Digital transformation meets obstacles

Digital transformation refers to the paradigm shift in business toward a digitised future, not only in using computers in the context of day-to-day production but in using information technology for making management decisions in product selection, development and marketing.

Across industries, the pressure is increasing to expand into new markets, addressing competitive factors, together with regulatory and compliance changes head-on.

Two of the major technology drivers in transformation are the Internet of Things (IoT) and Artificial Intelligence (AI).

IoT is the technology of interconnected information systems gathering usage data and other information from all sorts of appliances and objects such as home refrigerators, industrial machinery, cars, and so on.

AI involves complex mathematical and algorithmic designs with the aim of adding ‘intelligence’ to systems. Examples include sophisticated reasoning applied to large data sets in order to uncover hitherto unseen patterns and extrapolate predictive behavioural information. It may thus be predictive but cannot yet foresee changes in taste or circumstances. It is not creative.

Surveys across industries and across the globe indicate that most organisations are in the early stages of the digital transformation and that scalar factors mean smaller companies may be finding transformation a little easier.

However, there are significant challenges to digital transformation, in particular, human factors relating to:

– Appetite for investment
– Confidence and error management in AI
– Training and cultural shift
– Shortage of qualified personnel
– Privacy and data security
– Advisory versus supervisory app implementation

If human factors are compromising your firm’s digital transformation programme, why not contact the resourcing experts at Ross Clifford Associates.

 

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