Is your company ready for Digital Transformation? Digital transformation projects are becoming increasingly important. Companies get the feeling that they have to do something to keep up with the rapid changes, but knowing where and how to start seems to be a challenge.
etventure’s Digital Transformation 2018 study concludes that the implementation is still sluggish and, in most cases it’s actually about digitalization projects rather than digital transformation. However, there’s is a crucial difference.
What is Digital Transformation?
When we talk about digitization, digital technologies get integrated into existing work processes. However, it does not come to the development of new processes or business areas. Merely, analogue processes are replaced by digital ones.
Digital transformation, however, goes a step further. It describes changes that have a significant impact on the economy and society. For example, they can fundamentally change a company or business model. Digitization serves as a basis.
Digital transformation describes changes that have a significant impact on the economy and society. They can fundamentally change a company or business model. Click To Tweet
A helpful classification on the Digital Transformation progress in companies comes from Brian Solis, who distinguishes between six different stages:
- Business as Usual: The company is already successful in the market and makes no effort to promote Digital Transformation in its company.
- Present and Active: There are first experiments in the field of “Digital Transformation”, which are hardly coordinated and take part in separated divisions.
- Formalized: The initiatives are planned more carefully and gain more importance in the company.
- Strategic: Structures for the implementation of Digital Transformation projects and strategic roadmaps are paving the way for real Digital Transformation.
- Converged: There is a team that deals exclusively with Digital Transformation and pushes the projects forward.
- Innovative and Adaptive: Digital Transformation is becoming the company standard. There is an existing ecosystem that allows new technologies to be used to develop and improve your business.
How important is AI for Digital Transformation?
No matter what stage your business is in, Artificial Intelligence can make a vital contribution to helping your business move towards actual Digital Transformation. Below are four important areas of application:
Make management easier
When it comes to implementing projects in the field of Digital Transformation, employees from different departments are involved. However, many companies are not set up for this cross-departmental collaboration and the necessary processes are missing.
Artificial Intelligence can contribute to better collaboration, such as organizing meetings and taking over routine tasks. The time saved can be used for the development of Digital Transformation projects.
Allow data-based decisions making
In addition, AI can support data-based decisions. AI technologies can help to collect and analyze data and derive recommendations for action. This provides companies with a completely new basis for decision-making, which enables them to make more informed decisions in all business areas, and thus, to fundamentally change company processes or identifying new business units.
Create more efficient production processes
AI technologies play a key role in production. First projects around the topic “Factory of the Future” have already been implemented and technologies in this area are improving at a rapid pace.
From predicting errors and required maintenance to fully automated production planning, AI can significantly change the production process in many organizations completely.
Optimize HR processes
AI can also support companies in the field of HR and onboarding. Of course, when choosing the right team members, it is essential to meet them in person and do a job interview.
However, there are many rule-based tasks in the selection of suitable candidates, which can be made more efficient with the help of Artificial Intelligence. Even after hiring, there are a lot of onboarding tasks that can be done by AI.
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