Digital Transformation: Benefits Of AI Technology
Fostering A Cultural Change In The Workplace
Many new technological solutions enable digital transformation, which in turn increases revenue and productivity. However, when an organization lacks the technology, can they achieve success? Furthermore, if the technology is there, what happens when the workers are not trained to keep up with the solutions?
Technologies And Skills Drive Growth
The benefits of AI technology in the enterprise are well-documented, such as increasing efficiency, and reducing some business costs. AI technology is now seen by many enterprises as a key component of digitalization.
Despite the high importance of AI technology, there are some organizations that are not leveraging the technology, and they are falling behind. A 2019 report by the Association of International Certified Professionals Accountants found that 89% of finance teams have not embraced the technology yet. The reason for this is because these employers have not provided workers with the right solution. In addition, the workers did not receive any training to enhance their technology skills. Just 11% of finance teams were equipped with the right tools and skills to support this change.
The study concluded that the absence of tools and skills is having an adverse effect on revenue growth. Nearly half of finance teams that have embraced digital transformation are reporting positive revenue growth. Meanwhile, just 29% of finance teams that lacked digital transformation are achieving the same success.
When any business unit lacks the right technologies and training, they are missing out on new opportunities.
"Businesses are missing out on huge growth potential by failing to give finance teams the tools and training they need to make better corporate decisions," said Andrew Harding FCMA, CGMA, chief executive of management accounting at the Association of International Certified Professional Accountants. "Cloud and emerging technologies like AI and blockchain drive efficiency and improve insight and accuracy, enabling finance leaders to step into a more strategic role in the business and improve the organization's data-driven decision making. To make the most of these new technologies, finance teams need to simultaneously evolve the competencies of their staff in areas such as analytical thinking, decision-making and business partnering."
Technologies Enabling Success
Although every company's journey is different, there are some leading technical components. Based on Enterprise Mobility Exchange’s annual report on digital transformation, the most common solutions include:
- AI Technology: Currently, many organizations are leveraging machine learning, a subset of AI, so that machines can compute data.
- Data/Analytics: Many enterprises are utilizing predictive analytics, descriptive analytics, or prescriptive analytics as part of data strategies.
- Cloud: A majority of companies have already migrated to the cloud, and are relying on different cloud environments to achieve success.
- Mobility: New solutions, such as enterprise mobility management, have improved mobile security and effectiveness.
- Internet of Things: IoT adoption has soared since 2018, with many organizations enabling this technology to improve decision-making and optimize operations.
Don’t Neglect Training
This is not just about innovative, technology solutions —rather, it is about the users behind the technology, how they interact with it, and how the technology impacts them. The adoption of new technology is only the first step in this process. The next (and more important) step is training business teams to properly use it. After all, if workers don’t know all of the functions, then the solution won’t be able to live up to its capabilities.
Failure to properly train workers is one of the reasons why many projects fail. It is critical that IT leaders get a buy-in from workers about new technology, and restructure the organization if needed.
When consumer credit reporting company Experian migrated to the cloud, it enacted cultural and organizational changes to effectively use the new technology. This story serves as an example about fostering a digital culture by providing employees with the knowledge to be agile.
"The organizational changes were pretty enormous,” Barry Libenson, Global CIO for Experian, told Inc. “We had to physically reconfigure how people were organized. We also needed different skill sets in different places, so that required more changes and so on."
By preparing your workforce for new technologies and being transparent about the changes, an enterprise can achieve digital transformation and reap the benefits.