DigitalTransformationTalk: WEF Special Episode - Why aligning your tech and business goals is essential for digital transformation success

On 17 January 2024, Digital Transformation host Kevin Crane was joined by: Ray Wang, Founder, Constellation Research Inc; Hans Mize, President and Founder, Data41; and Sanjib Sahoo, Chief Digital Officer, Ingram Micro.

Views on news
With regards to AI and its application, the most central issue is trust, which is crucial even when humans and AI must work side by side. AI from the workers perspective can be a double-edged sword which can both empower and disempower them. AI can do a great job with financial planning and cashflow forecasts too.

 

Although there has already been a lot of talk about the fourth industrial revolution, it’s dawn is happening now right in front of our eyes when AI is about to get built in everything we do. The task is now to find the happy medium between those calling for regulation of AI and those speaking up against it. What we need is explainability designed into AI systems, that’s how we can ensure there is no unwanted bias programmed into the models we’re using. Decisions must be made whether a human is kept in the training process, and if no human is involved in it, what safeguards must be implemented. 

 

Aligning tech and business goals
There is a misconception that digital transformation is exclusively about technology. Most DT failures come down to people, culture and not having a well-defined business objective. But it’s also important to establish, what kind of transformation project the business is after: is it targeted at decreasing costs, boosting efficiency or improving compliance? Moreover, incremental and transformational innovations must be dealt with differently. 

Transformation is not about the use of technology but about learning how to operate digitally. The business must take digital technology and leverage it to improve customer experience, efficiency, etc. First, get your people together and use design thinking, then create a plan that includes the criteria of success and, after that, it’s time for technology and architecture. Businesses also need to consider dependencies across processes before they decide where they start their transformation. You must ask questions such as what problems I’m trying to solve, who will it impact, how I create value and THEN decide how to bring in automation and solutions. In terms of data, there is deluge of it coming from different devices. It must be clarified what data is needed, how it can be accessed and what outcomes must be accomplished with it. Intelligent machines enhance decision velocity (fast and accurate decisions), that’s the dimension where competition takes place. The choice of monetisation models is also key, whether it’s subscriptions, memberships or other. In all sectors, market leaders will lift customer expectations in terms of speed and quality of service. Data governance must form part of the DT plan too to mitigate risks. A bad data strategy will impact decision making negatively. 

 

The panel’s advice

• For your digital transformation to be a success, you need a continuous loop between creating and capturing value.  
• Establishing the transformation project type is a key step.  
• Get ready for opportunity gaps and take advantage of disruption.
• Establish what processes you want to improve – order-to-cash, HR processes, finance operation.
• Perfection is one of the biggest enemies of successful transformations.
• Data abundance is a problem that all organisations are trying to overcome right now.
• Be aggressively digital and amazingly human. Evangelise your vision and get your mindset challenged