Given the rapid pace of innovation, the world could look fundamentally different in the next ten years. But in 2023, many things changes at companies are more likely to be piecemeal.
The need for digital transformation has shaped business for decades. But with technology advancing faster than ever before around the world, companies need to get in shape to stay ahead of the curve.
The pace is accelerated by the first generation to grow up in the digital world, which has much less patience. This is why it could become a question of survival for many traditional companies if they do not adapt to a world defined by digital standards.
Difficult Digital Transformation
Digital transformation is not an easy undertaking. Figures from Boston Consulting Group (BCG) show that 94 percent of companies have great ambitions to achieve significant and rapid improvements through digital transformation, and 60 percent of companies plan to increase their investment in digital transformation even in the face of global economic headwinds.
Soberingly, about 70 percent of digital transformation projects fail, according to the «Mind the Tech Gap» study which surveyed nearly 2,700 executives in charge of digital transformation in companies across 13 countries among a wide range of industries.
Disruptive Technologies
Artificial intelligence (AI) is a technology now considered ready for mass adoption, while quantum computing is still very much in its early stages. While the metaverse moved past its hype phase, many consumers still doubt that this new type of internet will bring anything useful to the world, according to BCG.
The most promising developments are in advanced AI, blockchain, and the Internet of Things. These technologies can be used to support devices much more comprehensively and make decentralized decisions in real-time.
Pie-in-the-Sky
Analysts are promising much in the future from a combination of advanced AI, blockchain, and synthetic biology (synbio). The merging of these three things could solve the biggest challenges for businesses and the world.
If you believe the musings of the transformation fans, technological change will happen much faster over the next 10 years than in previous decades, thanks to the tremendous pace of innovation. What's more, people have a big appetite for more innovation, even if it is for pie in the sky.
Real Change is Difficult
Scaling is the biggest challenge in digital transformation. Many companies launch too many small initiatives because everyone wants to do something digital. This approach dilutes projects and makes large-scale adoption difficult.
The fundamental mistake is that companies underestimate how much change is needed to get value from the technology. According to the study authors, only 10 percent of the effort goes into developing breakthrough technology and another 20 percent into integrating that technology into an existing fabric.
Too Much Lab Work
The remaining 70 percent of the effort is spent on changing the organization, its processes, and ways of working. Many fail because other teams, other employees, and other processes are needed.
In addition, there has to be a commitment from the outset the technology introduced will be used. Failing that, and without providing resources for the team to work on and implement the initiative, it is just lab work.
Differing Needs
The capabilities of those using the technology must be distinguished from those who develop it.
For users of the technology, massive amounts of training are needed. It is not just a matter of explaining what AI can do, but rather, the concrete benefits and effects of a new solution have to be demonstrated.
As far as developers are concerned, such talent is highly sought after. Only a few companies can build entire ecosystems with complete teams that can deal with everything from blockchain to AI.
