Hello and welcome to this SPK and Associates video, “Why Businesses Must Embrace Digital Transformation.” My name is Michael Roberts, Vice President at SPK and Associates, and I’m here with Chris McHale, CEO and Co-founder of SPK and Associates.
What is Digital Transformation?
So, Chris, before we understand why customers must embrace it, what is digital transformation?
Right, it’s a really grandiose term that’s been around for a while, but it is different from just referring to technology in a company. It refers to the integration of digital technology in all areas of a company. It’s about how the company operates and delivers better value to the customer. It involves new technologies, but it’s more about revamping processes and the way businesses operate to make technology an integral part of everything.
Why Should Businesses Embrace Digital Transformation?
Why do businesses really need to embrace digital transformation, Chris?
They cannot afford not to, honestly. The pace of companies embracing digital transformation is increasing every year, even every month, particularly as AI plays a bigger role in companies. Digital transformation is not optional. If you don’t adopt it, you will be left behind. It allows companies to get products to market faster, understand their customers better, and make their workflow and processes more efficient. So, it’s really not an option; you have to do it.
Preparation
What do businesses need to consider when they’re looking at digital transformation?
First, start with your business goals and objectives. These could be high-level goals like growing 20%, entering a new market, improving customer satisfaction, or reducing operational costs. Start with those goals without thinking about digital transformation initially. Then, break down each goal to figure out what you need to achieve it. This could involve technology, workflow changes, or process re-engineering.
Including partners in this process is very important. Sometimes it’s hard to see what’s going on in your own company, but an outsider can help you see more clearly. After that, conduct a gap assessment to see where your current technology and processes fall short. Then, look at the technologies you might need to introduce and consider the role AI will play in different areas of your company.
Business process re-engineering is tricky, especially in larger companies, and involves many considerations, including people. You’re changing how employees work and the tools they use, so it’s crucial to ensure they are part of the journey.
Results
Lastly, in terms of bigger benefits, what outcomes should companies look for when making this big investment in digital transformation?
You’d probably look at it by pillar of the company. For product and software, and R&D, you should see faster time-to-market, the ability to release more products more quickly with higher quality, and reduced costs with the right technology and processes in place. These would be significant benefits in the R&D space.
In other areas, like HR, there’s a large cost and time investment in recruiting and onboarding. This is ripe for transformation, where AI can play a significant role. To get the benefits of AI and data, you need a solid digital foundation first. Having digitized processes and data points is essential for leveraging AI effectively.
Conclusion
Thank you for your time, Chris. I appreciate the conversation. There’s a lot to do in terms of digital transformation, but thanks for outlining that for us. Folks, be sure to like, comment, and subscribe. We will be sharing more of these types of videos. We look forward to seeing you next time. Thank you.
