Digital transformation has multiple dimensions and complexities, which are sometimes lost on organizations undertaking it. The recipe for success lies in rethinking the processes and the organizational structure to generate maximum value from the technology framework — something many enterprises continue to struggle with.
A 2020 study by Boston Consulting Group found that about 70% of digital transformation projects fall short of their goals even when the priorities are clearly mapped and leadership is aligned. Compounding the challenge is the need to bring AI into the organization that is transforming. AI is everywhere today and promises great returns from customer experience and organizational efficiency. Not investing in AI is a non-starter now when a digital transformation effort is begun, but the investment can feel like an insurmountable task. Why is this?
Gaps in the digital transformation roadmap can hinder success of AI initiatives
The factors that lead to failed digital transformation initiatives also act as roadblocks to the success of AI initiatives. These include:
Connected systems lead to successful AI programs
To overcome these challenges, organizations need to develop AI systems that are connected across the enterprise like a mesh or fabric, ensuring seamless collaboration. This will also require a shift in mindset from thinking about AI as a tool for individual departments to considering it as a strategic objective for the entire organization.
Organizations need to adopt a scalable architecture across the enterprise, one that's modular, holistic, scalable, de-risked and agile. This will provide a strong AI foundation with tools and processes that manage the end-to-end discover-to-implementation cycle while allowing the organization to take full advantage of the benefits AI can offer and steadily shape their business for lasting growth.
The fundamental dimensions in which AI can flourish include:
Summary
Successful digital transformation requires the integration of AI into all areas of a business, like a fabric and mesh. This will result in fundamental changes to how the business operates and delivers value to customers. To fully capitalize on the opportunities presented by digital transformation, businesses need to have a clear understanding of what it entails. With this understanding, they can make their digital transformation efforts effective by breaking down siloed processes that can inhibit AI integration and a powerful digital transformation.
Balakrishna DR, popularly known as Bali, is the executive vice president and head of the AI and automation unit at Infosys.
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