May the Force of Digital Transformation Be With You

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May 4

Written By Jeff Winter

What are the ‘Forces’ driving digital transformation?

Consumers are demanding more, faster - Personalized experiences, being environmentally friendly, and acting ethically have become decision criteria in the purchasing process. According to Bain & Company, 50% of consumers said sustainability is one of their top four key purchase criteria when shopping. On top of that, consumers are demanding a faster response to sales or marketing questions with faster delivery, right to the doorstep. According to Jay Baer, Two-thirds of customers say speed is as important as price.
Artificial Intelligence is infiltrating out lives - Artificial Intelligence (AI) is becoming an integral part of our daily lives, influencing both our personal and professional spheres. In the business world, its versatility spans industries and job functions, with McKinsey predicting a potential $4.4 trillion increase in corporate profits annually. This is driven by AI's ability to optimize processes, enhance decision-making, and drive innovation. Adoption rates are soaring, with 50% of companies using AI in at least one business function in 2022, a significant jump from 2017, as reported by Exploding Topics. In manufacturing, Accenture estimates AI could add an additional $3.8 trillion in gross value added (GVA) by 2035, boosting profitability by 38%.
On a personal level, AI is reshaping our daily routines. According to Pew Research in 2024, 22% of Americans interact with AI almost constantly or several times a day, and 27% report doing so once a day or several times a week. This includes everything from using voice assistants to receiving personalized recommendations. AI enhances convenience, improves user experiences, and brings efficiencies to tasks, making it an indispensable part of modern life. Its influence continues to grow, shaping how we live and work in profound ways.
Innovation Everywhere - We're witnessing a surge in innovation across industries due to rapid advancements in technology and the accelerated pace of change. Companies need to invest more and act quickly to stay competitive, leveraging cutting-edge solutions to meet evolving market demands. This urgency drives a continuous cycle of innovation, propelling growth and transformation. Companies are investing more formally in creating a culture of innovation, oftentimes resulting in adopting the new role of “Chief Innovation Officer”. This role didn’t exist 25 years ago, now roughly 30% of Fortune 500 companies have one in place. According to NTT DATA, Innovators are more profitable: 54% more Innovators achieved net profit margins of 10% or greater than the rest of the market.
Government Assistance - Whether it is the U.S.’s Manufacturing USA initiative, Germany’s “High-Tech Strategy 2020”, or China’s “Made in China 2025”, governments around the world are investing billions in developing manufacturing technologies to help overcome technical hurdles and train tomorrow’s workforce to spur the next wave of global economic growth. In the United States as of 2022, the 17 institutes as part of Manufacturing USA have collaborated on over 670 major technology workforce R&D projects and have invested $416 million in their activities from state, industry, and federal funds.
Data Data Data - Humans and machines are creating far more data than we know what to do with. Those that can capture the harness the power of data will have a massive competitive advantage. According to Statista, 147 Zettabytes of data are anticipated to be created in 2024, which is roughly 29,500 times as much as the data created by all of humanity up until 2003.

Do. Or do not. There is no try!

To Quote Spiros Liolis, “In a digital transformation, this means letting go of the comfort of the known ways and embracing the unknown. Be creative, innovate, and keep learning at full organizational capacity. But don't turn to the dark side. “