The Power of Data, AI and Digital Transformation
Let us do a quick questionnaire explaining the differences between Digitization, Digitalization, and Digital Transformation.
1): A parts store converts the last five years' physical transaction papers into digital format.
A) Digital Transformation
B) Digitization
C) Digitalization
2) An Publisher offers a new feature to buy a book online instead of physical format.
A) Digital Transformation
B) Digitization
C) Digitalization
3) A Bank launches a multi-year program to convert its physical branches to fully digital and make them accessible over a mobile.
A) Digital Transformation
B) Digitization
C) Digitalization
Correct Answers: B-C-A
How did I become so passionate about going digital?
During my professional career, I have worked mostly in the supply chain sector.
We all know about excessive excel usage in companies building massive data sets and semi-automating it by VBA.
Never the less it did impress me and showed me the power of data and automation.
Convincing me that data and applying data is the future. I started playing around with business intelligence tools noticing my passion shifted from the Supply chain only to Supply Chain & Software.
The Power of Data & AI:
Power of Data: In 2009, a new strain of Influenza virus (H1N1) discovered. Data scientists from Google published an article in the magazine (Nature) explaining they could predict the spread of the winter flu not only on the country level but per region and even state level by looking at search engine hits for specific sets of entries. Looking at the frequency and correlation between several combinations of search engine hits.
This Data-usage, to me, is a fantastic application of data usage. The fact that we can improve our way of control and knowledge. Just wow.
(Source: The Big Data Revolution: Viktor Mayer-Schönberger & Kenneth Cukier).
Power of AI: DeepMind AI system Alpha Go won a five-game Go match against Lee Sedol, considered as one of the top players in the early twenty-first century. It was expected the AI would beat the human players at Go, but would still take another decade before this could be achieved.
Max Tegmark, Qoute/Source from book: Life 3.0
- October 2015: "Based on its level seen... I think I will win the game by a near landslide."
- February 2016: "I have heard that Google DeepMind's AI is surprisingly robust and getting more reliable, but I feel I am confident that I can win this time."
- March 9, 2016: "I was shocked because I didn't think I would lose."
- March 10, 2016: "I'm quite speechless... I am in shock. I can admit that.. the third game is not going to be easy for me."
- March 12, 2016: "I felt powerless."
Within a year after playing Lee Sedol, a further improved AlphaGo had played all twenty top players in the world without losing a single match.
Ke Jie, the world's top-ranked Go player at the time, had this to say: Humanity has played Go for thousands of years, and yet, as AI has shown us, we have not yet even scratch the surface.
Quote from Book - Life 3.0
GO/wei-ch'i/baduk, one of the first strategy board game, originated from China around 4000 years ago.
What can digitalization mean to your business?
Digitalization can also decrease overall operational costs and further improve process efficiency of day to day processes.
- Optimizing Procurement
- Enhancing forecasting and demand planning
- Digitizing manufacturing and assembling
- Streamlining distribution and delivery
Typical Benefits:
- Relationships with customer
- 4-5% Sales Growth
- 2-3% Return on Sales
- 10-20% Reduction or reallocation in marketing spend.
- Product to market
- 5-10% Procurement cost savings
- 7-12% Supply Chain cost reductions
- 10-15% of Manufacturing cost reductions.
Support Functions
- 20-30% Increase in efficiency back-office reduction (Radical reduction in service levels - days to minutes)
- 50% Reduction in high performing employee churn.
Digitalization can accelerate new product launches by accelerating the development process using the agile MVP approach and increasing the reach and access to target customers. Virtual R&D reduces costs and time to market by bringing the cross-functional team together, which results in faster and more productive R&D. Time to market has seen a 15% reduction, value to proposition 20% increase and Development cost 15% reduction.
(Source: McKinsey & Abhinav Singhal)
Time innovations needed to reach 50 million users.
- Airlines 64 Years
- Automobiles 62 Years
- Mobile Phones 12 Years
- Pokemon Go 19 days.
How do I start working on digital transformation in my business?
First, it starts with finding the correct partner.
Source: Bain, Forbes: Stated that only 5% of digital transformation is fully successful. 5% Achieves or exceeds expectations. 20% Failed to deliver, producing less than 50% of the expected results 75% settled for dilution of value and mediocre performance. Only 30% invested deliver expected returns.
At TechFabric, we understand the challenges and apprehensions clients face in taking on the digital transformation partner. With our experience in implementing digital transformation, we have a structured methodology to keep our clients engaged and informed at every step.
Our process starts with the initial 'Discovery' of Digital Transformation opportunity. During this strategy phase, we engage the business to understand the requirements from their customer's point of view and lay-out a road map for digital transformation. The objective & outcome of the strategy phase is to build out a Minimum Viable Product (MVP) from which clients can visualize the opportunities. Once the MVP is built out, we then create a road map for the complete digital transformation of the business, which results in significant improvement in sales and operational efficiencies of the business.
TechFabric specializes in creating digital products that integrate the most popular CRM(s) and build out scalable applications that meet specific niche business requirements.
In the digital age, you may need much more than out-of-the-box functionalities to compete and thrive. You can rely on our robust custom software development team for CRM development.
Our analytical capabilities include machine learning and AI by certified developers. Reach out to the Tech Fabric sales team to learn more about getting the most out of your CRM initiative.
