Digital innovation encompasses the creation of new processes, products, and services that are more efficient, effective, and integrated with digital technology. Digital innovation can also change business models, marketing strategies, and how businesses interact with customers. Digital innovation can help businesses improve productivity, efficiency, quality, and competitive advantage.
Moreover, digital innovation can accelerate business growth and open up new opportunities for the development of better products and services.
The Importance of Digital Innovation
Companies face the risk of obsolescence if they do not engage in digital innovation or adapt to dynamic consumer and business practices. According to a Foundry report, 89 percent of organizations intend to implement digital-oriented business strategies.
This is a simple case of either initiating disruption or succumbing to it in an era where business-level web and mobile application development no longer require complex coding and years of time.
Here are the reasons why digital innovation is important:
- Competitive Advantage
- High Customer Engagement
- Culture of Innovation
- Increased Efficiency and Productivity
- Data-driven Strategic Planning
- Business Model Transformation
- Agility and Adaptability
Objectives of Digital Innovation
Digital innovation benefits everyone, from individuals to companies, and even governments.
Here are its objectives for technological advancement:
- For Individuals
- For Businesses
- For the Education Sector
- For Governments
Digital Innovation in the Food and Beverage Business
Here are some things that the food and beverage industry can do to develop more innovation:
1. Online Ordering and Delivery
Currently, many online platforms have developed technology that allows online ordering and delivery, which will definitely make it easier for customers to order food and beverages through their smartphone apps. In fact, most online platforms now offer features that enable order tracking and customization. Therefore, customer orders will be more accessible and clearer.
Internet-based ordering and delivery systems will attract more customers. The use of online ordering apps can also expand the market. As a result, it can serve customers in various locations without the need to open more outlets.
2. Online Restaurant Experience
The virtual experience in restaurants is becoming an increasingly popular innovation to attract customers. With the help of Augmented Reality (AR) and Virtual Reality (VR) systems, restaurants can showcase menus through lively 3D designs.
Customers will see the food as if it were on the table when they scan it with their smartphones. The virtual experience can also be used for many other purposes.
Other examples include presenting entertainment in virtual form, telling stories about the origins of food, and celebrating holidays or specific events in virtual reality.
3. Electronic Loyalty Programs
Currently, it is possible to replace physical membership cards with electronic cards or digital applications, so that frequent customers can earn additional points or discounts.
With digitalization, it will be easier for customers to see the amount of points accumulated in real-time. This opens up opportunities to increase customer loyalty.
4. Smart Kitchen
The food and beverage business has begun to use the concept of a smart kitchen, which combines digital technology and the internet into various aspects of operations.
Many operational devices can now be used automatically. This includes oven temperature settings, cooking times, inventory management, and even kitchen light intensity settings. It can monitor and control kitchen devices remotely through smart kitchen apps and systems.
5. Food Quality and Safety with Blockchain
Digital technology can also help improve transparency and customer trust in products. One technology that can improve food safety and quality is blockchain technology. This technology securely manages digital records that are transparent and immutable.
All users in the network have access to all changes that occur on the blockchain. It will certainly result in efficiency and transparency.
6. Electronic and Mobile Payments
The ease of digital and mobile payments is another innovation. Some SMEs in the food and beverage sector have been using Near Field Communication (NFC) or Quick Response (QR) Code technology.
Customers can make payments with this technology by tapping their phones to NFC devices or scanning QR codes. The payment is then automatically accepted on the mobile app and recorded in the digital payment system. This technology will definitely make the payment process easier and more convenient for customers.
7. Social Media Marketing
Social media is now used to market products and share personal experiences. You can use social media for promotions and encourage customers to make purchases. You can use engaging content and videos to attract the attention of the target market.
The selection of interesting photos and videos will make consumers more interested in purchasing products, especially those related to food and beverages.
8. Data Analysis for Decision Making
Business development is greatly influenced by making the right decisions. Therefore, you should be more careful in analyzing existing data. They should collect data, process it, and identify it before conducting analysis. The flow will be easier to evaluate and integrate with digital technology.
9. Customer Service Chatbots
Chatbots are customer service robots that use computer programs facilitated by artificial intelligence or AI. Chatbots can interact with customers automatically through text and voice messages after customers initiate conversations and use keywords to determine customer desires.
Next, the chatbot will process and provide the desired customer information. However, if the chatbot cannot provide the expected customer information, the system usually directs the user to human service agents.
10. Internal Process Digitalization
Digitalization not only changes the way food businesses interact with their customers, but also changes the internal processes they do. Food businesses use many software and systems to manage finances, inventory, orders, and stock management. By using inventory management software, they can optimize their inventory and reduce the risk of stock shortages or surpluses.
Restaurants or cafes can improve their order management by implementing an integrated ordering system. The digitalization of internal processes in the food industry, where time is crucial, improves operational efficiency and reduces human errors that can occur during manual processes.
11. Joining Online Ordering Apps
Joining food ordering app platforms can make it easier for customers to order food. This not only makes the customer experience more enjoyable but also enhances the reputation of the business.
The use of digital collaboration platforms provides great opportunities for culinary business owners to delve deeper and develop their businesses. Various digital collaboration platforms, such as food delivery service apps, food review portals, and online forums, offer very useful support in expanding market reach, conveying product information, and building relationships with customers.
