The Role of Artificial Intelligence in Digital Transformation — How Technology Can Positively Impact Your Business
Artificial Intelligence & Machine Learning
89% of board directors say that digital business is now embedded in all business growth strategies, according to one survey from Gartner, Inc.. With just 35% of board directors reporting that they have achieved or are on track to achieving digital transformation goals, understanding the value of such a transformation and how to ensure success is imperative when seeking business growth. From exploring the value of digital transformation to the role of AI — and what points to focus on for success, here’s how technology can play an integral role in transforming your business for the better.
What is business transformation?
According to Indeed.com, a business transformation is defined as an “umbrella term for strategies that businesses use to change the way that their organization runs,” going on to mention that the aim of any such transformation is to “help the business grow and develop in a positive manner.” Indeed goes on to point out that there are many different types of business transformations that an organization may choose to undertake, from organizational transformations to management, cultural, or strategic transformations — to highlight just a few.
A digital transformation is just one notable business transformation that is becoming more and more common — and even necessary. In fact, one Forbes article notes that digital transformation has become essential for businesses in order to “remain competitive in today’s ever-changing technological landscape.” The Forbes post goes on to highlight that businesses need digital transformation for several reasons, including keeping up with customer expectations, having a competitive advantage, enhanced security, and increased agility.
The role of AI
For businesses looking to carry out a digital transformation, artificial intelligence can play an integral role. Influencer Marketing Hub highlights the many ways in which AI can play into a digital transformation, noting that a company may use such technology in order to create enhanced experiences for their customers, while others may use it to elevate their supply chain management, enhance or complement IT activities (such as ‘bostering’ cybersecurity measures). On the other hand, it’s noted that AI can also be used in creating marketing campaigns/promotions, highlighting the many ways that it can be used. Regarding the benefits of AI in digital transformation, Influencer Marketing Hub points out that companies can “react to unexpected changes or emerging trends faster and more effectively,” and goes on to note that AI algorithms can aid greatly in mitigating future risks by learning from previous experiences.
When looking at notable examples of digital transformations in large companies, there are plenty worth learning from. Johnson & Johnson’s digital transformation is just one, particularly in regard to their Advance Case Management (ACM) platform that is based on artificial intelligence and image-based algorithms, which can predict the most likely product range required in the operating room for primary joint-replacement surgeries. Not only does this system streamline logistics operations, but it minimizes waste and set-up time in operating rooms, thus going great lengths to improve efficiency in multiple ways. As a result, the innovation has actually led to a 60% reduction in instrument trays required for cases and instrument sterilization costs. However, even Johnson & Johnson’s digital transformation wasn’t without its challenges. From high investment requirements to resistance to change, these are just a couple of obstacles that many organizations will face when looking to undertake such innovations.
Striving for success
Regarding the successful integration of AI in a digital transformation, one Forbes article by Howeard Rosen advises focusing on vision and strategy, leadership and culture, customer-centricity, and technology and data when ensuring success with any form of digital transformation. For instance, while a clear and defined vision and strategy are essential in the foundation of any business transformation initiative, it’s explained that having a strong leadership and culture that embraces change can play a major role in the ongoing process of the transformation. Likewise, it’s noted that digital/AI transformation should be focused on the customer, too — “This involves understanding customers’ needs, preferences and behaviors and using digital technologies to deliver a better customer experience.” The article goes on to emphasize the critical role that technology and data play, from identifying the ways in which technology such as AI can help your organization to choosing the right AI technology.
For business owners looking to implement a digital transformation in order to benefit their organization, it’s necessary to realize that artificial intelligence can play an integral role. By understanding the value that digital transformation plays in today’s technology-forward society to the specific points worth focusing on for success, transforming an organization for the better can become a streamlined effort.
