Gone were the days when the homes had phones in every room with an answering machine to respond to your calls and VCR for watching movies, apparently people have a thirst and hunger for some centralization that spice up their life and reduce the number of devices as much as possible. Digital Centralization is a candid conception, an organization brings together the IT systems of all the IT departments with a notion of saving costs, recuperate security, make the data management easier besides ease up the process of administration. The concept of BYOD in many companies has pushed many companies towards digital centralization strategy. But what exactly is digital centralization?
The Basics – What is Digital Centralization?
Information Technology centralization is the merging of a company’s technology assets. In a nutshell, digital centralization is a process of developing a smarter living by a feature of connecting all the devices so that it works in sync, so you can have access to all the functionalities although you have few devices available. Moreover, with this concept, you can witness the streamline in the process in the consumer sphere.
How Digital Centralization has Changed Your Life –
Some of the popular examples of decentralization that changed the lives of the humans are
- Smartphones – Wherever you go, you will be surrounded by smart devices, either by the latest smartphone or smart TV that have the options of streaming live channels and watching movies or with a smart device that can be controlled from any part of the world. Perhaps, not every adult might own a personal laptop or computer, but, most adults have their own smartphones. Instead of carrying multiple devices, a single smartphone can carry out the features of accessing web information, checking emails, receiving texts and using a wide range of applications.
- Cryptocurrencies – Perhaps the biggest area of decentralization is the cryptocurrencies. Digital currencies such as bitcoin have caused a financial frenzy. The blockchain technology in cryptocurrencies uses a digitized, incorruptible public ledger for all the cryptocurrency transactions. The major advantage of using digital centralization in bitcoins are
- They can maintain a perfect structure by having authority and control over transactions. In addition, it has a set of rules and regulations governed legally, so more secure.
- The users have to register to carry out the transactions. When there is a discrepancy, it is easy to identify.
- Transactions are transparent thereby enabling the users to see his/her transactions.
- Smart Speakers – The big 2018 trends in the IT and technology space resulted in the introduction of smart speakers. Smart speakers could be the tipping point for home automation. People have started to welcome the idea of centralized smart devices like Alexa and Google assistants, which are premiere choices, each with a range of smart speakers. They feature voice-activated digital assistants and can operate on home automation hubs. A recent survey reveals that one in six Americans owns the device and the revenue of smart speakers in the UK has doubled in the last six months.
What is Decentralization and When Decentralization does Make Sense ?
When you take an in-depth look at centralization and decentralization, it is easy to understand its concepts and difference. As we have already discussed digital centralization, let us have a better picture of decentralization meaning and definition.
Decentralization is a strategy in which the behaviors of the companies especially the ones related planning and decision-making are distributed away from a central location to private sectors. It is one of the frequently used words in crypto economics and often used in blockchain technology. Apparently, for some types of businesses,digital centralization can be a better choice for saving the company’s money. But what could be the better choice?
To figure out which has a better outcome, GE and Siemens carried out experiments. GE took a centralized approach for its big data unit Predix, whereas Siemens followed decentralized strategy within all its business units.
With the centralized approach, it reduced the risk of mandatory management structure. However, it killed the new ideas which were not required as part of their development plan. Apparently, the project did not yield any remarkable outcomes because there was no place for any new inventions or ideas that contribute to the new digital offering. Hence it required a blend of a decentralized approach to incorporate new offerings and make it outstanding.
Digital Centralization Pros and Cons –
Centralized Platforms –
Pros: Centralized platforms require all the data go through one place, so it becomes easy to access all the information. For example, Facebook is one of the biggest examples of the centralized platform.
Cons: It is not necessary that information has to pass through a single point instead should pass through a wide variety of points. However, when it passes through the different points, it becomes difficult to track information.
Clear Chain of Command –
Pros: When there is a clear structure in the organization, every employer will know to whom they have to report to. There will not be a staggered approach, so juniors in the organization will not have a hard time when they face challenges. So there will be an increased level of confidence in performing their tasks.
Cons: Since the communication follows a chain, there will be a consistent time loss in passing the communication. This is, in turn, will eventually affect the production.
Focused Vision –
Pros: Vision embodies hopes and deals, so an effective leadership can be achieved when you have a focused vision. The company director or the higher leaders should ensure that their communication is delivered in order and move in the same direction.
Cons: With focused vision, executives are under pressure to carry out the plans of the higher officials, therefore, makes the implementation process much slower and adds more work to every employer.
Closing Thoughts –
Centralization allows the most efficient decision making and communication throughout the company. In fact, one of the major features of the modern world which made the smaller businesses to become the drivers of the economic growth.