Transforming with a digital foundation: Driving accelerated growth through change
To successfully navigate an evolving landscape and harness the potential of disruptive technologies like generative AI, businesses must develop a digital core that is primed for reinvention. This involves two key actions
2024-09-10
Digital Transformation
Establish a Leading Digital Foundation
In today's rapidly evolving digital world, a robust digital infrastructure is no longer just a luxury; it's a necessity for businesses looking to stay competitive. A strong digital foundation empowers companies to adapt to change swiftly, scale efficiently, and drive innovation.
At the heart of this digital transformation lies the digital core, a sophisticated system that seamlessly integrates humans and machines. By developing this core, businesses can harness the power of AI and other cutting-edge technologies to automate tasks, improve decision-making, and create new products and services.By investing in a strong digital foundation, businesses can position themselves for long-term success in the digital age. A well-built digital backbone will not only help companies survive but thrive in the face of increasing competition and technological advancements.
A Shift Towards Innovation is Key
To achieve a reinvention-ready digital core, businesses must prioritize strategic innovation, such as generative AI. We discovered that increasing IT budgets allocated to innovation by at least 6% annually, while reducing maintenance costs, is a proven path to success.
How are companies accomplishing this? Many are streamlining operations by rationalizing vendors, optimizing cloud costs, and automating processes. These savings can then be reinvested into redesigning business processes, launching new products and services, and exploring new markets.
Designing with machines in mind can significantly enhance efficiency. For example, imagine a future supply chain where data collection, trend analysis, pre-ordering, and system optimization are all automated. While human intervention remains possible, this machine-centric approach can lead to substantial cost savings and increased efficiency.
Effectively Managing Technical Debt is another critical factor. Balancing technical debt is key to optimizing operational performance while encouraging innovation. By maintaining this balance, companies can allocate more resources towards growth initiatives and prevent outdated technologies from hindering progress.
