Digital transformation has been a hot topic among businesses for a long time now, but when it comes to implementation, it lacks steam. In fact, in spite of the technological capability being available, proven, and mature, 70% of digital transformation initiatives fizzle out, according to a report by Boston Consulting Group. Let's take a look at the possible solutions that can help you to efficiently leverage the power of digital and future-proof your business.
While we were expecting this new decade to spur digital awakening, the pandemic crisis pushed companies and IT decision makers into a full-blown “Digital Only” mode. A recent McKinsey Global Survey stated that companies sped up digitalization of their supply chain, internal operations, and customer interactions by three to four years.
So was this a transformation or a disruption? Transformation can be planned, while disruption cannot be anticipated in advance. Businesses cannot predict the future; they can only leverage trending technologies like Artificial Intelligence (AI) and cloud to recalibrate to disruptive changes quickly.
In the years to come, AI, Cloud, and Edge Computing will fuel transformation even more, and better prepare you for disruption. It’s no wonder then, that another McKinsey study reported 56 percent of all respondents adopting AI in at least one function, up from 50 percent in 2020. These technologies are “data guzzlers”, and as they evolve, the practice of “dumping everything into a data lake” will become redundant. Decentralization will become the norm. This will also raise concerns about how ethically businesses use this data and whether they guarantee data sovereignty or not. At T-Systems, we ensure that our AI systems adhere to our company values, ethical principles, and social conventions through our AI guidelines.
Technology transformation is also bringing about a sustainability transformation. For example, a T-Systems Low Carbon Mobility Management (LCMM) solution — developed in collaboration with DLR and fully compliant with the methodology described in the ISO/DIS-standard 23795-1 — helped the Chinese city of Huainan reduce its CO₂ emissions by more than 5 megatons per year.
Apart from technology, customer need and business model are major drivers of disruption. The trigger points are either the need to accelerate convenience, speed, or personalization. What makes a brand like Uber, for instance, have such a global presence? Obviously, the fact that the Mobility-as-a-Service provider made it so easy for customers to book a cab at the click of a button, almost instantaneously. Expedia, on the other hand, understood the hassles customers face while booking hotels, flights, experiences separately – so they brought it all together on a single app!