I was lucky enough to be on a presentation this week with Adam Goldberg, head of Azure OpenAI who ended with this slide :
In his three closing points Adam summarises a call to action to prepare for transformation . He explains the time and the opportunity are now as the technology and outcomes are new to us, the costs to experiment are small and the opportunity for changes are overwhelming from an incoming tidal wave of technological advancement.
If predictions are correct from Adam and the world economic forum we are in for alot of transformation. While the outcome of AI is predicted as positive to the global economy, the world economic forum predict almost 25% of jobs are to be disrupted with the largest impact spread accross several industry areas that includes retail, insurance, banking/finance, transportation, industrial manufacturing, healthcare, fitness, and customer support services.
How To Approach Transformation (your organisation change)
Asses where you are and define your goals
Get help to conduct an assessment of your organisation's capabilities, systems, and culture. Clearly outline what you aim to achieve with your transformation . This could range from staying competitive, incorporation of AI tools and services to improve customer experience, or increasing operational efficiency and fostering innovation.
Name a strategy for AI
Identify the areas where AI can add the most value, defining specific use cases, and adding these to your goals.
Invest in the Right Talent and Training
Organisations may need to hire new talent, partner with external experts, or invest in training existing staff. In addition, all employees should have a basic understanding of AI and its implications, so they can effectively work with AI tools and contribute to AI initiatives. Consider investing in Agile methodology training and resources.
Ensure Access to Quality Data
Organizations should ensure they have the systems in place to collect, clean, store, and manage the data needed for their AI, digital and agile initiatives.
Embrace a Culture of Experimentation:
As adam says the cost of experiementation is shockingly low and the time-to-value ratio is very high, consider agile concepts and frameworks to help maximise ROI. A culture that encourages experimentation, tolerates failure, and rewards learning will advance faster than others. Start with pilot projects to test new approaches and technologies. This provides a learning opportunity and the ability to manage risk.
Communicate Effectively and Foster a Culture of Change:
Transparency helps build trust and commitment to the transformation process while embracing change encourages experimentation and learning which is critical for transformation success. Be prepared to fail and try again.
Leverage Partnerships:
Consider partnerships with technology providers or consulting firms. They can bring in external expertise and resources to accelerate your transformation efforts. Firms that can help you measure success through KPIS and predictive metrics to help adjust your strategies will help you stay on track and open new opportunities.
Understanding Transformation
Agile, Digital, and AI transformations can complement each other and jointly address the challenges of the current volatile, uncertain, complex, and ambiguous market conditions.
- Digital transformation - refers to the integration of digital technologies into all areas of a business, fundamentally changing how the organisation operates and delivers value to its customers. This process goes beyond simply using digital tools for individual tasks, it involves a holistic shift in business strategy and operations, aiming to improve overall performance and customer experience
- AI transformation - Is a subset of digital transformation that specifically focuses on the integration of artificial intelligence technologies into business operations. AI transformation can improve operational efficiency, open up new possibilities, and enable businesses to deal with complex and voluminous data. It also has the potential to create new products and services that weren't previously possible.
- Agile transformation - An organisation that undertakes an Agile transformation benefits through a continuous learning and improvement culture that can utilise Digital and AI transformations to help teams and organisations work to be more efficient, adaptable, and customer, product-focused.
Artificial Intelligence can be leveraged to enhance both Agile and Digital transformations. For instance, AI can automate complex tasks, generate insights from large amounts of data, and personalise customer experiences. This can significantly enhance operational efficiency and open up new possibilities. AI can help organizations make sense of complex data, predict future trends, and quickly adapt to changing conditions.
Together, they provide a competitive edge in an increasingly volatile business landscape. Agile principles enable the quick pivoting of strategies when implementing digital solutions, while digital tools enhance the efficiency of agile teams. In essence, it's about future-proofing your business, enhancing customer satisfaction, and driving growth in today's fast-paced, technology-driven world.
Sources :
https://www.cnbc.com/video/2023/05/02/world-economic-forum-md-25-percent-of-jobs-expected-to-change-in-next-five-years.html
https://www.fortunebusinessinsights.com/digital-transformation-market-104878
https://www2.deloitte.com/us/en/pages/consulting/articles/digital-transformation-reduce-fear-to-produce-success-architecting-the-cloud-podcast.html