What Does It Take For Enterprises To Succeed In The Digital Age?
Digital transformation has become a business imperative in the wake of the pandemic. Companies that have not modernized their processes and integrated cloud and analytics capabilities are severely disadvantaged. Genpact’s latest study, “Data-Driven Business Transformation,” reveals that only 8% of enterprises have fully modernized. This digital divide will result in those companies who can move quickly and take advantage of new opportunities, leaving behind those who are not. In addition to Genpact, Peak’s latest report, “State of AI 2022,” revealed that 55% of enterprises will be AI-First by 2025.
Yet, despite the clear advantages of AI integration, only 35% of c-suite executives have plans to implement it. According to Peak’s CEO, Richard Potter, “AI is inherently a data technology and must function as part of an overarching data strategy, yet most respondents in this survey are thinking about the two separately.” Potter also says, “Our research reveals that there is a lack of clarity within many companies around the overall AI strategy, even at the top levels of management. Suppose businesses want to successfully implement AI and, critically, drive value with this technology. In that case, we need open discussion within a business to ensure everyone is aligned to and understands the vision.” It’s time for companies to wake up and smell the coffee. AI is no longer a luxury but a business necessity.
These two reports make it abundantly clear that the future of business is digital and data-driven. A disconnect exists between the importance of these technologies and the level of investment. Businesses need to close the gap and take advantage of the opportunities that digital transformation and AI offer. ESG (environmental, social, governance) is an area where businesses can make a difference.
“Genpact’s survey reveals that 43% of respondents say environmental, social, and corporate governance (ESG) considerations drive the demand for data-driven business transformation. But only 22% will be allocated a budget to finding ways to support ESG initiatives in 2022.” ESG is quickly becoming a key focus for businesses and investors alike. It is no longer enough to have a good product or service simply. Companies must also be seen to be doing good in the world. This is where digital transformation can make a real difference. Businesses can track their progress against ESG goals and report back to stakeholders by using data and analytics. This level of transparency is essential in building trust and ensuring that companies are accountable for their actions.
Furthermore, a significant correlation between both reports is the importance of technology in promoting a hybrid environment. Companies must provide innovative tools and technology in a hybrid world of work to promote social interactions, integrate new hires, and support the critical people connections that nurture the company’s future leaders. Digital transformation can play an essential role in supporting a remote workforce and delivering long-term business success. It is time for businesses to take the plunge and embrace digital transformation.
Additionally, businesses must understand that data and analytics are the key to success in the digital age. The ability to make sense of large data sets and extract valuable insights is a core competency that all businesses must possess. AI can assist in this area by providing the tools and capabilities needed to make better decisions faster.
There are also several critical takeaways from Peak’s report worth highlighting. Firstly, it is clear that businesses need to invest in data infrastructure to be successful with AI. Many firms are funding data and AI without integrating them, which will result in an expensive infrastructure upgrade down the road – a competitive disadvantage.
