AI

Jackie du Plooy

Gabriel Valmonte

The Metaverse is touted as the next big thing in digital. Here’s a high-level overview and what we think this means for your brand.In the last quarter of 2021, Facebook CEO Mark Zuckerberg announced the rebranding of the popular social network company to Meta. Proclaiming that the company is shifting its direction to usher in a new era in providing digital experiences; particularly the metaverse.“In our DNA, we build technology to bring people together. The metaverse is the next frontier in connecting people, just like social networking was when we got started.” – Mark Zuckerberg [1]Metaverse has since been the latest buzzword, stirring a ton of early interest and getting major players to start claiming their stake in this still developing phase of technological evolution.Being in its very early stages of development, a universal definition of the metaverse has yet to be defined and a platform that can truly call itself the metaverse has yet to come. But in principle, the metaverse is a combination of multiple elements of technology—including virtual reality (VR), augmented reality (AR), and video—where users live within a digital universe. This allows a greater overlap of our digital and physical lives in wealth, socialisation, productivity, shopping, and entertainment.<h2>Metaverse’s Roots in Gaming</h2>One key characteristic of the metaverse is that it has to be a persistent virtual world that continues to exist and function even without the active participation of the player. And it can simultaneously be accessed by several players at any given time. Massively Multiplayer Online Role-Playing Games or MMORPGs have been around as early as 1997 spearheaded by the game 1 Ultima Online [2]. MMORPGs gave us a glimpse of what vast virtual worlds can do and the experience they can offer.Next-generation gaming platforms like Fortnite and Roblox have extensively elevated the experience. Enabling users to watch concerts, build their own games within the platform, socialise, and buy/sell in-game items.&nbsp;<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fbb135fc76c084d8393ee2b568e9cb9b3?format=webp">American band Twenty-One Pilots staged a full virtual concert on Roblox.What sets it apart from the metaverse currently conceived, aside from the inclusion of more technological elements, is that its existence does not centre on stories or specific gameplay. It is developed to give individuals full control of their virtual existence and experience. We believe we will however see how gaming and other day-to-day use will be integrated into the metaverse –&nbsp;maybe test drive a virtual Ferrari before work. As in Metaverse, you would skip the commute to work as you switch from entertainment to work on the fly.<h2>Why Should Your Brand Enter the Metaverse?</h2>Metaverses are in their infancy stage. When will it be grown-up? Not very soon. We will see how the graphics improve, and with that, every laptop will have to be built to ensure an immersive experience and get the benefits of the metaverse. In conjunction, we will see utility hardware for AR, VR, and similar experiences come down in price and sold as a package with your laptop or mobile phone. It will be a standard accessory.More wearables will follow, and with that, more experiences and more real-world actions will be simulated. In time, this will replace the web as we know it today. It will not be sudden but done slowly, slowly, then suddenly. If you are a business and you are not in the metaverse, where will you be? We are at the same stage from the early 90s when every company was registering their web domains. We claim our spot on the web of the future, today. Speculators are buying land and selling it at huge mark-ups. Latecomers will pay the price.These titles are examples of MMORPGs and those that offer an open world, but the main difference is that these MMOs still revolve around stories, only offering a more lax approach to following them. Users may still feel like they are in control of their story or quest, but it does not give them full authority.On the other hand, the metaverse will give the public full control over their life, quests, missions, and entire virtual existence. There may be games available, but the reason for being in the metaverse does not revolve around the game, and people may come and go there, unlike games that are the entire world of the digital platform.As most technologies started with games that eventually evolved, we believe the metaverse will be no different. We believe we will see how gaming and other day-to-day use will be integrated with the metaverse – maybe play a game on your way to your digital office and collect some NFTs on the way whilst eliminating a couple of thugs?<h3>Which Metaverse to Choose?</h3>Although it is early days and it is definitely possible for you to create your own metaverse with the audience you have (if you do have an audience), it is far more difficult and requires a lot more resources, financially and otherwise. Given that It is new and it is still evolving, we can not give an answer as to which metaverse to go for but we can help you decide by looking at several factors including but not limited to:<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F9a5b470ced9f4deaa93185fcab0adf99?format=webp">PlatformStart by having a look at the available platforms. Try to get a good understanding of the purpose behind its development. What do the creators envision with their platform? and does it align with your own? How is platform development progressing, and do they have a roadmap for ongoing and future developments? Then give it a run by experiencing the platform yourself. This will help you get a glimpse of how users actually experience the platform which will also indirectly translate to how they can potentially experience your brand in that virtual world.CommunityJust like in the real world, we do not cater to everyone universally, but instead, work with defined customer segments. That will likely be the same when brands dabble in the metaverse and engage their communities. You would want to look at the people who make up the community, are significant in number, but most of all, are the right audience you want to engage with.MetaverseThe third area for consideration is the metaverse itself; the virtual world where you would claim a stake for your brand. You would want to know who has control over it, including the level of development autonomy they will allow for participants and the tools available to enable this. Then, have a look at interoperability (or the potential of it) with other platforms, the intrinsic economy that will invigorate the virtual world and, of course, the financial costs of participation for your brand.<h3>Is the Technology Ready?</h3>The baseline hardware and software to create the metaverse are there, but not quite at the point where it is envisioned to be. With every major shift, there is a transitionary period where technology is upgraded and improved over time to enable a great user experience.Accessories, as has always been the case with games, will improve and standards will be set to ensure interoperability between hardware, software, and across metaverses. The tech is evolving, and we will see a rapid replacement of what we have now and what will be needed to truly experience the metaverse at its fullest. There is no end point where we will say we truly arrived. It will continue to evolve and rapid innovation will grow and change the way we see and experience things.The question you have to ask yourself is “how long will I wait to enter the metaverse and claim my space?” While there may be no “right time”, you do run the risk of being left behind and finding yourself scrambling to catch up with the front runners that will inevitably help shape the emerging experience.<h2>Some Key Aspects of the Metaverse</h2><h3>Centralised or Decentralised</h3>Everything starts centrally. Even Bitcoin was central in its early stages. It appears that most of these metaverses are creating a transition to decentralisation where the community eventually takes control through a foundation and decisions are made by the community.A centralised metaverse will result in the same challenges we have with big platforms where they decide what can be said and who gets banned. It is our metaverse “constitutional” obligation to ensure that decentralisation is prevalent and that we do not end up with a metaverse god or a purported ruler who has absolute control of the experience.<h3>Crypto and the Metaverse</h3>The internet of money—crypto—will be our “passport” to the metaverse. No more login with either Google, Apple, Facebook accounts, or even email. Your crypto wallet will be linked to the relevant metaverses and you will be able to seamlessly transact peer-to-peer.Your wallet will eventually house your NFTs, not only your ape avatar but your NFT ID, and a lot more. You will be in control of all your own data and you will even be able to sell it to whomever you want if you wanted to.<h3>Metaverse Possibilities and Actualities</h3>Now let’s get a glimpse of what businesses can possibly do in a Metaverse. Here is a simple first example.Taking Virtual MeetingsLet’s reimagine the endless video calls and meetings we all had over these past two years with the pandemic. Imagine your next meeting with Hiroki:You receive a personal (avatar) invite to meet with your boss Hiroki, who is based all the way in Japan, and others across the globe for a financial management meeting in the metaverse.You, via your avatar, log in to Decentraland with your crypto wallet. On arrival, Hiroki arranged a concierge agent avatar (now still a new made-up job, but definitely something to consider) to meet you and take you to his office in the metaverse. You teleport to the office and are welcomed by his receptionist avatar and taken to the virtual boardroom with a 12-seater table where you meet the seven other participants in this meeting. You make some small talk and then eventually start the business discussions.Now imagine all of this with all the accessories – that’s how it can be in real life.Let’s take a Health and Wellness ScenarioAn insurer builds a clinic in the metaverse. All health and wellness professionals approved by the insurer have a booking system in the metaverse where you can book some time to consult with any one of them. This can even be done in groups for large simultaneous sessions.The consultations will remain anonymous and people that are especially feeling vulnerable to being ostracised by their peers can visit the clinic without any fear. Nobody sees the transaction that goes off from their wallets and they remain anonymous if they prefer.Health care professionals will rent from the insurer based on revenue generated and all of this can settle seamlessly without the need for reconciliations and invoices.The possibilities are indeed exciting, but there are actually a lot of activities happening in the metaverse as we speak. Decentraland, a user-owned virtual world, is already hosting large events in its realm.Music festival with real artists: Decentraland had a Metaverse Music Festival headlined by Deadmau5, Paris Hilton and more.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F8fb4eedc5bf548138e139a4fbac4e7ef?format=webp">Sporting events as it happens: Australian Open has collaborated with Decentraland for its 2022 season.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fa05f846f87df46cbb6bcf0d4ef199fbe?format=webp">Photo from The Crypto Times.Art exhibitions with real artists.&nbsp;Sotheby’s has opened its own virtual gallery in Decentraland.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fcfcf7a877f7441d1b9fd7da99154ff2a?format=webp">Photo from Sothebys.comCheck out more events here: https://events.decentraland.org/<h3>Your next app and web development</h3>When is the right time to migrate from web 2 to web 3? This is not a question for us to answer. What we do know is that you need to start planning now. Your page will get fewer hits and engagement as the transition to the metaverse speeds up. As a minimum, start all your research now, make sure you understand the metaverse (as it is now and where it may go) and be ready to make that transition rapidly.Web 3 and dApps are maybe just terminologies you have heard of but do not really know what it means and how they will impact your brand. One morning this will all change and will leave you wondering why you did not engage with a technology partner that could have helped you keep pace with this digital transition journey.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F9f59f49b1c2543cfac70aa965cc7a05c?format=webp">And Meta?Meta is centralised and we will have to see what Mark Zuckerberg and his team will deliver. We hope and believe that decentralisation will get preference from participants as they gradually understand the disadvantages of centralisation. As mentioned earlier, we need to avoid the creation of a meta god.<h4>Expert Featured:</h4><img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F1cb157a60d804ad39d6561199464ef7f?format=webp">Jackie Du Plooy | Executive Engagement Director, Middle East20+ years experience in digital transformation, strategy &amp; innovation and commercial management across industries, including BFSI, in several countries in the role of Client Partner. Focus has been on building high-performing teams and sound strategic partnerships by bringing together delivery and commercial teams to drive the customer strategy and journeys of digital transformation.<h4>Endnotes:</h4>Meta.com, Founder’s Letter, 2021Gamerant.com, Ranking The Oldest MMORPGs (That Are Still Online Today), 2022Variety.com, Twenty One Pilots to Stage Elaborate Roblox ‘Concert Experience’, 2021Coindesk.com, Decentraland Books Deadmau5, Paris Hilton and More for Metaverse Music Festival, 2021Cryptotimes.io, Australian Open Enters the Metaverse in Collaboration with Decentraland, 2022Decentraland.org, Sotheby’s opens a virtual gallery in Decentraland, 2021Coindesk.com, What Is Web 3 and Why Is Everyone Talking About It?, 2022Investopedia.com, Decentralized Applications (dApps)Wired.com, What Is the Metaverse, Exactly?, 2022Ibc.org, Understanding the Metaverse: Opportunites, Challenges and Gen Z, 2021Polygonalmind.com, Metaverse Platform Comparison – Virtual Worlds on the Blockchain, 2021

What is the metaverse? And is it worth your time?

<a href="https://monstar-lab.com/global/thoughtleadership/health-wellness-lifescience/" rel="noopener noreferrer" target="_blank">Part of our Health, Wellness &amp; Life Science Series</a><h3>Introduction&nbsp;</h3>The goal of precision medicine is to identify possible groups of patients with atypical responses to treatment or unique healthcare needs, and to design the most appropriate intervention. Precision medicine has the potential to improve traditional symptom-driven practice of medicine, and to allow preventive interventions using predictive diagnostics.Progress in molecular technologies has led to vast amounts of human health-related ‘omics’ data that will greatly expand our understanding of human biology and health, and hopefully drive personalised medicine. Each type of omics dataset is specific to a single layer or aspect of a disease. Most diseases, however, affect complex molecular pathways where different biological layers interact with each other. Hence, there is a need for ‘multiomics’ approaches that encompass multiple layers of data and draw a more complete picture of the disease (inset).Despite current advances, most precision medicine efforts today are manual or semi-automated, and are time-consuming. The majority are also unable to facilitate on-demand analysis of diverse human datasets to impact critical treatment windows and predict potential disease risks. Currently, there is still no platform available that can efficiently integrate medical records, multiomics, and epidemiological data acquisition, enabling effective management of data analytics with a user-friendly physician-oriented interface.Beyond omics data, the ubiquitous use of the Internet and the widespread availability of smartphones suggest that the clinical and biological domain can be significantly enhanced with patient-generated data. These could be physical activity data, dietary intake, blood pressure or other data collected by wearable devices.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F4c6891c5094a434ab87c325fdcd02b8e?format=webp"><h3>Data challenges</h3>The use of multiomics data presents a lot of challenges. These include the presence of missing values, class imbalance, heterogeneity, the fact that patterns often involve many molecules from different types of omics data. The fact that certain datasets are often only collected from a limited number of samples is also a problem, because the number of variables in these datasets greatly exceeds the number of samples (curse of dimensionality).&nbsp;In vivo,&nbsp;real-time data are the best types of data for the design of personalised treatments. However, using this kind of data is nearly impossible because of the lack of comprehensive datasets and the low number of samples of most published studies. To help with this problem,&nbsp;in vitro&nbsp;studies, for example with cancer cell lines or patient-derived xenograft mice models, could provide useful datasets. These datasets are rich and complex and can be used to train models of the disease.The lack of comprehensive, good quality, accessible, updated, and correct data sources, are common occurrences in the field. To address this, research communities have been building popular public data resources over the years.The field of oncology benefits from several popular databases such as The Cancer Genome Atlas (TCGA) or the Genomics of Drug Sensitivity in Cancer (GDSC). The latter, in particular, collects data from more than a thousand genetically characterised human cancers screened against a variety of cancer therapeutics.&nbsp;Public data sources represent an extremely valuable resource. However, for building comprehensive disease models, these often do not provide the required quality and completeness. To overcome this problem, when available, one could access dedicated and curated datasets from companies that offer this type of data products for a licensing fee.Beyond molecular data, clinical information has the potential to enrich and complement genomics and other omics data such that the combined predictors will perform better than the individual classifiers based only on a single type of data. However, personal health records are regulated by strict privacy laws and rules, which limit their use in generalised or public applications, and complicate their commercial useBarriers in linking health information across different sources slow down healthcare research and the development of individualised care. The same problem applies to patient-generated data via for example wearable technology or smartphones. The independent and heterogeneous management of Electronic Health Records (EHRs) by health institutions poses challenges in the integration of this information. In particular, some of the challenges are: 1) the heterogeneity of the file formats and access protocols; 2) the presence of multiple schema or data structures; and 3) different or ambiguous semantics (e.g. meaning and interpretation of definitions).<h3>Combining different types of data</h3>For omics datasets, integration methods can be very broadly grouped in three approaches: Early, Intermediate and Late Integration. In the first approach, datasets can be simply assembled via sample-wise concatenation into an often large data matrix. The resulting complex dataset from this methodology cannot easily be used by downstream applications, such as Machine Learning, which struggle to learn from such complex dataset (inset).Some methods have been developed with the ability to find semi-shared structures, or patterns, shared between some omics but not all. The main advantage of such methods (Intermediate Integration) is to discover the joint inter-omics structure, that can then be used to obtain a simpler representation of the combined dataset (dimensionality reduction).The most straightforward integration strategy, the Late Integration, is to actually apply analytical techniques such as ML models to each dataset separately, and then combine the respective best predictive features. The shortcoming of this approach is that it cannot capture inter-omics patterns, and at no point in the process ML or other analytical techniques would share knowledge or utilise the complementary information between datasets.Utilising the methodologies above, public datasets that collect drug response data (e.g. DrugBank, ChEMBL) can be combined for example with datasets containing genetic and molecular cancer data (e.g. GSDC). These datasets can be used to build a generic ML model that can be used to predict drug responses, or identify the most appropriate drug, with data and compounds not originally used to train the model. This methodology is called&nbsp;Transfer Learning&nbsp;(for more information check our Blog article: “<a href="https://engineering.monstar-lab.com/en/post/2022/06/21/streamlit_app_for_transfer_learning/" rel="noopener noreferrer" target="_blank">A Streamlit app to browse drug sensitivity predictions based on Transfer Learning</a>”).To regard health records and other types of data, where semantic integration is critical, one of the strategies adopted is the use of ontologies. Practically, an ontology is a standardised and controlled vocabulary for describing data elements and the relationships between the elements. Designed this way, an ontology would formally and computationally represent a dataset.Several biomedical ontologies are already available and used in medicine. These include for instance the International Classification of Diseases (ICD) and the Systematised Nomenclature of Medicine and Clinical Terms (SNOMED CT).<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F1dca0b7aeebf4283babfc18b366f926f?format=webp"><h3>Conclusion</h3>With ever growing access to biological data, new tools for omics and other data integration strategies are continuously being proposed. Nonetheless, it is urgent that we identify the best practices, tools and strategies for the integration of vastly diverse and rich data types for applications in precision medicine. In that aspect, benchmark studies are also particularly important and should be done more frequently.The advances of deep learning models in this area are also quite compelling. Their flexible architectures facilitate the integration of multiple omics datasets, which can also be combined with biomedical images, patient health records and other types of data, offering a better grasp of a patient’s pathology.Precision medicine demands interdisciplinary expertise that understands and bridges multiple disciplines. The&nbsp;transdisciplinarity&nbsp;nature of this field pushes for a knowledge discovery that goes beyond the individual disciplines. In order to practically achieve this in both commercial and non-commercial settings, new paradigms for data collection and data applications are necessary.<a href="https://monstar-lab.com/global/thoughtleadership/health-wellness-lifescience/" rel="noopener noreferrer" target="_blank">Find more Health, Wellness &amp; Life Science technology and digital strategy content</a>

Integrating Multiple Data Sources for Precision Medicine

<a href="https://monstar-lab.com/global/thoughtleadership/the-future-of-banking-financial-services-and-insurance/" rel="noopener noreferrer" target="_blank" style="font-size: 18px;">Part of our Banking, Financial Services, and Insurance Series</a>Globally, there are approximately 258 million smart homes as of 2021 [1]. And this is projected to grow further as the smart home market is pegged to be worth 313 billion USD by 2026 from 79 billion USD&nbsp;in 2020 [2]. This is driven largely by the wide availability of the Internet of Things (IoT) capable personal products and home appliances.&nbsp;This opens opportunities for a host of digital businesses to capitalise on the growing trend. One industry that stands to reap great benefits from this is the insurance industry.&nbsp;Especially InsurTechs (insurers who leverage technology innovations to maximise savings and efficiency from current insurance models) and their customers.<h2>Insurers can maximise IoT devices</h2>Insurance companies can leverage IoT enabled devices to generate copious amounts of data. That data can then be analysed to give insurers insight into the activities of their customers, allowing them to not only better understand their customers – and design products around them – but also predict and potentially avert incidents that lead to claims before they occur.Virtually, everything is becoming smarter and insurers can tap into connected devices to access and use the data they generate. While this data can be directly accessible to insurers via sensors or mobile devices, third-party organisations may also play a role in ownership, aggregation, and distribution to insurers.<h3>Here are some types of devices that insurers can tap into, and how they can be used:</h3><h4>Wearable or personal technology</h4>The rising popularity of wearable technology helps users reduce health risks and even save money.&nbsp;This rapidly evolving technology, also known as&nbsp;fittech, is well suited to health and life insurers.&nbsp;Integrated features such as heart rate monitors, step counters, and sleep trackers within these devices deliver critical data on the state of a customer’s health that insurers can leverage to make recommendations for lifestyle adjustments. Backed by the likes of Artificial Intelligence (<a href="https://monstar-lab.com/global/generative_ai" rel="noopener noreferrer" target="_blank">AI</a>) and data analytics, specific patterns present possible anomalies which alert insurers of potential health risks, allowing them to act proactively.&nbsp;Prototype patches are also being developed for automated blood work, ECGs, and the administration of chronic drugs.<h4>Sensors</h4>Sensor-enabled security systems and utility monitors can also deliver information that allows property insurers to proactively act on, or even prevent, issues such as home invasions, fires, leaks or floods, geyser misuse and explosions, electrical damage, and more.Vehicle insurers, on the other hand, can tap into sensors installed in personal and commercial vehicles to identify driving patterns and behaviours, measure travel distances, and monitor speed and braking levels. Insurers are already leveraging this data to offer tailored packages to drivers, backed by rewards for “good driving”. From a more holistic perspective, this data – collected and collated from multiple sensors – can aid insurers in guiding their customers to avoid common driving problems such as navigating high accident or hi-jacking areas, overheating due to being stuck in traffic, and theft.Location-based sensors, such as tracking devices and cameras, can likewise assist with the prevention of theft and fraud, enabling insurers to tap into the whereabouts of various moving and unmoving assets.<h4>Geographical Information Systems (GIS)</h4>GIS provides geophysical, topographical, climatological, and hydrological data. This delivers insights that insurers can use to warn customers of impending natural disasters such as storms, floods, and other dangerous weather phenomena. The data can contribute to helping minimise damage caused by these events, thereby reducing the number of potential claims.<h2>Leveraging IoT Data</h2>The data generated by IoT can be used in several areas of insurance. The convergence of different data types leads directly to increased precision in assessing risk, pricing policies, and estimating necessary reserves. There are clear advantages over current approaches, which traditionally rely on backwards-looking claims data and historical risk studies. Through constant monitoring of IoT-delivered data, underwriters can recommend real-time pricing and policy terms, as well as health and well-being services to manage mortality and morbidity risks over time.IoT is likely to drive further evolution in claims, as it orients more toward active loss prevention. For example, in-vehicle sensors can be useful in providing warnings in case of dangerous driving patterns. Within group health insurance, the discounts offered to employees who monitor their activity levels and heart rates could also be considered a claims prevention program.Commercial insurers can leverage GIS data to mature their modelling capabilities, especially relative to natural disasters. Security systems, access control systems, and tracking devices all play a role in helping insurers with both investigations as well as monitoring of an organisation’s practices and adherence to health and safety protocols.Life insurers can now automate and streamline the traditionally intrusive and lengthy underwriting process because sensor data provides the means to answer a lot of the questions from yesterday’s outdated paper-based application forms.<h3>The impact</h3>Insurers would be able to better profile their customers by looking into ways in which they can improve and tailor their products according to actual customer behaviour. As they can better monitor what is happening to their customers, it makes it possible to reduce their risk ratings and at the same time reduce their customer’s premiums, giving them a competitive edge.Insurers may also improve their customer experience—from speeding up claims to offering behaviour-based rewards programs, and providing proactive tips and alerts.<h3>Where to start?</h3>While investigating the host of exciting new and emerging architectures available for the provision and analysis of IoT data, insurers should engage their customers to identify their data and confirm the accuracy thereof. In line with data protection protocols and legislation, insurers are expected to give their customers peace of mind about the security and privacy of their data.Creating an analytics culture is critical and helps to create the focus on layering insights back into business as usual while engendering an environment that is agile and adaptive to change. Old architectures, legacy systems, and traditional processes will need to be revisited and adjusted to make room for new developments. Advanced analytics and data science also assist with identifying and attracting talent.However, insurers don’t need to completely change. By focusing on product enhancements rather than creating additional channels, and developing “featurisation” and bundling capabilities, they can add onto their revenue stream and their customers retain familiarity with their improved products.Ultimately, using IoT data should be adding to the whole customer experience, ensuring that insurers can deliver better, more customised products while maximising their service and bringing costs down – for themselves and their customers.<h2>What you can do next.</h2>Monstarlab’s global pool of technology experts can help you find your way into new technologies and uncover executions that would make the most business sense and value. Working closely with you to understand your goals and align the most relevant technologies. We have extensive experience working in IoT with some of the world’s leading brands and you might find these cases to be interesting:&nbsp;<a href="https://monstar-lab.com/global/cases/" rel="noopener noreferrer" target="_blank">Hunter Douglas</a>,&nbsp;<a href="https://monstar-lab.com/global/cases/realising-iot-based-telemedicine-management/" rel="noopener noreferrer" target="_blank">Angel Electronics</a>, and&nbsp;<a href="https://monstar-lab.com/global/cases/iot-ecosystem-for-multiple-elevator-management/" rel="noopener noreferrer" target="_blank">Otis Elevators</a>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<h3>Meet our Expert</h3><img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F1cb157a60d804ad39d6561199464ef7f?format=webp">Jackie Du PlooyConnect on&nbsp;<a href="https://www.linkedin.com/in/jackieduplooy/" rel="noopener noreferrer" target="_blank">LinkedIn</a>&nbsp;|&nbsp;<a href="mailto:jackie.du.plooy@monstar-lab.com" rel="noopener noreferrer">jackie.du.plooy@monstar-lab.com</a>Jackie has over 20 years of experience in digital transformation, strategy &amp; innovation, and commercial management across industries including BFSI in several countries as a&nbsp;Client Partner.&nbsp;Her focus has been on building high performing teams and sound strategic partnerships by bringing together delivery and commercial professionals to drive the customer strategy and journeys of digital transformation.Learn more about&nbsp;<a href="https://monstar-lab.com/ae/thoughtleadership/the-future-of-bfsi/" rel="noopener noreferrer" target="_blank">Monstarlab UAE</a><a href="https://monstar-lab.com/global/thoughtleadership/the-future-of-banking-financial-services-and-insurance/" rel="noopener noreferrer" target="_blank" style="font-size: 18px;">Read more about banking, financial services, and insurance here</a>Endnotes:[1] Statista[2] Statista,&nbsp;Smart home – Statistics &amp; Facts,&nbsp;2022

Evolve from being Traditional Insurers to InsurTechs with IoT Data

<a href="https://monstar-lab.com/global/thoughtleadership/the-future-of-banking-financial-services-and-insurance/" rel="noopener noreferrer" target="_blank" style="font-size: 18px;">Part of our Banking, Financial Services, and Insurance Series</a>One of the biggest technology buzzwords of recent years is the blockchain. Touted as the ‘next Internet’ for the predicted impact it is set to have on the world, across all industries.At present, due in part to its connection with cryptocurrency, blockchain seems to be associated more predominantly with the financial industry. However, due to its intrinsic nature, blockchain could be the perfect solution to a host of challenges faced by the insurance industry. And it more than deserves to be given proper evaluation as a potential replacement for the current central database model employed by most insurers.According to PWC, almost 90% of financial services firms globally, especially the more traditional ones, fear FinTech challengers will chip away at their revenues [1]. Even today, the insurance industry is dominated by traditionalism and entrenched in bureaucracy. Many insurers remain oblivious to the opportunities that technologies such as the blockchain can open up for them, and those that are aware often have to cut through a lot of red tape for change to be implemented. Insurers who wish to remain current or start innovating to stay ahead should experiment with the many ways blockchain can simplify and streamline the way they do business.<h3>Blockchain can solve a myriad of insurance challenges</h3>There are several ways that the blockchain can add value to insurance, allowing for the following services to become available, or more efficient:<ul><li>Smart contracts&nbsp;for insurance policies and faster claim processing;</li><li>Payment verification—which will enable financial transactions such as claims collections or pay-outs to be faster, more accurate and auditable;</li><li>Compliance—enabling insurers to reduce regulatory oversights and the associated costs.</li></ul>Due to the transparent nature of blockchain, its application resolves many of the challenges arising from insurance policies; such as obtaining client consent or approval, and cooperation to collectively invest funds in shared resources and infrastructures. All information about a policy is recorded accurately and in real-time. This includes dates, times, participants, locations, and values of every single transaction. Because blockchain distributes consent, this information is protected from any unwanted or illegal adjustment and tampering, making it safer than any preceding technology to date.Looking at the market trends, the main challenge many insurance companies exploring blockchain technologies is the complexities required to make such a change.&nbsp;<h3>Let’s take a look at two of the many instances where blockchain can be used:</h3><h4>1. Blockchain for Claims Processing</h4>Blockchain in claims processing can help establish an efficient, transparent, and customer-focused model built on trust. Typically, the claims process involves a customer making a claim request via a call to a customer support centre or through an intimation made through a mobile app. Instead of this tedious process, a direct link can be created between the claimant, insurer, and third parties where all data is being directly uploaded and making an audit trail available. Making the claims process an insurance company-centric process would not require much buy-in from external stakeholders.All over the world, insurance is changing and moving closer towards&nbsp;”Insurance on the Go”. Consumers want the flexibility to take out insurance for their special requirements, only for the period required; such as travel insurance for the length of a holiday or vacation, or even just for an Uber ride. How is it that insurance claims can not be processed at the same pace?&nbsp;When there is a need to claim, the consumer would expect the funds to be immediately available.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F2b8a33b4061e4ede8058d4ec6adf3468?format=webp"><h4> </h4><h4>2. Blockchain for customer retention</h4>Blockchains with smart contracts could be applied to offer consumers claim submissions at a low handling cost if underwriting and claims handling can be automated based on defined rules and the availability of reliable data sources. Payouts to these insured consumers can be triggered when the claim is submitted. And it can then be paid conveniently by accessing verified databases, through intelligent rules taking the user’s social media profile into account, as well as market changes that can assist with any possible fraud predictions.One of the key business objectives of any insurer is customer retention. Insurers are constantly looking for new ways to improve customer satisfaction and increase their customer-centricity. For example, many insurers are investing in loyalty programs for their customers which offer points-based benefits. The blockchain can facilitate this and even take it up a notch, enabling a platform that enables easy exchange of points between different loyalty programs – a virtual loyalty trading platform.&nbsp;While loyalty programs are already in existence, it is the concept and execution of interoperability enabled by blockchain that can help usher in a truly effective loyalty and rewards program. Blockchain technology, through smart contracting and unique customisation abilities, enables loyalty program providers to partner with other loyalty program providers that make sense for their customers, opening up a whole new world of possibilities for customer satisfaction and rewards.The goal will be to reduce and almost eliminate the&nbsp;silo effect&nbsp;that dominates the current loyalty operation.&nbsp;A blockchain-supported loyalty platform can keep all of those programs under one ‘umbrella’—possibly translating to high levels of issuance and redemption, and greater value for end customers.Blockchain can also help leverage knowledge of customer preferences in real-time, enabling the end-user to ‘become the operator’ of the platform. This gives the customer the ability to exchange, for example, airline points for restaurant points, implying that the customer can choose the reward that works best for them. This effectively increases their freedom of choice and provides a better consent platform for the insurer.If we refer back to the Bitcoin connection, innovative insurers could potentially disrupt membership and loyalty programs by providing an easy way for customers to receive cash rewards and possibly an efficient method for insurers to pay out claims.&nbsp;<h3>Getting into Blockchain</h3>Insurance companies can start by exploring blockchain within their organisations. Insurers can begin independently. For example, by running hackathons and building up a developer community to receive exposure to new technologies such as blockchain.The first step for insurance companies with blockchain technology will likely be to look at smart contracts followed by exploring identity validation.&nbsp;Currently, the industry is highly centralised and the introduction of new blockchain fuelled structures, such as mutual insurance and peer-to-peer models based on the blockchain, could fundamentally affect the status quo – what is stamped into a blockchain cannot be reversed or altered.Research suggests that the insurance industry is currently falling behind in terms of understanding the nature of blockchain and subsequently maximising the opportunities it presents.&nbsp;Every insurance company’s core computer system is a centralised transaction ledger, and if the insurance industry does not begin to learn about, evaluate, build with and eventually embrace blockchain technology, they leave themselves vulnerable to displacement by the insurers who are using blockchain to disrupt the industry.<h3>Outlook on next steps for the insurance industry</h3>Blockchain is a digitisation technology that should be of strategic interest to insurers. The biggest challenges to its industry-wide implementation are facilitating collaboration between market participants and technology leaders, succeeding in the operational transformation, and shaping a stimulating regulatory environment. Laying the foundation to address these challenges today will put insurance companies in a position to have scalable blockchain use cases and profit from the technology’s benefits.Blockchain may reduce administrative and operations cost through automated verification of policyholder identity and contract validity, auditable registration of claims and data from third parties (e.g., the encrypted transaction of patient data between doctor and injured party accessible by the insurer to verify payment), and payouts for claims via a blockchain-based payments infrastructure or smart contracts.Giving reinsurers, for example, controlled access to claims and claims histories registered on blockchain improves transparency for the reinsurer in an automated and, at the same time, auditable manner.<h3>What you can do next.</h3>Monstarlab’s global pool of technology experts can help you find your way into new technologies and uncover executions that would make the most business sense and value. Working closely with you to understand your goals and align the most relevant technologies.&nbsp;&nbsp;&nbsp;&nbsp;<h4>Meet our Expert</h4><img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F1cb157a60d804ad39d6561199464ef7f?format=webp">Jackie Du PlooyConnect on&nbsp;<a href="https://www.linkedin.com/in/jackieduplooy/" rel="noopener noreferrer" target="_blank">LinkedIn</a>&nbsp;|&nbsp;<a href="mailto:jackie.du.plooy@monstar-lab.com" rel="noopener noreferrer">jackie.du.plooy@monstar-lab.com</a>Jackie has over 20 years of experience in digital transformation, strategy &amp; innovation, and commercial management across industries including BFSI in several countries as a&nbsp;Client Partner.&nbsp;Her focus has been on building high performing teams and sound strategic partnerships by bringing together delivery and commercial professionals to drive the customer strategy and journeys of digital transformation.Learn more about&nbsp;<a href="https://monstar-lab.com/ae/thoughtleadership/the-future-of-bfsi/" rel="noopener noreferrer" target="_blank">Monstarlab UAE</a>Endnotes:[1] PwC,&nbsp;Redrawing the lines: FinTech’s growing influence on Financial Services,&nbsp;2021[2] Woolmagazine.com,&nbsp;Blockchain Holy Grail of Truth and Trust

How is Blockchain Impacting the Insurance Industry?

Get a quick introduction to Monstarlab’s approach to smart places development, our key partnerships and get acquainted with the people that can support you.<a href="https://bit.ly/SP-2pager" rel="noopener noreferrer" target="_blank" style="font-size: 18px;">Click here to download.</a><img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fc5fbeb4715864a369d8444e422857ba9?format=webp">Get more insights around smart places from our expert thought pieces and get inspiration from some of our cases&nbsp;<a href="https://monstar-lab.com/global/thoughtleadership/smart-places/" rel="noopener noreferrer" target="_blank">here</a>.&nbsp;Learn more about the latest smart places trends and developments from your local office.<a href="https://monstar-lab.com/uk/thoughtleadership/creating-experience-focused-smart-places/#" rel="noopener noreferrer" target="_blank">Monstarlab United Kingdom</a><a href="https://monstar-lab.com/ae/thoughtleadership/putting-people-at-the-heart-of-smart-places-development/#" rel="noopener noreferrer" target="_blank">Monstarlab United Arab Emirates</a><a href="https://monstar-lab.com/americas/" rel="noopener noreferrer" target="_blank">Monstarlab Americas</a><a href="https://monstar-lab.com/jp/" rel="noopener noreferrer" target="_blank">Monstarlab Japan</a>

Monstarlab’s Approach to Smart Places Development

Developing solutions and technologies for smart places is not new for us at Monstarlab. Having engaged with different stakeholders for projects spanning smart homes, smart buildings even smart cities. We have collated this document that highlights some of our top projects that cater for the areas of sustainability, accessibility, and technological agility. Featuring our works with some of the world’s leading companies from various industries across the globe.<a href="https://www2.monstar-lab.com/Smart-Places-Case-Kit-Webpage-CTA" rel="noopener noreferrer" target="_blank">Click here to download.</a><img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fe2d0993ec67a4e759b72bcaf8f73d78a?format=webp">Get more insights around smart places from our expert thought pieces and get inspiration from some of our cases&nbsp;<a href="https://monstar-lab.com/global/thoughtleadership/smart-places/" rel="noopener noreferrer" target="_blank">here</a>.Learn more about the latest smart places trends and developments from your local office.<a href="https://monstar-lab.com/uk/thoughtleadership/creating-experience-focused-smart-places/#" rel="noopener noreferrer" target="_blank">Monstarlab United Kingdom</a><a href="https://monstar-lab.com/ae/thoughtleadership/putting-people-at-the-heart-of-smart-places-development/#" rel="noopener noreferrer" target="_blank">Monstarlab United Arab Emirates</a><a href="https://monstar-lab.com/americas/" rel="noopener noreferrer" target="_blank">Monstarlab Americas</a><a href="https://monstar-lab.com/jp/" rel="noopener noreferrer" target="_blank">Monstarlab Japan</a>

Smart Places Technologies in Practice [Case Study Compilation]

Andrea Nalupa

<a href="https://monstar-lab.com/global/thoughtleadership/the-future-of-banking-financial-services-and-insurance/" rel="noopener noreferrer" target="_blank" style="font-size: 18px;">Part of our Banking, Financial Services, and Insurance Series</a>As the world faces an increasingly alarming number of threats due to climate change, more and more institutions and companies are realising the urgency of going green. And this has inspired the financial sector to work towards sustainable finance.&nbsp;<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F8bdb9d3bad344cc08aa8cf484f233598?format=webp">In 2020, more than 450 public financial institutions have pledged alignment to the recent Paris Agreement [1] – the international treaty aimed at aligning a global response to climate change [2]. With this effort, the promotion of environmentally-sustainable consumer behaviour has likewise increased in popularity and practice among businesses [3]. But with so many unique strategies and methods targeted towards sustainability, how do you know what actually works?We set out to find some of the most successful and inspirational stories of firms for sustainable finance. And for you, we’ve put together two of the most effective approaches to creating a lasting, positive impact on the environment as well as consumers.&nbsp;<h3>Rewarding green practises</h3>With consciousness towards climate change growing continuously across the globe, consumers have also nurtured a preference for companies that embrace purpose and sustainability. In fact, a recent survey shows that 65% of participating consumers want to prioritise purchases and engagements with&nbsp;purpose-driven brands that advocate sustainability&nbsp;over non-green alternatives. However, only 26% have confirmed acting upon this preference [4].&nbsp;To narrow this “intention-action gap”, finance companies are turning to gamification and reward systems. And it’s helping everyone achieve their sustainability goals while having fun.<h4>GCash Forest&nbsp;[FinTech]</h4>In collaboration with the World Wide Fund for Nature (WWF) and Biodiversity Finance Initiative Philippines (BIOFIN), GCash Philippines has launched a tree-planting campaign that incentivises app transactions made by users of the digital wallet. Through a gamified feature that rewards users with “green energy points” after each transaction, users are given a chance to exchange their points with an endemic tree planted in their name (published in a certificate) as part of a restoration project of Philippine forestry.Just a year from its launch, GCash Forest has gained the support of 3.5 million new feature users joining the campaign [5]. In recent news, the World Wide Fund for Nature (WWF) Philippines, together with GCash, has announced the completion of their 75-hectare reforestation project in Ipo Watershed through the millions of transactions made through GCash Forest [6].<h4>susGain&nbsp;[Social Enterprise]</h4>Singapore-based social enterprise susGain is also accelerating change towards a greener Singapore. Apart from supporting businesses that work towards environmental and social causes, susGain has created a rewards app incentivising eco-friendly purchases and habits.&nbsp;With their application (rated a very high average of 4.9 stars both in Google Play and App Store), users collect points for practising eco-friendly habits and earn cashback when supporting environmentally and socially conscious companies through purchases. By doing so, users also automatically support a local charity with each spend – making green habits not only rewarding but also full of purpose.&nbsp;<h4>Aspiration&nbsp;[Bank]</h4>This certified B Corp is also among the most influential banks committed to truly putting the planet and the people first. From divesting 167,447,175 USD from fossil fuels to helping their clients keep track of their impact through a digital scoring system, Aspiration has created a wealth of opportunities for their patrons to save the Earth while saving up.&nbsp;One of their initiatives turning users into green heroes is their banking feature promoting responsible finance management called AIM – short for Aspiration Impact Measurement. This not only monitors your financial behaviours for you in an easily digestible digital format, it also tracks your ‘personal sustainability score’ based on your purchases and whether or not they support your goals of going green.Another noteworthy effort, Aspiration also plants a tree on behalf of their clients with every eco-friendly purchase and gives 10% cashback on purchases made from companies under the Conscience Coalition (a group of mission-driven companies). With the Aspiration community already planting more trees than there are in New York’s Central Park every day, this success story demonstrates the market’s willingness to choose sustainable options given tangible opportunities.<h3>Supporting green investments&nbsp;</h3>For longer-term effects, organisations within and supporting the finance sector are also providing the public with lighter payment options and cost reduction benefits for large personal investments that contribute to lower net emissions as well as encourage semi-permanent lifestyle changes.&nbsp;“By encouraging and promoting investments towards sustainable efforts, organisations not only compel the market to make more environmentally responsible financial decisions, but they also make sustainability goals more achievable for people from a variety of economic backgrounds.”–&nbsp;<a href="mailto:glenn.mindegaard.post@monstar-lab.com" rel="noopener noreferrer">Glenn Mindegaard Post</a>, Engagement Director, Monstarlab Denmark<h4>ACT&nbsp;[Government]</h4>The Australian Capital Territory government has recently launched its offering of interest-free loans for electric cars. In an effort to boost uptake and to encourage the public to transition to more sustainable living, 10-year zero-interest loans of up to 15,000 USD for electric car purchases are now offered to ACT residents. This loan is made available under the local government’s sustainable household scheme, along with interest-free loan options covering similar alternative lifestyle purchases (such as solar panels, battery storage, and other clean energy equipment).To make this program inclusive, all ACT licensed drivers and homeowners in the territory can apply for this loan in addition to other benefits such as a stamp duty exemption for new electric vehicle purchases. Though a more novel approach to encouraging micro clean energy investments, we consider this mandate to have among the most promising premises for influencing lifestyle transformations.&nbsp;<h4>American Modern&nbsp;[Insurance Group]</h4>American Modern Insurance Group, a premium insurer by the AM Best credit agency, now also offers tiny house insurance as part of its manufactured home policies. And this inclusivity towards sustainable housing is helping turn this ‘alternative’ lifestyle into a widespread movement. In the case of tiny house living, inclusive insurance policies like theirs not only reduce decision-making friction for those aspiring to make the switch to tiny living, it also provides financial security to a largely underserved community.By offering inclusive and wide-coverage policies as such, American Modern became a household name for speciality insurance. Last September, the company was also recognised by Forbes Magazine as one of America’s Best-In-State Insurance Companies in 2021 [7] – an amazing feat on top of creating a significant impact on the environment.“Discoveries in behavioural science—from how we as individuals and society respond to positive reinforcement and lifestyle-engrained practices, paired with innovation in technology are creating a natural, efficient, and effective means for us to achieve long-term goals like sustainability. It is in the best interest of all stakeholders—and is already bearing fruit— to maximise this mechanism to build a better future for the planet as well as finance.”–&nbsp;<a href="mailto:saad.kamal@monstar-lab.com" rel="noopener noreferrer">Saad Kamal</a>, Managing Director, Monstarlab Singapore<h3>Your turn</h3>Although it has been amazing to watch the finance sector along with the rest of the world become more proactive in responding to the global climate crisis, it goes without saying that everyone needs to do their part for all our efforts to bear fruit. As author Rober Swan once said,&nbsp;“The greatest threat to our planet is the belief that someone else will save it.”&nbsp;We hope you’ve found some inspiration in the success stories we’ve shared. Now, it’s your time to make the change you want to see in the world.&nbsp;Meet the Experts<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F0174ad13968c48df9c304eb83b44fb15?format=webp">Saad KamalFollow on&nbsp;<a href="https://www.linkedin.com/in/saadsg/" rel="noopener noreferrer" target="_blank">LinkedIn</a>&nbsp;|&nbsp;<a href="mailto:saad.kamal@monstar-lab.com" rel="noopener noreferrer">saad.kamal@monstar-lab.com</a>Saad, Managing Director of Monstarlab Singapore,&nbsp;has more than a decade of experience in driving digital transformation for government and large multinational organizations alike. Delivering world-class and award-winning digital solutions for various industries including banking &amp; insurance, transportation, and smart places.Learn more about&nbsp;<a href="https://monstar-lab.com/sg/" rel="noopener noreferrer" target="_blank">Monstarlab Singapore.</a><img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fcf185392d7e54ee2957c17901ec94a97?format=webp" width="389" style="cursor: nwse-resize;">Glenn Mindegaard Post&nbsp;| BFSI Vertical LeadFollow on&nbsp;<a href="https://www.linkedin.com/in/glenn-mindegaard-post-156b1b1a/" rel="noopener noreferrer" target="_blank">LinkedIn</a>&nbsp;|&nbsp;<a href="mailto:glenn.mindegaard.post@monstar-lab.com" rel="noopener noreferrer">glenn.mindegaard.post@monstar-lab.com</a>Glenn has a solid economic &amp; financial theoretical foundation strengthened with over a decade of experience working with Denmark and the Nordic Market’s largest banks and financial institutions. He has a deep understanding of the business challenges, needs, and goals and the acumen to translate those into future-proof digital solutions.Learn more about&nbsp;&nbsp;<a href="https://monstar-lab.com/dk/" rel="noopener noreferrer" target="_blank">Monstarlab Denmark</a>.<a href="https://monstar-lab.com/global/thoughtleadership/the-future-of-banking-financial-services-and-insurance/" rel="noopener noreferrer" target="_blank" style="font-size: 18px;">Read more about banking, financial services, and insurance here</a><h4>Endnotes:</h4>[1] IISD, “450 Public Development Banks Pledge to Align with Paris Agreement”,2020[2] UNFCCC,&nbsp;“What is the Paris Agreement?”,&nbsp;n.d.[3]&nbsp;Dong, X., Liu, S., Li, H., Yang, Z., Liang, S., &amp; Deng, N.,&nbsp;“Love of nature as a mediator between connectedness to nature and sustainable consumption behavior. Journal of Cleaner Production, 242, 1–12.”,&nbsp;2020[4] Harvard Business Review,&nbsp;“The Elusive Green Consumer”,&nbsp;2019[5] Manila Republic,&nbsp;“More than 3.5 million Filipinos now support GCash Forest”,2020[6] Esquire Mag,&nbsp;“More than 3.5 million Filipinos now support GCash Forest”, 2020[7] American Modern,&nbsp;“American Modern Recognized by Forbes as One of America’s Best-In-State Insurance Companies for 2021”,&nbsp;2020

Promoting Sustainable Finance with Engaging User Experiences and Inclusive Policies

<a href="https://monstar-lab.com/global/thoughtleadership/the-future-of-banking-financial-services-and-insurance/" rel="noopener noreferrer" target="_blank" style="font-size: 18px;">Part of our Banking, Financial Services, and Insurance Series</a>As more global climate-action strategies emerge, an increasing number of client-facing solutions encouraging sustainable behaviours for the finance market are gaining traction and achieving success. From online wallets that plant trees on behalf of their customers with every few transactions, to banks providing cashback rewards and discounted interest rates to cardholders purchasing more eco-friendly products, key players in the sector have found their own creative ways to bring positive change to the environment as well as to their clients. Impressive as that may sound, this way of promoting sustainability is not the only notable one. There’s a much more integrated approach that we don’t talk about enough – achieving sustainability with a digital-first operational approach.Within many sectors exists a well-proven causality between going digital and enforcing efficient cultures as well as creating smoother workflows. In fact, 40% of executives believe that the top and primary benefit of digital transformation is improved operational efficiency [1]. What many of these leaders are missing out on, however, is that this digital-first approach also has the low-hanging fruit of the long-term sustainability they are searching for in different, commonly more exhaustive solutions [2].“A systematic approach towards cost-savings in the operational side of the business is bound to encompass the lot, if not all, of the contributors to waste and pollution that hinders sustainability. Understanding this connection between cost-efficiency and sustainability is the first step towards eliminating their overlapping roadblocks and achieving success in a single sweep.”–&nbsp;<a href="mailto:glenn.mindegaard.post@monstar-lab.com" rel="noopener noreferrer">Glenn Mindegaard Post</a>, Engagement Director, Monstarlab Denmark<h3>Technology is a powerful driver of sustainable organisational practices</h3>Though more of us might be more familiar with how AI, for example, can be used in climate research to perform complex processes aimed at minimising global carbon emissions [3], there are many ways technology can promote significant positive change in more proximate settings such as the workplace.<h4>Digitised processes are reducing resource consumption</h4>Organisations in the sector are migrating data operations to cyberspace with their custom digital platforms, automated processes, and cloud services, among other valuable integrations. And this was primarily initiated to promote data management and operational efficiencies as well as cost-effective cybermarket penetration – as necessitated by the changes brought about by the COVID-19 pandemic in how clients now manage and interact with their finances.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F3ba5b307a6664bb399564504f1aaa8d2?format=webp">But there is a cherry on top of all of this; without additional effort, digitisation is also addressing the alarming overconsumption of material resources like paper and ink. Both of which are made and processed in increasingly harmful methods to which losses in biodiversity and pollution are also linked [5].&nbsp;<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fc86d58a9db0940e3b95576c368810873?format=webp">According to research, each regular office worker generates an average of two pounds worth of paper products every day. With nearly 50% of all office-printed documents reaching the bins in just 24 hours [5]. This makes up over 70% of the total waste in the majority of companies. That being said, digitising processes and their implied promotion of paperless transactions directly counters resource overconsumption – not just of natural materials but also overspent budgets on paper and ink procurement and waste management.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F34cf1e99cf45441e9d0cb045ce801ce4?format=webp"><h4>Remote accessibility is lowering transit carbon footprint</h4><img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fec8d6b278fa74579be4d060bf1ee90b0?format=webp">In a recent report, the U.S. Environmental Protection Agency (EPA) has discovered that 28.2% of all greenhouse gas emissions are attributed to the transportation sector [7]. By enabling a mobile workforce with digitised operational systems and internal organisational platforms, companies offering their employees full or even partial remote access to their work are causing a significant reduction in greenhouse gases from transportation as well as a spike in employee productivity.&nbsp;<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F7bb669d4d2af48c992dda44f39457ca2?format=webp">Additionally, a recent survey of 2,100 people who worked remotely during the pandemic also found that 95% have observed higher or or equal productivity working remotely compared to working in the office. According to the respondents, the following advantages of remote access to work made possible by technology are what contributed to their increased productivity and performance [7]:<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F92671b1c98b846d695f11deda7e09935?format=webp"><h3>Key Takeaways</h3>“Sustainability need not be forced and is possible with a little mindfulness. Using technology to achieve it will catalyse its occurrence with the least amount of effort.”&nbsp;&nbsp;–&nbsp;<a href="mailto:saad.kamal@monstar-lab.com" rel="noopener noreferrer">Saad Kamal</a>, Managing Director, Monstarlab Singapore<ul><li>27% of companies say digital transformation is a matter of survival [9], and this is now translating into more meanings than one. Digitisation now will not only be necessary in future-proofing your business but in future-proofing the planet as well.</li><li>Tackling climate change is a multi-stakeholder task that firms in finance have to achieve together with their employees and not just clients.</li><li>The implied sustainability benefits of digital transformation in the sector are clear, and they are worth pursuing.</li></ul>Meet the Experts<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F0174ad13968c48df9c304eb83b44fb15?format=webp">Saad KamalFollow on&nbsp;<a href="https://www.linkedin.com/in/saadsg/" rel="noopener noreferrer" target="_blank">LinkedIn</a>&nbsp;|&nbsp;<a href="mailto:saad.kamal@monstar-lab.com" rel="noopener noreferrer">saad.kamal@monstar-lab.com</a>Saad, Managing Director of Monstarlab Singapore,&nbsp;has extensive experience in driving digital transformation for government and large multinational organizations alike. Delivering world-class and award-winning digital solutions for various industries including banking &amp; insurance, transportation, and smart places.Learn more about&nbsp;<a href="https://monstar-lab.com/sg/" rel="noopener noreferrer" target="_blank">Monstarlab Singapore.</a> <img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fcf185392d7e54ee2957c17901ec94a97?format=webp" style="cursor: nwse-resize;" width="324">Glenn Mindegaard Post&nbsp;| BFSI Vertical LeadFollow on&nbsp;<a href="https://www.linkedin.com/in/glenn-mindegaard-post-156b1b1a/" rel="noopener noreferrer" target="_blank">LinkedIn</a>&nbsp;|&nbsp;<a href="mailto:glenn.mindegaard.post@monstar-lab.com" rel="noopener noreferrer">glenn.mindegaard.post@monstar-lab.com</a>Glenn has a solid economic &amp; financial theoretical foundation strengthened with over a decade of experience working with Denmark and the Nordic Market’s largest banks and financial institutions. He has a deep understanding of the business challenges, needs, and goals and the acumen to translate those into future-proof digital solutions.Learn more about&nbsp;&nbsp;<a href="https://monstar-lab.com/dk/" rel="noopener noreferrer" target="_blank">Monstarlab Denmark</a>.<h4><a href="https://monstar-lab.com/global/thoughtleadership/the-future-of-banking-financial-services-and-insurance/" rel="noopener noreferrer" target="_blank" style="font-size: 18px;">Read more about banking, financial services, and insurance here</a></h4>Endnotes:[1] PTC,&nbsp;“Digital Transformation Report by CorporateLeaders and PTC”,&nbsp;n.d.[2] SAP, ​​“SAP Study Says Up to 93 Percent of Companies Consider Intelligent Technology Key to Digital Transformation”, 2019[3] Diplo,&nbsp;“Digitalisation powering environmental protection”, 2021[4] Gartner,&nbsp;“Gartner Survey Shows 42 Percent of CEOs Have Begun Digital Business Transformation”, 2017[5] RoadRunner Smarter Recycling,&nbsp;“THE FACTS: OFFICE WORKERS &amp; THEIR WASTE GENERATION”, 2021[6] BusinessWorld,&nbsp;“Cutting Costs in Financial Services Starts with Paper”, 2017[7] FlexJobs,&nbsp;“The Environmental Impacts of Remote Work: Stats and Benefits”, n.d.[8] Bloomberg CityLab,&nbsp;“The Environmental Implications of the Return to the Office”, 2021[9] Digital Marketing Institute,&nbsp;“The What, Why &amp; How of Digital Transformation”, 2016

Sustainability – A Byproduct of Digitisation in the Finance Sector

<a href="https://monstar-lab.com/wp/NeoBanks" rel="noopener noreferrer" target="_blank"><img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F97ea558e6b134388aaae2d3d5c3b9d1b?format=webp"></a>Digital-only banks, challenger banks, or neobanks have steadily encroached on the customer base of the more traditional retail banks over the last few years. Out of the 256 neobanks globally, nearly half are operating in Europe. The pandemic has accelerated their adoption. Studies show that in the UK alone, 1 in 4 people has opened an account with a digital-only bank as of 2021, three times the number in 2019.Traditional banking institutions feel the pressure to gain ground in the seemingly widening gap lest they end up being completely overtaken. But are these neobanks too far ahead making it impossible to catch up?Not quite. Read this white paper to know why.<h2>More on the UK retail banking market</h2>You can zero in on the UK’s financial sector and learn more about the industry’s need to transform the way they empower their employees, serve customers, adapt to change, and get ahead of the curve.&nbsp;Get a deeper understanding of the UK’s retail banking landscape through insights from your local market experts and thought leaders.<a href="https://monstar-lab.com/uk/thoughtleadership/banking/#" rel="noopener noreferrer" target="_blank">Visit Monstarlab UK BFSI Page</a>

Retail Banks: Why All is Not Lost in the Battle with NeoBanks [White Paper]

Machine Learning in Transport and Logistics [White Paper]

<h6>Updated: April 26, 2022</h6><a href="https://monstar-lab.com/global/thoughtleadership/the-future-of-banking-financial-services-and-insurance/" rel="noopener noreferrer" target="_blank" style="font-size: 18px;">Part of our Banking, Financial Services, and Insurance Series</a>This is an exciting time for banking and finance. After spending two years digitising core products and services to catch up with the consumer’s growing appetite for digital [1], firms in the sector are ready to innovate and maximise technology beyond legacy migration. And here’s where to start:<h3>Localising Digitised Experiences (EU)</h3>The vast majority of large and mid-sized companies in the sector have developed and digitised core products such as mobile applications and online websites in the last two years. In fact, KPMG believes that “digital platforms will likely become the preferred and dominant business model for banks and financial institutions in the future” [2]. But with that being said, as going digital becomes the norm, what becomes a solid differentiator in the market?Although significantly enjoying the efficiency and mobility of going digital, research shows that there is retained demand for the human touch and local feel from consumers [3]. More evident within Europe and patrons of regional banks, the local in-branch experience has been identified as a significant asset and a valued factor across stakeholders in the vertical. With people enjoying immediate attention from staff and enjoying what seems to be close, first-name-basis relationships with them. And we believe that replicating it in the digital space will be a game changer.Apart from this effort compensating for financial institutions closing down physical branches to reduce costs, this will allow more familiar or even intimate engagement to ingrain a better sense of satisfaction and connection on the client side.<h3>Hyperpersonalisation</h3>Closely tied to the consumer’s call for localisation is the popular expectation of a seamless and personal customer experience [3]. And as each individual manages their finances differently and actualises unique preferences, hyperpersonalisation is providing stakeholders with the bespoke and convenient experience they want.May it be an option to automate repeat transactions – such as autopay and autosave, the provision of niche products for distinct consumer groups, or tailored suggestions for investments each individual can make, the <a href="https://monstar-lab.com/global/generative_ai" rel="noopener noreferrer" target="_blank">AI</a>-enabled initiative to truly put each customer first is going above and beyond expectations. In the long run, maximising your knowledge of your clients beyond the normative KYC and putting that to action can deeply cultivate a strong and long-lasting relationship with each valued customer.<h3>Improving IDV</h3>On the topic of improving the consumer experience, businesses in the trade can also expect big things from changing their approach towards Identity Verification (IDV). This is more popularly known as the Know Your Customer or KYC process. As several studies have identified ease of registration or application as a crucial factor for online banking and fintech access adoption, safe and frictionless IDV through open banking or data sharing initiatives will likely become a big hit.As the trend of open banking and data sharing is being pushed by regulators (most notably in Europe, Australia, and Hong Kong) and is slowly crawling into neighbouring markets [4], an increasing number of organisations are realising the value of IDV. In fact, the projected market revenue for IDV is expected to reach 18.12 Billion USD by 2021 [5].Digital IDV solutions are now capable of verifying a broad range of official documents in seconds and analysing extensive user records from accredited databases in minutes. Because of such developments, not only do companies avert repelling on-the-go consumers, they also significantly catalyse complete consumer conversion. How? By shortening the time between application and approval – a small but dangerous window quick-acting competitors can steal your prospects through.<h3>Cross-Platform Services</h3>Digital finance transactions frequently cross over to various other industries such as retail, healthcare, and utilities. On point, the emergence of third-party payment providers such as PayPal and AliPay largely attribute their success to making the most of this phenomenon [6].Due to the commonly lengthier transfer process and tediousness of going back and forth between banking apps and other business sites, many consumers are turning to third-party providers who most likely have already made themselves available in growing digital spaces such as e-commerce. In terms of proportion, the global tally of online banking direct payments are 5.3% lower compared to third party payments accounting 39.7% [6].&nbsp;By embedding payment services such as developing mobile pay or hybrid wallets available for cross-platform transactions, your business can turn the situation around. Evidence of this can be observed in the growing popularity of Payment Mini Program Integrations within WeChat in China. By integrating services such as payments or transfers as a bite-sized app or service in the multi-purpose WeChat app, many finance vendors have not only increased awareness but also significantly raised their total revenue outside of interbank and intra fintech transfers [7]. This goes to show that in the advent of digitisation spanning industries serviced by the financial sector, visibility will be the key to sustaining business.&nbsp;<h3>Key Takeaway</h3>Circumstances have opened up the opportunity for banking and finance companies to reinvent themselves and future-proof the business. And technology and digital have afforded you a ticket to seize this opportunity.&nbsp;Monstarlab’s global pool of technology experts can help you find your way to the right technologies and uncover executions that would make the most business sense and value. Working closely with you to understand your goals and align the most relevant technologies.&nbsp;&nbsp;&nbsp;&nbsp;<a href="https://monstar-lab.com/global/thoughtleadership/the-future-of-banking-financial-services-and-insurance/" rel="noopener noreferrer" target="_blank">Read more about banking, financial services, and insurance here.</a><h4>Endnotes:</h4>[1] Deloitte, “2021 banking and capital markets outlook”[2] KPMG, “The rise of digital platforms”, 2018[3] Forbes, “Financial Institutions Think Consumers Are All About Digital, But Customers Still Want That Human Touch”, 2021[4] Deloitte, “Open Banking around the world”, n.d.[5] Identify, “Identity Verification in The Financial Services Industry”, 2020[6] Atlantis Press, Jingyi Liao, “Research on the Influence of Third-Party Payments on the Business Operations of Commercial Banks”, 2018[7] SilkPay, “The complete guide to WeChat mini-programs for your business”, 2020Other References:The Journal of Asian Finance, Economics, and Business, “Factors Influencing Customers to Use Digital Banking Application in Yogyakarta, Indonesia”, 2020Alhassany &amp; Faisal, “Factors influencing the internet banking adoption decision in North Cyprus: an evidence from the partial least square approach of the structural equation modelling”, 2018Ananda, Devesh &amp; Lawati, “What factors drive the adoption of digital banking? An empirical study from the perspective of Omani retail banking”, 2020

Banking & Finance: Going Beyond the Basics with Digital Innovation

<a href="https://monstar-lab.com/global/thoughtleadership/moving-transportation-logistics-forward-with-technology/" rel="noopener noreferrer" target="_blank" style="font-size: 18px;">Part of our mobility, transport &amp; logistics thought leadership series</a>A look into how siloed technology implementations are causing digital transformation initiatives to meltdown within transportation and logistics companies<h4>Fragmented IT systems are ruining operations and the customer experience</h4>With the rise of novel and innovative digital solutions that serve ingenious purposes for many companies in the mobility industry, more and more businesses are investing in different, largely individual technologies. From integrating client-facing applications and internal document management platforms to employing operation monitoring systems, companies in the vertical are dealing with a great deal of change. Large enterprises such as Uber, Waymo, and Tesla, for example, have been experimenting with self-driving vehicles, global company GLS is continuously pushing for user and employee experience innovation through apps, and international giants UPS and DHL are looking into automating warehousing and distribution activities in the past three years [1]. Progressive and exciting as those sound, however, for less experienced industry players, similar initiatives are starting to clash with one another or break down due to a lack of supporting digital systems; bringing bad news to employees and consumers across the market.One such case is that of the company manufacturing the “straddling bus” – an elevated, electricity-powered public bus roughly the size of three to four regular units combined. Though a truly innovative solution to skipping the traffic jam and creating more sustainable transport, the straddling bus is among the best examples of isolated transport solutions that went into decline.&nbsp;<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F95edd852413a45168a2ecb8e9cc5d188?format=webp"><h6 style="text-align: center;">model sketch of the “straddle bus”</h6>First conceived in the year 2000 and road tested in 2016, the straddle bus development came to a full stop in July 2017. Despite capturing the attention of many locals and gaining traction within the local market, this implementation ultimately collapsed and led to large-scale loss. This is because the bus was made only by itself – without a proper support infrastructure or a streamlined strategy linking it with other technologies tackling vehicle maintenance, rapid ticketing (especially with the amount of people able to go on and off the bus within minutes), a clear map of charging stations (since charging has to be done in each station because the size of the vehicle translates to large amounts of energy consumption), and other traffic systems. And consequent to this lack of coordination, an estimated cost of 4.5 million USD per unit went straight to the drain [2].<h4>How does this affect the business &amp; customers?</h4>Cases like that of the elevated bus can impact stakeholders in the transportation and logistics market negatively in three major ways. Below, we delve into how this once-thought negligible flaw in the system effectively devastates multiple aspects of delivery across the value chain.Plummeting operational efficiencyWith the emergence of postmodern expectations on the quality of digital solutions, transport and cargo companies continue to seek solutions enabling zero latency. But a considerable amount are faced with extreme backlash as their isolated systems slow down various procedures and operations.While the advancement in realtime technologies and boosting productivity rates are being prioritised by companies even outside of the vertical, some companies are unable to apprehend and continue to ignore the importance of streamlining and harmonising their IT systems.&nbsp;Creating a sales management system one month, building a separate marketing platform the next, and developing isolated vehicle monitoring and order tracking systems quarters after in an effort to address issues and improve performance, for example, all seem to be done with good intention. But without any effort to connect them, such unlinked, under-examined intentions manifest themselves as slow data transfers, missing records lost during such transfers, delayed rollouts, incohesive business goals, and only a partial or even inaccurate understanding of the business [3]. Only by organising the connection between these structures can interoperability be achieved.&nbsp;Compromising passenger and system safetyAs software becomes a more integral part of transportation systems – taking nearly complete charge of self-driving vehicles, dictating freight and delivery protocols, and ensuring proper care, maintenance, and compliance of vehicle conditions, the stakes in ensuring safety within digital executions are higher than ever. And companies are doing what they can – setting up thorough safety procedures, protective systems, and whatnot – to deliver experiences, processes, and services with minimal to zero risks [3]. However, some seem to overlook one thing – how knowledge and workflow consistency is just as essential as blocking out hackers and computing probabilities.&nbsp;Even in the absence of a security breach or physiological risks, digital solutions can fail because of incompatible codes that mature into bugs, because of delayed information from one or multiple loosely integrated data sources, because of a blindspot or disconnection with neglected documentation, or another similar interoperability issue. These mishaps are not to be taken lightly – possibly resulting in injury or loss of life. That being said, paying attention to system and data cohesion can spare lives and therefore should be a priority.Creating unsatisfactory consumer experiencesWith fragmented systems also come disorganised, scattered consumer experiences. Apart from greater possibilities of incomplete or inaccurate order fulfillment due to information loss, delay, or mistranslation between systems during transactions, fragmentation can also cause businesses to lose patrons quite literally.If vehicle or parcel tracking is disconnected from order forms, inventory, payments, and feedback, and has to be done or observed from different sites or platforms, consumers can easily be lost navigating all such processes and deterred by the tediousness – bringing the higher likelihood of a cancellation or negative feedback. After all, with the competitive market producing increasingly convenient and consolidated services and consumer experiences, why would anyone choose platforms with tiresome transactions?&nbsp;<h4>Why does it happen?</h4>Despite the many complications brought about by fragmented IT systems, we offer a simple explanation of its single, most common cause – shortsightedness. Because of a range of reasons – some valid – like high pressure consumer expectations and demands, abrupt changes in regulation compliance, or even the gunpoint threat of fading away into irrelevance, many businesses jump into developing singular solutions in an effort to deliver fast or rather rushed results. Because of this, they are barely able to invest time to look at their long-term goals and vision.In a hurried venture to change things up, many digital systems are primarily built or integrated without any thought or consideration of other existing or potential solutions. This translates to restricted, isolated, and likely inflexible infrastructures that make it difficult or even impossible to blend it in with or integrate into a solid, streamlined strategy. Thus, fragmentation.<h4>What can you do to fix it?</h4>Although it can become laborious trying to correct fragmentation, it is possible. And here are some steps you can take to get started.Devise or revise a holistic strategy/planIf you have only started planning or are already dealing with your siloed initiatives, the first step that should be in order is organisation. Figure out where you are and what direction you want to go with your business, and only then fill in the gap. This makes for a plan that is considerate of your current position and your vision for the future. Additionally, make brainstorming a linking activity – connecting ideas together and seeing how they can work in harmony instead of thinking of them as random ideas that are supposed to compete with each other. This powerful practice maps out and simplifies what a plan with continuity through inter- and intra-connectivity looks like.Consider future additions &amp; collaborationsKeeping in mind the rapid speed of technological advancement, it is also important to forecast and prepare for future IT and industry dynamic revolutions that can impact the mobility sector. With numerous fast-growing trends such as robotics employment for rudimentary tasks and global cross-point cargo alliances that address inflating demands for international shipment, keeping a regularly updated and open strategy will help your company exploit trends and similar developments faster and easier. Not to mention how it also makes your initiatives more easily adaptable to swiftly changing customer expectations and demands.Ensure compatibility &amp; complianceTo complement efforts towards adaptability, going with flexible tech stacks and adhering to specific industry standards and established IS guidelines are also crucial in rectifying fragmentation. The more compatibly coded and the better regulated your implementations are, the less complicated it will be to integrate more systems and developments in the future.To give you a headstart, some guidelines to keep in mind are the global Standards on Software, Carnegie–Mellon’s Software Engineering Institute Capability Maturity Model, ISO9000-3, and the Project Management Institute’s Guide to the Project Management Body of Knowledge [3].<h4>Conclusion</h4>In hindsight, the implications of fragmentation are a testament to why spontaneous and sporadic are bad words when dealing with digital transformation. Evidently, companies who tread the rushed path in desperation are greeted with many non-compensable complications. That being said, only by staying thorough and committed can the continuity, success and sustainability of digital innovation be achieved.<a href="https://monstar-lab.com/global/thoughtleadership/moving-transportation-logistics-forward-with-technology/" rel="noopener noreferrer" target="_blank" style="font-size: 18px;">Learn more about technology in the mobility, transport &amp; logistics vertical here</a>Endnotes[1] Transport Topics News,&nbsp;“Investment in Technology, Innovation Is Changing Business of Logistics”, 2018[2] New Scientist,&nbsp;“7 crazy transport systems that didn’t go the distance”, 2017[3] Wisconsin Department of Transportation,&nbsp;“Information Technology in Transportation, Key Issues and a Look Forward”, n.d.Other references:Dept. of Global Studies &amp; Geography, Hofstra University,&nbsp;“Integrated Transport Systems: From Fragmentation to Coordination”, 2021Aptude, “Why Do Transportation Management Systems Fail?”, 2021

The Negative Impacts of Fragmented IT Systems in Transport & Logistics

Luke Gallimore, Head of Product Management at Monstarlab UK, explains the difference between a product owner and product managers, their roles and responsibilities as well as his thoughts on how organisations can leverage their experience and mindsets optimally.One of the most common questions I get asked is ‘what’s the difference between a product&nbsp;owner&nbsp;and product&nbsp;manager?’.This is a critical difference to get right for successful digital transformation.Often the product owner title and product manager title are used interchangeably. This causes a lot of confusion in teams who are used to — for example — product owners doing one thing, but then a product manager comes in and does that same thing. It destroys predictability and therefore efficiency.My answer to the question is always the same.Product managers are biased towards the&nbsp;strategic, and product owners are biased towards the&nbsp;tactical.What does this mean in practise?A strategic-focussed role is thinking about broader things, in less detail and at a greater distance into the future. A tactical focussed role is thinking about narrower things, in more detail and at a shorter distance into the future.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F79b63ed09af0490bb8458528edf75cd1">Each role has a bias and there is an overlapProduct managers think&nbsp;more&nbsp;(but not exclusively) about the longer-term, and product owners think&nbsp;more&nbsp;(but not exclusively) about the shorter-term.<h2>The Digital Transformation Train</h2>Imagine a steam train rumbling down a track, but the track has not been finished yet. The journey of digital transformation is not that dissimilar.You can think of the product owner as the driver. They will be asking questions like, ‘how hot is the engine, how fast are we going, do we have enough coal, are the team shovelling that coal getting tired, where is the next corner and do I need to slow down or speed up?’.On the other hand, the product manager is the one planning out and laying down the track a few miles ahead. They are asking questions like ‘how far behind is the train, what obstacles are ahead of us, how will we reach our destination fastest, how much track do I need, how will we cross that river?’<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fbfa5ddeaf38f4ed2884adcf360b1f94f?format=webp">Digital transformation is like a train rumbling down an unfinished trackThere is a big overlap in the concerns and tasks of the two roles. There is not a hard, thick line of responsibility between the two of them. A good product owner and product manager team know each other’s strengths and weaknesses, they communicate incredibly well and they find a healthy tension between the ‘now’ and the ‘next’.If you are a product owner, ask your product manager for a stronger vision and clearer roadmap. If you are a product manager, ask your product owner for greater clarity on status and projected progress.<h2>The Jekyll and Hyde Problem</h2>Here’s a common follow up question. ‘Should the product owner and product manager be the same person?’My answer to this is also always the same.It is always better to have two people doing these two roles — if you can afford to.Why? Thinking about the distant future and the immediate future require very different mindsets. Trying to do this inside a single skull inevitably leads to a ‘Jekyll and Hyde problem’. This is where your product owner/manager is trying to balance two opposing forces — pain now and future pain. It is impossible to make consistently good decisions in that scenario.When the human brain is forced between thinking about the distant future and immediate future, we have evolved to always perceive the ‘need of the now’ to be greater. This is good sense for hunter-gatherers, but not such good sense for product teams.In other words, when you force one person to be both tactical and strategic, tactical always wins out. This means that decisions are often made, which prioritise short-term progress at the cost of the long-term vision. This is how you create technical debt and product debt.To keep the train moving in the right direction, you need the healthy tension I previously described between product owner and product manager. There must be balance between the tactical and the strategic. The debate must be out in the open — not in one person’s head.How do you define the two roles?<h2>Key takeaways</h2><ul><li>A common question in digital transformation is ‘what’s the difference between a product&nbsp;owner&nbsp;and product&nbsp;manager’.</li><li>Product managers are biased towards the&nbsp;strategic, and product owners are biased towards the&nbsp;tactical.</li><li>This is analogous to a train driver (product owner) and track builder (product manager)</li><li>One looks after the train, the other ensure there is somewhere for it to go</li><li>Another common question is ‘should the product owner and product manager be the same person?’</li><li>The answer is always ‘no’ because you need healthy tension and debate between two individuals to balance long-term and short-term priorities.</li></ul>

Product Owners vs. Product Managers: Train Drivers and Track Builders

Retail 2030: The Tech Strategy to Power Retail Brands into the Future [White Paper]

<a href="https://monstar-lab.com/global/thoughtleadership/moving-transportation-logistics-forward-with-technology/" rel="noopener noreferrer" target="_blank" style="font-size: 18px;">Part of our mobility, transport &amp; logistics thought leadership series</a>This article outlines statistics and findings around the following topics:<ul><li>How mobile applications are positioned and used in the Transportation and Logistics industries</li><li>How mobile app technologies have impacted the sector</li><li>Successful mobile platforms in the market and their leverage</li></ul> <h2>Mobile Apps in the Industry</h2>In the advent of what has been dubbed as the era of&nbsp;Digital Transport, recent Deloitte research reports the emergence of mobile applications in the transportation and logistics industries. From the rise of Mobility-as-a-Service (MaaS) and Ride-for-Hire platforms, to user-facing mobile courier and “self-moving” systems, mobile apps are empowering businesses and consumers alike across the sector – so much so that many enterprises in its industries are built on the premise of mobile transportation applications.<h4>Market Overview</h4>In their latest report on global revenue, the digital rider transportation segment (composed of ride-sourcing apps and digitally accessed public transit) estimates the market to be currently valued at&nbsp;192 Billion USD in 2020.&nbsp;With a promising expected CAGR of 17.5% through 2024 combined with the projected CAGR of 8.2% of the digital logistics market as cited by Mordor Intelligence, the fundamental position mobile app platforms hold in the transforming industry becomes evident.&nbsp;<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F7a5406f9122345a799d5023e4f5fa2ec?format=webp">Together with the promising projections, however, the market is also heavily occupied by established, advanced competition. In 2018,&nbsp;the&nbsp;ten largest software vendors accounted for&nbsp;51.8%&nbsp;of the global transportation applications market; uncovering a highly competitive atmosphere and a huge capital and influence gap between long-standing forerunners and newer, smaller providers.<h4>Technologies Leveraged</h4>Engrained within the aforementioned competition, the stakes are high for leveraging the best and most timely technologies. Businesses empowered with the latest technologies in the market are able to penetrate and stand out in the market more easily – effectively transforming the industry and the modern transport and logistics systems.According to Mobisoft Research, platform-builders forwarding a&nbsp;customer-centric approach&nbsp;with mobile app technologies have been more rewarded in terms of consumer reception and growth in the market. Platform and business growth have been found most visible in mobile transport applications employing&nbsp;Artificial Intelligence, Additive Layer Manufacturing, Data Analytics, IoT,&nbsp;and&nbsp;Electric-Mobility.&nbsp;<h4>Use in the Industry</h4>Evidenced by MobiSoft in the same resource and latest research from&nbsp;The National Academies of Science, Engineering, and Medicine, mobile application technologies are mainly utilized on providing passengers with faster, more convenient, and accessible services while aiding business owners increase operational speeds, productivity, efficiency, and congestion cost savings. Features including route planning, real-time tracking, online booking, and online payments have not only transformed the overall user experience, but have also significantly bettered the present transport infrastructure in terms of delivery and service speeds and data optimization.&nbsp;More specifically, mobile applications in the industry have been identified to deliver efficient service most popular in (but not limited to) the following use cases:FOR CONSUMERSFOR BUSINESSESRoute Optimization &amp; PlanningEquipped with traffic reporting and navigation tools, mobile apps built for route optimization aid users to select the best available route most suited to their commute preferences, current traffic situations, as well as congestion control policies.Transport &amp; Fleet ManagementComplete with GPS Tracking, schedule monitoring, task assignment, and payment tracking, mobile apps for transport management help ride-sourcing and logistics business owners to track and manage drivers and the functions assigned to them.&nbsp;Online Booking and TrackingDedicated to the online booking of either transit or courier services, online booking and tracking platforms enhances customer experience with features like real-time tracking, notification alerts, online payments, reviews and feedback, among others.Inventory ManagementApplications in this case also helps manage business records and analysis on all goods that need to be transported with automated logging. This ensures error-free, prioritized, and sensitive management of products, equipment, goods, and storage.Parking InformationParking information apps provide real-time data on nearest available slots making parking easier for drivers traveling through a city or area.&nbsp;Transport/Delivery Schedule OptimizationMobile applications for logistics are used to boost business efficiency by shortening transportation duration and optimizing travel routes.Communication ChannelMobile apps in transport are also used to&nbsp;connect various stakeholders in the industry to each other. Passengers and drivers, drivers and companies, and passengers and businesses are able to communicate with the help of real-time chats and calls.Utility MonitoringMobile apps are also utilized in assessing critical success factors like battery life, network coverage, engine conditions, tire health, and fuel and mileage. Utility Monitoring, by drawing intelligent, predictive signals from the collected data, promotes safe and smart transport across its users.&nbsp;<h2>Successful Platforms</h2>Amidst the fierce competition between thousands of applications rolled out worldwide, Monstarlab has put together a distinguished array of visionaries and leaders in the sector that fully maximize mobile app technology breakthroughs. From ride-sourcing apps to freight systems accessible through smartphones, the following model platforms exhibit exemplary performance and enjoy exponential growth and exceptional consumer reception.<h3>Transportation</h3>Within the digital rider transportation segment, three applications and providers have gained large amounts of support as well as significant stature in the market.<h4>Uber [Ride Hailing]</h4>Among the best-reviewed global providers at its scale, Uber has been downloaded more than 500 Million times since inception in the Google Play Store and more than 2 Million times in App Store just in July. According to Forbes, the 9-year-old business was able to obtain and sustain its current position in the market by realizing a convenient, cashless transport system booked online. Combined with in-app safety toolkits, airport services, and continuously developing ride hailing features, Uber technologies remain the biggest enablers of the company’s dominance in its field.With an average rating of 4.7 stars in App Store and 3.9 stars in Google Play Store,&nbsp;earning a&nbsp;total revenue of $3.5 billion in 2019&nbsp;according to Forbes, and now servicing more than 600 airports and in 700+ cities around the world, Uber continues to endure and even exploit rapid developments in the market.<h4>Lyft [Ride Sharing]</h4>Quickly gaining fame for multi-modal transport options, Lyft is gaining visibility for its ride sharing offerings. Also known for its easily navigable, transparent, and compact interface that allows a 2-step ride booking process, location sharing, and accurate fare calculations, the mobile app already boasts&nbsp;10 Million downloads&nbsp;in the Google Play Store alone.As of writing, more than 120,000 users have already awarded the app a five-star rating in the Google Play Store. Evident in user reviews, with Lyft’s promise of continuous and genuine innovation implemented through its flagship features, public support and expectations remain high for this growing enterprise.<h4>Moovit [Route &amp; Transit Planning]</h4>Dubbed the #1 Mobility App by Google, this one-stop app navigating public transit in 99 countries and in 45 languages is gaining traction in the business centers of England, USA, Italy, Australia, and even Asia.&nbsp;Enjoyed by in excess of&nbsp;720 Million users, Moovit provides real-time information on&nbsp;updated bus and train schedules, transit maps, and line arrivals. Enhancing the digital commute experience with live navigation, destination alighting alerts, and upcoming train prompts, Moovit has also been named&nbsp;by the Google Play and App Stores as one of the best apps of the year in 2016 and 2017, respectively.<h4>Scandlines [Travel Planning]</h4>Another innovative company, Scandlines, has created their self-titled app that offers a seamless and convenient way to plan their travels digitally in partnership with Monstarlab. Providing&nbsp;15 million ferry passengers&nbsp;swift booking options, online loyalty programmes and optimised ferry routes, this timely upgrade in their digital experience is fast tracking their growing success in Copenhagen.With operations of 90,000 departures a year, the easier tracked timetables and tickets and the speedier booking process are certainly boosting the company’s popularity and growth.&nbsp;<h3>Logistics</h3>Mobile application technologies have also offered and afforded the logistics industries transformative opportunities and unprecedented growth.<h4>U-Haul [Moving Services]</h4>A logistics giant since 1945, U-Haul has deeply and successfully penetrated the digital logistics market with its mobile app in August 2017. Promoting round-the-clock service allowing users to pick up, pay and locate trucks as well as access verifying and vetting technology to monitor moving conditions, U-Haul’s mobile application proves the largest technology initiative for the customer-moving company since the late ‘90s.Unlike other self-moving platforms, the app is built to maximize existing features of popular smartphone devices with a single platform installation. With mobile data, a phone camera, and GPS, truck booking, contract signing, bill payment, and even the 30-second shipment verification are made possible and made compact for users of the U-Haul truck-hiring platform. As of 2020, there have been&nbsp;more than a million recorded downloads&nbsp;across Android and iOS platforms – indicative of the app’s success in satisfying customers and aiding business operations in its 3-year run .&nbsp;<h4>Fed-Ex [Local and International Shipping Services]</h4>The highest-rated shipping mobile platform of its size for iOS, Fed-Ex has been downloaded on more than 10 Million accounts in both Google Play and Apple App Stores. Strengthening the company’s foothold in the logistics business, the mobile app takes full advantage of modern technologies augmenting the customer experience.Popularized by the global shipping label, the FedEx Mobile app allows users to easily track shipment status, manage packages, quickly calculate rates, locate pickup or drop off locations, scan barcodes, and view rewards. Analytically, the very high&nbsp;4.8 average rating in the App Store&nbsp;and competitive&nbsp;4.0 rating in Play Store&nbsp;suggests that Fed-Ex is going the right direction with its initiatives.&nbsp;<h4>UPS [Local Courier Services]</h4>The 22nd biggest app in Apple’s App Store and used by more than&nbsp;11 Million mobile accounts, UPS Mobile is a strong contender in the international shipping venture. With a competitive average rating of 4.5 and 4.1 stars in the Apple&nbsp;App and Google Play Stores respectively, UPS has established its spot among the biggest companies made even bigger by their adaptive digital strategy.Similar to the FedEx Mobile application, UPS allows its users to conveniently create shipments, follow deliveries in transit, update delivery details, and estimate shipping costs and delivery times. However, UPS maintains an edge with its in-app measuring tool that requires only an average-quality phone camera.In hindsight, early players and risk-takers in both the commute and logistics mobile services markets convene in the frontlines and top ranks in revenue. Undoubtedly, large yet cost-effective investments have been made in pursuit of where the aforementioned institutions are now. However, taking a comprehensive and critical look at the bigger picture, these technological investments are proving worthwhile.<h2>Conclusion</h2>The constant fast-paced upgradation in mobile app development for transport and logistics is likely to continue accelerating in the increasingly saturated market in the following years. However, alongside such rapid evolution, opportunities to increase profitability, optimized results, and better user experience are improving and expanding in equal levels.In careful analysis of the research and model platforms shared in this report, Monstarlab finds that the opportunity to grow within a highly competitive market spread wide across the globe lies in prioritized allocation and innovative use of mobile application technologies. As technology is growing rapidly and new featured functionalities are introduced daily, more than the implementation of advanced technological tools, goal-aligned innovative technology use and how it improves operations and user experience are what truly transform the industry.<a href="https://monstar-lab.com/global/thoughtleadership/moving-transportation-logistics-forward-with-technology/" rel="noopener noreferrer" target="_blank" style="font-size: 18px;">Read more insights and see some of our work&nbsp;on&nbsp;the mobility, transport &amp; logistics vertical here</a><h4>Endnotes:</h4>Deloitte,&nbsp;“Transportation trends 2020”, 2020Deloitte,&nbsp;“Understanding COVID-19’s impact on transport organizations”, 2020Forbes, “Traffic Congestion Costs U.S. Cities Billions Of Dollars Every Year [Infographic]”, 2020Mobisoft Information Technologies,&nbsp;“Development Of Smartphone Application: Impacts On Logistics And Transportation Industry”,&nbsp;2020Mobisoft Information Technologies,&nbsp;“Logistics Apps: Potential To Mobilize The Entire Industry”, 2020Mordor Intelligence, “Digital Logistics Market – Growth, Trends and Forecasts (2020 – 2025)”, 2019National Academies of Science, Engineering, and Medicine,&nbsp;“Critical Issues in Transportation 2019: Policy Snapshot”, 2019Statista,&nbsp;“Transportation and Logistics Statistics and Market Data”, 2020Statista,&nbsp;“Shipper views on must-have 3PL IT-based capabilities in 2019, ranked by the most needed capabilities”, 2020

Mobile Apps Transforming Transportation

<h6>Updated: April 26, 2022</h6><a href="https://monstar-lab.com/global/thoughtleadership/moving-transportation-logistics-forward-with-technology/" rel="noopener noreferrer" target="_blank">Part of our mobility, transportation &amp; logistics thought leadership series</a><h6><img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F70e99f7f862f46f089964c589cca3743?format=webp"></h6>With the&nbsp;4th Industrial Revolution, companies in the transportation and logistics sector are aligning processes and operations to&nbsp;Industry 4.0&nbsp;standards and have created a new era for the sector – now called&nbsp;Logistics 4.0.&nbsp;<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F578f56153e044649b45dfb32728a5695?format=webp"><h3>Transportation Tech Trends</h3>This is translating into a widespread shift towards end to end digitisation and an overall larger appetite for digital amongst stakeholders. With objectives to simplify processes, increase efficiency, and secure and connect global supply chains for the aforementioned alignment [1], the sector employs the following technologies.<h4>Data Analytics</h4>Speedily creating actionable insights out of massive volumes of data, big data analytics continues to improve market and consumer understanding at a much higher level and greater scope. Businesses in the industry are utilising big data analyses to more efficiently plan operational processes, strategies, and services that are more accurate and aligned to emerging consumer needs [2]. By deeply understanding large collections of consumer, market, and process data, this software becomes essential to creating grounded, rewarding user experiences.<h4>Artificial Intelligence (AI) and Machine Learning</h4>Now becoming staples across numerous industries, AI and Machine Learning have also successfully dominated the top of the transportation tech food chain. Significantly improving operation functionality, and subsequently, efficiency, these implementations are boosting incredible new levels of productivity and speed for businesses in the industry [3].&nbsp;Besides working hand in hand with big data analytics in collecting and processing data, these two technologies are also vital for ensuring the consistent quality of service – enabling the efficient transport of goods by designing optimal transit routes and networks, improving public safety by predictive risk calculation and elimination, and even making sure that consumers are supported quickly and efficiently through engagement channels. All that being said, it looks like this trend is one worth hopping in on.<h4>Near-Field Communication (NFC)</h4>With transport networks increasingly becoming interlinked – given that multimodal travel and transit network connectedness emerging as a trend, consumers are seeking more seamless travel experiences. NFC or Near-Field Communication is making that possible [4].&nbsp;By creating inclusive ticketing schemes supporting various modes of public transport, this allows travellers to enjoy a smoother, more organised journey. Enabling millions of smart devices in the marketplace to act as contactless tickets or transport cards working seamlessly with Public Transport Operators (PTO) and Mobile Network Operators (MNO), this innovative integration is revolutionising both the serviceability of technology and the overall travel experience.<h3>Cargo &amp; Freight Tech Trends</h3><h4>Autonomous Vehicles</h4>The combination of Artificial Intelligence, Machine Learning, and Automation&nbsp;have created a powerful means for the cargo &amp; freight industries to give convenience a new meaning. Capable of almost completely independent transportation of goods, the use of self-driving or autonomous vehicles for delivery is no longer just a vision but a reality.&nbsp;With the pandemic pushing for safer operations, rapid development of contactless solutions became an urgent proceeding for many manufacturers. Here came the realisation of mass-produced automated vehicles. And since its dawn, more and more companies are understanding the potential and necessity of utilising autonomous vehicles. From reduced labour and uninterrupted delivery times, to optimised route planning and operational precision, businesses across the sector are all eyes on the benefits of this integration [2].<h4>Blockchain</h4>Blockchain has also increased in popularity within the industry in the last few years. Ensuring operational safety and transparency with its ability to record and encrypt large amounts of valuable information, this digital transaction ledger system continues to safekeep logistics operations. Most successfully employed by Dutch companies like DHL, this trend helps prevent documentation frauds, data system hacking, and even product heists. All whilst keeping the records organised and pristine [5].&nbsp;<h4>Automated Warehousing Solutions</h4>As rudimentary work grows progressively recurrent in warehouse operations, more companies are focusing on the automation of manual workload. More and more companies are looking towards automation for day to day processes to increase savings in manual labour, as well as to improve monitoring, receiving and dispatching products in the warehouse..Some excellent examples of applications are found in German logistics giant, DHL. Using automated machinery to manage the freight – effectively reducing normative work duration to half its size, and having built more than a hundred automated logistics bases for fast parcel handling and sorting in Germany, DHL illustrates how this technology proves indispensable for fast-growing cargo and freight companies [2].Though trends continue to emerge and evolve in the industry, these six technologies and their transformative uses offer promising rewards and the prospect to flourish under Industry 4.0 instead of being in fear of it. Leverage these innovations and position yourself for success in the market in these fast-changing times.<a href="https://monstar-lab.com/global/thoughtleadership/moving-transportation-logistics-forward-with-technology/" rel="noopener noreferrer" target="_blank">Read more insights and see some of our works on the mobility, transport &amp; logistics vertical here.</a>Endnotes:[1] DHL Freight,&nbsp;“Logistics Trends 2022: The Future of Logistics Is Digital and Sustainable”, 2022[2] Supply and Demand Chain Executive,&nbsp;“Top 6 Global Logistic Technology Trends in 2021”,&nbsp;2021[3] McKinsey, “Global AI Survey: AI proves its worth, but few scale impact”,&nbsp;2019[4] BusinessWire,&nbsp;“Global Transit NFC Mobile Ticketing Report 2021-2030: Spotlight on Contactless Payments Due to the COVID-19 Pandemic”, 2021[5] HBS Digital Initiative,&nbsp;“DHL: Cracking Logistics with the help of Machine Learning”,&nbsp;2018

Technologies Driving Change in the Transport & Logistics Industry

<h4><a href="https://monstar-lab.com/global/thoughtleadership/empowering-life-science-in-the-digital-era/" rel="noopener noreferrer" target="_blank">Part of our Health, Wellness &amp; Life Science Series</a></h4>According to experts, life science companies are past jumpstarting digital transformation and are well into adapting their new systems&nbsp;[1]. However these companies are discovering that complacency is not an option as they settle into their new dynamics. As the sector’s enterprises are met with new challenges and many changes, competitive companies have turned to the following technological innovations for their impacts on boosting operational productivity, accelerating growth, and revolutionising customer experience.&nbsp;In this article, you will learn:<ul><li>What timely adjustments in strategy life science companies are making in their digital transformation efforts</li><li>What new uses of existing technologies the sector is leveraging</li><li>The impact of these changes on the sector’s stakeholders</li></ul><h3>Artificial Intelligence beyond having a ready-made reply</h3>Although chatbots, Natural Language Processing, and the broader Conversational Business Intelligence have catalysed customer-centric operations and have changed the customer experience altogether, there are far bigger roles and responsibilities that Artificial Intelligence (AI) could cover and conquer when used correctly – something that the life sciences’ industry leaders have already realised.<h4>Top IT Use Cases:</h4><ol><li>Data Governance</li><li>Knowledge, Content Management &amp; Information Portal</li><li>Data Visualisation &amp; Democratisation</li></ol>According to the latest report on the top technology use cases, the majority of the players in life sciences have already employed AI in working directly with their largest asset – data&nbsp;[2]. Companies are replacing outdated data collection methods, automating rule-based processes, and even making data management decisions.&nbsp;With 27% of organisations in a global survey reporting more than a 10% labor cost reduction, 23% reporting the same savings in operations, and 19% the same in marketing and sales, enterprises are reaping the rewards of AI in their digitisation&nbsp;[3].<h3>Scaled Cloud Integrations</h3>Multitudes of life science firms have already integrated the Cloud in their businesses. However, much of their initial efforts have proven unsustainable because of inaccurate data quantity and quality measurement, as well as unprepared and overwhelmed in-house resources.Companies in the sector have been reported to leverage expertise from third-party partners, seeking secure large-scale data government success. As quantified by the same group, 53% measure data management success with agility and marketing speed, 26% with improved customer satisfaction, and 26% with increased adoption rates – indicating their positive experience with these outcomes&nbsp;[4].&nbsp;<h3>Novel Custom Software Development</h3>As software development has been considered the underlying enabler of digital transformation since its boom by transformation partners&nbsp;[5], custom software development as part of transformative strategies no longer sounds exciting. However, recent innovations on life science softwares will tell you that that doesn’t stand true for them.With this year’s surge of novel and distinctively-purposed software such as interactive patient-care applications, precision research software, nano to macro modeling and interpretation tools, and collaborative therapeutic or medical procedure applications, the public sees more of the logic behind custom software development’s claim to fame. Along with the consumers, corporations are also enjoying and riding on this novelty to both enhance customer experience and operational efficiencies, and are paving the way for the rest of the sensible businesses to follow.<h3>Robotics Process Automation&nbsp;</h3>Robotic Process Automation or RPA has also become a notable and increasingly visible solution sought by advancing enterprises. From a life science point of view, RPA can help across the GxP landscape including Good Manufacturing Practices, Good Clinical Practices and Good Laboratory Practices by automating processes through rules-based systems, according to a 2019 report on life science&nbsp;[6].Some of the manual processes RPA can be applied to include<ul><li>Streamlining the product labeling process in manufacturing</li><li>Maintaining official records required by predicate rules, subject to inspection under FDA requirements</li><li>Identifying high-risk abnormalities in images through large-scale interpretation and processing of clinical trials data, such as radiology reports</li></ul>While the stakes for integrating RPA are often low, non-invasive, and quick in adapting to existing systems, the reward can be high when life science companies unlock the value behind the technology. In fact,&nbsp;a minor sampling conducted recently found that implementing RPA for data validation processes can eliminate manual errors by 80 to 99% and ensure data consistency and accuracy in reporting&nbsp;[7].<h3>Blockchain in Supply Chain</h3>With almost daily developments, the rapid pace of progress in therapeutic and medical technologies are challenging life science supply chains. From drug delivery to tracing sold miscellaneous products, the need for secure, speedy, and accurate distribution from the manufacturing end equally increases along with such developments.&nbsp;With Blockchain technology, the sector is quickly catching pace.Within life sciences alone, a projected $3 billion opportunity by 2025 could be credited to Blockchain due to its ability to manage supply chain provenance, serialised track and trace, and specialty logistics with minimal intervention. This calculated, speedy, and uncomplicated approach to the supply chain has been widely popular and highly trusted among transforming businesses&nbsp;[8].&nbsp;Although these trends and changes have made their rounds in improving and innovating business in the life sciences, the real key to success in digitisation remains to be how these technologies are being utilised and maximised.&nbsp;<h3>Key Takeaways</h3><ul><li>The life sciences, growing into the digital business ecology, needs to situate and act upon their goals beyond their initial strategy and in tune with the current technological atmosphere</li><li>The massive amounts of valuable data ingested and created by enterprises in the sector proves best approached with minimum human intervention and more adaptive technologies that coordinate processing from end to end (AI collecting and interpreting data, the cloud storing and distributing it, RPA automating following processes, and Blockchain encrypting and continuously recording and tracking transactional data)&nbsp;</li><li>This adaptive and coordinated digital approach boosts transaction and operation speeds, reduces manual errors significantly, and increases productivity for enterprises at varying levels.</li></ul><h4>Endnotes:</h4>[1] AIT News Desk,&nbsp;“Axtria CEO Talks Life Sciences Commercial Excellence In Ask Jassi Video Series”, 2020[2] Axtria,&nbsp;“Emerging Technology Trends In the Life Sciences Industry”, 2020[3] Statista,&nbsp;“Cost decreases from adopting artificial intelligence (AI) in organizations worldwide as of 2019, by function”, 2019[4] Accenture,&nbsp;“Life Sciences Companies See the Cloud as a Path to Product Innovation”, 2018[5] Intland Software,&nbsp;“How Digital Transformation Impacts Software Development”, 2019[6] Deloitte,&nbsp;“Life sciences IT quality Validating cognitive solutions”,&nbsp;2019[7] Deloitte,&nbsp;“RPA and CA in medtech Increasing efficiency, reducing costs”, 2018[8] Accenture,&nbsp;“Transforming life sciences with blockchain”, 2018<h4>Other references:</h4>AI Multiple,&nbsp;“15 RPA Benefits Compiled from Top Sources”, 2020Deloitte,&nbsp;“2020 Global Life Sciences Outlook”, 2020<h4><a href="https://monstar-lab.com/global/thoughtleadership/empowering-life-science-in-the-digital-era/" rel="noopener noreferrer" target="_blank" style="font-size: 18px;">Read more insights and see more of our work on health, wellness &amp; life science</a></h4>

5 Changes Life Science Companies are Making in their Digital Strategy

<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Ff3c847bafc4b499c8259cb004d2a000a?format=webp">Digital product development is a complex process however, the changing environment has also introduced new opportunities for successful strategies.<h2>Delivering digital products is a complex process</h2>Teams often start out with a clear idea of what they want to build. They impose structure through models, maps, and frameworks and a plan for the creation of a digital product laid out in a straight line in the form of a Gantt Chart with a clear route from the start to the end of the project. The assumption is that every feature, problem, constraint, risk and solution is known and understood and that to build the end product we simply have to write the code in the order that it’s been laid out.But in reality, the journey to get to a successful digital product is marked by a series of decisions, trade-offs, problems and ambiguity, that often side-tracks the process. And unfortunately, we humans are rarely prepared for nor very efficient when it comes to dealing with this level of chaos.&nbsp;<h2>The more complex the project, the more we plan</h2>Humans possess a natural emotional response to create a structure where there is ambiguity and so the more complex the project, the greater the temptation to do more planning. Teams focus on a more and more granular analysis of problems that may be as long as 3-6 months away, leading to frequent struggles when the problem then suddenly requires a different solution than the one imagined 3-6 months earlier.&nbsp;<h2>And the more reluctant we are to abandon a plan that has been proven wrong&nbsp;</h2>The reality is that circumstances change and the teams and ways of working that must be able to adapt are not set up in a way that allows an easy and quick change of direction. Worst off are teams and projects that are unwilling or unable to adapt even when continuing on the same path is going to cost more and lead to an unsuccessful outcome. The same plan that was meant to ensure success, now owns them. I’ve seen teams double down on their decisions even when the evidence is clear that they need to change course.<h2>The new norm is based on quick feedback and re-calibration</h2>The most effective teams I have worked with didn’t work off of a traditional plan. There was a&nbsp;list of priorities&nbsp;set by the Product Owner which would change based on new information from the business or feedback from people using the product.&nbsp;Features were released&nbsp;iteratively as working code in production environment from where they could be used and tested by real users.&nbsp;Feedback would then be gathered&nbsp;and the team would&nbsp;adapt and change course&nbsp;based on what they had learnt. This feedback loop was the key driver to being able to test hypotheses and assumptions that had been formed early in the product’s life-cycle.Other teams use techniques such as mind maps at the beginning of each new sprint to identify the work ahead. This shows the relationship between items but not the order in which they should be built. The team would then discuss the tasks and decide on the best way to design, build and test each as well as how to measure success. Unfortunately, many digital product teams release features or products without a clear idea of what success looks like and how to measure it. This ability, to measure and react to new information, is a key indicator of a highly performing digital product delivery team.It’s important to point out that these teams were not working completely blind.In my experience, successful teams have<ul><li>Clear business objectives, a North Star based on the end-users’ needs that are shared and understood by everyone on the team,</li><li>The skills, experience, and autonomy to decide on the best way of getting to the agreed outcome, quickly, and</li><li>Frequent and well-described feedback loops that are evaluated objectively and used to steer the decision-making.</li></ul>Want to know more about how we build digital products or how we can help turn your project into a success?Contact me on&nbsp;<a href="https://www.linkedin.com/in/pauldedwards/" rel="noopener noreferrer" target="_blank">LinkedIn</a>&nbsp;or&nbsp;<a href="mailto:paul.edwards@monstar-lab.com" rel="noopener noreferrer">paul.edwards@monstar-lab.com</a>.

Successful digital product delivery in times of rapid technological development

<a href="https://monstar-lab.com/global/thoughtleadership/revitalizing-wholesale-retail-ecommerce-for-the-next-normal/" rel="noopener noreferrer" target="_blank">Part of our Wholesale, Retail, &amp; eCommerce Series</a>A lot of brick &amp; mortar stores have taken the back seat to digital commerce due to the sharp shift to online shopping. The question you might be asking is, how can you get the most out of them in this situation? Here are some ideas on how you can generate business value from your physical stores.&nbsp;&nbsp;&nbsp;News of retail store closures has been in and out of the news cycle this past year due to the pandemic.&nbsp;In the United States alone, UBS analysts estimate 80,000 stores to cease operations over the next five years&nbsp;while online sales continue to surge [1]. Of these closures, around 60% are deemed to be permanently closed for retail. [2].However, it must be noted that the UBS store closure projection actually tempered from a much higher number of 100,000 at around the same time last year April 2020 as retailers are starting to find intrinsic value in their physical stores. With most retailers having to shift quickly to digital channels in response to the global crisis, their brick and mortar stores have taken a back seat in this transition. As businesses steadily found their footing in this new normal, physical stores have slowly found their place back in this thriving digital ecosystem.&nbsp;As businesses, we have to maximise our assets to generate the most value, especially in dire situations. In this article, we offer perspectives on how you can make the most of your brick and mortar stores to provide immediate business value. And just as important, as we move out of this pandemic in the near term, on how you can begin reimagining the customer experience for your physical spaces to adapt to the evolved customer behaviour powered by technology.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<h3>Integrating Physical Stores as Key Digital Retail Ecosystem Components</h3>The prevalence and apparent ubiquity of digital shopping have forced retailers to come up with viable solutions to reclaim value from their now stagnant physical stores, finding ways to incorporate them into their relatively newly established digital ecosystem. Here are some of the ways retailers find the much-needed purpose for their stores that you can also implement.<h4>Distribution Points</h4>One of the challenges of a fully digital retail operation is distribution. In fact, due to the resulting surge in online shopping, shipping companies were caught unprepared with the sheer volume of deliveries they have to fulfil. Increasing package volume to almost 60% compared to the year prior [3]. As a result, consumers found that delivery dates tended to take longer, from mere weeks to as long as a few months.In response to this challenge, retailers have found a silver lining in their stores. By using them as distribution points they can tap smaller and more localised same-day delivery services to provide much better order fulfilment, inadvertently improving customer experience along the way.&nbsp;&nbsp;&nbsp;&nbsp;<h4>Order Pick-Up Venues&nbsp;</h4>Buy Online and Pickup In-Store (BOPIS) option has also started gaining ground among consumers. According to a survey by Investp,&nbsp;65% of shoppers stated that they availed themselves of this type of service over the last few months.&nbsp;Top reasons why shoppers prefer BOPIS are&nbsp;being able to see the products before they take them home&nbsp;and&nbsp;saving on shipping costs&nbsp;[4]. And also to a certain extent being able to experience a semblance of physical shopping experience.Utilising the curbside pick-up experience allows retailers to reinvigorate highly manageable store traffic while at the same time ensuring employee-customer safety. It also provides the opportunity to interact with the customers and encourage additional purchases while in-store.&nbsp;&nbsp;&nbsp;&nbsp;In fact, a similar project was recently undertaken by Monstarlab for international brand WingStop, where we helped them develop a pilot for a practical process of ordering, looking, payment and pick-up via lockers for a truly seamless and contactless transaction.&nbsp;<h4>Experience &amp; Engagement Hub</h4>Social has also taken an integral part in the new retail landscape, with brands constantly engaging their market in social channels in a bid to get more of their attention, and ultimately, their share of pocket.&nbsp;And quite a few brands have brilliantly transformed their physical spaces to coincide with their social and community efforts. Lifestyle brands can offer limited slots to engage brand enthusiasts in community-based activities in-store while adhering to the safety standards and protocols. The event can then be broadcast on social and digital channels to allow their wider audience to participate in the safety of their own homes, all the while subtly promoting their fitness products through targeted interactive features in their digital channels.&nbsp;&nbsp;&nbsp;According to Incisiv, 91% of shoppers miss in-person shopping while another 5%, although small in number at this time, plan to visit and experience products in-store in the near future [5]. In response to this, larger retail brands are exploring the possibility of an exclusive shopping experience wherein customers can book in advance exclusive in-person shopping time which can allow them to shop without much worry about their personal safety.On top of that, contactless solutions and an integrated digital experience such as using AR and VR are an essential part of this solution.&nbsp;In a recent Businesswire survey more than 8 out of 10 shoppers explicitly mentioned that they prefer to shop in stores with a reliable contactless and self-checkout option, especially while still under the pandemic&nbsp;[6].&nbsp;Consumer demand for AR/VR technology is actually growing in Asia. According to new research from Worldpay,&nbsp;84% of respondents said they believe VR/AR is the future of shopping [7].&nbsp;It is emerging as a key component of the retail customer experience. In one example, international clothing brand Uniqlo partnered with Alipay to launch the “AR Red Packet” feature in China. This allows customers to shop in-store and take part in a treasure hunt for “red packets” on the premises using AR. Adding another layer of fun and engagement in the shopping experience.&nbsp;In another notable execution, major online retailer JD.com recently launched a mobile app that allows users to virtually try on pairs of shoes and even measure their foot size using AR. At present, JD.com AR has launched hundreds of applications for various categories such as make-up, clothing, hair colouring as well as an AR virtual store. They are also working with brand partners to promote and develop more AR experiences both online and offline [8].<h3>Moving Forward: Anticipating the Next Normal Retail Experience&nbsp;&nbsp;</h3>Admittedly, the pandemic has transformed a lot of longstanding consumer behaviours that may stick even as we move out of this predicament. But as industry survivors, we have to brace ourselves and take a serious look at how the retail experience will take form in the near future.So despite the convenience and comfort currently provided by eCommerce, it is safe to assume that eventually, consumers will be looking for far more in terms of physical shopping experience. And what better way to deliver that expectation than through innovative digital and physical experiences.&nbsp;&nbsp;But before we even get to that point, we should begin by reimagining the in-store service model altogether, identifying new opportunities to monetise physical space, streamline operations, and deepen customer relationships. After all, as we move from survival to growth we need to make sure that key aspects of our operations provide value for both the business and the customers in the near term.&nbsp;&nbsp;Our global expert on creating connected experiences, Daniel Kalick, covers this topic in the article&nbsp;<a href="https://monstar-lab.com/global/expertinsights/how-stores-can-drive-business-in-the-next-normal/" rel="noopener noreferrer" target="_blank">How Stores can Drive Business in the “Next Normal”</a>. Give it a read to learn how you can manage your physical store experience as we move to the next phase of the retail evolution.&nbsp;&nbsp;&nbsp;&nbsp;<h4>Conclusion</h4>Physical stores can still provide strategic value to your operations that have become largely digital. By looking closely at our customer’s behaviours and preferences, we can find ways on how to best position our stores to augment business aspects from operations, logistics, to customer engagement in this new normal.&nbsp;But as we move out and recover from the pandemic, we will have to take an even closer look at the role the physical stores will take in the long run given the anticipated enduring changes in consumer behaviours.&nbsp;&nbsp;<a href="https://monstar-lab.com/global/thoughtleadership/revitalizing-wholesale-retail-ecommerce-for-the-next-normal/" rel="noopener noreferrer" target="_blank">Read more insights and see some of our works on Wholesale, Retail, &amp; eCommerce</a>&nbsp;<h5>Endnotes:</h5><h5>[1] CBS News,&nbsp;Tens of thousands of stores could still close even after the pandemic ends, 2021</h5><h5>[2] CNBC News,&nbsp;Yelp shows 60% of business closures due to the coronavirus pandemic are now permanent, 2020</h5><h5>[3] Digital Commerce 360,&nbsp;Retail Merchants use stores to tap into same-day delivery, 2021</h5><h5>[4] Invesp,&nbsp;Buy Online Pick Up In-Store (BOPIS) Statistics &amp; Trends</h5><h5>[5] Forbes,&nbsp;50 Statistics Showing The Lasting Impact Of COVID-19 On Consumers, 2020</h5><h5>[6] Businesswire,&nbsp;87% Of Shoppers Prefer to Shop in Stores With Touchless or Robust Self-Checkout Options During COVID-19 Pandemic, 2020</h5><h5>[7] Chinadaily,&nbsp;Chinese rush to use VR and AR for their purchases, 2017</h5><h5>[8] JD.com,&nbsp;JD.com Explores AR Foot Measurement Tool for Online Consumers, 2020</h5>

Maximise Stores in the Digital Retail Experience

<a href="https://monstar-lab.com/global/thoughtleadership/revitalizing-wholesale-retail-ecommerce-for-the-next-normal/" rel="noopener noreferrer" target="_blank">Part of our Wholesale, Retail, &amp; eCommerce Series</a>With increased demand for online shopping and dramatically transformed market conditions for retail businesses during the pandemic, most companies were forced to shift to Direct to Consumer or D2C sales practically overnight. Without a well-planned transition, many of them resorted to creating or jumping on to almost random online sales platforms without proper assessment of the intricacies.A year after such undertakings, more and more businesses are facing the ill consequences of their hasty actions and finding themselves caught in the shortfalls and nuances of their chosen channels. So much so that a sizable number of them are now looking to replatform themselves with alternatives. So before anyone dives head first again into another platform, we offer a quick breakdown and comparison of options that can help you put more thought into your selection.<h3>Choosing a Third-Party Platform</h3>Third-party platforms like Amazon, Shopify, and Shopee offer a wide range of benefits. With little need for back-end adjustments, they allow businesses to manage orders, ship goods, and track inventory with their built-in tools, to easily tap into their existing customer base, and basically to drag and drop their way to building and running an online store. But awesome as those perks sound, there can be some trade offs:There’s an abundance of&nbsp;platform fees that run your entire stay. Monthly fees go from the standard 30 USD for the basic plan to up to hundreds of dollars for a few additional features. Payment gateway fees for common payment options like Stripe and PayPal can cost about 3% of the overall charge plus an additional 30 cents. On top of all that, transaction fees also commonly cost 1-2% of overall product price. But that 5% in charges can go a long way, especially if you consider the time you save in easily setting up your store with the platform’s tools.Though built-in templates and themes for your store can be very handy, it also means you have&nbsp;less control over customisation. From user experience design and site functionality to product bans and heightened price control, many of the regulations in third-party platforms also double as limitations. Untouchable controls and restrictions on the types of products you can sell and the limitations of platform-dependent customer service, for example, can hold back scaling your operations to your growth in these platforms – not to mention the snowballing fees for making more sales. That being said, it’s important to consider how important customisation and flexibility is to your brand and process.In retrospect, third-party platforms show great potential as a stepping stone. With the ease of store setup and taking the mini-program route here to build initial clout, going with third-party platforms easily enables companies to hit the ground running. But like with all other options, you have to weigh out the pros and cons, and think long-term.<h3>Creating your own platform</h3>For many wholesale and retail businesses with ample time and more budget, developing a mobile app or website can be a worthwhile investment. Whether you’re coming from a brick-and-mortar store and looking to expand online, or coming from a failed attempt at penetrating shared online marketplaces, a bespoke platform proves to have many benefits. Advantages like having more control over functionality and design as well as the obvious monopoly over site visitors or app users easily seems to trump going for other choices, but going deeper unearths two critical yet commonly overlooked factors to consider.Producing your own app or website&nbsp;consumes a cost-efficient but larger amount of resources. Generally, custom platform development translates to initially higher customer acquisition costs. To be exact, it costs an average of 3.62 USD more per customer accounting both installation and development costs[1]. And unlike in third-party platforms where you can completely set up in as fast as a week, your mobile app or website can take months to years longer to build. But those are the costs of working towards a more long-term and comprehensive solution – minimal compared to the 40.5% savings you can enjoy from cheaper lead conversion costs compared to what marketplace apps spend post-development [1].Building a mobile app and/or website&nbsp;demands complex programming. Therefore, manufacturing your platform also requires a complicated tech stack. In mobile app development, for example, ensuring suitability for Android, iOS, and cross platform systems employs multiple programming languages with varying leverage on code speed, readability, and simplicity. Whether you’re planning to develop your app yourself or are looking for a development partner, heavy consideration of the tech stack is needed.Compared to the fees uploading your listings in a common online marketplace and the time it takes to do so, as well as the amount of preparations needed, custom platform development can seem overwhelming. But if done right, the effort will guarantee the rewards of standing out from the competition and propelling your growth.<h2>Employ an omnichannel approach</h2>Selecting a platform is not a binary choice. In fact, infiltrating more platforms can translate into better sales rates and a further-reaching brand. In this approach, your business can enjoy the benefits of both having your own platform and maximising the discoverability from third-party platforms. We recommend combining the following best practices:Create and push content into competitive platforms with&nbsp;Headless Content Management Systems (CMS). With this API-driven technology, you can create listings in populated online marketplaces and social media networks – all from one platform. Without the need to set-up multiple accounts, pages, and in-platform stores, you can easily publish and manage ads, blogs, media, and listings in virtually any viable platform in the market. This allows your business to easily penetrate relevant places for sales and marketing purposes. With this step, you can enjoy increased discoverability and easily drive traffic to your own platform.You can also&nbsp;develop custom third-party mini programs&nbsp;on platforms like WeChat, Snap Minis, Line, and Apple App Clips to reach greater audiences and increase brand awareness. These mini-programs act like lighter apps within third-party platforms. Taking the form of in-app stores, video games, and even music and video players, mini-programs are excellent marketing and sales tools [2]. To top that off, they can also be used to increase engagement beyond the platform. These paid programs commonly allow integrations with your own platform and even physical store promotions to create the perfect blended experience.Monstarlab has first hand experience in this type of platform. Anthea Zhang, China Managing Director, shares that the Chinese market is one of the successful frontrunners of utilizing mini-programs.“Sunning.com, one of China’s largest retailers, recently launched its own mini-program on WeChat and saw a surge in daily active users by more than 300% on top of a gross sales increase of close to 150% compared to 2020.In addition, average time spent on eCommerce mini-programs tends to be longer compared to its mobile app counterparts. Sessions clock in at around 17- 25 minutes on average while most ecommerce mobile apps generate roughly 4 minute sessions [4]. Intrinsic gamified features also lend to this high usage and retention rates. As users can earn in-app currency, they can spend online when they complete tasks and activities.”To complete the well-rounded strategy, you should&nbsp;develop or optimise your own platform. Besides having it as the catch basin of all your leads from the aforementioned suggested efforts, your own platform is the ultimate tool for creating compelling user experiences that turn site visitors or app users into buyers. From total control of design and functionality, to being able to add push notifications, increase security features, and fast track payment processes, a mobile app and/or website can increase sales and improve operational efficiency significantly.Though it likely takes the combined efforts of the first two options and more, it also allows you to enjoy the combined advantages. In fact, by leveraging this multi-channel strategy for engagement, you effectively increase engagement and retention rates compared to single-platform businesses by 70% and 62% respectively [3]; demonstrating the abundance of merits from this proactive approach.All in all, finding the right D2C channel that can help your business maximise and transition effectively into digital retail can be difficult. After all, platform is everything in eCommerce. But getting the choice right this time can spare you from the drawbacks and even help you maximise new normal circumstances.&nbsp;<a href="https://monstar-lab.com/global/thoughtleadership/revitalizing-wholesale-retail-ecommerce-for-the-next-normal/" rel="noopener noreferrer" target="_blank">Read more insights and see some of our works on Wholesale, Retail, &amp; eCommerce</a>Endnotes:[1] Digital Commerce 360 Research,&nbsp;“It costs more than $60 to acquire an app customer”, 2021[2] QPS Software,&nbsp;“WeChat Mini Programs – All You Need to Know”, 2021[3] LeanPlum Research,&nbsp;“How Does App Engagement Work?”, 2021[4] Localytics,&nbsp;Retail App Benchmarks H1 2018Other References:Forbes, “5 Stages Of Omnichannel Retailing”, 2020Harry Guiness,&nbsp;“The best 6 platforms to build an eCommerce website in 2021”McKinsey &amp; Company,&nbsp;“Adapting to the next normal in retail: The customer experience imperative”, 2020

Selecting a Platform: For Retailers Shifting to D2C

<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fa9c8c137f5104f308684173cde04b24d?format=webp"><a href="https://monstar-lab.com/global/thoughtleadership/revitalizing-wholesale-retail-ecommerce-for-the-next-normal/" rel="noopener noreferrer" target="_blank">Part of our Wholesale, Retail, &amp; eCommerce Series</a>Forced to transform at almost impossible speeds by the global pandemic, many businesses entering eCommerce resolved to integrate premature solutions to try and keep up. A year later, the consequences of rushing into half-baked executions and band aid solutions are catching up. Despite worldwide eCommerce approaching 5 trillion USD this year, countless eCommerce efforts – including yours – are struggling [1]. And here’s why.<h3>1. Your store is not on the map</h3>If you find your online shop lacking or losing traffic despite the wealth of in-site improvements your business has been investing on, the problem might not be with the store itself. Chances are, you’re not welcoming any new customers because they don’t know you exist. With an overwhelming number of options, consumers might not know your products are on the table. And with 7.9 million eCommerce retailers in the world competing with you [2], that’s a much bigger problem than it sounds.In eCommerce, discoverability is one of the key determinants of success. In fact, Shopify reports that over 2.3 trillion USD in revenue for online stores has been attributed to it [3]. That said, it’s important to pay attention to how online shoppers find you and how they do so before landing on your competition’s website instead.Here’s what you can do:<ul><li>By&nbsp;identifying the platforms&nbsp;– may it be a website, your own mobile app, or a booming marketplace – that your target market engages with, you can easily increase your reach and brand awareness. According to research, third-party websites and social marketplaces Google, Facebook Marketplace, and Amazon are the best and most popular platforms for eCommerce.&nbsp;</li><li>Taking a closer look at buyer activities&nbsp;on such platforms, you can also easily position your posts and ads in the right places. Several studies share vital info on captured user behavior such as eye tracking, and applying that knowledge to your ad placement&nbsp;effectively puts you on your target audience’s radar.&nbsp;</li><li>Adding the right tags and searchable keywords&nbsp;to your listings, optimising&nbsp;search for long-tail queries, and making yourself ‘Googleable’ will definitely create results too. After all, studies suggest that more than 60% of online shoppers start their product search on Google [3].&nbsp;</li></ul>Making yourself visible on the right platforms and working towards seamless product discovery will help your business stand out.&nbsp;<h3>2. Your shopping experience feels too much like the real thing</h3>It’s easy to think that replicating the in-store experience is the goal for online selling, but for today’s online shoppers who’ve been transformed by the pandemic, that’s exactly what they’re trying to avoid. According to multiple research, the top ranked reasons why people buy online during the pandemic circle around the convenience of 24/7 availability, door-to-door deliveries, and avoiding the mall [4]. This just goes to show that eCommerce is a whole different marketplace from physical stores and in itself is also different today from what it was before the COVID-19 outbreak.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F3ff9ff46bcf541939892f705b15a8d26?format=webp">Here’s what you can do:<ul><li>Create a user experience truly designed for online shopping&nbsp;by paying attention to your UX. With smartphones accounting for 65% or eCommerce visits and product discovery and majority of checkout transactions being placed on websites over any other platform, making product viewing and site browsing more mobile-friendly and creating a smoother checkout flow for website visitors, for example, are effective ways of adapting and exploiting your UX.&nbsp;</li><li>Populating your platform with options&nbsp;will also create a more satisfying and complete shopping experience for your buyers. Integrating&nbsp;Headless Content Management Systems (CMS), an API-based approach that allows your business to effortlessly populate your website, social media, ads, and virtually any platform with content ranging from products and promotional offers to livestreams and social media posts without the lengthy backend configuration and all from one seamless platform, proves most effective in catalysing and simplifying this process.</li><li>Maximising data to personalise the online shopping experience&nbsp;also allows you to leverage another one of eCommerce’s advantages over physical stores – it allows you to communicate and engage consumers on a deeper level at an instant. In fact, according to research, 75% of online shoppers are more likely to purchase items from retailers that know their names and purchase history, and that are able to make grounded recommendations. [5]</li><li>Ensuring transparency in order fulfillment&nbsp;from payment, stock, and delivery tracking are also key to crafting a customer experience that buyers gravitate towards – especially with most shoppers confined to their homes during lockdowns and with no option to follow up in physical stores. With these being the best-rewarded integrations in online shopping, it only makes sense to add them to your stack.</li><li>You should also&nbsp;show dedication to safety. As contactless policies and increased risks of surface transmission continue to ingrain into the reasonably meticulous mindset of online shoppers, committing to clear and careful protocols such as contactless deliveries and constant disinfection that your shoppers are made aware of will make all the difference.</li><li>Finally,&nbsp;integrating creative technologies targeted towards reimagining online shopping&nbsp;to incite more engagement will also prove rewarding. As Augmented Reality (AR) and video for product viewing sweep through the industry, hopping in on this trend can mean engagement and higher conversion rates for your business.</li></ul>Aside from increasing customer engagement, technology integration can also greatly improve key processes and help mitigate costs. This was the case for one of our partners engaged in uniform and clothing retailing who used AI and machine learning to get a more accurate measurement from clients. Ultimately minimizing costly returns and accumulation of inventory.&nbsp;<a href="https://monstar-lab.com/global/cases/using-ai-technology-to-mitigate-costly-returns/" rel="noopener noreferrer" target="_blank">Read more about it here</a>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<img src="https://monstar-lab.com/global/assets/uploads/2021/04/%E2%80%9C.png.webp">Technology integrations such as AI and machine learning not only provide new and exciting customer experiences but also help solve underlying key business challenges that customers may not even be aware of. Which makes it an important aspect for both the business and consumers– Daisuke Hirata, CTO Monstarlab APACThe wonderful thing about bringing your business online is being able to maximise all the perks and moving parts of the internet – and that’s exactly what you should do.<h3>3. You’re forgetting about your loyal customers</h3>Although tapping new customers and converting them into actual leads is a worthwhile pursuit, it’s important to remember that in total sales, new customers bring you just as much value as repeat customers. And what you might be missing out on in focusing on customer acquisition is that its costs far outweigh customer retention costs and that a consistent customer base can bring you just as much or even more business than newcomers [4].Here’s what you can do:<ul><li>Manufacturing loyalty programmes&nbsp;allow tons of engagement points that keep customers coming back. With the world of eCommerce being generally characterised by high purchase frequency and tantamountly high churn rates, something as simple as enabling subscriptions or giving discounts to repeat customers can drastically impact customer retention and increase sales and resales.</li><li>Use available data to get to know your customers better and create impactful, lasting relationships with them. With&nbsp;360° Customer Relationship Management (CRM), you can maximise a customer understanding encompassing far beyond your regular&nbsp;Know Your Customer (KYC). With this single integration alone, you can achieve complete data collection within the whole online shopping cycle. You can furthermore use that data to create experiential customer interactions, make superior predictive analyses that allow you to anticipate and act upon opportunities for cross-selling, re-selling, and upgrades, and overall promote a strong bond with your customers.</li></ul>Multiple outstanding examples from across the globe demonstrate just how these clever marketing activities have helped retailers respond to struggling eCommerce. At this point, you just have to find out which of these best practices are the best for you.At the end of the day, an optimal end-to-end customer experience will generate the most value from your digital retail.<img src="https://monstar-lab.com/global/assets/uploads/2021/04/%E2%80%9C.png.webp">Great eCommerce user experience, in a competitive market, is the ultimate advantage. When ads are increasingly expensive, keywords are getting tougher to rank for, and social media doesn’t play out like you thought it would, return to the basics: provide a user-centric and bulletproof experience– Sarah Bui, Experience Design Director Monstarlab UKMeet our Experts:<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F38aac0f8e49246568344f5b7389370bb?format=webp">Diasuke Hirata, CTO for Monstarlab APAC, is the global lead for innovative technology solutions and integrations. With vast experience in providing advanced solutions with new technology integrations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="https://monstar-lab.com/global/thoughtleadership/revitalizing-wholesale-retail-ecommerce-for-the-next-normal/" rel="noopener noreferrer" target="_blank">Read more insights and see some of our works on Wholesale, Retail, &amp; eCommerce</a>Endnotes:[1] eMarketer Insider Intelligence,&nbsp;“Global Ecommerce Update 2021”[2] Etail Insights, “The 2021 Breakdown of the eCommerce Industry”[3] Vue.ai, “6 Ways To Improve Product Discovery &amp; Search Experience For eCommerce”, 2020[4] Tradegecko, “Retail &amp; Wholesale: Challenges and Strategies for Growth”, 2021[5] Accenture, “Pulse Check: 2018”Other references:McKinsey &amp; Company,&nbsp;Rebooting Retail,&nbsp;2020

3 Reasons Why Your eCommerce Is Struggling

<a href="https://monstar-lab.com/global/thoughtleadership/revitalizing-wholesale-retail-ecommerce-for-the-next-normal/" rel="noopener noreferrer" target="_blank">Part of our Wholesale, Retail, &amp; eCommerce Series</a>As businesses and consumers are ushered into the next stage of overcoming pandemic conditions, wholesale, retail, and eCommerce continue to transform. Exploring and developing various strategies to meet evolved customer demands and keep up with the times, the sectors are diving straight into what we call the next normal – an empowered era where businesses take more control of their future and intently drive positive change. And these trends are laying the foundation.<h3>Trends Leading the Way</h3><h4>1. Stores are driving more traffic into their digital branches</h4>As contactless policies and door-to-door deliveries take over the industry, more and more companies are seeing the value of taking business online and making their online shops their flagship stores. With online selling becoming the most stable marketplace in the past year and consumers responding favorably to its conveniences, an increasing number of stores and sellers are prioritising and placing investments into their online shops this year. And as recent reports uncover that the pandemic has brought the number of online shoppers to an all-time high of 1.92 billion consumers, going online is proving to be the smarter choice [1].<h4>2. Augmented reality and videos are reinventing shopping</h4>Adding augmented reality (AR) and video to product viewing options has been a complete game changer for online businesses. Granting online shoppers a more ‘realistic’ shopping experience is proving to be a great way to engage customers and an even more fun method to inform them about your product or service. In fact, 35% of surveyed shoppers reported that they would purchase more online if they could virtually try products or see such products in 3D, and 22% stated they would be less likely to visit physical stores if AR was available in online stores [2]. With those numbers, it’s not hard to see why so many retail and eCommerce players are going for it.<img src="https://monstar-lab.com/global/assets/uploads/2021/04/%E2%80%9C.png.webp">We are expecting a lot more businesses to utilise AR for their products and businesses — so much so that it will become more standard in eCommerce and&nbsp;social media&nbsp;platforms. We’re seeing it put to use with larger companies, but I think we’re soon going to start seeing it become mainstream for businesses of all sizes.– Tessa Wuertz, Director of Marketing &amp; Partnerships,&nbsp;<a href="https://www.seattlewebdesign.com/" rel="noopener noreferrer" target="_blank">efelle.com</a><img src="https://monstar-lab.com/global/assets/uploads/2021/04/%E2%80%9C.png.webp">I see the use of podcasting and&nbsp;short video content&nbsp;to augment the opportunity for buyers to learn about how an eCommerce brand’s products and services provide the solution to the opportunity, challenge or problem a buyer is looking to answer. With these two forms of content development comes the technology to micro track a viewer’s engagement…– Ron Smith, Editor in Chief,&nbsp;<a href="http://www.thedigitaloutdoorsman.com/" rel="noopener noreferrer" target="_blank">The Digital Outdoor</a><h4>3. AI and Big Data are making the shopping experience even more personal</h4>Ron Smith, Editor in Chief of The Digital Outdoor, once said that “People want to know that brands care about them.” And what better way to show you care than treating your valuable clients to special experiences built with their needs and quirks in mind? With AI continuously collecting data and analytics processing larger scales of information on how a customer shops and everything that goes into their purchasing process, businesses are learning more about up to millions of shoppers at a time and crafting personal experiences that can’t be replicated in-store. At this stage, these technologies can go as far as to give you instant recommendations, and who could say no to a treat, perfectly suited your preferences, that practically has your name on it?<img src="https://monstar-lab.com/global/assets/uploads/2021/04/%E2%80%9C.png.webp">We have reached the tipping point when it comes to showing irrelevant content. By implementing personalised shopping experiences across all channels to talking directly with your customer, you improve experiences, increase consistency and brand loyalty. If you have data, it can be overwhelming to identify user patterns and profiles for personalised experiences for thousands to millions of users at a time, but that’s why we use AI.– Rasmus Mortensen, Head of&nbsp;<a href="https://www.sitecore.com/" rel="noopener noreferrer" target="_blank">Sitecore</a><h4>4. Chatbots are becoming the best assistants</h4>We are now years past the ‘chatbots for feedback’ era and are effectively training them into becoming our best sales associates yet. In fact, 80% of chatbots in the eCommerce industry already interact with online shoppers much like an in-store sales associate would do. With chatbots becoming more intuitive and working hand-in-hand with experience personalisation efforts, experts are finding that it can benefit companies placed anywhere in the sales process [3]; stepping in and saving sales 24/7.<img src="https://monstar-lab.com/global/assets/uploads/2021/04/%E2%80%9C.png.webp">I think that personal shopping assistant bots online will become more prevalent, using previous data to help anticipate new products that you’ll like. Similar to Amazon’s suggestions for similar products.– Duran Inci, CEO of&nbsp;<a href="http://www.optimum7.com/" rel="noopener noreferrer" target="_blank">Optimum7</a><h4>5. Headless and API-driven eCommerce allow continued innovation.</h4>As it allows online platforms to be completely decoupled from presentation layers, the flexibility of going headless on backend together with its added SEO and content marketing capabilities is creating more effortless content dissemination for many companies. By enabling businesses to find sales opportunities across all devices and platforms without the nitty gritty of the usual backend development, this API-approach is maximising all notable online frontiers and allows companies to respond more quickly to new user demands; making it so easy to plug and play into any sensible digital strategy.<img src="https://monstar-lab.com/global/assets/uploads/2021/04/%E2%80%9C.png.webp">With headless, we get more control over our content and customer journey through checkout. We had a multi-region need that was solved for with the headless BigCommerce solution, allowing us to combine all of our stores into one single domain, for which we have developed additional features.– Antonio Kaleb, eCommerce Architect,&nbsp;<a href="https://www.livelarq.com/" rel="noopener noreferrer" target="_blank">LARQ</a><h4>Do these make sense for your business?</h4>Though many novel technologies have emerged, not every trend is worth jumping on. Knowing what innovations will be a good fit for your business still comes down to how you will use it. After all, powerful as it may be, technology remains a tool.Meet our Expert:<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F52838e34192447dfb39e2a568d4999bc?format=webp" width="409" style="cursor: nwse-resize;">Rasmus Mortensen, Head of Sitecore, is our global lead for Web Personalization. He has racked up more than 15 years of experience in technology including designing and implementing highly personalized user experiences via Sitecore.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="https://monstar-lab.com/global/thoughtleadership/revitalizing-wholesale-retail-ecommerce-for-the-next-normal/" rel="noopener noreferrer" target="_blank">Read more insights and see some of our works on Wholesale, Retail, &amp; eCommerce</a>Endnotes:[1] Statista,&nbsp;Number of digital buyers worldwide from 2014 to 2021,&nbsp;2021[2] Michael Prusich,&nbsp;1Digital Agency Interview,&nbsp;2021[3] BigCommerce, eCommerce&nbsp;Trends That Are Powering Online Retail Forward, 2021Other references:McKinsey &amp; Company,&nbsp;Rebooting Retail,&nbsp;2020

Digital Trends Driving Wholesale, Retail, and eCommerce into the Next Normal

<h4><a href="https://monstar-lab.com/global/thoughtleadership/empowering-life-science-in-the-digital-era/" rel="noopener noreferrer" target="_blank">Part of our Health, Wellness &amp; Life Science Series</a></h4>In recent developments, mobile healthcare applications are coming to the fore and making era-defining impacts on healthcare. Increasing service mobility, accessibility, and affordability, a host of emergent mobile technologies are creating long-lasting changes in the industry. In the digital era, mobile apps are increasingly utilised and even relied upon for a wide range of functions. From cost-effective patient-provider communication and health information dissemination, to patient monitoring, appointment scheduling, and diverse record tracking, mobile applications are becoming popular options and solutions for modern healthcare.&nbsp;With more than 318,000 health apps recorded and an average addition of 200 apps rolled out daily&nbsp;[1], it becomes apparent that the potential and benefits of going mobile do not go unnoticed. With this kind of competition in an oversupplied market, however, it becomes more of a struggle for providers to stay relevant and, even more so, to stay on top. That being said, we are revealing the top three technologies mobile health app providers can exploit to build and establish their presence in the market.&nbsp;In this article, we will discuss:<ul><li>Timely technologies that increase mobile healthcare app functionality, flexibility, and efficiency&nbsp;</li><li>Notable applications of such technologies in the industry</li><li>Popular benefits enjoyed by enterprises maximising these advancements</li></ul><h3>Cloud-uploaded interoperable record data system</h3>Digital data has been regarded by experts as the new fundamental wealth of healthcare and other sectors&nbsp;[2 &amp; 3]. However, industry data confirms a major setback in fully maximising this resource – the lack of interoperability&nbsp;[2 &amp; 3]. With data isolated in exclusive databases and becoming virtually incompatible with most systems and public software, important information becomes more difficult to share, analyse, and exhaust – slowing down services, research, and healthcare as a whole.In order to use data&nbsp;to its full potential in mobile applications, providers must create an organised and interoperable system able to manage continuously expanding volumes of information. By migrating data to a secure cloud and implementing Artificial Intelligence and Blockchain to govern over data, organisations can easily access and share records, streamline and personalise customer experiences, and track necessary information. Altogether structuring a semantic interoperability, these integrations connect systems and stakeholders while keeping data secure and delivering service efficacy.A study revealed that&nbsp;46 percent of hospitals&nbsp;now have electronic access to patient information shared with and by other providers and sources&nbsp;– empowering faster and coordinated patient treatment, and improving their overall experience&nbsp;[4]. On top of that, mobile app providers with uploaded interoperable systems also have the advantage of higher productivity yet lower labor costs. According to research, system interoperability could save the American healthcare system more than 30 billion USD per annum by boosting transaction and service speeds whilst reallocating human labor to more profitable endeavors&nbsp;[5].&nbsp;<h3>Big Data Analytics</h3>Harnessing the power of data analytics for mobile health app data has also manifested to be among the most impactful technologies to digital treatment and care. According to research&nbsp;[3], with uncontrollable accumulation of medical data, one of the common challenges for many healthcare providers is making sense of the bigger picture. Through processing and interpreting relevant insights from large-scale consumer data, big data analytics is addressing such valid concerns.&nbsp;With effective instrumentalisation of big data analytics, professionals can quickly source general information to assess individual patient conditions and act accordingly. On a larger scale, researchers in the field can also use data-driven relevant insights to consolidate massive information common symptoms and effective treatments to improve diagnosis and treatment formulation. All that said, big data analytics is proving useful in utilising data beyond customer support purposes – fundamentally getting more value for data as a resource in the community.<h3>Integrated mobile payments system</h3>Another era-defining trend for various industries and niches of mobile apps, integrating mobile payment systems in healthcare is creating a more convenient and accountable experience for industry stakeholders. Numerous health apps out in the market are providing patients and healthcare subscribers options to transact money digitally within their platforms to ensure superior, speedy, and compact user experience, as well as to secure and centralise backend tracking.&nbsp;As Forbes stated in a recent piece, mobile payments are no longer the alternative and has positioned itself to be a requirement&nbsp;[2]. Illustrating the urgency and impact of this integration, another study also reveals that this feature also notably pays off in monetising more online services as opposed to mobile apps that offer limited payment methods and subsequently discourage transactions – making&nbsp;mobile apps with mobile payment options up to&nbsp;10 times more profitable&nbsp;compared to those without&nbsp;[3].<h3>Key Takeaways</h3><ul><li>With the proper approach and necessary tools, the value of data from mobile health apps can be increased exponentially in research, service delivery, and overall industry progress.</li><li>Data interoperability not only saves professionals and providers costs and boosts coordination, the fast information delivery also creates a more emergency-ready system for patients.</li><li>Equally important to digital service developments, integrations for mobile payment alternatives also need to catch up in order to truly maximise mobile health app profitability and utility.&nbsp;</li></ul><h4>Endnotes:</h4>[1] IQVIA Institute,&nbsp;“The Growing Value of Digital Health”, 2017[2] Forbes, “Mobile Payments Aren’t Alternative Payments Anymore”, 2020[3] Deloitte,&nbsp;“2020 Global Life Sciences Outlook”, 2020[4] National Institutes of Health,&nbsp;“Why digital medicine depends on interoperability”, 2019[5] West Health Institute,&nbsp;“Analysis by West Health Institute finds medical device interoperability could save more than $30 billion a year”, 2020<h4>Other references:</h4>Axtria,&nbsp;“Emerging Technology Trends In the Life Sciences Industry”, 2020Becker’s Healthcare Research,&nbsp;“The 5 key benefits of healthcare interoperability”, 2019Forbes,&nbsp;“Boomers And Gen Xers Skipping Health Care Due To Cost”, 2018Statista,&nbsp;“Cost decreases from adopting artificial intelligence (AI) in organizations worldwide as of 2019, by function”, 2019<h4><a href="https://monstar-lab.com/global/thoughtleadership/empowering-life-science-in-the-digital-era/" rel="noopener noreferrer" target="_blank" style="font-size: 18px;">Read more insights and see more of our work on health, wellness &amp; life science</a></h4>

3 Technologies Your Healthcare App Should Have.

Life Science and Technology in 2021 [White Paper]

<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fce9548402637422398dd91d7b893116c?format=webp"><a href="https://monstar-lab.com/global/thoughtleadership/the-future-of-banking-financial-services-and-insurance/" rel="noopener noreferrer" target="_blank" style="font-size: 18px;">Part of our Banking, Financial Services, and Insurance Series</a>&nbsp;As new digitally-driven companies are transforming the banking sector into a technology-driven universe, traditional banks, financial institutions and credit unions are struggling to adapt to the new normal. Dedicated leadership, proper investments and a well-defined scope are pivotal if well-known banks are to survive and reap the benefits of digital.Over the past ten years, financial services have grown 4 % annually on a global scale. Yet, the banking sector seems to be the tanker in an ocean full of speedboats. Heavy, slow and incapable of changing its course, traditional banks are simply not ready for digital. A newly published digital banking report confirms that a staggering 55 % is lacking digital maturity, whereas only 12 % consider themselves digital leaders.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fc3d11cbf36f34826b0f9ce22bbc6789b?format=webp">While most bank executives are aware of these trends, few are actually acting on them leaving the financial sector a haven for new businesses to increase their market shares.And like other sectors have been disrupted by new players on the market, the banking sector is heavily challenged by fintech companies in every aspect of their core business.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fd3bd63686d224e0ba60d5104edf8c1a2?format=webp"><h2>Go all digital or go home</h2>Going digital in banking isn’t just about offering your services digitally. Transferring money, chatting to advisors and checking your bank accounts digitally isn’t the end goal. It is a prerequisite. Going digital means using artificial intelligence, distributed ledger systems, machine learning, apps and open banking to provide not only products but services to an ever increasingly critical customer base. It is a mindset far away from traditional banking but close to that of the fintech companies, which are stealing market shares from traditional financial institutions.Transferring money, chatting to advisors and checking your bank accounts digitally isn’t the end goal. It is a prerequisite.–Alex Holdsworth, Engagement Director, MonstarlabThe fintech companies all have one thing in common: they are digitally native. Companies we’ve seen emerge over the past five to ten years such as Lunar, UNDO, and Robin Hood do not rely on legacy systems but are fully digital-driven meaning they can utilize the data much more efficiently than many of the traditional banks. Real-time access to accounts, digital services and agile banking is&nbsp;right up fintech companies’ alley, whereas traditional banks are held back by outdated wireframes not able to transform the huge amount of data they have into a seamless customer journey.&nbsp;But where digital native fintech companies are experiencing a gold rush with a disruptive approach to agile banking these days, traditional financial institutions are sitting on an untapped goldmine. The challenge is to prioritize when budgets and digital talents are in shortage and IT infrastructure and legacy (in culture, too) are in plenty.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2Fdb4ccac71c5e4cf7b56e005fc50804d0?format=webp"><h3>Banks ought to consider themselves as tech companies</h3>Many traditional banks have been around for decades or even centuries. Legacy is evident not only within their IT systems but in every corner of the business. The challenge is that while banks hold tons of customer data in their outdated systems, they are not utilizing its true value to serve their customers’ or own needs.JPMorgan Chase serves as a great example. At the banking giant, new technology is parsing financial deals that once kept legal teams busy for thousands of hours. COIN, as the programme is called (Contract Intelligence), interprets commercial-loan agreements that, until the project went online in June 2017, consumed 360,000 hours of work each year by lawyers and loan officers (Bloomberg).COIN is just one out of many examples of how JPMorgan Chase has transformed legacy into automated processes driven by new technology. In October 2018, the company had gone from a 245 billion dollar worth with 235.000 employees in 2016, to a 365 billion dollar worth with 165.000 employees. Since then, JPMorgan Chase has increased its innovation budget by 50 % and initiated several other digital transformation projects that are to turn the bank into a technology company of its own.The example from JPMorgan delivers an important lesson for every bank looking to transform their business into a technology driven-company. Legacy systems, both in IT and culture, can transform from being a thorn in one’s side to an asset if the transformation is carried out with dedicated leadership, proper investments and well-defined scope.<h3>Eating up the elephant one investment at a time</h3>One strategy that has been proven time after time again is to leave behind the grandeur idea of changing core systems&nbsp;overnight and start where tangible value can be seen, measured and felt instantly. Digital laggards or mainstream players ought to focus on small, isolated projects with a short time-to-market to showcase the benefits of investing in digital transformation. The value created – no matter how small the win is – will pave the road for further investments in digital innovation and the business case will serve as evidence to support the development of larger programmes as soon as the right maturity level is reached. This will lead the management to start thinking about the benefits of digital both in terms of costs savings and client faced initiatives.<img src="https://cdn.builder.io/api/v1/image/assets%2Ffb3ccc876dd442c6ae31d776377e35db%2F423da8a67baa4e1a9c6e23fc062bf6ad?format=webp">&nbsp;Explore how&nbsp;<a href="https://monstar-lab.com/global/cases/danske-bank/" rel="noopener noreferrer" target="_blank">Danske Bank</a>&nbsp;became a customer-first company through digitalIt’s a mind-shiftUnderstanding how digital transformation isn’t a cost but an investment and is crucial for the future of banks, credit unions and financial services if they are to survive the heavy challenge brought on by the fintechs.A rule of thumb is not to see digital transformation as a single transaction but a continuous change of the company – even though you might focus on one area at a time. Just like market trends, customer needs and expectations, enterprise technology is constantly subject to change.That’s why legacy companies need to learn how to work with agile methodology, digital-first and LEAN – methods, which are already part of every Neobank.It’s a mind-shift far away from traditional banking making it almost impossible for established financial institutions to drive the change on their own. Despite these challenges, opportunities are all around; dedicated leadership, a realistic scope and a desire to change as well as being open to outside guidance from companies who practice agile, non-digital BFSI companies are facing a bright future.Start prioritising your assumptions. Think about what might have the biggest impact on your users’ needs and prioritise accordingly. Limit the number of assumptions to what is realistic to test in the time frame that you’re operating under.<a href="https://monstar-lab.com/global/thoughtleadership/the-future-of-banking-financial-services-and-insurance/" rel="noopener noreferrer" target="_blank" style="font-size: 18px;">Read more about banking, financial services, and insurance here</a>