Covid19: Evolution of the Digital Transformation within companies

Covid19 Evolution of the Digital Transformation within companies

The corona pandemic is continuously changing the framework for digitization. According to IBM 96% of leaders report that Covid-19 will accelerate their digital transformation by an average of 5.3 years. Another study by Celerity shows that 63% of leaders state that the Covid-19 pandemic prompted them to embrace digital transformation sooner than originally planned. The goal of promoting innovations faster and keeping up with the times is the most important reason for digital transformation for companies.

 

With the adoption of digital solutions, companies have greater resiliency. They can not only streamline their operations but also automate all manual processes in order to generate more revenues. With data driven insights, companies can make decisions faster and adapt or change course at any point. They are also better prepared to fight against cyber threats, also when their employees work remotely. All these advantages give companies a boost for their own digital transformation, but they also have to overcome various hurdles as the transition to a digital company is anything but easy. Limited resources, rigid legacy systems as well as unclear goals and rules – all these things delay IT departments when it comes to innovations.

 

Even tough 30% of organizations will increase innovation and reinvent their business models in order to future-proof their companies, digitization continues to be a major challenge for many companies. Companies’ IT departments are experiencing the greatest change: they are developing into a service provider who, on the one hand, strives to ensure that the IT systems and applications run properly and, on the other hand, acts as a full-service provider of IT-supported business processes. The requirements continue to increase. A total of four hurdles in particular slow down innovative projects.

 

Skill shortage:

According to the KMPG CIO survey, 54% of organizations reported that skill shortages were holding them back from pursuing their transformation goals. In particular, they were lacking expertise in the following areas: Cybersecurity, Technical architecture, Enterprise architecture, Advanced data analytics. Current IT teams are made of few people who have the essential technical skills but don’t have training time to develop the skills. But if your business is suffering from skills shortages, ignoring training is not the right solution – it’s much easier to train existing staff than to hire new employees.

 

 

Legacy systems

Legacy systems, which form the backbone of many enterprises, are holding them back from leveraging new digital technologies and creating new experiences for their customers/partners. Outdated business software consumes a lot of resources in companies. According to Forrester, companies invest 70 to 80 percent of their IT budget in maintaining rigid back-office systems. These systems are difficult to integrate or customize when it comes to supporting new digital initiatives. Slow development methods combined with legacy systems make the problem worse. Outdated networks and servers no longer meet the needs of companies. Taking the right step and modernizing the legacy is the way forward. The IT modernization promises cost savings, efficient management of IT infrastructure, efficient utilization of human capital, better security and risk management, enhanced user experience, and last but not the least, a direct impact on competition.

 

Limited resources

Digital transformation is necessary in order to become more agile, more innovative and more resilient, but often only limited resources are available for converting old processes to more modern tools. Building a business case for such investments can be quite challenging in terms of budget approval. Also, all legacy systems require modernization. Otherwise, they can be exposed to crashes anytime. Therefore, the introduction of new technologies can be introduced in steps, often with a free software test phase.

 

In order to be really successful, that means first and foremost to be economically positive, but also to recognize and use the opportunities of the future as a driver of innovation, a digital roadmap should be planned. Not the hard change, but a targeted and coordinated development in digitization should be the way in which all members involved within a company pull together. Strategic concepts that include optimal resource planning are required here. This means that a networked transfer of knowledge and experience must take place. Using the strengths of individual individuals and combining them with scientific innovations should be the path to productive and efficient profitability. The digital evolution is a permanent further development and with all step forward new opportunities become visible that can be realized through a stable foundation.

 

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Digital Trust 2019: Trends in The Artificial Intelligence Era

Artificial intelligence (AI) has rapidly developed in recent years. Today, AI tools are used widely by both private and public sector organizations around the globe. The capabilities of AI now and in the near future are creating extensive and significant benefits for individuals, institutions and society.

The foundation of AI is data and understanding the patterns in these data to make a smarter automated task. The collection of these data is increasingly controlled by regulations and user preferences. Organizations must answer questions such as how to deliver practical compliance with data protection laws and norms when building and implementing AI technology and on the tension between AI and existing data protection legal requirements.

 

If the AI ​​service cannot provide an appropriate level of trust, this data may not be available over time. Without trust, there is no data. Without data there is no AI. As a result, organizations have both an opportunity and an obligation to develop principles, best practices and other accountability tools to encourage responsible data management practices, respect and even reinforce data protection, and remove unnecessary barriers for the future development of these innovative technologies. However, in2019, trust will be essential for success. Below are five forecasts of tensions related with data protection.

 

Trust becomes the new currency

Shakespeare wrote, “Love everyone, trust a few, do no harm to none”. Those vendors who can build long-term trust with their customers have unique added value. Very few will be able to achieve this and thereby increase their enterprise value. Trust will be given a monetary value in 2019 and we will move towards a trust-based economy.

 

Data ethics will become more important as a discipline

The foremost practical question for data ethics is whether there is anything special about data such that collecting, manipulating, and applying it requires a distinct code of ethics. On 20 November 2018, the United Kingdom founded the Center for Data Ethics and Innovation, the first public body to address the “new ethical issues arising from the rapid development of technologies such as artificial intelligence”. The way data is used today is more than just a technical phenomenon. It’s a political, social, and even mythological phenomenon that has consequences for how we organize our lives and express our values. Whatever ethical principles are developed in connection with data, they should account for dynamics that extend beyond technical limitations. Data analytics should be viewed as a phenomenon with consequences beyond technology, and the community should demand that data scientists and practitioners consider those consequences.

In 2019, data ethics as a discipline will become increasingly important in both governments and academia. Most discussions so far about AI ethics have focused on the results of the AI, not the data inputs fed by the AI. These new institutions will focus on inputs and should be taken seriously by providers as they are both a source of best practices and a pioneer for future legislation.

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Everyone will shout, “Trust me!”

‘Trust’ will stand in the slogan or marketing message of all AI and modern technology providers. Although consumers place a high value on trust and integrity, they will only find a few useful landmarks in marketing noise. “Who should I trust?” May not be so easy to answer in the blink of an eye.

 

Surprisingly, consumers will give dubious providers a second chance

Given the hurly-burly and lack of an objective, easy-to-use test of trust, consumers will not really know how to value trust and what action to take when it’s lost. As a result, consumers will not drop these providers in 2019 due to a first breach of trust, which unfortunately continues to support negative business practices. However, these second chances will gradually disappear as consumers learn to answer the question “Why should I trust you?”.

 

Often, data will disappear

This year, some providers that collect data improperly, will get caught and go through legal or/and economic consequences. Others will slip through. But in both cases, nobody will know what actually happened with his data. Many are expected to land in the black market. But on the basis of regulatory requirements of GDPR, industry will be forced to adopt sever guidelines for the use and processing of data.

 

These are all big challenges, as they occur in many technologies with disruptive potential in the early stages. But can the technology industry really talk about trust? As Albert Einstein said, “Anyone who does not take truth in small matters cannot be trusted in large ones”. In 2019, we will see the first generation of AI startups trusted by credible, sustainable, deep-rooted value and not a marketing slogan. Only then will Artificial Intelligence be able to assert itself in a sustainable way to truly change life.

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