This article is published in collaboration with the Digital Transformation and AI Awards and Summit. These are two separate B2B events organised by 31 Media. If you wish to exhibit your tech solutions or to advertise your brand at the event, please get in touch at +44 (0)203 931 5827. In this article, you’ll learn about the role of the rising number of startups on digital transformation as a whole.

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Author: Dmitry Matveev, CTO of Approveit

How startups are leading the digital transformation charge

 

In today’s rapidly evolving business landscape, digital transformation is no longer a mere trend, but a necessity for survival and growth. Startups are often founded on disruptive ideas that challenge traditional business models and industries, they are often more willing to experiment with new technologies and promote new business models to the masses than large corporations, which undoubtedly influences the development of the digital sector as a whole. For example, the use of AI for personalised financial advice, blockchain for secure transactions, and mobile apps for seamless user experiences has reshaped consumer expectations and set new standards for the industry.

Leveraging cutting-edge technologies

Unlike traditional companies, startups frequently operate in high-uncertainty environments where data can provide actionable insights and guide strategic choices. It’s a competitive edge, as by using data analytics, startups can make informed decisions, optimise operations, and tailor their offerings to meet market demands. Data analytics enables startups to identify key performance indicators (KPIs), monitor progress, and allocate resources more effectively. By focusing on data-backed insights, startups can avoid costly mistakes and concentrate their efforts on strategies that demonstrate a higher likelihood of success.

Besides, by leveraging data, startups can refine their products, target their markets more effectively, and enhance user experiences. Startups gather user feedback through surveys, reviews, and direct interactions. By analysing this feedback, along with user behaviour data such as click patterns and feature usage, startups can identify pain points and areas for improvement. This data-driven approach enables them to make informed decisions about product enhancements or modifications.

Impact of startups on industries and global business practices

There is no question that startups change industries. From a long-term perspective, the effect is tremendous and for many industries, the question of whether to use a startup as a service or partner will look like “Do we want to stay in the market and be a leader?“. Especially if we are talking about AI products and see them as auxiliary tools for increasing productivity. The problem  I see is that many companies stay conservative and biased against quite fresh startups and that slows down the process of changing and improving the existing biz environment and processes. In my opinion, we should have more champions in companies who open and are willing to improve businesses, could take risks and of course must have frameworks for risk mitigations if a new approach fails (eg: startup closure). The sooner we get rid of conservatism the faster we will see how all rapidly changes and new practices will come as a result.

Shaping the future of digital transformation

All breakthroughs in all industries have been done mostly by startups. There is no doubt that new startups with great ideas will be arising and leading digital transformation. There are a few main topics in my opinion startups should focus on and evolve in these directions:

• The democratisation of Technology – By democratising access to advanced technology and giving almost a zero entrance threshold. They create platforms, APIs, and tools that enable small businesses, developers, and non-technical users to leverage complex technologies. For instance, no-code/low-code platforms and cloud-based solutions have empowered non-experts to build digital products and services, reducing the reliance on expensive development resources.
• Disruption of Traditional Industries – Many startups focus on disrupting traditional industries like finance (FinTech), healthcare (HealthTech), logistics, and manufacturing by introducing digital-first solutions. For example, FinTech startups are revolutionising how financial services are delivered, pushing incumbents to rethink their business models and accelerate their digital transformation efforts. And there are a lot of things for improvement.
• Agility and Innovation – startups are more flexible and can pivot quickly to adapt to market changes much faster than established corporations. This agility allows them to experiment with cutting-edge technologies, disruptive business models, and new approaches without being burdened by legacy systems or bureaucratic processes.

 

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