If you were like me and you're unsure what digital transformation (DX) is and how it has become a necessary and much-needed part of business, you have come to the right place. Through statistical evidence, we will explore how DX is critical in adding business value through investing in Artificial Intelligence (AI) and top business intelligence platforms.
The need for digitisation has become the forefront of everybody's minds, especially seen through our most recent worldwide pandemic, which has literally stopped many brick and mortar companies from operating and needing to move online. Now, 46% of small businesses have jumped onto Business Intelligent (BI) software to help them make informed decisions with facts on marketing trends and purchasing patterns.
To not digitalise one's company means missing out on technology that is continuously improving the business industry, one example is seen through the multi-cloud, which is used to connect, store and save data and information.
What is digital transformation?
Basically, it integrates digital technology into all parts of an organisation to reform the way companies essentially operate and allow them to rethink work processes. It is used to create new business models and find different revenue streams through the data of consumer trends and expectations. The use of AI can also broaden perspectives and fix problems such as productivity and communication frustration by challenging the traditional ways of buying, selling and making. By 2025, the global digital transformation market is predicted to rise to $1,009.8 billion, from $469.8 billion in 2020, with a compound annual growth rate (CAGR) of 16.5% (Research & Market,2020).
The display below shows how digital transformation if used effectively, can improve your business.
For some enterprises, DX could simply mean uploading all data and analytics onto the cloud, generating an eCommerce platform or creating mobile phone applications to allow for online purchasing and interaction. Already, 89% of enterprises and 55% of startups have or will adopt a digital business strategy (IDC, 2018).
Why does digital transformation matter?
To be straight to the point - businesses need it to survive. Whilst DX has always been around, the pandemic kickstarted the need to be innovative for trading to continue without necessarily meeting people face to face. In fact, 45% of companies whose revenue declined due to COVID-19, turned their focus on digital transformation (McKinsey, 2020).
It will also be more sustainable and environmentally friendly for the world. This is due to the AI's ability to use less power, fewer emissions and more concise materials to get the job done.
The International Data Corporation (IDC) in 2020 predicts that the growth of DX organisations will contribute more than half of the global gross domestic product (GDP), accounting for $53.3 trillion. Therefore, setting up a team of IT leaders who can adapt to a constantly changing environment and deal with up-and-coming technologies such as blockchain/ cryptocurrencies and Internet of things (IoT) would undoubtedly help businesses become more flexible to unforeseen issues. This is seen with 37% of IT initiatives already focusing on improving customer experience (Flexera, 2021) and 78% of IT workers saying they were connecting with the board of directors more than ever before (CIO, 2020). Digital transformation will ensure that customer experience is smoother through targeted knowledge and smart systems.
The graph below will help to increase understanding of the top benefits of having a Digital Model.
What can we do with digital transformation?
There are many exciting things that are happening with digital transformation on a large scale. The most exciting part is pushing boundaries with technology. Global mining companies have been trying to improve productivity through AI.
By using AI technology in mining companies, their machine's algorithms gradually improve over time by exposing more data to them. There is also a layer component of human-likeness that is given to those machines, allowing cognitivism and deep learning in the network. The benefits of having AI capabilities are that decisions are made quickly and effectively and improve the health and safety of human workers. It can also boost efficiency through having less human error and also be better for the environment through having a smaller carbon-footprint. With the implementation of digital technologies, financial returns, diversity and environment targets can increase by 22% (Deloitte, 2020).
As we can see just from the example of mining, the use of Artificial Intelligence and its techniques can not only improve one’s business but also change the entire way it operates.
AI can increase the performance through:
Predictive maintenance- by having the machine detect anomalies, ability to predict disasters and plan interventions to reduce downtime.
Logistics optimisation to reduce costs- by forecasting routes in real-time so that machines can learn whilst they work on the job. This can be seen in delivery trucks, where sensors have been put in place to monitor driver behaviour and performance to reduce fuel and maintenance costs.
Personalisation of customer service management and challenges- through speech recognition and voice learning for call centre management. The AI can even sense the emotion in the tone of the caller's voice and reroute to human call takers. The technology can memorise information such as consumer demographics and interests, then provide recommendations to upsurge more sales.
The graph shows which industries have been incorporating AI technology and how much increased value it gives those areas.
The point of Digital transformation is to create a roadmap that is technology and business led. Whilst implementing a digital strategy won't mean that your business grows overnight, the benefits will be there in the long run. Whether we like it or not, the world is moving towards a technological and digital future.
The most successful businesses embrace it.
Get in touch today for a free consultation about how you can improve your customer experience and boost your sales.
Email us at media@hainesconsultinggroup.com.au or give Stuart a call on 0458 704 455