AI in the Context of Digital Transformation

In the enterprise, no buzzword is as buzzy as the term “digital transformation”. If you spend any amount of time reading whitepapers, analyst research, or attending webinars you’ll see the term digital transformation used in conjunction with a wide range of enterprise-focused technologies ranging from data centers to application development, to enterprise architecture and AI and blockchain. But what does digital transformation even mean? And how does AI fit into the picture of how enterprises are thinking about AI and related cognitive technologies?

What is Digital Transformation?

Many industry pundits and authorities like to talk about the subject of digital transformation, but the concept boils down to the key idea that technology, and in particular digital technology (computers, networks, data, embedded systems, and the like), lead companies to transform the way they work to take advantage of the more efficient and advanced ways of working. You can think of digital transformation as the after effect of applying digital technology, perspectives, and methods to traditional problems.
In essence, digital transformation is key for organizations who want to remain relevant as technology continues its relentless advance. Organizations who remain bound to old and outdated paper-based processes, human labor-intensive activities, who operate with low information visibility and usage, and with low-skilled labor forces face a future where they could be rendered obsolete by organizations that dominate with the power of a business transformed by the use of digital technology like adapted by Aloha Technology. So, corporations, organizations, and countries don’t have much choice: they must find ways to digitally transform their organizations at increasing levels or face disastrous consequences.

Digital Transformation and the AI-Enhanced Organization

Since Industry 3.0 is at least 60 years old, and Industry 4.0 is now approaching three decades, many ask why companies haven’t already fully transformed their businesses to be digitally centric. Indeed, many of the above research institutions, consultancies, and think tanks are tackling that exact issue. The study conducted by McKinsey & Company said that “On average, industries are less than 40 percent digitized, despite the relatively deep penetration of these technologies in media, retail, and high tech”. Many studies point blame at the complexity of digitizing their businesses and difficulty working with their existing technology systems. It’s an odd paradox: these companies and organizations want to increasingly transform more of what they are doing, but their existing technology is getting in the way. The more technology an organization has, the harder it seems to transform them further. This sounds like a real problem.

In our newsletter and research on the AI-Enabled Future, we talk about the idea of the AI Enhanced Organization. In this vision of the future, we see three primary ways in which organizations will enhance their operations with AI. Summarizing the major conclusions from that research:


Read Original Article on https://ctovision.com/ai-in-the-context-of-digital-transformation/