A comprehensive tech strategy is essential to any future-ready IT strategy, providing a fundamental framework that guides technology’s role in supporting the business.

Research from Statista shows that many executives recognize technology investments as a valuable competitive advantage and want to reshape their entire business strategies around digital technologies. 

Adopting an appropriate technology framework allows businesses to standardize decision-making, highlight areas of improvement, prioritize tech investments, and streamline system upgrades.

In this article, we will define a technology strategy and explore some common technology frameworks businesses use, including examples of how they have been implemented successfully.

What Is A Technology Strategy?

A technology strategy is a detailed plan outlining how an organization will utilize technology to fulfill its goals and targets. 

The strategy supplements an organization’s overarching IT strategy and comprises key tenets, objectives, and methods related to the role of technology in business advancement. 

This involves determining technology’s prospective application within business environments, including identifying pain points and formulating a roadmap for implementing chosen technologies.

According to the IDC’s Worldwide Digital Transformation Spending Guide, global DX spending will reach $3.4 trillion in 2026, with a CAGR of 16.3% over the next five years.

The scope of a technology strategy transitions from broad to specific, with detailed strategies evolving from broader business ambitions. 

In the process, the technology strategy identifies the required capabilities to achieve these objectives based on the analysis of tangible business scenarios. 

Establishing a clear tech strategy is an essential prerequisite for any forward-thinking business, enabling them to leverage the benefits of technology in the most optimal way.

Why Is A Technology Strategy Important?

According to McKinsey, technology strategies have proven invaluable in helping organizations understand the scale of necessary change and think through interdependencies across various aspects.

Leveraging a strategic technology approach allows businesses to carve out a unique market position, streamline operations, manage risks robustly, utilize data effectively, enhance customer engagement, and prepare for future technological advancements.

Let’s take a closer look at why establishing a technology strategy is so important and some of the benefits that can be realized in doing so:

Competitive Edge

Through the strategic and thoughtful implementation of cutting-edge technologies, businesses can optimize their operations, increasing efficiency and productivity. 

This, in turn, paves the way for the enhancement of product or service quality, enabling organizations to better meet the shifting needs and expectations of their customers. 

An innovative approach such as this empowers companies to secure market dominance and a competitive advantage in the high-octane commercial world.

Operational Efficiency

Implementing a well-defined technology strategy enables efficient automation of routine tasks and seamless integration of various systems. 

This integration leads to the streamlining of processes, resulting in heightened productivity and cost reduction. 

With the elimination of manual efforts and the optimization of technological capabilities, organizations can improve operations resource allocation and bolster overall performance.

Data-driven Decisions

A well-defined technology strategy not only provides a clear roadmap for technology investments but also facilitates informed decision-making that parallels the strategic objectives of the organization. 

By establishing a comprehensive plan that considers the evolving technological landscape and the specific needs of the business, a strategy enables effective asset allocation and maximizes return on investment (ROI).

It also helps identify emerging technologies, assess their potential impact, and ensure that technology initiatives are in line with the long-term vision of the organization. 

Customer Experience Optimization

Cutting-edge technology tools such as AI and data analytics, when strategically applied, have the remarkable ability to enhance customer interactions in countless ways. 

Leveraging the power of AI allows businesses to uncover valuable insights into customer preferences and behaviors. 

This knowledge enables them to craft personalized experiences that boost satisfaction and cultivate enduring loyalty. 

Future Preparedness

Staying current with the latest emerging technology trends and proactively structuring their integration with a well-crafted technology strategy primes businesses for a future-ready state. 

This approach allows them not only to remain adaptable and relevant but also to seize new opportunities. With a keen focus on innovation, holistic learning, and proactive planning, organizations can position themselves as true digital transformation leaders.

What Is A Technology Strategy Framework?

A technology strategy framework plots the actionable approach a company will take to leverage technology in achieving its objectives. 

The framework provides a concrete roadmap for the acquisition, utilization, and management of technology resources, including hardware, software, and human capital.

The strategy often involves identifying key technology trends relevant to the business, establishing technology-related goals, and crafting action plans to meet these goals. This includes evaluating current technology infrastructure, identifying gaps and pain points, and determining the solutions to remedy them.

Different frameworks emphasize different aspects, such as IT governance, data management, cybersecurity, or digital transformation. 

For instance, the Technology Business Management (TBM) discipline guides organizations in managing and communicating the cost, value, and quality of IT services in a business context. 

A well-defined technology strategy framework ensures technology investments remain aligned with business goals and delivers maximum value. 

Technology Strategy Examples

Cloud Computing, Digital Transformation, and Data Analytics strategies characterize three of the top strategic approaches to technology that many leading organizations are currently pursuing

Let’s take a closer look at these areas of interest:

Cloud Computing Strategy

A cloud computing strategy enables organizations to operate on scalable, flexible cloud-based platforms. It involves moving data storage, processing, and management from on-premise servers to the cloud.

This strategy helps save on infrastructure costs, as companies only pay for the resources they use and can scale up or down based on demand. It also enhances accessibility, as employees can access data and applications from anywhere, anytime, improving collaboration and efficiency.

Depending on the organization’s requirements, they can opt for public clouds for cost-effectiveness, private clouds for enhanced security, or hybrid clouds for both.

Digital Transformation Strategy

A digital transformation strategy completely overhauls business operations by integrating digital technology.

It’s not just about updating systems; it’s about fostering a culture that embraces change, innovation, and continuous learning. 

In this regard, a DX strategy provides businesses with a vehicle for capturing the benefits of technology, delivering superior customer experiences, and creating bleeding-edge products and services.

It also improves operational efficiency by automating processes, enhancing data management, and facilitating real-time communication. However, successful digital transformation requires strong leadership, clear vision, and employee engagement.

As shown by McKinsey research—when organizations undertake a large-scale transformation, their efforts fail about 70 percent of the time.

Data Analytics Strategy

A data analytics strategy leverages advanced technologies to convert raw data into actionable insights.

Businesses can analyze vast amounts of data quickly and accurately by harnessing Big Data, Machine Learning (ML), and artificial intelligence (AI). This strategy enables businesses to forecast trends, optimize operations, and better tailor products or services.

For instance, predictive analytics can forecast customer behavior, while prescriptive analytics can suggest actions to achieve business goals. 

However, a successful data analytics strategy requires quality data, skilled analytics officers, and a culture that sees the value of data-driven decision-making.

Technology Strategy Framework Essentials

Developing and implementing a technology strategy involves steps crucial for aligning technology with an organization’s strategic objectives.

To fully understand the mechanics, let’s take a look at key touch-points essential to a technology strategy framework:

1. Goal Definition: An organization must explicitly outline strategic objectives and the role of technology in facilitating these objectives. Goals could encompass enhancing operational performance, boosting customer service quality, or reimagining products or services.
2. Technology Review: Investigate the existing technology environment within the organization and the larger industry. This entails cataloging current technology resources, evaluating their efficiency, and exploring emerging technologies that could provide a competitive edge.
3. Gap Recognition: Pinpoint any discrepancies between the organization’s existing technology capabilities and the requirements necessary to meet strategic goals. These gaps could be present in hardware, software, data management, security measures, and skill sets, among other areas.
4. Solution Exploration: Recognize potential remedies to address the identified deficiencies. Solutions could involve acquiring new technology, upgrading current systems, outsourcing, and cultivating new organizational competencies, among other initiatives.
5. Plan Development: Devise a comprehensive plan for deploying the identified solutions. The plan should encompass a timeline, necessary resources, responsibilities, and crucial performance metrics (KPIs) to track progress.
6. Implementation: Execute the devised plan, track advancement against the KPIs, and modify the plan based on feedback and evolving circumstances.
7. Ongoing Assessment: Regularly scrutinize and assess the technology strategy to verify its effective alignment with the organization’s strategic goals. Modify the strategy in response to evolving business requirements, technological advancements, and insights gained from implementation.

What’s Next For Technology Strategies?

As we look ahead, the potentially infinite potential of evolving technology calls for the constant introduction and reshaping of tech strategies for delivering value in both business and wider social zeitgeists.

IT leaders and CIOs can anticipate a landscape dominated by an accelerated pace of innovation, where agility and adaptability become essential survival skills for those companies chasing state-of-the-art status.

Artificial intelligence and machine learning will continue to evolve, offering organizations unprecedented capabilities to analyze data, automate processes, and improve decision-making. 

The adoption of cloud technologies will continue to surge, providing organizations with greater flexibility, scalability, and cost efficiencies. This will be complemented by the rise of edge computing, bringing computation and data storage closer to where it’s needed, improving response times, and saving bandwidth.

Cybersecurity, too, will take center stage, with solutions becoming more nuanced and complex as increasing digitization and connectivity raise new challenges and threats.

“It is our responsibility to take all measures possible upfront to ensure we increase our resilience over the years for an improved cybersecurity landscape in 2030 and beyond,” says Juhan Lepassaar, Executive Director at ENISA (European Union Agency for Cybersecurity).

The role of IT leaders and CIOs is set to become more strategic. They’ll be expected not just to manage technology but to drive business value, foster innovation, and continually transform. 

The emphasis will shift from merely keeping the lights on to using technology as a competitive differentiator and a catalyst for growth.

Ultimately, the future of technology strategies will be shaped by those who can blend technical acumen with business savviness and understand that at the heart of every tech strategy lies the goal of creating value for the organization, customers, and stakeholders.

The post What Is A Technology Strategy? Frameworks, Examples & Implementation appeared first on Digital Adoption.

It’s a real challenge. So it’s no surprise that lead generation teams have been joining forces with AI for years, as a vintage McKinsey report from way back in 2016 shows.  

However, the rise of generative AI has changed everything. Applying AI to sales opens doors to many use cases throughout the customer journey. And lead generation is no exception. Lead generation relies on big databases, repetitive tasks, and routine conversations. 

Generative AI is a natural ally of lead generation. If that’s news to you, this article will give you a rundown of how it works. 

We’ll start by providing a concise explanation of AI in lead generation. Next, we’ll introduce key techniques for leveraging AI in lead gen. We’ll then present an overview of the market’s available AI-powered tools for lead gen. 

Lastly, we’ll explore the significant risks associated with AI lead generation.

AI Lead Generation: The Basics

Lead generation is the process of identifying potential customers for a product or service. 

With AI Lead generation, the sales team applies the power of generative AI to their lead generation activities. AI tools can enhance the full process, from lead capture to outreach to the reactivation of old contact databases. 

AI has been used in sales and lead generation for some time. AI-powered analytics have helped companies use big data sets to discover the most likely prospects for years. AI tools have a track record of supporting efficient, effective, and reliable lead-generation activities. 

When we bring generative AI into the picture through ChatGPT, Bard, and 3rd party software, the benefits of AI for lead generation start to make a huge difference. 

Generative AI means that many tasks can be scaled rapidly and efficiently. Even if you spend monthly subscriptions for the right tools, AI tools can quickly deliver a startling ROI.

Right now, thought leaders in sales are keeping quiet about the limitations of AI-based lead generation. 

After all, everyone’s still in the first wave of hype about this new technology. But the challenges are easy to spot. Sales fundamentally rely on human empathy and connection in a way that the best AI bot cannot emulate. Intuition, networking, and decision-making capabilities are not AI’s strong suit.

Some of the features of AI lead generation 

Lead generation strategies include a wide range of activities. Lead gen professionals must find a target audience to generate leads, qualify leads (with lead scoring tactics), contact qualified leads, undertake lead nurturing tasks, and more. 

Sales and marketing teams may already have lead-generation strategies in place. However, generative AI can enter the process at every stage. Let’s take a look at some important possibilities for AI lead generation. 

Social media scraping

AI can help collect data from social media platforms like LinkedIn. 

With the right prompts, you can use AI to filter LinkedIn contacts by searching their profiles for specific and relevant terms. This helps identify potential leads that align with your criteria, saving both time and effort.

AI can also be employed to extract precise data from a large pool of profiles swiftly. This automated approach is a game-changer, as it accomplishes tasks that could take hours, days, or even weeks in just an instant. 

It’s important to note that while AI streamlines the process, compliance with platform rules is crucial to avoid any potential violations.

Segment leads quickly and effectively

A 2023 McKinsey report on AI in Sales explains that segmentation is one of the core capabilities of AI. With advanced AI algorithms, marketing and sales teams can ” identify segments with unique traits that may have been overlooked in existing customer data.”

Swift processing and deciphering massive datasets unveil valuable insights, identifying distinctive buying patterns and behaviors. 

This data-driven approach enables sales professionals to pinpoint precisely when and how to engage potential customers, tailoring their strategies accurately. 

With Generative AI as their ally, sales teams are better equipped to deliver personalized and compelling sales pitches that resonate with their audience’s unique needs and preferences, ultimately driving higher conversion rates and sales success.

Cold outreach

Once you’ve gathered your contact lists, modern generative AI lead generation tools can take your outreach to the next level. Personalization is the key for any business owner looking to generate leads, especially high-quality ones.

Text-based outreach is made effortless with generative AI. You can use chatbots to craft personalized messages by setting simple parameters. Sending these messages to your leads is as simple as a few clicks.

Another noteworthy advancement lies in AI-generated videos for personalized outreach. Creating a hundred unique videos has become fairly straightforward, enabling you to engage with your leads in a more personalized and impactful manner.

In one surprising statistic, a report from Gartner predicts that 30% of outbound marketing messages will be AI-generated by 2025.” 

Looking at the latest tech, it’s certainly possible. 

Lead generation Chatbots for initial contact

Chatbots are going to revolutionize the whole of the customer journey. But they are especially valuable when it comes to lead generation.

Bots act as initial filters for potential customers, especially cold leads. When a cold lead interacts with your website, the chatbot can swiftly gauge their interest and intent. 

The chatbot determines if the lead aligns with your ideal customer profile through specific questions and response analysis, aiding lead qualification. Should the lead meet the criteria, a seamless handover to a sales representative for further engagement is possible.

This streamlines the lead qualification process and ensures that your sales team spends their time on the most promising leads, ultimately boosting sales efficiency and conversions.

Chatbots are likely to be a major business sales tool in the future. This may seem a bit strange. But we’re not so far away from this reality. 

Reviving a dead database

While AI is gradually becoming integral to the entire lead generation process, it currently holds a unique role for older databases of potential leads.

With a “dead” database in hand, lead generators need some serious power to sift through the results: AI-powered engines are uniquely capable of this task. 

First, they identify segments within the database that show surprising promise. AI aids in swiftly identifying these segments and enables the automation of messages. 

Leveraging AI can help uncover overlooked or dormant opportunities and possibilities. This revitalization process allows you to tap into the full potential of your existing database and engage with high-quality leads effectively.

Database revival uses all the strengths of AI to create great results. But a human being must still operate the tools. 

Experienced lead generation experts, such as Dan Wardrope and Jamie Woods, are demonstrating their expertise and showing us how it’s done. You can see their valuable insights in action here.

AI lead generation tools to make your sales funnel move 

How will you start generating leads with artificial intelligence? The simplest way is with one of many third-party tools. 

When other AI lead-generation efforts fail, they prove to be highly valuable. For instance, scenarios like onboarding new staff, providing specialized training, and implementing prompt engineering from within may yield different results. 

If you’re looking for rapid results, these tools could help you reach your target audience: 

1. Instantly AI: Instantly AI offers artificial intelligence solutions to help businesses automate their processes and improve efficiency.
2. LeadZen: LeadZen is a lead generation company that uses AI to provide high-quality business leads.
3. Lyne AI: Lyne AI develops chatbots for businesses, helping them automate customer interactions and deliver excellent customer service.
4. Smartwriter: Smartwriter is an AI-powered writing assistant that can generate content across various formats, including emails, blog posts, and social media posts.
5. Copilot AI: Copilot AI leverages artificial intelligence to automate sales outreach, helping businesses connect with their target audiences more effectively.
6. High Level: High Level is an all-in-one marketing platform for businesses, combining CRM, email marketing, and other functionalities.
7. Gong.IO: Gong.IO uses AI to analyze sales calls and meetings, providing insights to help sales teams close deals more efficiently.
8. Enrich with AI: Clearbit’s Enrichment tool uses AI to provide businesses with comprehensive data about their customers, helping them make informed decisions.
9. Reachout with AI: Reachout with AI is a platform that uses artificial intelligence to automate and personalize email outreach.
10. bHuman.ai: bHuman.ai is an AI-powered platform that helps businesses build more human-like digital experiences.
11. Task Genie: Task Genie is an AI-powered task management tool that helps teams streamline workflows and improve productivity.
12. Getlead.ai: Getlead.ai is a lead generation platform that uses artificial intelligence to help businesses find and connect with their ideal customers.
13. Chatbros.ai: Chatbros.ai is a chatbot development platform that allows businesses to automate their customer service and improve customer engagement.

There are plenty of obvious advantages to using 3rd party software. 

These tools often bring expertise, advanced algorithms, and extensive data resources that may surpass in-house capabilities. 

Tapping into external AI solutions allows businesses to access more accurate lead insights, faster data processing, and innovative lead generation techniques. This enhances their efficiency in identifying and engaging high-quality prospects.

The risks (and limits) of AI lead generation

Like any business application of AI, AI lead generation mixes opportunities with AI risks. 

These risks of AI, in general, are well-documented. But what about the specific challenges when it comes to AI? 

Before you rush head-first into adding AI to your lead generation processes, consider these weak points: 

• Data scraping is prohibited by the terms of service on many social media platforms, including LinkedIn. If you use ChatGPT or Bard for invasive purposes – you could end up in big trouble with the LinkedIn police!
• Personalization still isn’t perfect. Of course, the developers of AI sales tools boast that their tools produce “real-life” content. But will customers be fooled? Tread carefully if you are using AI for customization.
• Privacy is a major issue. We still don’t know how AI engines use, retain, and re-package data. Mishandling or data breaches can lead to major legal and reputational issues.
• Costs and Investment. Implementing AI solutions can be costly, and businesses may not see a return on investment if the technology is not used effectively—the AI-powered tools listed above all charge hefty monthly subscription fees. 

Is AI the future of the lead generation process? 

Investing in an advanced AI lead generation tool can significantly propel your sales strategy forward.

After all, how many companies DON’T need to generate quality leads regularly? AI brings major efficiencies over traditional methods. 

This doesn’t mean you need to replace all of your sales staff overnight, far from it. 

As we’ve seen, AI tools can be most useful when taking over ONE part of the lead generation process at a time. You don’t need to convert every lead generation task to AI overnight to feel the benefits. 

Reviving a dormant database using AI hacks alone would be sufficient in and of itself.

More and more tools are being rolled out specifically to support lead generation. As the months roll by, finding an application that works well for your business needs will become easier and easier. 

The post AI Lead Generation: A Beginner’s Guide appeared first on Digital Adoption.

So, while AI adoption has quickly grown across many industries, the sector-specific pathways to AI maturity are unique. 

Globally, the financial services industries have emerged as the most significant early adopters of AI solutions. Healthcare and retail are hot on their tails.

In this article, we’ll dive into the realities of AI adoption in several of these key industries. We will:

• Examine the large-scale factors that make a difference to AI adoption rates;
• Summarize the barriers to AI adoption across industries;
• Explain examples, risks, and future plans for AI in the business operations of three key industries (finance, healthcare, and retail).

Since the advent of generative AI in late 2022, businesses have had to quickly get ready for an AI digital adoption process. Now that we have detailed research from international foundations, we’re starting to get a clearer picture of how AI adoption might work in the years to come.

And by the way, although we will mention “AI” in general, this article will focus on the new kid on the block generative AI  – in other words, AI in the age of ChatGPT and Bard.

AI adoption rates: what makes a difference?

As we move towards the end of 2023, why don’t more businesses use AI solutions? 

After all, in many standard white-collar workplaces, AI has a clear support role for the workforce. And 2023 research has shown that the costs of AI software and hardware are dropping dramatically. 

Although there are numerous technical risks and barriers, AI adoption depends on all kinds of factors. For example:

AI adoption can vary according to different business functions

Whether that’s HR, marketing, sales, or logistics. As March 2023 research from Statista shows, AI adoption rates are uneven across business functions with sectors, and across sectors.  

The term “AI” is a wide umbrella term

There are many types of artificial intelligence (and many types of generative artificial intelligence) and their adoption rates are not even. As US Census Bureau researchers demonstrated in a 2023 working paper,  different types of tech are adopted at radically different rates. If you want to be sure about AI adoption, you must be clear about the specific AI tools and AI technologies you are interested in.

AI Adoption varies significantly depending on job role.

42% of HR leaders surveyed in Gartner in 2023 leaders expected entry-level positions to be significantly impacted by AI. The same thing has, of course, happened before. The arrival of desktop word processing didn’t change things for CEOs. But in time, it resigned the secretarial “typing pool” that processed so many documents into history. AI adoption will be different at all levels of the company. 

AI adoption rates vary by country, continent, and geographic region. 

This connects with the relative cost of labor, the levels of digital transformation and digital maturity, and by industry. 

These factors remind us that the idea of “AI adoption” is far more complicated than we might want. In this article, we’ll keep things simple by focussing only on a sector analysis. We believe this is a useful choice, as in globalized industries, sector-specific demands are likely to be a driving force for more extensive AI adoption.

Cross-sector barriers to AI Adoption

Some of the barriers to AI adoption are present across all industries.

After the past year of global excitement about ChatGPT, extensive research has revealed many of the challenges of adopting AI in different businesses.

Looking at 2023 research from Statista, KPMG’s Generative AI Survey from 2023, and McKinsey’s “State of AI” report from 2023, some of the common barriers are:

• Recruiting specialist AI experts  

• Cost of AI implementation
• Lack of tools or platforms to develop models or AI algorithms
• Data complexity and related data privacy issues
• Project complexity
• Regulation and compliance
• Updating legacy software
• Customer expectations
• Workforce impact, including redundancies
• AI Strategy with ROI 
• Risk management
• Shadow AI

With these in mind, let’s take a look at the opportunities, risks, and future of AI applications in financial services, healthcare, and retail.

AI adoption in financial services

Financial services has been using AI more extensively than most other sectors. To understand the lay of the land, we’re lucky to have thorough 2023 research published by the International Monetary Fund (IMF). 

Examples of AI adoption in financial services

Generative AI has significant real-world applications for financial services business. 

Companies are showing how it can enhance fraud detection, improve investment decisions, automate document processing, and power in-house software development. 

These are proven, not speculative, use cases, with global companies harnessing generative AI to optimize their processes.

Risks

Amid the rapid AI adoption in finance, the sector grapples with well-acknowledged risks. 

These include issues of bias, privacy breaches, opacity, fragility, and cybersecurity threats. The sensitive nature of financial data magnifies these concerns, impacting wider financial security. 

Legitimate fears of Shadow AI have led numerous institutions to ban ChatGPT and similar AI tools.

The future

The future of the financial sector’s AI use promises innovation but carries limitations. 

Well-known problems with AI like hallucinations and context comprehension are especially significant. Vigilant monitoring is vital to ensure alignment with industry standards. 

Continuous oversight is crucial to strike a balance between AI benefits and risk mitigation, maintaining precision, transparency, and security in financial services.

AI adoption in healthcare

The healthcare industry already has a clear track record of digital adoption. AI tools are just the next step in the industry’s progress towards better outcomes. 

But for healthcare, the challenges of change management are especially precarious. Healthcare needs extremely careful change management – after all, a mistake could lead to very serious consequences. 

So it’s no surprise that a leading 2023 HBR article says that AI adoption “won’t be easy” in healthcare. But how can AI support healthcare? what are the risks? Let’s take a look.  

Examples of AI adoption in healthcare

AI tools have some very interesting possibilities in the healthcare sector. In the background, AI can accelerate scientific discovery; and on the client side, it can support healthcare professionals to make informed decisions. 

It can sometimes improve medical advice given to patients. And “under the bonnet”, it can alleviate the onerous burden of administrative tasks and paperwork. 

Risks

In healthcare, the transition to AI-driven solutions comes with high risks. The phenomenon of “switchover disruption” is not just an inconvenience – it’s about safeguarding patient lives and data. 

Moreover, doctors, nurses, and other support staff may themselves resistant to any new technology that might threaten their patients. 

As a result, shadow AI must be treated very carefully. Uncertain risks such as AI hallucinations and privacy breaches can have life-or-death consequences, depending on their position within the healthcare system.

The future

Since healthcare faces similar technical challenges to finance, it’s very important for companies to monitor their AI systems carefully. 

Companies in this position could use a digital adoption platform that is capable of handling AI. However, AI adoption in healthcare must also navigate the resistance to change in a compassionate field. 

This is a “human” challenge – not a technical one. Leaders must give staff a clear narrative about AI’s role, and actively reassure patients that their safety and privacy are their highest concerns. 

AI Adoption in Retail

In retail, adopting AI will change business processes and customer experience. There’s no “life or death” in retail. It’s just a matter of profit, efficiency, and good business. 

All businesses will be keen to implement AI in at least one function, consumer retailers are currently approaching AI adoption with caution. 

The US’s National Retail Federation has produced a particularly useful report on how the retail sector is handling it. 

Examples

In 2023, fully implemented case studies for the use of AI in retail are still emerging. The sector-changing plans are still speculative. 

These prospects include many possibilities. AI-driven inventory tracking across the supply chain, personalized customer styling recommendations, and generating AI models tailor-made for specific applications, are all on the horizon of global retail. 

AI also proves its worth in predicting in-store foot traffic, facilitating customer engagement through responses to reviews, enabling dynamic pricing strategies, and tailoring marketing communications on a customer-by-customer basis. 

Risks

In retail, as in the entertainment industry, the shift from creative human work to AI-generated output has sparked significant criticism. 

A critical concern revolves around the potential for mass unemployment if human roles are supplanted by AI counterparts. 

The sector leaders must strike a delicate balance. On the one hand, they should leverage AI’s efficiency – and on the other, safeguard employment among the global workforce. That’s a big challenge! 

The future

The future of AI in retail hinges on identifying the “right” opportunities, especially when existing systems function smoothly. Many businesses are taking a cautious approach, waiting to see how AI can seamlessly integrate into their business models. 

The most promising applications often emerge in multi-site businesses, requiring substantial infrastructure investment. Initiatives like the NRF working group are poised to bolster the adoption of industry-wide AI applications, providing a supportive ecosystem for the retail sector’s AI-driven transformation. 

As the industry navigates this transformative path, collaboration and innovation will be key to harnessing AI’s potential for enhanced customer experiences and operational efficiency.

AI adoption – what do we do now? 

In this article, we’ve focussed on the ins and outs of different industries- rather than AI adoption statistics, the range of digital technologies available, or the demands of natural language processing. Those are topics for another day.

There’s no doubt that many of the challenges and opportunities for generative “AI adoption” cut across businesses and sectors. That’s why so many third-party app developers are making good money from AI-driven software. 

But as soon as you go deeper, there are many factors that make a difference to AI adoption practices. As we’ve seen, the opportunities and challenges are different across sectors – but the specific business units, locations, and job roles will all make a difference too. 

As a result, tech-savvy business leaders should not be adopting AI solutions without the appropriate level of diligence. After all, we still haven’t got a fully mature ecosystem of AI tools. At the end of 2022, a Gartner analysis suggested that Generative AI was just a phase at the start of a “peak of inflated expectations” in AI’s hype cycle. 

So. 2023 is not the time to sit still – but it’s also not the time to go crazy. Now’s the time to prepare, listen, adapt, and implement when appropriate. And then, as the right solutions come, you will be able to implement them for maximum business results.

The post AI Adoption: A sector-by-sector guide appeared first on Digital Adoption.

These are the systems that have been running your critical operations, possibly for decades. 

However, in today’s fast-paced digital world, the term “legacy” often equates to outdated and inefficient— and almost everyone knows it.

A survey by InfoSys in 2023 found less than 1% of surveyed business executives said their organizations had yet to start on legacy application modernization.

Why? Because modern, efficient technology applications drive business growth.

In this article, we’ll teach you how to navigate the waters of legacy application modernization. This guide will help you revitalize your aging software and transform your business processes for the better.

What is legacy application modernization?

Legacy application modernization is the process of updating and transforming outdated software applications to align with current technologies and business strategies. 

This can involve moving to cloud-based platforms, rewriting the application’s codebase, updating user interfaces, or integrating with modern systems and APIs to enhance functionality, performance, and interoperability. 

The goal is to retain valuable legacy applications’ functionality while reducing maintenance costs, improving user experience, and ensuring compliance with current standards and practices. 

Modernization allows organizations to stay competitive and agile in a rapidly evolving technological landscape.

7-step legacy application modernization process

While digitizing existing processes can help you kickstart your digital transformation, the process of modernizing legacy applications isn’t just about keeping up with technology trends; it’s a strategic move to enhance agility, efficiency, and competitiveness in a market that waits for no one.

But how do you start this journey? 

If you’ve already tried modernizing your legacy apps, you might have found yourself grappling with the complexity of your existing systems and facing the daunting task of updating them without disrupting your business. 

That’s where our definitive 7-step guide comes into play. 

Step 1: Assessment and planning

Before you dive into modernizing your legacy applications, you need a clear understanding of what you have, what you need, and how to prioritize your actions. 

Carrying out a digital transformation assessment can help you out a lot through this process.

Start by taking inventory of all the existing applications within your business. Assess each application’s functionality, usage, and business value. 

Ask yourself: 

• Does this application still meet our business needs? 
• Can it integrate with new technologies? 
• What risks does it pose to our business, and what opportunities could we seize by updating it?

With this information, you can plan your modernization roadmap. 

This involves deciding which applications to retire, which to update, and which to replace. Prioritize your applications not just by their current state, but by their strategic value to your business. 

Some might need immediate attention because they pose security risks or incur high maintenance costs. Others might be candidates for a phased approach, updated in increments to minimize disruption to your operations.

Your plan should also outline the scope and scale of the modernization project. Set realistic timelines, allocate resources, and prepare for potential challenges. 

You’ll also need to engage stakeholders across your organization to ensure that the modernization efforts align with broader business objectives. 

By the end of this step, you should have a solid foundation for your modernization initiative— one that’s informed by careful assessment and strategic planning.

Step 2: Defining modernization objectives

Once you have assessed your legacy applications and have a plan in hand, the next crucial step is to define your modernization objectives. 

This step sets the stage for the desired outcome of your modernization efforts. You need to pinpoint exactly what you want to achieve through this process. 

Is it to increase operational efficiency? 

Enhance security? 

Improve customer experience? 

Reduce costs? 

Or perhaps it’s a combination of these objectives.

For each objective, establish clear and measurable key performance indicators (KPIs). 

These metrics will allow you to measure and track digital adoption and gauge the success of your legacy application modernization initiative. 

It’s also important that you align your modernization goals with your overall business strategy. This ensures every update contributes to the broader vision and direction of your company.

Consider the end-users of your applications during this process. Understand how modernization will impact their day-to-day activities and what improvements they expect to see. Your objectives should address their needs if you want to ensure the updated system provides tangible benefits.

You also need to factor in compliance, security, and operational requirements at this stage. 

Identify any industry-specific regulations that your updated applications must adhere to, and incorporate the necessary controls into your objectives. 

By setting comprehensive, strategic, and well-informed objectives, you create a targeted roadmap for the modernization process that is likely to result in a successful outcome.

Step 3: Choosing the modernization strategy

Selecting the right modernization strategy is pivotal. 

It’s not a one-size-fits-all situation; the strategy you choose must align with your objectives, technical requirements, and business constraints. 

Here are 5 common approaches you should consider:

• Rehosting: Often referred to as “lift and shift,” this strategy involves moving an application to a new hardware environment or cloud platform without redesigning the app.
• Refactoring: This involves making improvements to the code so it fits better with the new environment, which often means cloud optimization.
• Rearchitecting: Changing the application’s fundamental architecture to align it with modern requirements, often transforming monolithic applications into microservices.
• Rebuilding: Rewriting the application from scratch while preserving its scope and specifications.
• Replacing: Substituting the legacy application with a completely new software, typically off-the-shelf solutions.

Weigh the pros and cons of each strategy carefully:

• Rehosting might be quick and cost-effective but may not yield the same long-term benefits as more intensive methods.
• Refactoring and rearchitecting offer more substantial improvements at the cost of more extensive work and potential downtime.
• Rebuilding or replacing can be transformative, providing the opportunity to leverage the latest technologies and practices, albeit with significant investment in time and resources.

Your choice should hinge on several factors, including: 

• The expected lifespan of the application
• The need for scalability
• The ability to support future business needs
• Your budget

For example, if an application is critical and needs to be scalable, rearchitecting to a microservices architecture might be the right choice. Conversely, for an application that’s less critical and nearing the end of its utility, rehosting might be sufficient.

Document the chosen strategy for each application in your plan. 

Ensure every stakeholder understands the path and reasons behind it to secure buy-in and set appropriate expectations for the project’s outcomes.

Step 4: Technology stack selection

With a strategy in hand, it’s time to choose the technology stack that will bring your modernized applications to life. 

The technologies you select will underpin your applications for years to come and need to support the objectives you’ve laid out.

Here are seven things to think about when choosing your technology stack:

1. Compatibility: Your new stack should integrate seamlessly with your existing technology environment or with the components you plan to retain.
2. Scalability: Look for technologies that can scale with your business needs. As your business grows, your applications should be able to accommodate increased load without performance issues.
3. Sustainability: Choose technologies that are supported by a robust community or vendor, ensuring that they will be maintained and updated over time, safeguarding your investment.
4. Flexibility: Your stack should allow for adjustments and expansions in the future. Avoid overly rigid systems that can become your next legacy headache.
5. Performance: Assess the performance benchmarks of your potential stack, ensuring it meets the demands of your applications.
6. Cost-efficiency: Consider the total cost of ownership, not just the upfront expenses. Some technologies may offer lower initial costs but could be more expensive to maintain over time.
7. Expertise: Evaluate your team’s expertise and the availability of skilled professionals in the market. You may need to provide training for your staff or hire new talent.

Here’s how you might decide on your technology stack:

• If you’re rehosting, your primary concern may be compatibility with cloud environments.
• With refactoring or rearchitecting, look for stacks that offer the flexibility and performance improvements you need.
• If you’re rebuilding, you have the opportunity to select cutting-edge technologies that align with modern development practices like DevOps and continuous integration/continuous delivery (CI/CD).
• When replacing, the focus might be on selecting a vendor solution that best fits your business processes with the least customization required.

Remember, the choices you make now will affect your application’s relevancy, maintainability, and effectiveness long into the future. 

Take the time to research, test, and validate your technology choices against your modernization objectives before making a final decision.

Step 5: Migration and Implementation

The migration and implementation phase is where your planning and decisions translate into action. 

This single step can be complex and demands a meticulous approach to avoid significant disruption to your business operations.

For that reason, we’ve broken it down into eight sub-steps:

1. Develop a detailed migration plan: Outline every aspect of the migration process, including timelines, milestones, roles, and responsibilities. A phased approach often works best, migrating one application or system component at a time to minimize risk.
2. Data integrity: Data is often the lifeblood of your operations, so plan for its integrity carefully during the migration. This includes data mapping, cleansing, and validation processes to ensure that no data is lost or corrupted.
3. Security considerations: Data security and application security are paramount. Ensure that security measures are in place to protect sensitive information during and after the migration.
4. Testing: Rigorous testing before, during, and after migration is essential. You’ll want to perform unit testing, system testing, and integration testing to ensure that the applications perform as expected in the new environment.
5. Communication: Keep all stakeholders informed throughout the migration process. Regular updates can help manage expectations and reduce resistance to change.
6. Contingency planning: Have a rollback plan in case something goes wrong. It’s crucial to be able to revert to the old system if necessary, without data loss or significant downtime.
7. Training: Your end-users and IT staff will need training on the new systems. Ensure that training programs are in place so that everyone is up to speed with the new processes and technologies.
8. Support: Plan for immediate post-migration support to address any issues quickly and to help users adapt to the new system.

For each of these steps, adopting an iterative approach can help. By implementing in stages, you can adjust plans based on feedback and results from each phase. 

This reduces the likelihood of major setbacks, as issues can be dealt with when they are still small and manageable.

When the rubber hits the road in this phase, remember that the ultimate goal is to ensure a smooth transition that maintains business continuity and leverages the full potential of your modernized applications.

Step 6: Monitoring and optimization

You’ve migrated legacy applications and implemented new ones, but your job isn’t over yet.

The real test begins when your modernized applications go live. 

Monitoring their performance and optimizing them for efficiency and effectiveness is a continuous process. Here are 8 things you must do:

1. Measure against monitoring metrics: You’ve already set up key performance indicators (KPIs) based on your objectives. These might include system performance, user satisfaction, or financial metrics like return on investment (ROI).
2. Use monitoring tools: Implement monitoring tools to keep track of the system’s performance. This covers tracking uptime, response times, error rates, and usage patterns.
3. Gather user feedback: Your users are a key source of insights. Collect their feedback to understand their experience and identify areas for improvement.
4. Iterative optimization: Make continuous improvements based on monitoring data and user feedback. This may involve adjusting configurations, optimizing code, or adding features.
5. Performance tuning: Adjust resources and settings based on performance data to ensure that your applications are functioning efficiently.
6. Security updates: Regularly update your applications with the latest security patches and stay aware of emerging threats.
7. Cost management: Keep an eye on operational costs and optimize resource use for cost efficiency, especially in cloud-based environments.
8. Disaster recovery planning: Continuously improve your disaster recovery plans with the insights you gain from ongoing monitoring.

Active monitoring and optimization ensure that your applications meet initial expectations and evolve with your business needs, maintaining their strategic value and supporting your business as it grows and changes.

Step 7: Embracing change for long-term success

The final step in legacy application modernization is to sustain the momentum of change for lasting success. 

This involves a continuous commitment to your team’s growth, fostering a culture of adaptability, and establishing robust support systems for your modernized applications.

Training staff on new systems and processes

Empower your team through employee training after any business transformation. The new systems and processes might be a significant departure from what your staff is accustomed to.

• Develop comprehensive training programs to bring all users up to speed with the new systems.
• Provide regular workshops and refresher courses to ensure ongoing proficiency.
• Consider mentoring or coaching to support staff through the technical transition.

Managing the cultural shift within the organization

Modernizing applications often necessitates a cultural transformation. Employees need to adapt to new workflows, which can be challenging.

• Communicate the benefits of the new system clearly and frequently to build support.
• Encourage a mindset of continuous improvement where feedback is sought and valued.
• Recognize and reward adaptability and initiative in learning the new system.

Ensuring continuous support and maintenance

Modernized applications require continuous attention to operate smoothly and evolve with your business.

• Set up a dedicated support team to address any technical issues promptly.
• Implement a maintenance schedule that includes regular updates and security checks.
• Plan for long-term support from your vendors or partners to ensure your modernized applications are always running the latest software and features.

By focusing on these areas, you ensure that the investment in modernizing your legacy applications translates into sustainable, long-term value for your organization. 

It’s not just about new software; it’s about ushering in a new era of efficiency, agility, and growth for your business.

Seizing the future with legacy application modernization

The journey of legacy application modernization is comprehensive and multifaceted. 

By following our 7-step plan, you have not only upgraded your technological assets but also positioned your business for future growth and innovation. 

Your modernized applications are now designed not just for the present but are also scalable for future demands. The work doesn’t stop here; technology and markets are ever-evolving, and staying ahead means maintaining the pace of continuous improvement.

By successfully modernizing your legacy applications, you have crossed a crucial bridge in digital transformation. This endeavor goes beyond technology—it’s a fundamental shift in how your business operates and thrives in a digital-first world. 

As you move forward, remember that the true measure of your modernization’s success will be how well it enables your business to adapt to future changes and seize new opportunities. 

Your modernized applications are not just a new foundation for your business operations; they are a launchpad for your next chapter of innovation and growth.

The post Legacy application modernization: The definitive 7-step guide appeared first on Digital Adoption.

Despite efforts and massive investment, our State Of Digital Adoption 2022-23 report shows that the average enterprise wastes USD 17 million annually on missed digital transformation goals. Hitting these goals is challenging but can be manageable with the proper guidance. 

This article will show you 15 initiatives with examples to guide you on the path to high-impact, low-cost IT initiatives via the following topics:

• What are low-cost, high-impact IT initiatives?
• Why are low-cost, high-impact IT initiatives important?
• 15 High-Impact Low-Cost IT Initiatives with examples 2023

Let’s begin by looking at what IT initiatives are. 

What Are Low-Cost High-Impact IT Initiatives? 

The most significant factors influencing IT initiative decisions are change management and resource management, so low-cost, high-impact initiatives balance cost and effectiveness. This approach ensures less financial risk and higher success with innovative IT initiatives, boosting employee motivation and revenue.

Why Are Low-Cost High-Impact IT Initiatives Important? 

Low-cost, high-impact IT initiatives help to connect technology and operations with business goals and tell us how to use different technologies to reach these goals. IT initiatives also guide us in upgrading our technology if we want the company to improve in an impactful, cost-effective way.

15 High-Impact Low-Cost IT Initiatives with examples 2023 

It’s helpful to look at as many high-impact, low-cost IT initiatives with examples to ensure digital transformation success in 2023. 

1. A2P (App to Person) Messaging

A2P messaging and CPaaS (communications platform as a service) solutions are available and cost less, especially in the U.S. These messaging tools can help your organization improve its digital experiences without expensive changes to internal systems.

Example:

A2P helps businesses send messages automatically, which includes automatic messages when customers message in after business hours or send many notes simultaneously. It can also help you message customers about order details.

2. Alignment With Known And Accepted Frameworks

Your IT team needs to do as much work as possible on their own, which promotes alignment with their known and accepted frameworks. Doing so will help prepare them for outside help when the resources are available to hire third-party specialist support.

Example:

Change frameworks, including Lewin’s Model, ADKAR, and Bridge’s Transition Model, can guide IT initiative success within a digital transformation. It is essential to review frameworks regularly, as our State Of Digital Adoption report shows that 60% of enterprises say their change management programs are no longer fit for purpose. 

3. Usage Analytics

Usage analytics is a way to watch how people use services internally and externally. Data helps show what is working and what isn’t, allowing you to make critical decisions. Putting analytics in place doesn’t cost much, yet they often increase ROI significantly as they maintain a data-driven decision-making approach. 

Example:

Utilize usage analytics to collect data to assess the success of the digital adoption of a new software solution. Do so with analytics, such as which tools are most popular with employees, overall product performance, and employee engagement. 

4. An Infrastructure-As-Code Model

Digital transformation success depends on how companies use technology to do their work, and an infrastructure-as-code model is a good example. It helps them take a more cloud-based approach by using a code-based system. Doing so brings extra benefits such as better security, records of changes, and better tracking of digital tools usage.

Example:

Some tools that help you manage computing services are AWS CloudFormation, Red Hat Ansible, and SaltStack.

5. Tech Consolidation

Consolidating shadow IT and the tech stacks, cloud, and software can increase revenue for your organization. It also helps reduce financial risk, promoting business sustainability.

Example:

You may need technology consolidation after product replacement or acquiring a new business unit. These are times to review and change operations due to your evolving needs.

6. Utilizing Every Piece Of Company Data

Look at all the data from your company. Consider what data collection methods you need to improve and what data and processes you no longer require. This approach will save money and time as you utilize every piece of company data and identify and fix security weaknesses.

Example:

Using a Single Source Of Truth (SSOT) is helpful to help you utilize every piece of company data to avoid storing invalid data and ensure everyone knows where to access relevant data. 

7. Establishing Clear Business Priorities

Technology can help you reach your goals, but you need to know what is essential and what isn’t. Teach employees the basics of the process of building a strategy. This knowledge will help them better understand the systems they are following as they apply the data on how to succeed and how their organization makes decisions to establish priorities.

Example:

Your company may have several business priorities that link together. If you train your staff well and seek their feedback on new digital tools as part of a digital transformation, you prioritize empowering employees, staff retention, and upskilling. 

8. Moving From On-Premise Infrastructure To The Cloud

Some companies use legacy systems due to familiarity and the fear of change. Moving to cloud-based services like Workday, ServiceNow, and Salesforce can save money in the long run and help your company grow. 

Example:

Many services are available that support cloud software, such as AWS, Google App Engine, and CloudHub. 

9. Testing Code With Kubernetes

You can use containers and Kubernetes to test code within IT initiatives for a digital transformation project. Testing code like this is low risk and helps you learn quickly, as you get results without using the cloud or worrying about security. Use software trial periods to learn more, build confidence, and experience the cloud-native world.

Example:

Testing code with Kubernetes is applicable when building custom software as it helps ensure the software fits the organization’s needs throughout the building process. 

10. Staff Upskilling Programs

In today’s market characterized by innovation and change, acquiring new technology and learning how to use it is essential. Companies must invest in employee training to be ready for changes in the digital world.

Example:

Upskilling is perfect for when you promote internally. Ensure that you utilize the correct type of upskilling for the need of the employee. For example, mentoring or coaching would be the best form of upskilling for internal promotion so the departing employee can teach the newly promoted employee the skills and responsibilities of their new role.

11. Automating Costly Manual Processes

Automating costly manual processes is at the heart of low-cost, high-impact IT initiatives. To achieve this, look for tasks that cost a lot of money or make it hard for employees to complete tasks. Focus on streamlining these processes. 

There are ways to do this without spending substantial amounts of resources, and it will help you change how things get done quickly, as well as help you learn how to carry through this approach to every workflow optimization task in the future. 

Example:

Examples include chatbots to respond to basic customer service queries, data entry for recruitment and hiring, and digitizing outbound and inbound email communications with customers. 

12. Auditing Existing SaaS Apps

To audit existing SaaS apps, look at each of your company’s applications and what function they serve in the business. This information will help you decide if you should keep using them and how many resources you should allocate to each one or if you must acquire new software solutions.

Too many cloud storage or messaging vendors can be expensive, so consider app and vendor management processes to ensure you regularly audit the value of vendors and apps.

Example:

Business continuity planning (BCP), which involves a plan to help companies recover from threat-related incidents, is one of the reasons to audit existing SaaS applications.

13. Focusing On Customers

Think about where you can make changes, not what changes to optimize the customer experience. In addition, consider how you can improve customers’ lives after buying your product with customer support.

If you want to make changes, start with what your customers need first, as they drive your sales, and the data they provide is essential to ensure you meet their needs and your revenue grows. 

Example:

There are many ways to show your customers you value them. A few examples are continually offering customers new services and technological tools, collecting feedback, and constantly acting on it to improve your service offerings.  

14. Building A Culture That Supports Transformation

Digital transformation starts and ends with people: your employees. Despite significant resources, transformations don’t work if people oppose the changes. To ensure success, communicate clearly and involve everyone in decisions. Building a culture supporting transformation is an excellent way to initiate changes with minimal cost.

Example:

Several approaches exist to build a culture that supports transformation. To achieve this, create a safe environment for employees, prioritize values over revenue, and offer and accept feedback and recognition. 

15. Investing In Collaborative Tools

Employees learn most about a transformation’s effectiveness when leaders show the team how valuable something is, not how much it costs. Investing in collaborative tools like Slack and Teams can promote employee productivity, save money on training new people, and move your work online.

Example:

Slack, ProofHub, and Trello are all examples of collaborative tools which help your staff work together to improve business operations and are particularly useful within digital transformations, where collaboration is critical to success. 

To Enjoy IT Initiative Success, Prioritize Your Staff

Implementing low-cost, high-impact IT initiatives will create a stronger foundation for success, even though the road to the digital experience for your customers and staff may be bumpy. As discussed in this blog post, you can use fifteen low-cost initiatives to maximize performance, from IT strategies to collaboration tools. 

The key to enjoying IT initiative success is prioritizing your staff and investing in sustainable training that allows the workforce to remain upskilled and informed. By equipping your team with the right technology — a proper combination of skills and the ability to embrace change — your organization will enjoy future digital transformation successes in 2023 and beyond.

The post 15 IT initiatives with examples for 2023 appeared first on Digital Adoption.

Consistently undergoing periods of digital transformation is crucial for the airline industry to survive and succeed in the long run. In the past, airlines have utilized digital tools to remain competitive and reduce operational costs. With those same digital technologies becoming more pervasive and integrated into operational processes, airlines must take the digital transformation plunge to remain relevant and profitable in the years to come.

The increasing demand for personalized travel experiences, coupled with technological advancements, has created a need for airlines to embrace digital transformation meaningfully. By integrating digital technology across all facets of their operations, airlines can enhance IT efficiency, improve customer experience, and ensure passenger safety.

This article will discuss the importance of digital transformation in the airline industry and provide practical steps that airlines can take to ensure a successful transition. It’s important to note that the digital transformation process is ongoing; airlines must continually revisit and refine their strategies to remain competitive.

How does digital transformation affect the airline industry?

Advanced technologies like cloud computing, big data analytics, AI, machine learning, and IoT have helped the airline industry undergo a huge digital transformation. These technologies have enabled airlines to collect, analyze, and act on vast amounts of real-time data, fundamentally changing how the industry operates.

Some of the main ways in which digital transformation impacts the airline industry are listed below: 

Improved Operational Efficiency:

• Big data analytics and machine learning algorithms have helped airlines to optimize flight schedules and routes, minimize fuel consumption, and reduce delays.
• IoT devices can monitor aircraft performance, detect maintenance issues, and perform predictive maintenance, allowing airlines to reduce downtime and improve safety.

Personalized Passengers Experience:

• Airlines use AI-powered chatbots and virtual assistants to provide passengers with real-time assistance.
• Mobile apps allow customers to book flights, manage itineraries, and access other travel-related services.
• Airlines can create tailored offers and promotions by analyzing customer preferences and behaviors, improving customer satisfaction and loyalty.

New Revenue Streams:

• Leveraging big data analytics and AI technologies, airlines can identify opportunities for upselling and cross-selling, such as offering premium seats or in-flight services.
• Using IoT devices to collect data on passenger behavior and preferences can help inform the development of new products and services.

Key digital aviation advancements

The aviation industry has been soaring to new heights with advancements in digital technology. These cutting-edge innovations have transformed how passengers travel and improved flight safety, efficiency, and comfort.

Here are some of the most creative and unique digital advancements that have taken flight in the aviation industry:

1. Virtual Reality Training: Virtual reality technology is being used to simulate real-life scenarios for pilots and flight attendants. These simulations help them build skills, react quickly, and learn from mistakes in a safe environment.
2. Biometric Scanning: Biometric scanning has become more prevalent in airports, allowing for seamless check-ins, security screenings, and boarding pass verification. Passengers can use facial recognition, fingerprint, or iris scanning to speed up the process.
3. Blockchain for Flight Records: Records and maintenance history are securely stored using blockchain technology. This creates an easily accessible record that is tamper-proof and can only be accessed by authorized parties. This enhances efficiency and lowers the risk of errors or fraud.
4. Artificial Intelligence for Flight Planning: AI algorithms optimize flight routes, fuel consumption, and other variables to increase efficiency and reduce costs. This technology also helps pilots anticipate potential hazards and make better-informed decisions during flights.
5. Environmental Sustainability: Airlines use digital technology to reduce their carbon footprint and improve sustainability. This includes using renewable energy sources, reducing waste, and using electric or hybrid aircraft.

The digital transformation of the airline industry explained

The airline industry has undergone significant changes in recent years due to digital transformation. From booking flights to in-flight entertainment, airlines have embraced technology in various areas to enhance customer experience and improve operational efficiency.

Here are some key points regarding the evolution of the airline industry in relation to digital transformation:

Online Booking Systems

The introduction of online booking systems has been a game-changer for the airline industry. With the rise of the internet, customers can now easily book flights from the comfort of their homes or offices without needing to go to a travel agent or airport.

Airlines quickly recognized the potential of this new technology and began investing heavily in user-friendly websites and mobile apps. This shift to online booking systems has led to faster ticket sales, lower costs, and increased airline revenue.

Mobile Apps

Mobile apps have become essential to modern life, and airlines have leveraged this technology to provide better customer service. Most airlines now offer their own mobile apps that allow passengers to access flight information, check in, and receive boarding passes.

Some airlines have also integrated additional features in their apps, such as baggage tracking and in-flight entertainment. Mobile apps have improved the customer experience and reduced airline operational costs by eliminating the need for printed boarding passes and other paper documents.

In-Flight Entertainment

In-flight entertainment has come a long way since the days of shared screens and limited options. With the advent of personal devices and internet connectivity, airlines have transformed the in-flight entertainment experience. 

Passengers can now access various movies, TV shows, games, and music through their personal devices or seat-back screens.

Airline companies have invested heavily in upgrading their in-flight entertainment systems to keep pace with customer demands and offer a better flying experience.

Data Analytics

Data analytics has emerged as a crucial tool for airlines to improve operations and boost revenue. Airlines can make informed decisions about pricing, route planning, and marketing by analyzing data from various sources, such as flight schedules, customer behavior, and social media.

Data analytics can also predict future demand and optimize flight schedules, reducing costs and improving efficiency.

Customer Relationship Management

Customer relationship management (CRM) has become integral to the airline industry’s digital transformation journey. By collecting and analyzing customer data, airlines can gain insights into their preferences and tailor their services accordingly.

CRM systems can also help airlines personalize their marketing campaigns and offer targeted promotions to loyal customers. Improved customer relationships lead to increased revenue and loyalty, and airlines have invested heavily in CRM systems to achieve these goals.

Airline digital transformation industry use cases

We have compiled a list of companies in the airline industry that have implemented digital transformation and described the changes they have made.

Emirates Airlines

Emirates Airlines has leveraged digital transformation to offer its customers enhanced convenience and personalized experiences. The airline’s mobile app allows passengers to manage bookings, check flight status, and access entertainment options, reducing dependency on traditional paper-based processes.

Emirates Airlines has also invested in advanced systems that provide passengers with real-time updates on flight status while improving the efficiency of operations. Moreover, the airline has used digital marketing to increase its reach and revenue.

Delta Air Lines

Delta Air Lines has embraced digital transformation by implementing various technological initiatives to enhance the customer experience and streamline operations. Delta offers passengers self-service options such as mobile apps, kiosks, and baggage tracking, reducing costs and wait times.

Delta has also leveraged data analytics and artificial intelligence (AI) to optimize flight scheduling and maintenance and personalize the customer experience. For example, their proactive rebooking tool uses AI to reduce wait times and improve customer satisfaction rates.

British Airways

British Airways has implemented digital transformation strategies to improve the customer experience through personalization and convenience. The airline has introduced self-check-in kiosks, mobile apps, and onboard Wi-Fi, enabling passengers to stay connected and entertain themselves during flights.

British Airways has leveraged data analytics and machine learning to optimize flight schedules, personalize the customer experience, and reduce operational costs. For instance, their “Know Me” program uses data to recognize and address individual customer needs, while eCommerce and social media have helped expand the airline’s reach.

Lufthansa

Lufthansa has embraced digital transformation by introducing self-check-in kiosks, mobile apps, and automated baggage systems. These innovations have streamlined operations and reduced costs while providing passengers an enhanced travel experience. Moreover, Lufthansa has leveraged data analytics and machine learning to optimize flight schedules, improve predictive maintenance, and personalize the passenger experience.

Their “Flightpass” program offers personalized flight packages based on individual preferences and travel patterns while investing in eCommerce and social media has helped the airline reach new customers.

Air France-KLM

Air France-KLM has embraced digital transformation by investing in technologies that provide passengers with enhanced convenience and personalized experiences. The airline’s mobile apps, self-service kiosks, and onboard Wi-Fi allow passengers to stay entertained and connected during flights, reducing costs and wait times.

Air France-KLM leverages data analytics and machine learning to optimize flight schedules and personalize the customer experience. Their “Best Offers” program uses data to offer personalized flight packages based on individual preferences and travel patterns. Furthermore, Air France-KLM has invested in eCommerce and social media to expand its reach and enhance customer engagement.

Practical steps that airlines can take to ensure a successful digital transformation

Digital transformation in the airline industry is crucial for staying competitive and meeting customer expectations.

With the advancement of technology, airlines can improve the passenger experience, increase operational efficiency and generate new revenue streams.

However, a digital transformation isn’t easy, and it requires a well-planned strategy, investment, and change management. Here are some practical steps that airlines can take to ensure a successful digital transformation transition: 

1. Define your digital strategy: The first step toward a successful digital transformation is to define a clear strategy that aligns with your business objectives and customer needs. This should include identifying areas where digital technology can make the biggest impact, such as personalization, automation, and data analytics. It’s also essential to prioritize investments based on ROI and create a roadmap for implementation.
2. Invest in technology and infrastructure: A successful digital transformation requires investment in technology and infrastructure. This includes upgrading legacy systems, implementing cloud-based solutions, and integrating multiple platforms. Airlines should also invest in cybersecurity measures to protect against cyber threats and data breaches.
3. Empower employees: Digital transformation is not just about technology; it’s also about people. Airlines should invest in employee training and development to ensure they have the skills and knowledge necessary to adapt to new technologies and processes. Employees should also be involved in the planning and implementation to ensure buy-in and alignment with the company’s goals.
4. Emphasize customer-centricity: Digital transformation should be focused on improving the customer experience. Airlines should use technology to personalize the passenger journey, from booking to post-flight follow-up. This could include AI-powered chatbots, mobile check-in, and personalized loyalty programs.
5. Leverage data analytics: Data analytics is critical for a successful digital transformation. Airlines should collect and analyze customer data to drive personalized experiences, improve operational efficiency, and identify new revenue streams. This includes using predictive analytics to optimize flight schedules and pricing strategies.
6. Collaborate with partners: Airlines should collaborate with partners, including technology providers, to accelerate their digital transformation journey. This includes forming strategic partnerships with startups and other innovators to bring new ideas and solutions to the industry.

Airline digital transformation: What’s next?

The airline industry continues navigating a rapidly changing landscape, and digital transformation has emerged as a critical component for success. Implementing cutting-edge technologies such as predictive maintenance, augmented reality, blockchain, robotics, and biometrics is expected to revolutionize various aspects of the airline industry.

These digital technologies have the potential to enhance the efficiency of operations, optimize maintenance schedules, improve customer experience, and increase safety. For instance, augmented reality can provide an immersive experience for passengers, while predictive maintenance can help airlines avoid downtime due to equipment failure. Blockchain technology can improve transaction transparency and security, while biometric technology can streamline airport processes.

It is clear that the adoption of digital technologies will continue to be a key driver of innovation in the airline industry. As airlines strive to remain competitive and agile in the face of uncertainty, investing in digital transformation will be crucial. By leveraging advanced technologies, airlines can gain a competitive advantage while providing customers with a more seamless and personalized travel experience.

The airline industry’s future hinges on its ability to embrace digital transformation. Airlines must keep pace with technological advancements to remain relevant in a rapidly changing world. Those who successfully navigate this shift will be well-positioned to thrive in an industry defined by innovation, agility, and customer-centricity.

The post Airline digital transformation: A digital-centric transition appeared first on Digital Adoption.

In this short article, we will introduce the key ways digital transformation can help procurement teams deliver fantastic results. 

• First, the article will explain the general ways that technology can support procurement; 
• Then, it will examine the key benefits and challenges; 
• Finally, it will go over the main trends for digital transformation in procurement for 2023. 

Even a tech-savvy procurement team may be worried about digital transformation. Fear not: there is plenty of support to get started quickly. 

This article is about how new technologies are changing the procurement process: it is not about procuring technology. The tech buying process is a separate issue. Procuring disruptive technology, such as Artificial Intelligence, is an important topic we will deal with elsewhere. 

What does digital transformation mean in procurement? 

When we use the word procurement, we are talking about the overall process of acquiring goods, services, or works from external sources. Procurement involves identifying the need for goods or services, sourcing potential suppliers, negotiating contracts, making purchasing decisions, and managing supplier relationships. It encompasses the entire lifecycle of acquiring goods or services, from the initial request to the final payment.

Across the procurement system, there are many risks of inefficiencies. Of course, traditionally, procurement was a manual process full of inefficient processes. Manual paperwork, fragmented data, and poor spending visibility all created challenges. 

Digital transformation (or DX) is implementing technology to achieve business results. It can help procurement professionals to manage complex tasks.  

Digital transformation for procurement is not a “one size fits all” process. It could include any (or all!) of the following activities: 

• Auditing existing technology systems and software infrastructure 
• Implementing new software covering e-procurement, supplier relationship management, and spending analysis
• Rolling out new hardware such as electronic signature devices, barcode scanners, and Internet of Things sensors 
• Providing training to staff and vendors on all appropriate systems. 

Digital transformation is, at its heart, a major change management process. And to make the most out of digital assets, you need to handle technology and people. So why do leaders choose to start this process? 

The benefits of procurement digital transformation 

Implementing digital transformation is costly, demanding significant license, hardware, and training investment. But it’s not just hype. E-procurement solutions bring major business benefits. Here, we’ll examine four top reasons for implementing digital transformation in procurement: risk management, process improvement, cost optimization, and relationship building. 

Risk management

Better risk management is one of the main drivers for digital transformation in procurement today by providing real-time visibility into supplier performance, compliance, and market conditions. It allows organizations to assess and mitigate risks proactively, such as supplier disruptions, compliance violations, or market fluctuations, through automated alerts, data analytics, and supplier collaboration tools.

Improve processes 

As we’ve already mentioned, procurement traditionally involves a lot of inefficient processes. Digital transformation improves process efficiency by automating manual tasks, eliminating paperwork, and enabling streamlined workflows. It improves strategic sourcing, reduces cycle times, minimizes errors, and enhances productivity through features such as e-procurement systems, electronic approvals, automated document management, and real-time data access, resulting in faster, more efficient procurement operations. 

Do the same things as before (but cheaper)  

Digital transformation in this field can also save costs compared to legacy systems. Digital procurement drives cost reduction by optimizing sourcing strategies, streamlining processes, and enabling data-driven decision-making. It helps organizations identify cost-saving opportunities, negotiate favorable terms with suppliers, reduce maverick spending, and improve contract management, resulting in lower procurement costs and increased savings. Progress in many business areas shows clearly that DX can reduce operational costs dramatically – and procurement is no different. 

Build better relationships 

Furthermore, there are vendor management benefits to digital procurement. Digital procurement fosters strategic relationship building with suppliers by providing tools for enhanced collaboration, performance monitoring, and communication. It facilitates sharing information, joint problem-solving, and innovation, leading to stronger partnerships, improved supplier engagement, and the ability to leverage supplier expertise for mutual benefits.

Three challenges for digital transformation in procurement 

Of course, it’s not easy to produce the best results from digital procurement technology. 

Whatever your starting point is, every company needs to implement a solid technology adoption strategy and develop a good understanding of change management principles. 

Fortunately, many procurement departments have undergone digital transformation, and we can learn from their successes and failures. For 2023, there are three key issues: long-term realization of ROI, cybersecurity, and unpredictable legislation. 

Digital transformation ROI takes time  

Unfortunately, DX is not a quick fix. 

A McKinsey guide to digital procurement explains it clearly: “Digital procurement transformation is like a marathon in which many companies drop out of the race early on, failing to get beyond an initial set of pilots.”  

There’s no question that DX initiatives in procurement require major investments in technology, infrastructure, and process redesign. As a result, it may take time to fully integrate and optimize these new systems, train users, and overcome any resistance to change. Organizations may experience a delay in realizing the return on investment (ROI) associated with their digital procurement initiatives. 

It pays to be patient: but not every company has this resilience. 

Cybersecurity issues 

Digital transformation introduces new vulnerabilities and risks related to cybersecurity. As procurement processes become more digital and interconnected, organizations must address the challenge of protecting sensitive procurement data from cyber threats, such as data breaches, hacking attempts, ransomware attacks, or unauthorized access.
Establishing robust cybersecurity measures, implementing secure systems, and ensuring employee awareness and training are critical to safeguarding procurement data and systems.

Changing legislative landscape 

Procurement activities are subject to various legal and regulatory requirements that can pose challenges during digital transformation. Organizations must navigate compliance with data protection and privacy laws, industry-specific regulations, international trade regulations, and other legal frameworks. Adapting digital procurement processes and systems to align with evolving legislation, ensuring data privacy and security, and managing compliance risks are key considerations in the digital transformation journey.

Trends in digital procurement for 2023 

The landscape of digital technology, business priorities, and procurement processes is constantly changing. At the time of writing, three trends are especially important. These include different types of speculation around disruptive technologies, the growing importance of data analytics, and renewed attention to cybersecurity. 

Let’s take a look at each aspect in turn. 

New hype 

First up, in 2023, the technological hype has changed. The mania for blockchain and NFTs has subsided. Although these technologies offered significant use cases for all aspects of supply chain management, those uses have not taken root in procurement.

But while some people still work away on Web3 applications, speculators are now pointing to the new possibilities of Chat GPT and generative AI for procurement. So, anyone interested in digital transformation for procurement should keep an eye on AI developments – they can significantly change the industry. 

Data for decision-making (and more) 

Secondly, data analytics continues to prove its worth as a valuable tool. With vast data generated throughout the procurement lifecycle, organizations can leverage data analytics to unlock useful information about supplier performance, spending patterns, market trends, and risks. Data analytics plays a crucial role in the digital transformation of procurement processes, helping leaders to identify cost-saving opportunities, optimize supplier selection, negotiate favorable terms, and enhance overall procurement strategies. 

Cybersecurity 

Thirdly, as digital transformation expands, the demands on cybersecurity procedures become increasingly important.  Cybersecurity is paramount in the digital transformation of procurement processes because it safeguards sensitive procurement data, protects against cyber threats, and ensures the integrity and confidentiality of information. With procurement operations increasingly digitized, the risk of data breaches, unauthorized access, and other cyberattacks rises. Effective cybersecurity measures mitigate these risks, instill trust in supplier relationships, and safeguard the entire procurement ecosystem, enabling organizations to operate securely and maintain the confidentiality, availability, and reliability of procurement data and systems. 

The procurement processes of the future 

This article has shown you the basis for digital procurement transformation. For a quick reminder, that means: 

• Digital transformation has serious implications for procurement 
• Successful digital transformation in procurement brings in major benefits (but it is not without its challenges for procurement leaders)
• The landscape of procurement technology is constantly changing (so make sure you stay up to date!). 

As a final point, let’s face it: digital workplaces are increasingly complex. Every employee uses multiple digital technologies every day. If you add new procurement software alongside everything else, there’s a high risk of getting things wrong: poor training, inefficient software usage, and more. 

That’s where a digital adoption platform can help. It can support your training demands, provide valuable insights into employee usage, and ensure your software solutions run efficiently. A DAP could be your friend if your digital transformation efforts are difficult to monitor.

The post Procurement Digital Transformation: Everything You Need to Know in 2023 appeared first on Digital Adoption.

However, with all the benefits technology brings, there are potential pitfalls, one of which is technology buyer’s remorse. According to a Gartner survey, 60% of technology buyers involved in renewal decisions regret nearly every purchase they make. 

This regret can be costly in terms of time and money and hinder business growth.

Technology buyer’s remorse can be a common experience when adopting and investing in new digital technologies. With the fast pace of innovation, consumers are constantly bombarded with new and improved products that promise to make their lives easier. Yet, the excitement of owning the latest gadget can quickly turn into regret when buyers realize they don’t need or use all of the features.

This can lead to a reluctance to adopt new technologies in the future, as consumers become wary of investing money and time into something that may not be worthwhile. As a result, companies need to develop innovative products and educate consumers on how to effectively integrate them into their lives to prevent technology buyer’s remorse and promote digital adoption.

Thankfully, there are steps that business owners can take to avoid buyer’s remorse when investing in technology. This article will explore the top five tips for making smart technology buying decisions that drive productivity, boost revenue, and navigate tech procurement without buyer’s remorse.

So, if you want to invest in the right technology for your business, read on to discover how to avoid buyer’s remorse.

What Is Technology Buyers Remorse?

Technology buyer’s remorse is a term used to describe the regret or disappointment that business users can experience after investing in a new technology product or service. Business users, such as managers, CIOs, or executives, often make large investments in technology solutions in the hopes of improving employee productivity and increasing profitability. When these solutions fail to meet expectations, it can lead to frustration and a sense of wasted resources.

This can happen for various reasons, such as inadequate research before purchasing, overhyped marketing claims, or poor implementation and support. In addition to negative impacts on the business’s bottom line, it can also lead to a loss of employee morale and trust in leadership.

According to the 2023 Forbes SMB Tech Trends Survey, 61% of SMBs in the US have experienced buyer’s remorse over a technology purchase they made in the past year.

To avoid technology buyer’s remorse, businesses should conduct thorough research, evaluate their needs and goals, and consider the long-term implications of the investment. Working with reputable vendors who provide excellent customer support and have a proven track record of success is essential.

Common Causes of Technology Buyer’s Remorse

Technology buyer’s remorse is often caused by a variety of factors. Here are some of the most common causes of technology buyer’s remorse:

Insufficient Research

One of the leading causes of technology buyer’s remorse is insufficient research. Companies may rush into a purchase without fully understanding the capabilities and limitations of the technology.

They may also fail to consider how the technology aligns with their long-term goals, which can result in the technology becoming obsolete or outdated quickly. Companies should thoroughly research potential solutions to avoid buyer’s remorse and ensure they align with their organizational goals and objectives.

Poor Communication

Another major cause of technology buyer’s remorse is poor communication between the company and the technology vendor. Misunderstandings and miscommunications can create unrealistic expectations, leading to disappointment when the technology fails to deliver as promised.

To avoid this, companies should communicate clearly with vendors and ensure that expectations are set early. Additionally, companies should work to build strong relationships with vendors to foster open and honest communication throughout the technology implementation process.

Total Cost of Ownership

The total ownership cost is another factor contributing to buyer’s remorse. While a particular solution may seem affordable upfront, ongoing maintenance, upgrades, and training costs can quickly add up.

Companies must consider the total cost of ownership before investing in new technology. This includes not just the financial costs but also the time and resources required to implement and maintain the technology.

End-User Involvement

Lastly, companies may experience buyer’s remorse when they fail to involve end-users in decision-making. Employees not consulted or trained properly may resist the new technology, leading to low adoption rates and wasted resources.

In order to prevent issues, it is recommended that companies engage with end-users throughout the process of selecting and implementing technology. This involves soliciting employee feedback and input, offering training and assistance, and ensuring that the technology is compatible with the needs and procedures of end users.

How to Avoid Technology Buyer’s Remorse

When it comes to technology purchases, businesses can often experience buyer’s remorse if not done correctly, leading to a waste of resources and dissatisfaction among employees. 

To avoid this situation, we have compiled a list of five tips for businesses to consider:

Avoid relying solely on IT

Technology buyers remorse is a common issue businesses face after purchasing new software or hardware. One way to avoid this is by avoiding relying solely on IT for making technology purchases. While IT plays an important role in the decision-making process, getting input from other departments is also important. 

Departments like marketing, sales, customer service, and finance may have specific needs that IT may not be aware of. So, involving these departments in the decision-making process can help businesses avoid technology buyers remorse.

Businesses can ensure that the purchased technology helps improve the overall business operations and meets the specific requirements of different departments. This can lead to higher employee satisfaction levels and better ROI for the business. In addition, involving other departments also helps create a sense of inclusivity across the organization and promotes collaboration.

Take into account the complete cost of ownership (not just the cost of subscription)

Businesses often make the mistake of only considering the subscription price of a technology solution while making a purchase decision. However, the total cost of ownership includes several other factors, such as implementation costs, maintenance costs, training costs, and more. If businesses fail to consider these factors, they might end up with a solution that is not feasible in the long run, leading to technology buyers remorse.

Therefore, it is essential to consider the complete cost of ownership while making technology purchases. Businesses can better understand the expenses of implementing and maintaining the solution in the long run. This helps make a more informed purchase decision and avoid surprises. Additionally, considering the complete ownership cost helps create a realistic budget for the technology purchase.

Define a distinct use case

One of the most common causes of technology buyers remorse for businesses is a lack of a distinct use case for the purchased technology. Before making any technology purchases, it is essential to define a clear use case that outlines the specific requirements and benefits of the technology. This helps align the technology with the business goals and ensures that the purchased solution meets the business’s specific needs.

Businesses can also better understand the transformation ROI by defining a specific use case for the technology. Additionally, it helps avoid unnecessary expenses due to purchasing technology that does not align with the business goals.

Obtain responses to precise and focused queries during software demonstrations

Software demonstrations are an important part of the technology purchase process. They allow businesses to see the software solution in action and gauge its effectiveness. However, asking precise, focused questions during the demonstration is important to better understand the solution’s capabilities.

By asking precise and focused questions during software demonstrations, businesses can avoid false expectations of the solution’s capabilities and ensure that the purchased technology meets the business’s specific needs. This can help reduce the chances of technology buyers remorse and improve overall employee satisfaction levels.

Look for feedback from other expanding enterprises

Another effective way to avoid technology buyers remorse is by seeking out feedback from other growing businesses. This can help businesses gain valuable insights into the effectiveness of different technology solutions and their implementation. Businesses can learn from the experiences of other organizations and make informed decisions about technology purchases.

Seeking feedback from other expanding enterprises also helps identify any potential issues that may arise during the implementation and maintenance of the solution. This can help create a more comprehensive plan for implementing the solution and ensure the purchased technology is feasible in the long run.

Navigating Modern Business Without Buyers Remorse

Navigating modern business without buyer’s remorse can be challenging, but it is not impossible. The key to avoiding buyer’s remorse is researching and making informed decisions backed by decision support systems (DSS). Take your time to evaluate all the options available to you, consider the pros and cons of each, and make sure that you are getting the best value for your money.

It is also important to communicate with your suppliers and vendors and to build strong relationships based on trust and transparency. This means being upfront about your needs and expectations and asking questions when unsure.

Remember that mistakes happen; it is okay to admit when a wrong purchase decision has been made. The most important thing is to learn from them and use that knowledge to improve the tech buying process in the future.

Following these tips allows you to navigate modern business without experiencing buyer’s remorse. Organizations can feel confident in their decisions and trust that they’re getting the best possible value for their money.

The post Technology buyers remorse: 5 tips to avoid it appeared first on Digital Adoption.

The challenge is that however positively your sales managers and reps feel about their employer, they are often afraid of change and how new additions to the company’s tech stack will impact their role.

The Salesforce platform is no exception to this rule of digital adoption, being the core of success when using the software effectively and for the best ROI as you improve Salesforce user adoption via effective software implementation.

When you carefully consider Salesforce adoption problems, it becomes easier to see the solutions and work alongside your staff to support them in achieving high user adoption rates and high ROI as part of a successful Salesforce implementation.

To help you tackle the main Salesforce adoption problems with effective solutions in 2023, we explore the following topics:

• Why are Salesforce adoption problems significant in 2023?
• What are the main Salesforce adoption problems in 2023?
• What are the barriers to overcoming Salesforce adoption problems?
• How can you overcome Salesforce adoption problems?

Why are Salesforce adoption problems significant in 2023?

Even in 2023, it is challenging to adopt new technology. 

Salesforce is no exception to this rule because digital transformation efforts must continuously adapt and incorporate new and existing digital tools. Still, sales reps, like any other employees, often resist change as this is part of human nature.

To overcome this challenge, business and IT leaders must adapt their change management approach to support staff to adopt Salesforce effectively and efficiently. 

However, several Salesforce user adoption issues stand in the way of effective adoption in 2023 that we will now explore. 

What are the main Salesforce adoption problems in 2023?

Adopting Salesforce involves not only updating technology but also shifting company culture. 

It is essential to have a comprehensive strategy that tackles the main Salesforce adoption problems in 2023 to ensure a seamless transition.

Lack of clarity

To successfully move from your current CRM to Salesforce, it’s essential to fully comprehend the features and disparities between the systems and recognize areas for improvement. 

A lack of understanding may hinder your ability to persuade your team to embrace Salesforce. Your communication plan should clearly outline the rationale for implementing Salesforce and convey the advantages it will offer to your employees.

Unstructured roll-out plan

It’s better to implement a phased rollout strategy instead of a full rollout for your organization to increase the likelihood of success. Doing so involves setting clear project timelines and beginning with a pilot group. 

Doing this lets you determine what works well for the pilot group and then scale up for other employees accordingly.

Incorrect integration and customization

Before launching Salesforce, customize and integrate the platform according to your requirements. 

Salesforce is a highly customizable and interoperable platform, so setting it up is essential to avoid hindering your workforce’s productivity and efficient user adoption after the launch.

Inadequate data Integrity and migration

Salesforce relies on quality data for optimal performance, and it is essential to ensure data accuracy during data migration to avoid poor results, as reliable and up-to-date data is crucial for users to obtain valuable insights from Salesforce. 

It is also important to note that data quality is influenced by both user inputs and validation, impacting user adoption. Remember the principle of “garbage in, garbage out.”

Complex content discovery

Making sure your teams use a complex application like Salesforce can be challenging. They may opt for legacy software if searching for information takes too long. 

To prevent this, prioritize easy access to information and automate processes to simplify the use of Salesforce for your teams.

Challenging Learning Curve

Becoming a Salesforce expert requires weeks of continuous training, including self-learning and instructor-led sessions. The time it takes to learn depends on how customized your instance is and how you intend to use it. 

However, even with this Salesforce training, you will not be guaranteed to become an expert, as it can be challenging to remember the flow and clicks necessary to execute tasks.

How can you overcome Salesforce adoption problems?

It is essential to consider how to overcome Salesforce adoption problems in an organized, structured way to ensure your sales reps don’t become frustrated and can understand the value of Salesforce and how to utilize it. 

1. Strong communication & involvement

Sales may wonder what to do if their sales team is frustrated due to insufficient involvement in decision-making, inadequate training, and poor communication.

To implement Salesforce as your CRM system, whether replacing an existing one or starting from scratch, follow these steps:

• Gather thoughts and requests at a team meeting.
• Utilize one-to-one meetings to collect individualized feedback user feedback.
• Empower champion users to spearhead training and user onboarding.

2. Increase login & usage rates

Although CRM is a crucial sales technology, it’s important to remember that login and usage rates cannot always be guaranteed 100%, as humans are fallible, which is especially important to consider as a sales manager.

Sales have been reluctant to use or log in to Salesforce due to various reasons for nearly two decades for the following reasons:

• Discomfort when having Salesforce usage data collected.
• Hesitancy toward change.
• Initial impressions of complexity (Salesforce dashboards).
• Salesforce adoption strategy not communicated to all staff. 

It is essential to communicate with your sales staff to address these issues and ensure they know what data you will collect and how you will use it to benefit them and the organization. 

Salesforce has a variable cost of $25 to $300 per month per user. It’s important to note that low usage rates can significantly affect your reporting to the C-suite.

Your low login and usage rates may highlight two issues:

• Salesforce isn’t streamlining your rep’s digital workflow.
• Salesforce isn’t increasing sales.

Salespeople may find it difficult when they log into Salesforce and come across a long list of unappealing lead, contact, and account records. As a result, it is important to empathize with their situation and find ways to improve their experience within the Salesforce system.

When salespeople access Salesforce, they might encounter a lengthy list of unattractive lead, contact, and account records, making it difficult for them to navigate. Therefore, it’s crucial to understand their predicament and seek methods to enhance their Salesforce experience.

Extending Salesforce functionality to your sales teams can reduce the likelihood of low login and usage rates.

• Your sales representatives can use plug-ins and extensions in their Outlook or Gmail inbox to view Salesforce records while checking their emails.
• Mobile apps are available to assist sales representatives in accessing Salesforce records while on the move and enabling them to make phone calls or send emails.

In addition, you can enable your salespeople to select an AppExchange application that can enhance the efficiency and profitability of their usage of Salesforce.

3. Excessive data entry

Salesforce reports that salespeople spend 166 hours yearly doing data entry, primarily outside regular work hours. This scenario can lead to low morale among salespeople and cause frustration for their partners.

How do you plan to solve the problem where 57% of your sales representatives cannot meet their sales targets each quarter due to the burden of data entry work as a sales manager?

How much more confident would you be if your sales team had over 160 additional hours of selling time per year per sales representative by eliminating data entry tasks?

Use these strategies to achieve this new managerial approach:

• Salesforce automation: Create and update Salesforce records from your inbox or smartphone using just one click.
• Data Enrichment: automatically update records from your data sources like Lead411 and ZoomInfo.

4. Tech stack failures

Multiple tools in your tech stack can lead to complex data flow between one or multiple data sets. This scenario can become challenging to manage in a short period.

This situation can lead to frustration for your sales team and the IT staff responsible for developing and supporting the integrations and data transfers.

The tech stack consists of three layers that data passes through, which are:

• Intelligence layer
• Orchestration layer
• Engagement layer

Simply put, data can become corrupted during the transfer through your technology system, which may result in replacing quality data with outdated or incorrect replacements.

Salesforce users can find it frustrating to realize that their entered data has been altered or misspelled. They might exclaim, “This isn’t the spelling I typed!” or “I spent so much time entering the data, and now it’s all messed up!”

Choosing the best sales software solutions like Salesforce and consolidating your tech stack are two effective ways to maintain a high level of performance for your tech stack and Salesforce integration.

Consolidate your tech stack solutions

Having two apps that share data append or lead routing features is not advisable. You should coordinate with your vendors to activate or deactivate features when there are no more options for consolidation.

Only choose top sales software solutions

If you want to speed up the process, it’s a good idea to eliminate sales tools in your tech stack with poor ratings. These tools may cause data errors or not function as well as expected.

Communicate with staff to tackle Salesforce adoption problems

The significance of Salesforce adoption problems in 2023 lies in its potential long-term impact on companies. It can hamper sales and customer relationships, disrupt employee morale, and lead to lost revenue if not identified and addressed quickly. 

However, with the right Salesforce expertise and strategies like targeted training, smart integration methods, and strategic communication, businesses can decide how to tackle their own set of Salesforce adoption problems. 

But above all, you must proactively communicate with your staff to understand what’s working with Salesforce implementation and what is going well. 

Communicating with them encourages your staff to take ownership of their unique challenges, ensuring a smoother transition for teams as they get comfortable using the platform.

The post Decoding Salesforce Adoption Problems: A Step-by-Step Approach appeared first on Digital Adoption.

Enterprise technology is the lifeblood of modern businesses. 

It’s virtually impossible to remain competitive without taking advantage of the benefits of enterprise technology.

However, incorporating enterprise technology into your business isn’t always straightforward. There’s a lot to think about when identifying and choosing the right digital tools.

Then, you must have a strategy to ensure successful digital adoption.

Furthermore, bringing new enterprise technology into the fold can completely change how your business operates— you must prepare for the impact of digital transformation in your organization.

In this article, we will explain everything you need to know about enterprise technology. By the time you’re done, you’ll be prepared to use enterprise technology to take your business to the next level.

Two core components of enterprise technology

Enterprise technology can broadly be separated into two categories: Software and hardware.

Within these two categories are virtually endless types of enterprise technology.

Enterprise software

Forming the backbone of the IT infrastructure in many businesses, these complex applications are designed to integrate and streamline various business processes, promoting efficiency and collaboration across different departments. 

The most prominent types of enterprise software include:

ERP (Enterprise Resource Planning)

ERP systems allow you to manage essential business processes in real time. 

These processes include inventory management, order processing, accounting, human resources, customer relationship management, and more. 

By centralizing these resource allocation processes into one system, you can ensure data consistency and streamline workflows.

CRM (Customer Relationship Management)

CRM software is designed to help you manage interactions with current and potential customers. 

Using a homegrown CRM, you can track and manage customer information, interactions, sales, and support, enhance customer service, and foster customer loyalty.

SCM (Supply Chain Management)

SCM software helps you manage the flow of goods, data, and finances, from acquiring raw materials to delivering the final product. 

Using SCM software can reduce excess costs, improve customer service, increase operational efficiency, and accelerate delivery time.

Enterprise hardware

Enterprise hardware is physical technology equipment that a business uses to perform various functions. 

It provides the fundamental infrastructure for running enterprise software and storing the vast data businesses generate. 

The most common enterprise hardware you’ll find are:

Servers

Servers are powerful computers that provide shared resources, services, or applications to other computers, known as clients, over a network. 

In a business context, servers host the databases and applications that enable your business operations and user functions.

Data centers

Data centers are physical facilities that organizations use to house their critical applications and data. 

A data center’s design includes redundant or backup components for power, cooling, and networking capabilities to ensure the highest levels of business continuity.

Networking hardware

Networking hardware is the physical devices required for communication and interaction between devices on a computer network. 

They provide the pathway for data to travel across the network, allowing users to access and share information seamlessly. 

Examples include routers, switches, and firewalls.

Enterprise technology in the modern business landscape

The role of enterprise technology in today’s business landscape is prominent and influential.

The availability of enterprise solutions often shapes what businesses consider possible.

Why is it that enterprise technology has such a huge impact? What are the benefits enterprise tech offers which make it so indispensable?

The impact of enterprise technology on modern business operations

Enterprise technology has made a profound impact on the way businesses operate. 

It has redefined the mechanics of business processes, enhanced efficiency, and optimized resource allocation.

It pays to be able to switch between different enterprise technologies with ease. Forrester reports that adaptive firms that recognize emerging customer needs and have a flexible technology foundation and operating model grow more than three times faster than their industry average.

Here’s a quick list of some of the most significant benefits of enterprise technology:

Streamlined operations

With tools like ERP and CRM, you can automate repetitive tasks, freeing employee time to focus on strategic initiatives.

Data-driven decision-making

You can gain insights from your data through advanced analytics and business intelligence software, enabling informed decision-making and predictive capabilities.

Enhanced collaboration

Enterprise technology facilitates seamless communication and collaboration, breaking down silos within your organization.

Improved customer service

Tools like CRM and AI-powered chatbots allow you to personalize the customer experience, resolve queries swiftly, and foster customer loyalty.

The role of enterprise technology in digital transformation

Enterprise technology plays a pivotal role in any company’s digital transformation journey. 

The right enterprise solution can make or break a digital transformation effort, and often you’ll find that digital transformation strategic goals are designed around the available enterprise technology.

Here are a few of how enterprise technology is laying the foundation for digital transformation:

Innovation and competitive advantage

Adopting the latest enterprise technology allows you to innovate your processes, products, and services, giving you a competitive edge in the market.

Scalability

Cloud computing services and modular software architectures allow you to scale your operations up or down based on demand, leading to cost savings and improved resource management.

Integration and interoperability

Enterprise technology allows you to integrate various business functions, promoting interoperability and consistency across different business processes.

Remote work enablement

Amid the rise of remote work, enterprise technology enables employees to collaborate effectively and access necessary resources from anywhere, thus ensuring business continuity.

Emerging trends in enterprise technology

With the rapid evolution of technology, several trends are emerging in the enterprise technology landscape, significantly influencing how businesses operate.

Knowing these trends could help you know if and when to buy into them. Investing in new enterprise technology at the right moment can give you a chance to leapfrog the competition

Here are a few of the emerging trends in enterprise technology in 2023:

AI and machine learning

Artificial Intelligence (AI) and Machine Learning (ML) are transforming the enterprise landscape by automating routine tasks and generating valuable insights from vast data. 

AI-driven applications assist in streamlining customer service through chatbots, improving decision-making with predictive analytics, and optimizing operational efficiency through an hyperautomation platform. 

Machine learning, a subset of AI, enables systems to learn, interpret, and act on data independently, providing you with a powerful tool for identifying trends, predicting outcomes, and making data-driven decisions.

Cloud computing and SaaS

Cloud Computing and Software as a Service (SaaS) have become a staple in enterprise technology. 

The cloud offers scalable and flexible resources that companies can leverage to store, manage, and process data, eliminating the need for physical infrastructure and lowering IT costs. 

While cloud computing is fairly common nowadays, we think industry cloud is the next evolution of this enterprise technology.

However, SaaS allows businesses to access software applications over the Internet on a subscription basis, providing ease of use, affordability, and the ability to stay updated with the latest features and security measures.

Internet of Things (IoT) and edge computing

The Internet of Things (IoT) refers to the network of physical devices— such as sensors, appliances, and vehicles— connected to the Internet, collecting and sharing data. 

IoT technology lets you gather real-time data, optimize operations, reduce costs, and enhance customer experiences. 

Coupled with this, edge computing is gaining traction. It involves processing data closer to where it is generated (the “edge” of the network), reducing latency, improving speed, and enabling real-time analytics, which is especially valuable in IoT deployments.

Cybersecurity in enterprise technology

Cybersecurity has taken center stage in enterprise technology as businesses become increasingly digital and data-driven. 

Cybersecurity tech protects enterprise systems, networks, and data from digital attacks, theft, and damage. 

With cyber threats becoming more sophisticated, businesses invest in advanced cybersecurity measures such as AI-powered threat detection, blockchain for data integrity, and zero-trust security models. 

This proactive approach to security ensures the protection of your sensitive business and customer data, maintains customer trust, and is critical to business and customer continuity planning.

The challenges (and solutions) in implementing enterprise technology

There are substantial benefits to adopting enterprise technology, but the process doesn’t come without challenges.

Perhaps the most considerable downside is the environmental impact of enterprise technology.

According to Mckinsey, in 2022, enterprise technology emitted about 350 to 400 megatons of carbon dioxide equivalent gases (CO2e), accounting for about 1 percent of total global greenhouse gas (GHG) emissions. 

This may not sound like much, but it equals about half of the emissions from aviation or shipping and is the equivalent of the total carbon emitted by the United Kingdom.

This particular challenge is one that the industry as a whole needs to come together to solve. Aside from the environmental impact, there are several smaller-scale obstacles that you’ll likely also face.

Understanding these obstacles will help you navigate your digital transformation journey more effectively.

Common obstacles in adopting enterprise technology

Resistance to change

One of the most significant barriers to adopting new technologies is the resistance to change from employees. 

It can stem from fear of the unknown, lack of understanding of the new technology, or concerns about job security.

Integration with existing systems

Incorporating new technology into existing IT systems can be complex and often poses compatibility issues.

Costs

Implementing new enterprise technologies can be expensive. 

Not only the direct costs of purchasing the technology but also the indirect costs of training, maintenance, and potential downtime.

Data security and privacy concerns

With increasing reliance on digital technologies, businesses are more susceptible to cyber threats, causing data security and privacy concerns.

Lack of expertise

Some businesses may lack the technical skills to implement and manage new technologies effectively.

Strategies to overcome these challenges

Change management

Successful adoption of new technologies may require a cultural shift within your organization. 

You can achieve this through effective change management strategies, like transparent communication about the benefits of the new technology, providing adequate training, and involving employees in the transition process.

Proper planning and testing

Prior to implementation, you should thoroughly plan and test the new technology in a controlled environment to ensure it integrates smoothly with existing systems.

Cost-benefit analysis

Conduct a comprehensive cost-benefit analysis to understand the return on investment (ROI) the new technology can offer. 

The costs can’t be avoided, but this can help justify the initial costs associated with its implementation.

Investing in cybersecurity measures

You should prioritize investing in robust cybersecurity measures to protect sensitive data and alleviate security concerns. 

This includes regular security audits, employing encryption technologies, and adhering to data compliance regulations.

Collaboration with tech experts

Collaborate with IT experts or third-party vendors with the knowledge and experience to help implement the new technology effectively. 

This can help fill any skill gaps in your organization and ensure the new technology’s successful deployment.

Enterprise technology: Enabler, payload, and limitation all at once

The availability of enterprise technology permeates every facet of your business.

Established enterprise solutions enable you to drive efficiency and smooth operations.

Cutting-edge enterprise technology is the payload you want your digital transformation efforts to deliver.

And yet, the limitations of technology are the biggest hindrance to progress.

It’s important to understand that enterprise technology is the foundation upon which modern businesses are built.

Staying on the pulse of what emerging enterprise technologies are capable of is critical for any business leader looking for an opportunity to take a competitive lead.

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