TechRepublic and ZDNet's Jason Hiner spoke with the host of CXOTalk and ZDNet contributor Michael Krigsman at DES 2018 this week about the key to digital transformation. You can watch the interview above or read the transcript below. Reimagining business for the digital age is the number-one priority for many of today's top executives. We offer practical advice and examples of how to do it right. Michael: A few years ago digital transformation was the big hype topic.
Transforming a traditional financial institution into a digital organization goes beyond redesigned online banking or mobile apps. Infrastructure and legacy processes must change, as does the culture. Despite the difficulty, there is no other option. Subscribe to The Financial Brand via email for FREE!The digitization of banking has created new financial products, consumer channels and choice as well as improved back-office operational efficiency. At the same time, digital technology advancements have created opportunities for new players, threatening banking's stronghold on the consumer's portfolio of financial services.
AI and machine learning promise to not only improve the customer experience, but also change the way companies operate. For this reason, enterprises should consider integrating these technologies into digital transformation plans to stay competitive. By 2019, 40 percent of all digital transformation initiatives will be supported by cognitive/AI capabilities, according to IDC. "The time for AI has now finally come, because of the technique of deep reasoning connected with the amazing amounts of computer power and data," said Sanjay Srivastava, chief digital officer of Genpact. The opportunity now is to apply those technologies in the business context." For example, we can now use AI for account management and customer service systems across industries.
As enterprises continue their rush to digitally transform their organizations, they're investing big in retooling their software development pipelines, new artificial intelligence (AI) and robotic process automation (RPA) technologies and low-code development platforms, as well as putting considerable money into customer engagement software. Yet, the extent of success following these investments remains unclear and varies significantly from industry to industry. To shine a light on the digital transformation efforts currently underway, as well as the degree of their success, we've collected a number of fascinating trends in the most essential areas of digital transformation. According to the consultancy KMPG, enterprise investments in AI, machine learning, and RPA will rise to $232 billion by 2025 from $12.4 billion in 2018. "Nearly two-thirds of respondents indicate plans to fully implement RPA within three years. As for cognitive automation, nearly half noted intentions to use these approaches at scale within 3 years, while 29% indicated selective reliance on cognitive automation capabilities. Some 10% said they would launch pilots and proof of concept projects," according to the report.
Organizations adopting technologies simply to achieve greater efficiency and cost savings have a very limited view of the world. The disruptors in today's markets don't see technology as just a way to achieve more efficient processes, they've learned to turn their markets upside down to seize ownership of the customer relationship.