Introduction:

In an increasingly data-driven world, with rapid technological advancements and inflationary strains, the leaders in our Business Transformation Community are facing more pressure than ever to drive digital transformation that delivers tangible business value – and this is no easy task. With the focus shifting from theories and ideas of AI to the practical realities of integrating AI systems, there is a new set of challenges that leaders must tackle. Here, this article features the real challenges that the leaders in our Business Transformation Community are facing. At the Business Transformation Exchange, in June 2024, leaders shared their insights and challenges about the realities of harnessing AI and the struggles they faced when trying to implement this new technology within their organisations.

Use this article as a roadmap to the successful implementation of AI technologies and learn what mistakes have already been made to ensure a successful path through this new technological world.

The Challenges of Digital Transformation:

TREND ONE: AI & Automation Challenges:

Defining clear ROIs for AI technologies is essential, yet challenging, as the benefits are often long-term and not immediately quantifiable. Additionally, AI should enhance the customer experience rather than complicate it, making it crucial for leaders to ensure a seamless and unified customer journey during implementation. Furthermore, the significant investment required across all areas of an organisation presents a substantial financial challenge to navigate.

TREND TWO: Digital Transformation & Integration Challenges:

As organisations grow and acquire new entities, they often face the complex and challenging task of integrating a variety of technology platforms. Encouraging users to adopt these new technologies and processes is another significant hurdle, as it often necessitates a shift in organisational culture that can be difficult to achieve. Additionally, weaving automation into existing processes and third-party solutions is far from simple due to compatibility issues and associated costs. Transparency regarding these costs and difficulties is paramount, and ensuring this transparency is essential for seamless transitions.

TREND THREE: Data Management Challenges:

Organisations today are grappling with the complexity of managing vast amounts of data, which includes ensuring data integrity, consolidating data from various sources, and integrating it into their systems. This process demands meticulous management and monitoring, requiring the construction of a robust data architecture and foundation. With the increasing reliance on data, maintaining cybersecurity becomes a significant challenge, as organisations must protect their data from cyber threats. As they undergo digital transformations, they must navigate the hurdles of delineating data and technology and defining their roles in the transformation efforts. Additionally, organisations face the challenge of not just managing current data but also propelling it forward to drive future growth and innovation.

TREND FOUR: Process Automation & Simplification Challenges:

Ensuring a reliable supply chain is a complex task that demands careful planning and execution, particularly when honing demand forecasts, which can be challenging due to unpredictable market conditions. The successful implementation of conceptualised data science models also presents significant challenges, especially in terms of practical application and integration into existing workflows. Organisations are further struggling with the task of integrating and centralising vast amounts of data sourced from various origins. Additionally, adopting new tools and simplifying processes require significant time and resources. As organisations incorporate more automation and adopt a ‘hands-off’ approach to streamline processes, they face the challenge of striking the right balance between automation and human intervention. This balance is crucial to ensure that automation enhances efficiency without compromising the quality of customer service or the ability of employees to perform their roles effectively.

TREND FIVE: Technological Adoption Challenges:

As organisations shift towards AI and RPA, enhancing applications at every customer interaction point becomes a complex task that demands careful planning and execution. The quest for partners capable of delivering scalable solutions adds another layer of challenge, as identifying and collaborating with these partners is no easy feat. Ensuring that individuals not only adopt new technology but also adhere to the new processes introduced alongside it is critical, involving change management and continuous training and support. Additionally, determining the processes that simplify tasks and foster improvement, as well as understanding the enabling technology behind them, can be intricate. Tracking the adoption of new technologies, eliminating barriers to adoption, and encouraging individuals to embrace the new work paradigm are essential aspects of this journey. Furthermore, establishing an open feedback loop across the organisation is crucial for generating fresh ideas and ensuring that everyone can contribute insightful and meaningful feedback to facilitate better decision-making.

Conclusion:

Download the full infographic to learn more about the 5 remaining top trends on how leaders are facing the challenges of implementing new AI technologies within their organisations. Join the European flagship of the world’s number one OPEX and Business Transformation event series at the Business Transformation Europe Summit, 29-31 October 2024, Amsterdam, Netherlands. The summit is the ultimate platform where you can contribute to the collective wisdom of the industry, helping to shape the future of business transformation practices in the age of AI.

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