AI-Driven Business Growth

Digital transformation has become essential in business development as it reshapes sectors. Technology such as AI and extended reality are prompting companies to rethink how they operate. Insider spoke with five experts about tech’s impact on digital strategies across organizations. This article is part of “Build IT,” a series about digital tech and innovation trends that are disrupting industries.

The Impact of Technology on Business Models

The rapid advancement of technology has led to major shifts in customer experiences and habits over the past decade or so. To survive the winds of digital change, many businesses have had to radically readjust their business models.

Netflix is a prime example of a company that successfully transformed its business model to embrace digital technology. It started off as a DVD-by-mail business but transitioned to online media streaming with the rise of the internet. This shift has made Netflix the world’s biggest streaming service, with over 230 million subscribers. On the other hand, Blockbuster’s failure to adapt and acquire Netflix ultimately led to its downfall.

According to Nigel Vaz, the CEO of Publicis Sapient, a consultancy for digital business management and transformation, adopting a technology-driven business model can help companies save money, launch products and services quicker, and improve operational efficiencies. Industries with “significant human implications,” such as healthcare and space exploration, are expected to benefit the most from digital transformation.

Technologies like artificial intelligence (AI) combined with open-source datasets and computing can accelerate innovation and aid business progress. For example, in the financial services industry, companies can develop AI applications that deliver personalized experiences to users, optimize portfolios, analyze the market faster, and forecast more accurately.

Cloud computing, 5G, and smaller sensors are also unlocking value for businesses across all sectors. Cloud computing allows organizations to analyze massive amounts of data in real-time, while 5G networks connect a vast number of endpoints to the cloud with near-zero latency. The miniaturization of sensors enables the collection of precision data.

Improving Internal Processes with AI

AI is helping businesses improve internal processes to meet their objectives more effectively. Jean Pelletier, the vice president of digital talent transformation at Schneider Electric, explains that AI is now more advanced and democratized, prompting businesses to think differently about their value chain and how they can use AI to bring a high-tech, high-speed approach to business activities.

Despite the increasing demand for AI applications, vendors are still catching up as they scale AI-driven software and implement the right vision into their roadmaps. Schneider Electric has to continuously make a decision about whether to create internal processes with their team or wait for software partners to deliver new features.

Beth Johnson, the chief experience officer of Citizens Bank, sees the benefits of using AI solutions to transform business processes, particularly when it comes to improving productivity for knowledge workers. AI can provide more information faster, enabling employees to work more efficiently and create a better experience for customers.

By viewing AI as a toolset and coupling it with data, companies like Citizens Bank have created more personalized experiences for customers and increased the efficiency of their processes. Banks, in particular, are data-rich organizations, so leveraging AI and data is crucial for success.

Breaking into New Markets with Cloud Technology

Advances in cloud computing technology are helping companies enter entirely new markets. For example, Amazon branched out into media streaming with Amazon Prime Video and cloud computing with Amazon Web Services.

To achieve cloud-domain transformation, businesses must be able to work across existing domains to forge new business capabilities in adjacent activities. Speed and agility are prerequisites for successful domain transformation. Event-driven architecture (EDA) is a software architecture model that can help businesses quickly gauge and detect business events, such as changes in consumer activity.

For example, e-commerce businesses can use EDA to detect when an online shopper purchases a certain product and send that information back to the retailer in real-time. This provides valuable data insights on customer behavior and interests, helping companies strengthen relationships with partner organizations.

Johnson believes that companies must also consider the way in which consumers acquire information when optimizing digital tech to enable domain transformation. Understanding how information consumption affects customer behavior and leveraging AI to digest and deliver information to a new set of customers is crucial for success in new markets.

Inspiring a Tech-Minded Culture within Organizations

Technology is not only changing how people work but also transforming the internal cultures of organizations. Johnson highlights the implications technology has on talent holistically. It enhances productivity, changes the types of roles needed, and influences how training is conducted.

Duncan Roberts, a senior manager in the research department at Cognizant, expects generative AI to result in major changes to company structures and cultures. This technology will increasingly automate repetitive, task-based work and could replace siloed departments such as operations and legal. The focus will shift from input-based roles to outcome-based roles, requiring ideation and innovation skills.

Extended reality (XR), a combination of virtual reality, augmented reality, and mixed reality, could also revolutionize organizational cultures. XR is finding applications in employee training, remote collaboration, product visualization, and experiential marketing.

Digital transformation is the way of the future. Companies can’t afford to ignore its importance. An effective digital transformation strategy, using a variety of technologies and focusing on all areas of an organization, can future-proof businesses and deliver value for all stakeholders.

In conclusion, AI-driven business growth is essential for organizations to thrive in today’s digital world. Embracing technology, rethinking business models, improving internal processes with AI, leveraging cloud technology to enter new markets, and inspiring a tech-minded culture within organizations are key steps towards achieving success in the digital age.