In the digital age, within an increasingly dynamic and competitive global environment, the ability to adapt and continuously evolve is crucial for companies to survive, become more profitable, and boost their businesses.
Digital transformation implies much more than merely adopting new technological tools. It constitutes a profound shift in the culture, processes, and business models of an organisation. It necessitates a long-term strategic vision, committed leadership, and an open mindset towards innovation and change.
The initial step involves adopting technologies such as artificial intelligence, the Internet of Things, cloud computing, blockchain, machine learning, big data, and data analytics. However, true reinvention leverages technology to add value, enhance the customer experience, and make data-driven decisions.
According to a recent study by IDC, global spending on digital transformation projected for 2027 will reach $3.9 trillion, showcasing an annual growth rate of 16.1%. This upward trend is expected to continue, driven by the myriad benefits that organisations do not want to miss out on.
The Path of Digital Transformation
For a successful technological modernisation process, organisations are advised to adopt a series of key measures. Primarily, digital transformation should align with the company's overall strategy.
Senior management must have a strong conviction about the chosen path, as it is their responsibility to allocate the necessary human and financial resources for driving digital transformation across all areas of the organisation.
Employee training is another crucial component, encompassing digital skills for the adept use of technological tools and new ways of working, as well as essential soft skills like critical thinking, creativity, flexibility, and change management in the face of disruptive challenges.
Selecting the most suitable technological solutions is vital for organisations aiming to become "intelligent companies". They must opt for advanced market tools that promise good results and best practices, and equally important, they should seek experienced providers for successful implementation.
The Era of GenAI
Artificial intelligence has been revolutionary since its inception, significantly impacting both daily life and corporate operations. For 2024, a surge in the use of generative artificial intelligence (GenAI) is anticipated. What is GenAI? GenAI is a branch of AI that generates new, innovative content from existing data and patterns. It is creative, capable of writing stories, composing music, and creating images or videos of non-existent people, marking it as a crucial competitive differentiator for process optimisation, innovation, and personalisation.
A Deloitte study involving 2,800 companies across 16 countries revealed that 62% of executives are highly enthusiastic about the transformative power of GenAI.
Moreover EY, highlighted GenAI as a prime opportunity for technology companies in 2024 in a recent report.
"GenAI is ushering in a new era of digital transformation. Many are already well advanced on their digital transformation journeys, and leaders will need to re-evaluate and change their ongoing digital strategies to ensure AI takes a central role. Transformation efforts that were designed and implemented before the emergence of GenAI are rapidly becoming obsolete, and early leaders could lose ground to competitors prioritising new capabilities," says the EY report.
The landscape is clear: companies that face this challenge with determination will be better positioned to thrive in the digital age.
Tailored Proposals
The market today offers numerous and varied solutions for organisations eager to undergo digital transformation, with options that cater to the specific realities, paces, and situations of each company.
Among these, RISE with SAP, stands out as an all-in-one solution that combines SAP's technology, services, and expertise, enabling companies to undertake their digital transformation more swiftly and efficiently.
The offering helps organisations access SAP S/4HANA Cloud to use the ERP solution in the cloud and take advantage of all the benefits offered by that enterprise technology.
A challenging journey
Embarking on this journey is not without its hurdles. Challenges include integrating systems and data, securing team member buy-in for changes, and bolstering security measures against cyber threats.
Despite these obstacles, transformation is essential for survival and competitiveness in a demanding market.
Companies that leverage new technologies to reinvent their business models, processes, and organisational culture will emerge as industry leaders in the digital age.
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