What does Digital Transformation mean to your business?
Digital Transformation has been a buzzword in business for a while, and for some, it just sounds like a different way of saying “get technology to make things happen.” But it goes far beyond just placing a computer in your business, or downloading a new piece of software, and hoping for the best.
It’s a new way of thinking!
At its core, Digital Transformation is about understanding your business, then imagining how currently available tools, or (perhaps even ones that aren’t developed yet), can be used to automate workflows and/or analyse data to make your business more efficient, and help you make better decisions.
Think of the different elements of your business as parts of a Lego set. Individually, these elements may work on their own. This could be your sales team, manufacturing people etc. But by building connections between them, and even specialised bricks to create interactive parts, you form a more cohesive structure that contributes to a complete and efficient model.
Whilst these elements on their own work, creating those connections makes the set greater than the sum of its parts. That is the same for a business.
But what should you consider when starting to create a more cohesive digital growth strategy within your business? The first steps will always include elements like;
- Where are your business Pain Points?
- What are some of the most repetitive tasks in your business?
- What takes people time (yours or clients)?
- Where are the bottlenecks?
- What does “Digital Transformation” mean?
Digital transformation is often talked about as the process of using a variety of digital and technological tools (whether those be hardware or software-based) to develop, modify or improve business activities, procedures, and strategic direction to aid in improving productivity and efficiency in line with business growth goals.
Sounds complex? Well, it doesn’t have to be.
As we mentioned, the process of digital transformation is so much more than putting a computer in the place of a previously manual process. Done well, it becomes part of the seamless end-to-end workflow, working as part of your staff effort. It is an integrated and unique approach that includes the processes and tools needed to contribute towards a transformative improvement to business operations. Done badly, it can be another costly IT project that didn’t quite deliver on the desired outcomes.
Having said that, research shows that even businesses that are doing no more than converting their data, transactions, and essential documentation into digital formats to streamline internal operations become more competitive.
By doing so, they improve operational efficiency by making data more easily accessible to the people who need it. These can accelerate decision-making processes, improve analytics of data within the business, drive decision making, and cultivate a more agile, customer-focused environment.
There is no “Right Way” or “Wrong Way,” but there is “Your Way”
What are the Key Considerations?
It is important to remember that every business is different, as such we have identified initial core questions that we pose to businesses to be able to identify their goals effectively, and guide businesses through the complexities of digital transformation:
- Are there manual processes, repetitive tasks, and procedures within your business that you feel it would be great if they could be aided by digital technologies to improve productivity or reduce errors?
- Have you effectively and securely converted data, transactions and key business documentation into digital formats that can easily be accessed by personnel who require access within your business?
- Have you looked at or reviewed the potential cost/benefit ratio of integrating digital technologies into your business and the potential improvements/impact this could have on your business performance?
Which current digital technologies and processes are you using to support essential business activities? Such as; Cloud File Storage, Microsoft 365 Applications, Financial Software, Production Planning and Execution Software, Print Management, User Identity & Access Management, Warehouse Management Systems, Pick & Pack Solutions, Stock Management Applications, and much more.
Are you leveraging new digital tools to create fresh value from products, services, and consumer insights? Such as, using AI tools to provide valuable insights into the data you hold to improve document creation, data analytics, forecasting and more.
Is your business facing any strategic or operational changes to fully realise the benefits of a digital-first approach?
These questions help small to medium-sized businesses prioritise their efforts and shape a coherent action plan. However, it is also important to consider surrounding factors, such as the need for robust IT infrastructure, staff training and ongoing technological updates, which are all essential when deciding how to deploy digital-first solutions to aid in your business growth.
AI’s Growing Role in Digital Transformation
Although the above statement is true, we hear from businesses all the time, “I want to integrate AI into my business workflows to improve our operations and increase efficiencies, but I am unsure how?”
Artificial Intelligence (AI) is deemed to be becoming increasingly critical for business success, especially when keeping up with competition. Studies are suggesting that 90% of firms plan to integrate AI-driven applications into their workflows to cut costs and improve productivity.
Let’s get one thing clear from the start: the term “Artificial Intelligence” itself is also a buzzword, a marketing label, and is now often misused. It has become a generic term used to describe automations and machine learning across a wide variety of products, services, and solutions. Realistically, AI within your computer mouse, is not going to use your computer for you. However, the backbone of these AI solutions, the automations, machine 'learning’ and ‘generative' toolsets, are part of a ‘Lego Set’ that can combine to innovate and improve processes across a wide range of business areas.
Research by the Adecco Group across 27 key industries indicates that by integrating AI tools into business workflows, businesses could save 1 hour+ per employee, per day. Just think about how much time that could save across your business over the space of a single day, or across an entire year in enhanced productivity. What you can achieve remains to be seen.
By automating tasks that were previously done manually, AI enables employees to dedicate more time to strategic and creative pursuits that best align with the overall business growth strategy. It doesn't need to stop there, businesses are also using AI tools in other capacities, to power ‘chatbots’ and ‘recommendation engines,’ allowing businesses to scale customer support more effectively and personalise experiences with minimal additional overhead.
Plan with the end in Mind
It’s important to consider that whilst implementing AI solutions can have a positive impact on your business, improving productivity and efficiency, it must also be a well-thought-out process directed towards the goals you would like to achieve.
A Gartner study, recently revealed that 30% of Gen AI Digital Transformation projects are abandoned due to poor quality of data, inadequate risk controls, escalating costs, or unclear business value. This is heavily impacted via businesses implementing these tools because they feel that they must “keep up with the Jones’s” let’s say.
However, well-thought-out implementations that align with your business growth strategy can (and would) lead to positive results.
Here at TwentyFour IT Services, we are on the same Digital Transformation journey that you are.
For example, we are using AI toolsets to be able to create and deliver automated background ticket resolutions for the commonest “Line Zero” ticket requests to speed up the support process for our clients. This also frees up our staff to use their time and expertise on more complex requirements.
Additionally, we are beginning to roll out an AI chatbot across our client base to support with common requests. This chatbot exists within each clients own ‘tenancy’ meaning that not only is it secure, it can only access data within a client’s own business based on the user’s access rights, it can also understand each business’s unique framework – such as infrastructure, the software they use, hardware available, previous tickets, and be able to provide fixes, recommendations and actions based on each individual user's needs within the client company. Of course, it parses out more complex issues automatically to the most appropriate support engineer's stack if the request is not trivial.
Industry Examples of AI Digital Transformation
You might think this is all great, but what if you’re part of a more specific industry? What benefits could you achieve?
Logistics and Warehousing: Time is of the essence when it comes to Logistics, that is nothing new. However, with supply chains becoming more complex, not to mention disrupted, having intelligence on what can potentially go wrong is important.
AI could be used to analyse how long it takes from receiving an order to delivery, highlighting where efficiencies could be made, even down to what days are worse for traffic. Ensuring that all your clients are receiving their items on time.
Most logistics-oriented businesses will be using a Warehouse Management System (WMS), which will give them incredible volumes of data, but how many will use that data to provide further insights?
For example:
What are your slow-moving products? Or what are the top 10/15 items for each of the most common clients?
By establishing this, you can plan stock storage to ensure that faster-moving stock is more easily accessible for picking and packing. Whilst moving slower-moving stock to higher/more difficult to access locations.
Or, is there any pattern to the flow of orders from each client? And which clients cause the most disruption by changing or delivering orders late?
Manufacturing: Manufacturing is a wide-ranging industry, from automotive to windows, food products to raw materials, and much more. Each of those arms may have very specific requirements. For example, highly regulated industries require far more from their business systems than a mass manufacturing plant.
Take the example of a manufacturer that supplies a very specific part to a ‘Prime’ in a complex supply chain, such as aerospace. They are likely to see ‘Just in Time’ demands from the prime filter down to them. It might mean that although they are currently able to meet demand on time and in full, however, going forward, timescales may be shortened or the demand may be greater. AI could be used in this case to look at what steps in the manufacturing process are least efficient. These AI tools provide a framework to deliver the efficiency improvements. Allowing the company the scope to be able to improve in line with this new demand and keep its place in a demanding supply chain.
This could also be extended out to machine maintenance. Where AI can look at machine hours, monitor output or quality and predict when parts may need to be replaced, or flag up when a machine may require servicing ahead of schedule.
Manufacturers already generally use systems that help them to see demand. However, adding in AI could save time in analysing the data that is generated. This includes prediction of seasonal trends that can support businesses with their stock management processes by each of their products, keeping lower stock levels during quieter months and increasing in advance of higher stock requirements during busier months. Integration of these key processes and developments are a key focus of the UK’s ongoing Industrial Digitalisation Review, which aims to encourage industry investment in automation and innovation.
The application potential of AI tools within the manufacturing sector is as diverse as the sector itself. Every company will have individual potential.
Professional Services (Accounting, Law): Automated bookkeeping tools verify large sets of financial data, including sifting through invoices to detect inconsistencies and anomalies compared to previous data and trends, allowing accountants to concentrate on consultancy and strategic planning. Whilst Solicitors are beginning to employ AI-powered solutions for research and risk identification, as well as using natural language processing to speed up contract reviews, analyse case files and even review meetings & video calls. We ourselves also use Microsoft Copilot’s AI models to automatically generate meeting notes and produce individual action points from Teams meetings.
The Bigger Picture
Government initiatives such as the UKs Digital Strategy and Digital Development Strategy 2024 to 2030 emphasise the importance of extending digital technologies to businesses of every size and industry. The United Nations also estimates that digital innovation will directly support 70% of the Sustainable Development Goals.
As technology continues to evolve at increasing rates, it is important that user-friendly applications and inclusivity initiatives empower more businesses, especially SMEs, to utilise newer digital tools confidently to improve productivity and efficiency to drive their business growth.
Cyber Security Considerations
It is important to consider that whilst Digital Transformation is essential for businesses to improve productivity, efficiency, and drive business growth. If not managed effectively it could lead to inherent risks that could damage their business development and reputation.
Cyber threats, such as phishing, ransomware, and data theft, pose significant risks as more business operations migrate to newer digital tools. At TwentyFour IT, we tackle digital transformation as part of a larger IT and Cyber Security strategy in line with overall client business Technology Alignment strategies. This includes vulnerability assessments to safeguard networks, providing guidance and user training on how to identify and defend against cyber-crime, conduct secure data management in line with policies of least privileged access, penetration testing on tools and solutions brought into a business and even consultation on how businesses can achieve their business growth goals securely and effectively.
In the modern digital business environment, especially as cyber threats on UK businesses continue to rise, it is essential that businesses meet data protection requirements and maintain the trust of both their workforce and customers/clients. Establishing robust cyber security policies, training staff and investing in the right protection measures is critical to protect your business from growing threats.
As cyber criminals use their own AI tools to increase the effectiveness and reach of their threats, it is essential that businesses (like TwentyFour) utilise AI cyber security tools to combat these threats. Unlike traditional cyber security tools, which look for the signatures of known threats, AI-powered cyber security tools monitor for unusual, suspicious, or malicious activity on business networks or devices to be able to actively block them in their tracks. Cyber criminals are now adapting their attacks to include polymorphic and metamorphic signatures, which look like entirely new threats for each new device they infect, and only AI-powered Cyber Security tools can combat such threats.
Are you ready to chart the path forward?
Businesses that embrace digital transformation stand to benefit from improved efficiency, better customer relations, staying ahead of their competitors, and the ability to tailor products & services to new market opportunities.
Research reveals that digitally empowered SMEs experience more sustained growth and resilience, partly due to the technology that allows them to adapt rapidly to shifting economic conditions. Training, government support, grants, and partnerships with technology providers such as us, who have extensive experience with wide-ranging digital transformation and AI implementation projects, can be combined to ensure digital solutions work for each unique business requirement.
Historically, SMES have been ‘ignored’ because many of the larger corporations in this space are only interested in where a client can spend serious cash. We are uniquely set up to provide a truly cost-effective service to small and medium-sized businesses. Activity Value and Business Case are our watchwords.
Digital Transformation is not a “One and Done” Solution
As AI, Machine Learning, Automation and Digital Technologies continue to evolve, it is essential that businesses partner with a technology provider who can support them to achieve their goals and adapt to their growing requirements. It is also essential that businesses understand that Digital Transformation is not a “one and done” approach. Embracing digital transformation as an element of your business culture fosters competitive advantages and new opportunities across all areas of the business.
By making digital transformation a core part of your business growth strategy, it can help you to continue to improve upon productivity and efficiency across all areas of your business. Whether that be through automated workflows, predictive planning, stock management, invoicing, accounting, reporting and analytics, and much more. With a clearly defined vision and a trusted partner, businesses can lead a fundamental change within their culture that can see successes beyond what they have envisioned.
If you would like to find out more about how TwentyFour can support your business achieve its growth goals, charting a course for AI adoption and Digital Transformation, book an appointment with one of our business consultation experts today.
Additionally, look out for more of our articles around how Digital Transformation and AI adoption can improve and impact your business growth opportunities.