Digital Transformation in Freight Transport

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 24

DIGITAL TRANSFORMATION IN

FREIGHT TRANSPORT
Contents
Introduction .................................................................................................................................................. 3
Context .......................................................................................................................................................... 4
Innovation is leading the change ............................................................... Error! Bookmark not defined.
Digital as an innovation engine .................................................................. Error! Bookmark not defined.
Digital transformation and the 4th Industrial Revolution ........................................................................ 4
Digital Champions ..................................................................................................................................... 5
Key technologies for digital transformation ................................................................................................. 9
For Customers ........................................................................................................................................... 9
1. Social media platforms.......................................................................................................................... 9
2. Mobile/web applications ...................................................................................................................... 9
3. User-generated content........................................................................................................................ 9
4. Wearables & IoT.................................................................................................................................... 9
5. Digital walls ......................................................................................................................................... 10
For IT .......................................................................................................... Error! Bookmark not defined.
6. Cloud computing ................................................................................................................................. 10
7. Big Data analytics ................................................................................................................................ 10
8. Open-source software ........................................................................... Error! Bookmark not defined.
9. Artificial intelligence .............................................................................. Error! Bookmark not defined.
For the Physical World ............................................................................................................................ 10
10. 3D printing ........................................................................................... Error! Bookmark not defined.
11. Driverless vehicles ................................................................................ Error! Bookmark not defined.
12. Drones & robots ................................................................................... Error! Bookmark not defined.
How Digital Business Services Aim To Deliver Maximum Customer Value ................................................ 11
Industrialized services deliver value faster ............................................................................................. 11
Intellectual renewal leads to innovation ................................................................................................ 11
Business outcomes must be the top priority .......................................................................................... 12
Analysis ....................................................................................................................................................... 12
Pricing Digital Products ........................................................................................................................... 12
Debate on the ROI of Digital Investment ................................................................................................ 16
Synthesis ..................................................................................................................................................... 17
Digitalizations of Operating Models ....................................................................................................... 17
Developing the Digitalized Workforce .................................................................................................... 17
1. Vision ............................................................................................................................................... 19
2. Strategy ........................................................................................................................................... 20
3. Personas .......................................................................................................................................... 20
4. Metrics ............................................................................................................................................ 20
5. Employee experience ...................................................................................................................... 20
6. Organizational change .................................................................................................................... 20
7. Training ........................................................................................................................................... 21
8. Processes......................................................................................................................................... 21
9. Information ..................................................................................................................................... 21
10. Technology .................................................................................................................................... 21
Conclusion ................................................................................................................................................... 21
References .................................................................................................................................................. 22
Introduction
Digital Transformation in Logistics Industry is important to enhance the efficiency of operations. We need
to create business concepts and new service models to help supply chain and logistics players gain a
competitive edge over others.

By making the most out of digital technology solutions and making it easier for business owners to manage
supply chain and logistics for delivering, managing schedules, and gaining end-to-end visibility. These
digital transformation logistic solutions provide with real-time information throughout the journey,
enabling business owners to make faster, more informed decisions, resulting in optimized operation for
better margins and better customer experiences.

You could argue the transportation industry has been using digital for some time. For close to 20 years,
railroads have been tracking railcars using automatic equipment identification (AEI) along the track. Also,
Qualcomm started GPS fleet tracking in the late 90’s. Electronic messaging has been around for decades.
What is different and why is the recent rise of digital technology having a profound impact on the
transportation industry?

The industry is experiencing a collision of transformative technology, higher customer expectations, and
an influx of investments. Traditionally, the industry provides shippers with cheap and reliable service using
established product and performance definitions and metrics. There has been little initiative to innovate
or invest in technology. The industry was rather stable and, while the players changed, the ways the
industry conducted business seldom did.

You could also argue the status quo changed in 2005 with two separate events. Walmart pushed RFID and
Amazon started Amazon Prime. At first, RFID was considered too early a concept due to cost. But while
sensor technology was maturing, delivery expectations were increasing. By 2017, embedded sensors and
two-day delivery were expected.

With the emergence of smart products, assets, and always-on “things,” we now have access to
unparalleled amounts of information. This – along with the evolution of connectivity, Big Data, analytics,
and cloud technology – is enabling us to converge operational and information technologies. In turn, this
makes machines smarter and drives end-to-end digital transformation, which allows companies to gain
value sourced from data and turn insight into action.

These changes established the next critical step: investment.

Customers are demanding a greater level of service from their transportation providers, driving a
substantial transformation from investment. The industry is recognizing the need to change or become
obsolete. The examples are plenty:

 XPO has been on an acquisition binge since 2013 and has grown into one of the 10 largest logistics
companies in the world focusing on all modes
 UPS bought Coyote Logistics, a non-asset owning, technology-focused brokerage operation
 Big-box companies made acquisitions in the delivery market, e.g., Target acquired Grand Junction
and Walmart acquired Parcel
 Railroads are now providing customers a menu of holistic transportation service options, which
better leverages their extensive rail networks
 Uber Freight rose out of a broker-experienced leadership team that recognized that freight
capacity can be better managed through technology

We will analyze Uber Freight in this report and how they used digital transformation in the freight industry
to bring out a positive change with the use of technology which made it such a successful venture for
them.

Uber Freight
Uber Freight is a freight transportation service that is accessed via an app. This is an on demand service
that an individual may use to transport their freight. With the use of technology, they are taking logistics
to a new direction. This is good for both the shippers and carriers as both win from this venture because
of greater transparency and more opportunities.

Like myriad companies flooding the technology realm with features these days, Uber is touting machine
learning as underpinning its new offering. Given that Lane Explorer takes historical and current data
garnered from Uber’s network for truckers and meshes it with other market-specific data, the more
carriers join the trucking network, the more accurate the predictive pricing will become.

Using large swathes of data to make future predictions has emerged as a core part of many businesses.
Hopper, for example, analyzes trillions of historical prices for flights and hotels to tell you when to book
to get the cheapest price. Uber itself leverages data to predict spikes in demand for its core ride-hailing
service.

The trucking industry generated north of $700 billion in revenue in the U.S. alone last year, or around 80
percent of all freight revenue in the country, and Uber is now gearing up to give smaller companies a leg
up with this window into pricing.

“Until today, the best way to get an accurate quote on a shipment was to call or email a truck and
negotiate a price for a load,” added Sohlstrom. “Most shippers don’t have time to do that for every
individual shipment, so they often rely on their knowledge of past rates to know whether they’re getting
a good price for their freight. Lane Explorer is like calling up thousands of trucks for every day and every
lane simultaneously and seeing the best rate for each lane.”

Context
Digital transformation and the 4th Industrial Revolution
The 4th Industrial Revolution is coming in the form of a digital revolution – following similar disruptions
by the introduction of the steam engine, electricity, and the micro-processor. There are already many
success stories of businesses yielding the benefits of digital transformation – raising their efficiency and
productivity.
One such success story is that of Uber Freight. This solution offers convenience because it saves time and
other resources since it’s mainly location based. This right here is a logistical solution developers in the
4th industrial revolution are scrambling to perfect and offer. It does all this while providing transparency
and better opportunities.

For example, through data and predictive analytics, Uber Freight can pre-empt production and
maintenance issues, optimize rates, while deliver improved through enhanced diagnostics.

Those instances are just the tip of the iceberg. The confluence of these technologies is now forcing
organizations to rip up existing playbooks and find new opportunities in a disruptive, dynamic business
landscape.

The growing awareness of the potential of data intelligence and machine learning is another key driver
behind the digital revolution.

“We are in an age of data, which is making a huge difference. The potential benefits are almost only limited
by how you connect the dots, along with the kind of data that can be collected – be it through devices,
infrastructure, vehicles or buildings,” says Haupter.

While there is an awareness of the importance of digital transformation in Asia, that has not yet fully
translated into reality, Haupter observes. He cites a recent Microsoft survey, which found that 80 percent
of business leaders across the region believe in the need to transform to become a digital business in
order to grow. However, only 29 percent had a full digital strategy in place – suggesting the digital
transformation race has really only just started in the region.

Digital Champions
Most manufacturers, energy companies, and raw materials providers know they face a strategic challenge.
Industry 4.0 is coming. Dubbed the “fourth industrial revolution” by World Economic Forum founder Klaus
Schwab, this orchestrated system of digital advancement has also been referred to as an industrial
renaissance (see “A Strategist’s Guide to Industry 4.0,” by Reinhard Geissbauer, Jesper Vedsø, and Stefan
Schrauf, s+b, May 9, 2016). It is emerging from a number of different companies and government
initiatives, most notably in Germany, the United States, and China. The same has now arrived in the freight
industry.

In all cases, including the Freight Industry, the promise is the same. The last industrial revolution (known
as Industry 3.0) involved the automation of single machines and processes. This new wave of operations
integrates every aspect of the value chain in one end-to-end digital platform, using sensors and analytics
throughout, incorporating the Internet of Things (IoT), with cloud-based software driving the entire
process. Companies can use this new shared smart infrastructure to make their manufacturing and
logistics more efficient, to offer innovative products and services, and to keep improving their production
on the fly, responding in unprecedented ways to customer and consumer demand. The benefits are
immense, and impressive examples of Industry 4.0 have begun to emerge.

Cases like Uber Freight are noteworthy for two reasons. First, they demonstrate the advantages that
manufacturers can enjoy from Industry 4.0: improved pathways for revenue and profit growth, greater
customer satisfaction and loyalty, increased operational efficiency, reduced product development cycles,
faster scalability, and more gainful supplier relationships (see “Expected Benefits of Being a Digital
Champion”). Second, they illustrate the challenges involved in realizing those gains. Industry 4.0 is not a
group of technological platforms that can easily be adopted as a purely operational upgrade. It requires a
clear strategy and top management commitment; the transformation of key operational activities; and a
deep understanding of collaboration, across internal company boundaries and likely with other
companies that share the same platforms and technologies.
Uber Freight, much like other Digital Champions, has its own form of Industry 4.0 prowess. It has highly
effective go-to-market strategies. Excels at implementing a transparent and integrated supply chain, or at
attracting talented people. But on the whole, Digital Champions distinguish themselves by a continuous
effort to improve their capabilities in all four ecosystems and by integrating and orchestrating them.
Key technologies for digital transformation
Before, we used technologies in a restricted number of public spheres. Now, technologies are linking
people, things and businesses in all phases of our lives. This course has gained remarkable momentum for
Uber Freight and hopefully would continue to do so.

Uber Freight used digital transformation as the integration of new digital solutions into all human
activities. It changed the traditional models and created a completely new ecosystem in which every
object can be smart and connected to the global web. There are not only technical aspects of digital
transformation, as most of us may think. Digital transformation varies the way people think.

12 technology tools that Uber Freight implemented for digital transformation:

For Companies that needed their goods Shipped


Availability to shippers should be prioritized using:

1. Social media platforms

Uber Freight had an active online presence using all of the biggest social media platforms such as
Facebook, twitter, Instagram and YouTube. They kept their profiles active by posting advertisements on
them and kept both the shippers and carriers up to date about their policies using social media.

2. Mobile/web applications

Uber Freight web and mobile apps were developed for the users’ ease. With applications, a solution can
be rapidly conveyed across the customers and become extremely popular. This is what Uber Freight was
able to achieve with an easy-to-use software for both shippers and carriers.

3. User-generated content

User-generated content (UGC) is using blog posts, tweets, pictures, videos, etc to promote a brand. Uber
Freight utilized it to the fullest. UGC was used by Uber Freight as an influential marketing tool for
customer-orientated businesses in the tremendous world of the Internet.

4. Wearables & IoT

These are technology know-hows for digital transformation present in our offices, homes and daily life.
Many people today own gadgets and cannot live without them. The wearables market is in its early stages
of development and is controlled by health, activity tracking and interacting devices. The Internet of
Things is going to expand at a fast rate in the near future.

5. Digital walls

Digital walls are interactive exhibitions of big sizes. Uber Freight placed posters, billboards and digital walls
over highly populated areas where it could be ensured that most people able to view them. They provide
information about all the new deals they are offering the shippers and carriers and advertise their product
to all their likely customers. Digital walls are located in high-traffic areas in order to draw the
responsiveness of potential customers.

For IT industry, Uber Freight utilized digital transformation in the following areas:

6. Cloud computing

Remote data storage helps different processes and provides definite competitive advantages. Actually,
the cloud is the basis of digital transformation, as it gives the necessary speed and scale for this process.
It enables the IT commerce to deploy, develop, scale and deliver quickly.

7. Big Data analytics

Software and Specialized system drive the development of Big Data analytics. It determines market
trends, correlations, customer preferences and other underlying trends using huge sets of data. Uses
Complex algorithms to calculate and generate meaningful information. Big Data analytics consists of:

1. Cyber (model & memory)


2. Content/context (meaning and correlation)
3. Community (sharing & collaboration)
4. Customization (personalization and value)
5. Connection (sensor and networks)
6. Cloud (computing and data on demand)

For the Physical World


The Manufacturing and production, logistics, medical care, service industry and so on create much of the
physical world required for any industry. They interact with reality. But they are still highly connected with
digital technologies, and they undergo this transformation. So, the real world is being predisposed by
these technologies and Uber Freight is being able to utilize it to the fullest.
Modern information and communication technologies are greatly changing the industry, business, and
life in general and Truck Freight industry can utilize these to bring about a much needed digital
transformation.

How Uber Freight Aim To Deliver Maximum Customer Value


Uber Freight is using the digital economy for changing the way businesses work and serve customers, and
the pace of that change is accelerating. Traditional processes and practices are giving way to methods
designed to meet customer needs faster. Business services must do no less.

According to Leaders 2020, a recent Oxford Economic study commissioned by SAP, one of the main
qualities of digital leaders is that they leverage digital technologies for improved decision making. This is
the same for customers. They need digital business services that help them achieve maximum value, as
quickly as possible, with minimum risk.

Industrialized services deliver value faster


One of the key ways to meet these goals is to industrialize business services. By using a “model company”
approach that defines the majority of processes for each industry or line of business, companies can create
reusable, renewable services that are delivered quickly and cost effectively. Consultants can focus their
efforts on the missing pieces identified during a fit-gap analysis, with a resulting reduction in
implementation complexity, time, and cost.

For example, a large global transportation and container company, much like Uber Freight, used the
model company to cut down its build time from 11 months to four. By using the best practices already
included in the model company, this business was able to reduce both the amount of custom code and
unnecessary modifications. By working closely with its consultants, the company identified and filled the
function gaps.

Intellectual renewal leads to innovation


The industrialization of business services delivers value to both service providers and their customers.
Highly refined deployment processes free consultants’ time and energy to focus on innovation and
creative problem solving. When consultants see which modifications and adjustments deliver incremental
value to customers, they can bring their learning back to the software development team.

Companies like Uber Freight look for consultants who understand both the breadth of business and the
specifics of their industries and who possess both deep technical skills and the ability to help customers
solve their problems – people who can receive and share knowledge. That knowledge informs successive
generations of business products and helps ensure that solutions support current and evolving business
processes.
Working in this way reduces complexity and speeds the time to value for solutions and the overall
business. This simplified, end-to-end, continuous learning process also helps companies move forward
with their own digital transformation.

Business outcomes must be the top priority


By focusing on business outcomes and customer successes, digital business services can help companies
cast off traditional structures and innovate. In Mexico, medical and hygiene product supplier Nadro used
value assurance packages to implement a new business solution. With accelerated response times, faster
throughput, and higher end-user satisfaction, Nadro sees this solution as the foundation for its digital
transformation.

There are many more stories of how companies are using digital business services to evolve, unleash new
value, and ensure business continuity. In the coming weeks, our team will describe:

 How an industrialized services approach can help companies navigate their digital transformation
journey
 People, processes, and technology needed to support a successful transformation strategy
 The need to focus on value and business outcomes during the digital transformation journey
 The future of support services in the time of digital transformation

Analysis
Pricing Digital Products
Like all other big companies, Uber Freight use pricing as a marketing tactic to attract more customers. For
software-as-a-service (SaaS)-based businesses such as for digitalized freight transport service, this is even
truer. Pricing can generate interest, drive sales and attract new customers to your list and business.

Pricing can be used as the marketing strategy. By varying the pricing any service can achieve the desired
business success according to the product being marketed. The eight points that Uber Freight utilized to
achieve success using the pricing are:

1. Know the market, and price competitively.

They did a complete research on the market and looked for the pricing that would be suitable for the
given service for the freight market. They looked at the prices of the competitor industries and made sure
that their price was able to compete in the market.

2. Offer tiered pricing.

Uber freight uses tiered pricing to attract customers. It is offering varying levels of access to any service
and features of any product at different pricings to ensure that your pricing is able to accommodate
maximum number of potential customers. There are no losses of customers who have different needs for
the services.

3. Demonstrate the differences.


Any differences in the tiered pricing can be shown by interactive tables and charts to ensure maximum
people are able to benefit from them. These charts will also allow you to present any premium or basic
packages for customers which would, in turn, push the customers towards buying the particular package
according to its benefits.

5. Use psychological pricing methods.

Another way to push the customers to buy your products is by introducing pricing schemes that would
allow them to think they are buying the product at a bargain. For example, instead of pricing your product
at 100$ price it at 99$. This would allow them to think they bought it at a cheaper price because it ends
at 9’s instead of 0’s so value seems smaller. Like all other big companies, Uber Freight also utilizes this
pricing method.

6. Offer an added bonus.

A simple bonus can be added to the product to ensure that customers feel they are getting a good service
in return for their investment. Make sure that the bonus adds value to your service and is relevant to it as
well. This is could attract lots of potential customers.

7. Gave Shippers rate 2 weeks in advance

Uber Freight has unveiled a new feature that gives shippers — companies and distributors who dispatch
cargo en masse — access to real-time market rates for specific routes up to two weeks in advance.

For shippers, part of the appeal of Uber Freight lies in its instant marketplace pricing, which is generated
in real time based on conditions like driver availability and other “freight-specific variables,” such as
distance, location, time of year, and cargo type, among other factors.

However, if a shipper wants to schedule a load for the same route each week, they won’t necessarily
know how much it will cost, as fluctuating market conditions can impact pricing. With Lane Explorer,
Uber Freight harnesses machine learning to assess these dynamic factors and generate rates in real time
up to two weeks in advance.

“In an industry like logistics, where market trends can be opaque and conventional practices are often
the go-to solution, Lane Explorer sets a new standard for visibility in the market,” said Uber Freight
product manager Stefan Sohlstrom.

It’s basically a little like a flight-booking engine, allowing you to choose your pickup and drop-off
locations, with the price for each of the next 14 days displayed in a calendar format.
8. Test your offer and price, and be creative.

Finally, ensure that your whole pricing structure, as well as, any added values and bonuses are presented
as clearly and creatively as possible. Make sure that you follow color schemes and taglines that are bound
to attract some customers. Tell them about the services you are providing and how they lie competitive
with those of your competitors.
By using these tips, we can ensure a healthy number of customers for our freight transport service and a
good amount of sales can be made.

Debate on the ROI of Digital Investment


Uber Freight is expected to have a great return on investment in the future years thanks to this investment
in the digitalization of the freight industry. This can be proven by the research that has already been done
on how investments in only some categories has already reaped huge amounts of profits for the big
companies.

The econometric regression model used in this research estimates the revenue and productivity impact
of investments in four technology categories: robotics, IoT, cognitive technologies and mobile/social
media. After validation from industry experts, the model revealed four key findings:

1. The return on investment in new technologies is positive overall. The productivity increase is three
times higher when technologies are deployed in combination.

2. The return on digital investments varies by industry, and industry leaders achieve a greater
productivity increase from investments in new technology than followers. The leaders in a
majority of industries tend to be larger companies by revenue.

3. Asset-heavy industries realize more value from robotics; asset-light industries realize greater
value from mobile/social media.

4. While industry leaders realize higher overall return from robotics and mobile/social investments,
followers have gained more from IoT and cognitive technology

Figure 1 Impact of a $1 new technology investment on revenue per employee and labour productivity at the average
company (e.g. $1 invested in combined new technologies has yielded $2.2 – a 120% increase in revenue per employee.
“Combined Investments” shows the impact of investment in all four technology categories combined)
Synthesis
Digitalizations of Operating Models
Companies like Uber Freight need to increase revenues, lower costs, and delight customers. Doing that
requires reinventing the operating model. Companies know where they want to go. They want to be more
agile, quicker to react, and more effective. They want to deliver great customer experiences, take
advantage of new technologies to cut costs, improve quality and transparency, and build value.

The problem is that while most companies are trying to get better, the results tend to fall short: one-off
initiatives in separate units that don’t have a big enterprise-wide impact; adoption of the improvement
method of the day, which almost invariably yields disappointing results; and programs that provide
temporary gains but aren’t sustainable.

We have found that for companies to build value and provide compelling customer experiences at lower
cost, they need to commit to a next-generation operating model. This operating model is a new way of
running the organization that combines digital technologies and operations capabilities in an integrated,
well-sequenced way to achieve step-change improvements in revenue, customer experience, and cost.

A simple way to visualize this operating model is to think of it as having two parts, each requiring
companies to adopt major changes in the way they work:

 The first part involves a shift from running uncoordinated efforts within siloes to launching an
integrated operational-improvement program organized around customer journeys (the set of
interactions a customer has with a company when making a purchase or receiving services) as
well as the internal journeys (end-to-end processes inside the company). Examples of customer
journeys include a homeowner filing an insurance claim, a cable-TV subscriber signing up for a
premium channel, or a shopper looking to buy a gift online. Examples of internal-process journeys
include Order-to-Cash or Record-to-Report.
 The second part is a shift from using individual technologies, operations capabilities, and
approaches in a piecemeal manner inside siloes to applying them to journeys in combination and
in the right sequence to achieve compound impact.

Ecosystems Thinking
Digital transformation is in full swing. But decision makers are now being challenged to go further and
create digital ecosystems that encompass customers, employees, developers, suppliers, and even
extended networks of related businesses.
Digital ecosystems are communities that use shared, scalable resources to pursue challenging objectives
and common interests. They are the key to disrupting existing markets and competing effectively in a
mobile and digitally connected world, according to technology analysts at Accenture and Gartner.

By providing platforms for accessing shared assets – such as software, data, and compute resources –
ecosystems help organizations deliver high-value products and services with greater speed and efficiency.

“The ecosystem is about value creation,” says HRIZONS president and CEO Jim Newman. “There is a
unique opportunity to bring value to business because you are learning all the time and spotting
opportunities in the market that no one vendor can deliver.”

Relying on partnerships to accelerate growth


Organizations have traditionally added products and services in carefully planned steps. But such a
systematic approach is hard to sustain in today’s marketplace since many new offers are quickly obsoleted
or commoditized. This new reality means organizations must be more fluid, adaptable, and responsive to
changing conditions.

Moreover, it is crucial to take action while in a position of financial strength, according to Sodales Solutions
founder and president Sana Salam. “Companies need to reinvent themselves when they are growing,” she
says. “Not when they are falling apart. That is when they are best positioned to experiment and change
the business.”

Digital ecosystems facilitate this process by bringing together unique capabilities. For example,
collaborating with suppliers accelerates a product or service launch by allowing more cost sharing and
reducing investment risks. Similarly, including customers in the process builds demand by giving them a
stake in the development process.

Using the cloud to build connections and enable change


Many organizations choose to build ecosystems on a cloud platform. The cloud provides access to
sophisticated infrastructure, resources, and tools when needed and with less cost. Plus, unlike most in-
house infrastructure, cloud resources are easy to scale, use, and reconfigure for different participants and
program objectives.

The cloud also enables lines of business to fast-track new processes and involve ecosystem participants in
strategies that foster continuous improvement.
Scott Harrison, Sr. Director America’s Platform Partner Ecosystem, SAP, cautions that these actions
ultimately change how an ecosystem consumes information technology and blurs the lines between what
is personal and what is owned by the enterprise. Organizations can clarify these issues by establishing
simple governance guidelines. The rules ensure members are collaborating in an equitable and effective
manner and using shared assets and technologies to support the community’s goals.

“You need to keep it simple,” Harrison says. “Sometimes we come up with elaborate models but lose sight
of what it is that makes us successful day in and day out.”

Adapting to a new way of measuring value. Organizations can lead their own ecosystems while belonging
to other communities. These collaborative environments expose employees to new ideas, emerging
trends, and technical solutions. These interactions are especially important for larger enterprises where
corporate culture and insular thinking tend to drive decision-making. Ecosystem interactions shake up the
status quo and force decision makers to think differently about a range of critical issues.

Collaborating also creates personal connections between participants. Connections and exposure to new
ideas often change how ecosystem participants produce value for their employers or sponsors. This new
way of working means decision makers need to adjust how they assess the performance of these
individuals and business units. For example, a supplier may be reluctant to share an innovative idea if
there is no mechanism for ensuring an appropriate financial reward.

Developing the Digitalized Workforce


By enhancing IT systems, renovating business processes and loading talent benches are important for any
digital transformation. Uber Freight realized that if employees are going to enhance the way they provide
service to customers, they must provide employees with a high-quality, modern digital workplace.

Digital transformation in the workforce can be developed for the truck freight industry using the following
plan:

1. Vision
Your digital workplace plan should have a clear vision and should be able to align with business and digital
transformation aims. It must be known why an overhaul is needed in your work environment. One aim is
to increase employee engagement and productivity. Work closely with all the stakeholders, including HR,
business and facilities managers, to shape the plan and execute changes, bearing in mind the workplace
demographics and potential impact those changes will have
2. Strategy
Emerging technologies are able to come into the limelight and the companies are clear about their
software and user experience preferences by using apps they are contented with to do their work. Your
digital workplace should give more weightage to the voice of employees in technology decision-making.

Digital workplace initiatives across marketing, sales, R&D, manufacturing, HR, customer support, and IT.
Whether you can exploit technologies to raise employee engagement levels and support your company’s
digital initiatives or can you create workspaces that increase the amount of employee creativity and
enable ad hoc and formal opportunities for collaboration. Be sure to do your homework, as this requires
a clear understanding of how people work and what improvements are envisioned.

3. Personas
An important part of any digital workplace initiative are the Employee personas. They help enterprises
establish starting point for staff workforces. The tech tools does an HR head need versus a sales leader
are an important factor.

One example is BNY Mellon. It established a persona model that defined users as knowledge seekers
sharers, and inside experts, according to Gartner research.

4. Metrics
By using the analytics to calculate HR, IT and business metrics and create a digital scorecard. For example,
you can measure user engagement to tracking daily active users and time consumed in collaboration
software such as Slack. Try to enumerate positive impacts on workforce effectiveness, employee agility
and employee satisfaction and retention, information you can use later to assess change management
and refine your approach.

5. Employee experience
Enhancing customer service is the end goal of a digital workplace but you have to boost the employee
experience first. Promote your IT troops and labor with real estate and facilities managers to create smart
workspaces that enhance collaborative work activities, and provide space for individual concentration.
Create an online portal where managers can recognize employee contributions and success and
incorporate it into a shared IT/HR metric to monitor employee engagement.

6. Organizational change
Digital workplace initiatives typically require a significant change to processes that are internal,
departmental structures, skills, culture, incentives, and behaviors. Assess the new skills and competencies
required for the digital workplace.

You’ll want to identify change management heads who can predict and mitigate obstacles before they
become problems. Integrate digital workplace technologies into workflows and set rules, such as , usage
guidelines, information governance, technology standards and best practices. Work with senior
executives to get them to listen to and engage with employees.

7. Training
A lot of stress can be added to the employees’ jobs with the use of new technologies. This can be eased
in their transition with effective training. Plan to reskill and, if necessary, hire new personnel to give them
proper training.

8. Processes
More likely than not it is needed to re-engineer business processes. First take a close look at how
employees currently work and what activities they spend the most time on. Use a customer journey-
mapping playbook to mirror employee journey maps by collecting and analyzing data linked to employee
activities and experiences. Consider emerging technologies, such as internet of things and artificial
intelligence. For example, a sensor-rich smart building can track workspace usage patterns and adjust
lighting and HVAC settings according to employees' preset preferences. Use AI to automate toilsome,
routine tasks to make employees more productive.

9. Information
Workers want software for searching, sharing and consuming information to be as "smart" and compelling
as the ones they use in their personal lives. They want information and analytics to be contextualized and
delivered in the moment of need. In that vein, you’ll want to implement a file-sharing system that enables
easy mobile access and real-time synchronization. Consider virtual assistants that can provide
contextualized content recommendations, decision support and advice. Weigh the value of roving robotic
video conferencing systems and immersive, 360-degree video conferencing systems. A little sci-fi can go
a long way with your digitally-empowered workforce.

10. Technology
Wait, didn’t we just delve into the tech side? Yes, but most of you aren’t doing this effectively. “Most
organizations have a haphazard architecture that has largely been driven by their digital workplace
vendors,” Rozwell says. You need to tie all of the digital platforms together in a seamless mesh of
contextual awareness, mobility and real-time information delivery that enables employees to serve
customers. Facilitate cloud-, mobile-first strategies. Create a "bring your own work style" culture, enabled
by smart workspaces. It’s also important to reward technology innovation practices.

Conclusion
The digital brokerage industry is growing rapidly and will generate at least $11.58 billion in revenue in
North America by 2025. This figure is close to the 2025 global revenue estimate for telematics services
presently, indicating the sheer potential for businesses to succeed in this space.
However, growing in the brokerage space – a business that has traditionally relied on personal
relationships and trust – is proving challenging for technology startups. Uber freight is not having the same
kind of growth trajectory that Uber’s ride-hailing business experienced. Despite low rates per mile,
carriers and shippers don’t focus only on rates. They also analyze payment assurance, cargo safety, service
continuity and rate negotiation leverage.

While the highly fragmented freight brokerage market will digitalize, the chances of it delivering on
promised efficiency improvements are uncertain unless there is consolidation. If shippers, carriers and
brokers are spread across thousands of digital platforms, the trucking industry cannot achieve the type of
efficiency improvements envisaged.

China is leading the way, with rivals Yunmanman and Huochebang merging in November 2017 to create
the Manbang group, valued at over $2 billion. This will become common in the freight brokerage industry
as digital freight brokerage solution providers struggle to achieve scale and maintain differentiation.

It is an exciting time for truck brokerage, and one can expect to see many new business models like Uber
Freight arise, along with many mergers and acquisitions.

References
Albert Bollard, E. L. (2017). The next-generation operating model for the digital world. Retrieved from
McKinsey Digital: https://www.mckinsey.com/business-functions/digital-mckinsey/our-
insights/the-next-generation-operating-model-for-the-digital-world

Andrew Tipping, J. K. (2017). 2017 Commercial Transportation Trends. Retrieved from Strategy&:
https://www.strategyand.pwc.com/trend/2017-commercial-transport-trends

Boulton, C. (2019). Digital workplace strategy: 10 steps to greater agility, productivity. Retrieved from CIO
US: https://www.cio.com/article/3229104/the-digital-workplace-8-steps-to-greater-agility-
productivity.html?upd=1559348432546

digital transformation in transport logistics. (2016). gatewaydigital,


https://gatewaydigital.eu/industry/digital-transformation-in-transport-logistics/.

Digital Transformation Initiative: Maximizing the Return on Digital Investments. (n.d.). World Economic
Forum.

expect fast adoption digital freight brokerage solutions. (2019). Retrieved from Trucks:
https://www.trucks.com/2019/03/26/expect-fast-adoption-digital-freight-brokerage-solutions/
Keary, T. (2019). What are the key technologies for embracing digital transformation in 2019? Retrieved
from Information Age: https://www.information-age.com/technologies-digital-transformation-
123478230/

Kleinemeier, M. (2017). How Digital Business Services Aim To Deliver Maximum Customer Value. Retrieved
from Digitalist Mag: https://www.digitalistmag.com/digital-economy/2017/01/04/digital-
business-services-deliver-maximum-customer-value-04765345

legislating the road to the future how digital transformation is changing the logistics industry. (2019).
Retrieved from CEO World: https://ceoworld.biz/2019/02/04/legislating-the-road-to-the-future-
how-digitaltransformation-is-changing-the-logistics-industry/

PWC. (2018). Strategy and Global digital operations Survey. PWC.

Reinhard Geissbauer, J. V. (2016). A Strategist’s Guide to Industry 4.0. s+b.

Reinhard Geissbauer, S. S. (2018). DIGITAL CHAMPIONS. Retrieved from Strategy+Business:


https://www.strategy-business.com/feature/Digital-Champions?gko=f177c

Rudolph, A. (2018). Digital Transformation Is About Ecosystems And Thinking Differently. Retrieved from
Digitalist Mag: https://www.digitalistmag.com/digital-economy/2017/07/12/digital-
transformation-about-ecosystems-thinking-differently-05209209

SAF. (2017). Leaders 2020 . Oxford Economic study .

SAKOVICH, N. (2017). 12 Key Technologies for Digital Transformation. Retrieved from Sam Solutions:
https://www.sam-solutions.com/blog/12-key-technologies-for-digital-transformation/

sap and uber freight on demand logistics networks. (2019). Retrieved from SAP News:
https://news.sap.com/2019/04/sap-and-uber-freight-on-demand-logistics-networks/

Siew, A. (2017). Digital transformation and the 4th Industrial Revolution. Retrieved from Microsoft Asia:
https://news.microsoft.com/apac/features/digital-transformation-4th-industrial-revolution/

Siu, E. (2016). 8 Pricing Strategies for Your Digital Product. Retrieved from Entrepreneur Asia Pacific:
https://www.entrepreneur.com/article/283878

Smart Factories and the Modern Manufacturer. (2018). Retrieved from Capgemini:
https://www.capgemini.com/service/smart-factories-and-the-modern-manufacturer/#join-
conversation

Werle, K. (2018). Is The Transportation Industry Ready To Digitally Transform? Retrieved from Digitalist
Mag: https://www.digitalistmag.com/digital-supply-networks/2018/04/04/is-transportation-
industry-ready-to-digitally-transform-06042448

why freight company should open logistics platform. (2018). Retrieved from Applicoinc:
https://www.applicoinc.com/blog/why-freight-company-should-open-logistics-platform/

You might also like