When it comes to adopting digital and business transformation solutions, the industrial and manufacturing sectors top the list. This is an international, as well as a regional trend, especially considering that Dubai and the GCC are home to leading multinational enterprises.
World Economic Forum report indicates the top five sectors leading the digital transformation in the manufacturing industry. These include semiconductor, electronics, pharmaceutical, energy and chemicals, and logistics sectors. In addition, the emergence of e-commerce leaders such as Amazon, Alibaba, and others has influenced traditional logistics companies to become more agile and flexible.
No wonder then, the logistics sector is expected to go through a larger transformation in the years to come, especially with COVID-19 fuelling online shopping in a big way, globally.
The massive changes brought about by digital transformation also bring in their own set of concerns. Some of the most common challenges or reasons for failure include a lack of a clear strategy outlining business priorities, talent shortage, and resistance to change.
Research by McKinsey points out that 70% of all digital transformation programmes fail due to employee resistance and lack of support from management.
Digital and business transformation require collaboration between multiple stakeholders, teams, and departments. Failure to involve all departments in communication and decision-making leads to failed projects.
A common mistake that many enterprises make is to focus more on technology than on the people. Understanding how employees are evolving and adjusting to the change is key to the success of any technology-led transformative initiative.
Enterprises must also recognise the importance of involving CMOs, CIOs, and business units in technology initiatives. In other words, technology is no longer a domain that should be solely run by the IT department. Instead, a clear strategy, employee support, and collaboration are key to success in adopting digital and business solutions.
Top executives often face multiple challenges while adopting digital and business transformation solutions. To deal with these, business leaders should regularly update their management strategies to suit the current business climate.
It is expected that further adoption of technology and business solutions will lead to more changes in the way people work and conduct business. Hence, the management needs to be agile and adjust its system to accommodate further changes.
Besides updating management strategies, business leaders must also stay focused on evolving consumer needs. Also, company culture is often underestimated when it comes to business transformation; it is arguably the most important determinant of success.
Successful adoption of digital tools requires being ready to make big changes in the daily work process and embrace new ways of doing things. Enterprise leaders have a large role to play to ensure their employees are well-supported.
Technologies that can simplify user experience will be one of the biggest disruptors in the next few years. For example, 5G technology is expected to make voice calls and video calls easier and more accessible. In addition, Unsupervised Machine Learning or UML will disrupt how we leverage data for predictions and intelligence.
UML works without data labelling or training and is therefore expected to enable insights not previously possible. Human intelligence-based robotics and automation will also significantly change jobs as we know them today and create another level of user experience.
Similarly, the metaverse is complex and the idea of emulating reality raises a lot of concerns about data privacy and security as well as the physical and psychological effects of this technology.
Enterprises must consider how the metaverse will impact labour and employment, and their operations. Most importantly, enterprises are often compelled to implement new and emerging technologies for marketing purposes. However, there is a need to have a long-term plan for the metaverse as it is expected to take at least a decade until it fully becomes a reality.
From a technical perspective, enterprises must examine the impact of technologies enabling the metaverse, including Artificial Intelligence, the Internet of Things, blockchain and Big Data on jobs and industries. This also raises questions about accountability in the virtual world, including legal and ethical adjustments.
- Nearly 70% of all digital transformation programmes fail due to employee resistance and lack of management support.
- Lack of a clear strategy outlining business priorities and talent shortage impact enterprise digital initiatives.
- Culture, the biggest factor of success, is often underestimated when it comes to driving business transformation.
- Business leaders must regularly update their strategies as per consumer needs and business climate.
- Adoption of digital tools requires being ready for changes in the work process and the ability to embrace new ways of doing things.