From banking, marketing, insurance, healthcare, manufacturing, and technical jobs, AI-empowered solutions like ChatGPT are impacting major sectors worldwide and have permanently re-routed the trajectory of work as we currently understand it.

While new job creation and the ability to drastically improve productivity capabilities emerge from the unveiling of ChatGPT, so does the potential loss of countless jobs more easily and efficiently completed by this AI-powered chatbot.

In this article, we’ll highlight newly emergent jobs and skills for utilizing this nascent tool, and explore a new frontier of AI jobs and its vast array of potential applications.

We’ll also identify the positions at risk of becoming replaced by ChatGPT, delving into which roles will be most affected and how to manage AI’s impact on the future of work.

The Impact of ChatGPT and AI on new and existing jobs

ChatGPT has impacted various industries, including customer support and service, content generation and marketing, virtual assistants, language translation, research and data analysis, creative writing and storytelling, and personalized learning and education. 

A report by Goldman Sachs shows advances in AI automation can potentially expose approximately 300 million full-time jobs worldwide to redundancy. 

However, the same research suggests these advancements could benefit the macro-economic landscape. Tools utilizing advances in natural language processing, such as ChatGPT, are forecasted to generate a 7% increase in global GDP, translating to nearly $7 trillion over ten years.

ChatGPT’s ability to understand and generate human-like text has reimagined processes, enhanced user experiences, and increased productivity across these sectors.

While certain jobs may be at risk of automation or transformation, new job opportunities may also emerge due to advancements in AI. From automation to content generation, AI systems like ChatGPT are transforming industries and unlocking new avenues of opportunity. 

There’s a spike in demand for professionals with expertise in artificial intelligence who can contribute to AI development, implementation, and optimization. As a result, a range of new job listings has emerged on job recruitment sites seeking candidates with specialized skills as “AI specialists.”

Which Sectors Will be Impacted Most by AI? 

As ChatGPT continues to evolve and be integrated into different industries, its impact will likely expand further, driving innovation and transforming how we work and engage with AI.

Below are a few sectors where ChatGPT significantly impacts new and existing jobs:

AI Assistants and Chatbot Development

The rise of ChatGPT has created a demand for professionals with expertise in developing AI assistants and chatbots. These professionals are responsible for designing, training, and deploying conversational AI models to enhance customer experiences and automate tasks in various industries.

Natural Language Processing (NLP)

ChatGPT relies heavily on NLP techniques to understand and generate human-like text. As a result, there is a growing need for NLP specialists who can develop algorithms, models, and applications that improve language understanding and generation capabilities.

Content Strategy and Management

With ChatGPT’s ability to generate compelling content, content strategists’ and managers’ roles are evolving. These professionals now focus on curating and optimizing AI-generated content, ensuring it aligns with brand messaging and resonates with target audiences.

Data Annotation and Training

ChatGPT requires extensive training data to perform effectively. Data annotators play a crucial role in preparing high-quality datasets by labeling and categorizing text samples used to train and fine-tune AI models like ChatGPT.

Ethical AI Governance

The need for ethical AI governance and policy experts grows as AI becomes more prevalent. These professionals ensure AI systems like ChatGPT adhere to ethical guidelines, address biases, and protect user privacy.

User Experience Design

Creating seamless and intuitive user experiences with AI-powered chatbots and virtual assistants is essential. User experience (UX) designers work closely with AI developers to design conversational interfaces that are user-friendly, efficient, and meet user needs.

Technical Support and Maintenance

AI systems like ChatGPT require ongoing support and maintenance. Technical support professionals specialize in troubleshooting issues, ensuring optimal performance, and implementing updates to enhance the functionality and accuracy of AI models.

AI Research and Development

Developing advanced AI systems like ChatGPT relies on continuous research and innovation. AI researchers and developers are at the forefront of advancing AI capabilities, exploring new algorithms, and pushing the boundaries of what AI can achieve.

Recent reports reveal that OpenAI has launched a platform that allows users to create custom versions of ChatGPT for specific use cases without coding. This can empower individuals and organizations to leverage the tool to enhance productivity.

Jobs Being Automated by ChatGPT and AI

While ChatGPT and LLMs offer tremendous opportunities, they also raise concerns about the potential displacement of certain jobs. 

According to internal documents and sources shared via CNBC, ChatGPT could theoretically qualify for a level-3 software engineer position at Google.

The ability of these models to understand and generate human-like text has the potential to make some jobs obsolete, with a particular impact on professions that heavily rely on language-based tasks.

Customer Support

ChatGPT’s natural language processing capabilities could revolutionize customer support by providing instant responses and assistance. This may reduce the need for manual customer service representatives as AI systems become more adept at addressing customer queries and resolving issues.

Content Generation

Writers and creators may compete with AI-powered systems that generate high-quality articles, blog posts, and creative works. While human creativity and nuance are difficult to replicate, AI models like ChatGPT can produce vast amounts of content quickly, potentially impacting certain sectors of the publishing industry.

Translation Services

With their ability to process and generate text in multiple languages, language models like ChatGPT potentially threaten professional translators. As AI translation systems improve, they may increasingly replace human translators for certain routine translation tasks.

Data Entry and Analysis

AI models have the potential to automate data entry and analysis tasks, reducing the need for manual data entry operators and analysts in some industries. This could lead to increased efficiency but may also result in job displacement.

Managing the Impact of AI Responsibly

Whether it be valid concerns around infactuality, bias, and misuse, the material risks and concerns about the widespread use of AI tools like ChatGPT are too severe to ignore. 

For instance, it has occasionally generated incorrect or misleading information, as it relies on patterns and data from the internet, which may include inaccuracies. 

ChatGPT has also exhibited bias in its responses, reflecting the biases present in its training data. This can perpetuate societal preconceptions and prejudices, potentially reinforcing harmful stereotypes or promoting misinformation.

Contextual understanding can also be a challenge for ChatGPT, leading to responses that may need more coherence or address specific user queries accurately.

However, when implemented responsibly, ChatGPT’s potential applications are endless if developed and deployed thoughtfully and ethically. 

Below are solutions organizations can leverage for responsibility to manage the impact of AI.

1. Policies to support displaced workers: Companies and governments can implement policies and initiatives to help workers whose jobs may be affected by AI automation. This includes providing retraining programs, job placement services, and financial assistance to facilitate the transition into new roles or industries.
2. Companies transparently incorporating AI: Organizations should adopt transparent practices when implementing AI systems. This involves communicating AI technologies’ intended use and potential limitations to users, customers, and stakeholders. Transparency builds trust and accountability, ensuring responsible deployment of AI.
3. Workers learning new skills and adapting: As AI technology evolves, workers need to learn new skills and adapt to changing job requirements continuously. Investing in training and upskilling programs can help employees acquire the necessary capabilities to work alongside AI systems effectively. This approach encourages resiliency and empowers individuals to embrace the opportunities presented by AI.
4. Adequate AI governance: Establishing robust governance frameworks for AI is crucial. This involves developing guidelines, regulations, and ethical standards for responsible AI development and deployment. Clear guidelines should address bias mitigation, data privacy, and algorithmic transparency. Effective governance mechanisms promote ethical and accountable AI practices.

AI & The Future of Work 

Sophisticated AI-driven tools like ChatGPT are reshaping the nature of work, with major sectors experiencing a major shift towards digital transformation. 

Unsurprisingly, AI is at the forefront of this new wave—its potential applications in supporting productivity are all too valuable to ignore.

AI tools are here to stay and will only become more ubiquitous in professional and wider social spaces as AI technology improves and new iterations emerge.

According to Business Insider, AI can replace various job roles. Among those at high risk are coders, computer programmers, software engineers, data analysts, advertising jobs, content creation jobs, technical writing jobs, journalism jobs, paralegals, and legal assistants. 

The impact of ChatGPT and AI on the future of work will continue to raise important questions regarding society’s overall well-being.

It remains to be seen whether the automation of certain tasks will lead to widespread job displacement due to AI advances.

Today, AI has the potential to reimagine industries, facilitate innovation, and heighten efficiency levels across sectors.

In a recent ResumeBuilder survey, 90% of business leaders said ChatGPT experience is a beneficial skill for job seekers, with 48% of companies using ChatGPT reported to have replaced some workers.

With AI augmenting certain roles, it frees up time for innovation. It can potentially increase human productivity in other areas—providing opportunities for individuals to focus on more creative and complex work.

Regardless, organizations on their transformation journey must address ethical considerations and ensure that AI is developed and deployed responsibly to mitigate unintended consequences.

The post ChatGPT Jobs: How AI is Creating New Roles & Making Others Obsolete appeared first on Digital Adoption.

With transformation efforts becoming expedited due to the COVID-19 pandemic, digital adoption strategies were swiftly deployed to address unprecedented challenges never before seen in the business arena.

The role of a director of digital strategy gives businesses the resources needed to address these unforeseen challenges, along with expert solutions for navigating the high-octane digital age.

A digital strategy director’s value lies in their ability to effectively align and optimize digital initiatives with an organization’s overall goals and objectives—and is becoming a clear prerequisite for facilitating today’s transformation climate.

This article will explore what a director of digital strategy is, what their roles and responsibilities are, and the importance of their position in business today. We’ll also reveal their salary intake and the value of securing digital transformation for future-ready firms. 

What is a Director of Digital Strategy? 

A director of digital strategy is a professional responsible for developing and overseeing an organization’s digital initiatives and online presence. 

This role involves crafting strategies to leverage digital technologies, social media, and online platforms to achieve business objectives. The director typically collaborates with various departments to align digital efforts with overall organizational goals, enhance user experience, and oversee digital transformation initiatives.

In an era where digital maturity serves as the end goal for most companies, the race is on for firms to leverage the latest digital solutions that reimagine business models and strategies for success.

A director of digital strategy helps to address this challenge, assisting businesses to adapt and evolve to better tackle shifting consumer expectations and changes to the wider business landscape.

According to Statista, most companies increased their investment in digital and technology initiatives during the pandemic, while 44% hired more full-time equivalent (FTE) employees for digital/tech roles. 

Director of Digital Strategy Job Description

A digital strategy director’s responsibilities include strategizing efforts to amplify an organization’s digital footprint and online presence to better reach its target demographic.

A more detailed description of their job responsibilities is as follows: 

• Review and enhance current digital strategic capabilities while planning and deploying new strategies and digital transformation projects.
• Conduct comprehensive research and deploy metrics that assess customer needs and insights to inform digital initiatives better.
• Establish strong decision-making processes that clearly outline procedures and frameworks to inform prospective project actions up to 18 months in advance.
• Identifying transformation opportunities, business pain points, technology limitations, and improving analysis capabilities of digital data sets
• Conducting a thorough analysis of consumer needs and requirements using large datasets and analytics tools to extract patterns and trends.
• Optimizing an organization’s e-commerce platform migration and resistance could involve migrating its e-commerce infrastructure to platforms such as Magento, WooCommerce, and OpenCart and concurrently redesigning it. 
• Nurture interactions and communication across teams and departments to better understand and align business objectives 
• Create a line of clear communication with IT departments to gain a 360-degree understanding of tech capabilities and how they intersect and bolster business strategies. 

What Skills and Qualifications Should a Director of Digital Strategy Have?

A blend of comprehensive qualifications and honed skills is essential to thrive as a Director of Digital Strategy. 

Academic credentials form the foundation, typically requiring a bachelor’s degree or qualifications in Marketing, Business, Communications, Education, Management, Business Administration, Journalism, Computer Science, and Graduate Studies.

Advanced degrees, such as an MBA, can elevate one’s standing and provide a deeper understanding of strategic business principles.

While educational requirements are necessary for digital director positions, the following skills also serve as essential prerequisites for fulfilling the roles and responsibilities of director of digital strategy:

Leadership experience is paramount

Having held prior roles in digital strategy or related fields demonstrates the capability to guide teams effectively. This entails managing projects, inspiring innovation, fostering collaboration, and driving successful outcomes.

Expertise in digital marketing is a linchpin qualification

Proficiency across various digital channels — from SEO and SEM to social media — is crucial. A nuanced understanding of the digital customer journey is a prerequisite, as well as the ability to adapt strategies to align with changing consumer behaviors.

Enhanced technical proficiency

While not necessarily requiring hands-on coding skills, technical proficiency demands familiarity with web technologies and e-commerce platforms. Collaboration with IT teams necessitates a capacity to make informed technology recommendations and comprehend the technical nuances of digital implementations.

Analytical Proficiency

Analytical skills are a linchpin in today’s data-driven landscape. An adept Director of Digital Strategy can interpret complex data, derive actionable insights, and make informed, data-driven decisions. A background in data analysis, business intelligence, or a related field complements this skill set.

Effective Communication

Communication and stakeholder management are indispensable. Exceptional verbal and written communication skills are crucial, enabling effective conveyance of complex digital strategies to technical and non-technical stakeholders. Collaborative prowess is vital for working seamlessly across cross-functional teams.

Adaptability and Innovation

Adaptability and innovation are also hallmarks of a successful Director of Digital Strategy. The digital arena evolves rapidly, demanding leaders who can keep pace with change and leverage emerging technologies for strategic advantage.

Project Oversight

Ideally backed by relevant certifications, project management skills ensure effective oversight and timely implementation of digital initiatives. This competency is pivotal in steering projects from conception to execution successfully.

Customer-Centric Approach

Finally, a customer-centric approach is non-negotiable. Directors of Digital Strategy must prioritize customer experience, integrating personalization and user-centric design principles into overarching strategies.

A Director of Digital Strategy should possess a blend of educational qualifications, leadership experience, technical proficiency, and a strategic mindset. 

Director of Digital Strategy Salary 

The salaries of digital strategy directors can vary significantly depending on an employer’s specific needs and expectations when it comes to fulfilling the role.

Factors influencing scaling salaries for a director of digital strategy may depend on a candidate’s educational achievements, geographic location, and diverse experiences, skills, and roles in driving digital proficiency.

According to Glassdoor, the median earnings for a Director of Digital Strategy in the U.S. is $213,747 annually, with an average salary of $158,895 annually. However, several factors contribute to the nuanced salary profiles for individuals in this position.

For example, salary figures may change for candidates in geographically significant regions where companies are close to technological development zones, I.e., San Francisco, CA, and Seattle, WA.

Let’s take a closer look: 

Entry-Level Salary Range:

Digital strategy directors with entry-level experience can expect to earn between $79,000 – $122,000 per annum or $59 per hour.

Upward Salary Trend:

As one climbs the ranks in digital strategy, an upward salary trend will reflect the increasing leadership responsibilities within the field.

Glassdoor statistics show a clear progression:

•  Director of Strategy: $263,700 per year
•  Senior Director: $291,803 annually
•  Vice President of Strategy: $318,098 per year

Additional Earnings:

When considering other earning potential, individual commissions, year-end bonuses, and profit sharing can earn Directors of Digital Strategy an additional $54,852 annually.

Securing Digital Transformation for the future-ready business

In the digital transformation era, businesses face a critical choice—embrace change or risk irrelevance. 

A Director of Digital Strategy is one of many cogs helping to facilitate this change successfully, tasked with steering companies through tech complexities and guiding them toward a future of digital proficiency.

Whether orchestrating e-commerce platform migrations or reshaping customer experiences, these directors play a central role in charting the course of transformation—ensuring that every digital move aligns with overarching business goals.

In a world where agility and adaptability are a competitive edge, digital strategy directors ensure businesses adapt and are positioned to prevail over the challenges of tomorrow.

The post Director of Digital Strategy: Job Description, Responsibilities and Salaries Explained appeared first on Digital Adoption.

Despite the term’s exciting implications, many researchers argue that these ’emergent abilities’ are often a result of increased computational capability rather than a sudden leap in AI cognition.”

We’re a long way off from the “rise of the machines” that the Terminator films predicted in the 1980s, with armies of robots aggressively taking over the world! 

But as the capabilities of generative AI models move on, some researchers are seeing “sparks” of a deeper intelligence in AI. In other words, we see how AI models can sometimes complete tasks they were not programmed to do.

Researchers use the word emergence to describe these surprising skills. 

When you hear phrases like emergent abilities, emergent properties, or emergent capabilities, we’re talking about the unprogrammed skills of AI. While this is still a very new field, new research is shining a light on AI’s emergent abilities, and AI users are starting to wonder about the potential for this new technology.

This article will look into the new field of emergent AI. It will:

• Explain the meaning of emergent AI abilities;
• Introduce several examples of emergent AI in practice;
• Suggest some future directions for emergent AI.

Emergent AI abilities are important to understand. According to McKinsey, as much as 79% of workers have now been exposed to uses of generative AI. As time goes forward, that majority may need to detect and utilize emergent abilities. 

So, we must do our best to prepare.

What are emergent AI abilities?

An AI Tool has “emergent AI abilities” when it can complete tasks it was not specifically programmed to do. The AI system does its work, and like magic, something new happens. 

Emergent AI abilities may come as a surprise to the developers. Or, researchers might make experimental situations in which AI can seek a way to answer a problem – even though they weren’t told explicitly how to make the answers. 

Emergent AI is clearly an exciting thing. But right now, we don’t know how harmful they might turn out to be. So, Emergent AI is a part of AI risk management.

In 2023, AI’s emergent capabilities are in the news because of fresh research. In an extensive research paper from April, Microsoft researchers found the “sparks” of emergent behavior in ChatGPT. But in the same month, Stanford researchers found that this behavior may actually be a “mirage.”

By the way, the word “emergent” here has a special meaning. Emergent behavior happens when a complex entity does things that its component parts do not. Termite mounds, snowflake formation, and human language can all give examples of emergence.  Emergent AI abilities are the same: the component parts do something new.  

So, you must be careful when you hear the phrase “emergent AI.” Some folks will use it to talk about new and innovative uses of AI. 

For example, “emergent AI” is a key theme for the Gartner 2023 emerging technology hype cycle. To be clear, this article will not discuss emerging AI technologies. We will only talk about emergence in artificial intelligence.

Examples of emergent AI abilities

Here’s a warning, though. 

A casual observer won’t be astonished by the current emergent capabilities of large language models. 

Right now, emergent capabilities of AI won’t suddenly make your profits skyrocket.

All the same, emergent abilities in large AI models are fascinating. Let’s take a look at some classic examples.

• In the 1980s, computer scientist Craig Reynolds introduced the Boids program, a simulation illustrating how bird-like entities can mimic the flocking and formation movements of real birds. This model serves as a compelling example of how intricate collective behavior can emerge from the interplay of straightforward local rules.
• Microsoft’s 2023 research brings forth a range of straightforward examples to help assess emergent behavior. These simple tasks indicate “sparks” of genuine emergence – and perhaps artificial general intelligence. For instance, Microsoft’s research demonstrates that GPT-4 can proficiently infer characters’ mental states and identify cases of miscommunication and misunderstanding, akin to passing the Sally-Anne false belief test. Small milestones like this show the limits and possibilities of generative AI.
• The tech giant Google’s DeepMind subsidiary has unveiled remarkable AI cases. Notably, DeepMind’s AlphaZero, a chess-playing AI showcased in a 2018 article in the journal Science, showcases extraordinary prowess in mastering the game. Furthermore, DeepMind created a team of digital humanoids that learned to play football autonomously. While they comprehend the objective and possess essential tools, they were not specifically programmed to handle the inherent unpredictability of this sport. This underscores the captivating unpredictability of AI’s emergent capabilities.

Some reports of emergent abilities in AI may, however, be exaggerated. For example, CEO Sundar Pichai suggested that Google’s Bard had learned Bengali independently, but fact-checkers later pointed out that the model was initially trained in Bengali. 

Risks of Emergent AI 

Leaders in AI research are alert to the risks of emergent AI capabilities. As Demis Hassabi, the head of DeepMind, reminded us in October 2023, “The next few generations may be when they have extra capabilities like planning and memory and other things … They will be phenomenal for good use cases, but also they will have risks.”

Therefore, artificial intelligence leaders should try to understand the unpredictable abilities that AI could be capable of in the future. 

Let’s take a quick look at some of the major risk areas:

1. Offensive chatbots. Chatbots with machine learning capabilities may sometimes generate inappropriate, offensive, or biased responses due to unpredictable emergent behavior based on user interactions.
2. Reinforcement learning losing its way. In reinforcement learning, AI agents learn by trial and error. Unpredictable emergent behavior might result in unintended actions, such as a robot learning to exploit a system or finding novel ways to complete an unsafe or ethical task.
3. Inconsiderate content generation. AI systems for content generation can sometimes produce content that violates copyright, infringes on privacy, or spreads misinformation, leading to unpredictable consequences.
4. Financial trading instability. High-frequency trading bots can exhibit unpredictable behaviors, leading to market volatility and economic instability if they trigger rapid, unexpected fluctuations.
5. Autonomous drones. Autonomous drones with unpredictable behavior may pose risks in areas like surveillance, privacy invasion, or accidental collisions.

To address the potential negative consequences of unpredictable AI emergent abilities, researchers and developers are working on building more robust, interpretable, and controllable AI systems, and policymakers are considering regulatory frameworks to ensure responsible AI deployment.

Right now, these consequences are just risks; we don’t know if they’ll come true. And, in the future, we may realize that we were worried about nothing. 2023 research from Stanford University researchers suggested that Emergent abilities were just a “mirage”: created because of the way we measure, not because of their actual abilities. 

Should you plan for emergent capabilities today?

For business-level end users, the intricacies of emergent AI abilities need not be a primary concern today. 

Instead, the focus should be on remaining vigilant about the broader risks related to emergence and bias. This is an ideal moment to ensure the proper functioning of your “shadow AI,” implement clear AI policies, and verify the overall health of your software. If issues arise, address them promptly.

Conversely, AI researchers should prioritize acquiring a comprehensive understanding of emergence. They should be adept at recognizing emergent capabilities as they surface and conducting thorough exploration and analysis.

While many aspects of AI emergence remain shrouded in mystery, it’s foreseeable that this domain may soon become the forefront of digital risk management. 

Stay prepared, as the future promises further intriguing developments in AI’s emergent abilities.

The post Emergent AI Abilities: What You Need To Know In 2023 appeared first on Digital Adoption.

Modern consensus-building methods, such as Fist to Five, are instrumental in driving organizational transformation and preparing teams for the future of work. 

Harvard Law School states, “Consensus-building techniques can help parties facing a group decision reach longer-lasting, more harmonious outcomes than resorting to an up-or-down vote.”

In this article, we’ll explore the benefits of Fist to Five and how it can improve group dynamics and decision-making processes. We’ll also look at implementing this technique effectively within your organization.

What is Fist to Five?

Fist to Five is a participatory decision-making technique utilized by groups and teams to gauge the level of consensus or agreement on a particular proposal or idea.

Instead of the simple two-option answer of “yes” or “no,” the increasing scale of options enables a more qualitative form of gauging consensus, with the intensity of agreement increasing with the increase of each finger.

The methodology works by first posing a question or statement, of which respondents then share their level of agreement by holding up a number of fingers. 

A fully closed fist represents the most non-agreeable way of answering, serving as the unequivocal “no,” with a show of five fingers representing the most agreeable answer—or simply a resounding “yes.”

The effectiveness of Fist to Five is more related to facilitating open communication and encouraging participation rather than statistical analysis or collecting numerical data.

Why Is Fist To Five Important? 

With the ongoing digital transformation across sectors, consensus-building methods are vital in facilitating effective decision-making and fostering collaboration.

Navigating the complexities of group decision-making becomes significantly easier with the “Fist to Five” method. 

Let’s explore why it’s important: 

Promotes Engagement

Fist to five encourages active participation in discussions, ensuring everyone’s opinions are heard and valued.

Quick Feedback

It provides a fast and efficient way to gauge the comfort level, understanding, or agreement on a particular topic or decision.

Non-Verbal Communication

For those who are less vocal, it offers a non-threatening way to express their thoughts or feelings.

Encourages Consensus

 It promotes a democratic decision-making process where everyone’s vote counts, fostering a sense of unity and consensus.

Easy to Use

The simplicity of the fist to five method makes it accessible and easy to adopt for any team or group, regardless of their size or diversity.

Versatile Tool

It can be used in various settings – classrooms, corporate meetings, community gatherings, etc., making it a versatile tool for feedback and decision-making.

Boosts Transparency

It encourages openness and transparency by visually displaying the level of agreement or disagreement within a group.

6 stages of Fist to Five:

When teams use simplistic “yes” and “no” voting methods, it leaves little room for conveying often nuanced and complex opinions of team members.

This five-point scale facilitates a more informative way of building consensus, better-enabling leaders to gauge the needs and expectations of their teams.

The Fist to Five Process 

How to Use Fist to Five Voting Strategy in Meetings?

As previously stated, each participant extends their hand, representing their vote, with a closed fist indicating strong opposition (zero) and an open hand with all fingers extended, signifying complete support (five). 

However, if respondents aren’t entirely aware of the scope of the question or the accurate meaning of each vote, it can lead to potential misunderstandings and misinterpretations of the results.

Below, we outline the Fist to Five process in eight simple steps to help facilitate effective decision-making and foster open communication within your team or group.

1. Define the decision

Clearly articulate the decision or problem that needs to be addressed. Ensure that all participants have a common understanding of the issue at hand.

2. Explain the voting scale

Share the Fist to Five voting scale with all participants. Emphasize that a closed fist represents strong opposition (zero), and an open hand with all fingers extended signifies complete support (five).

3. Conduct the vote

Ask participants to extend their hand and cast their vote by showing a number of fingers representing their level of agreement or opposition. Participants should keep their vote hidden until everyone is ready to reveal it simultaneously.

4. Simultaneous reveal

Instruct participants to reveal their votes at the same time. This ensures that individuals aren’t influenced by others and encourages an honest expression of opinion.

5. Facilitate discussion

 Encourage participants to explain their chosen vote and its reasoning. Foster an open and respectful discussion where participants can ask questions, seek clarification, and share perspectives

6. Assess the group sentiment

Evaluate the overall sentiment of the group by observing the distribution of votes. Take note of any extreme positions or areas of consensus.

7. Repeat if necessary

If consensus is not reached or further refinement is needed, conduct additional rounds of voting and discussion. This iterative process allows for exploring alternative options and gathering more feedback.

8. Reach a decision

Based on the discussion and feedback received, work towards reaching a decision that considers all participants’ input. Aim for a solution that garners a reasonable level of agreement and addresses the concerns raised during the process.

What Are The Benefits of Fist to Five?

According to the Office of Personnel Management (OPM), effective teams strive for consensus, which means finding a proposal acceptable enough that all team members can support it, with no member opposing it.

Introducing the Fist to Five methodology into your decision-making process assists in this regard, expediting consensus building along with an array of other remarkable benefits. 

Here’s a glimpse into the advantages that await:

1. Amplified Transparency

 With Fist to Five, transparency takes center stage. Each participant openly displays their level of agreement or dissent on a scale from one to five. This fosters a culture of honesty, ensuring that all viewpoints are acknowledged and respected.

2. Enhanced Collaboration

By encouraging everyone to voice their opinions, Fist to Five cultivates a collaborative environment. Team members engage in active discussions, exchanging ideas and perspectives, leading to comprehensive decision-making incorporating diverse insights.

3. Efficient Consensus-Building

Fist to Five streamlines the consensus-building process by promoting quick assessments of agreement. Rather than prolonged deliberations, this method allows teams to swiftly gauge collective sentiment, saving time and expediting progress.

4. Mitigated Groupthink

The Fist to Five approach safeguards against the pitfalls of groupthink. Encouraging individuals to evaluate their level of support independently mitigates the influence of dominant voices and promotes critical thinking among team members.

5. Inclusive Decision-Making

 Every participant’s opinion holds value in Fist to Five. It ensures that all team members, regardless of seniority or hierarchy, have an equal opportunity to contribute. This inclusivity fosters a sense of ownership and boosts overall morale within the team.

6. Adaptable Flexibility

Fist to Five enables adaptability by allowing participants to signal their readiness for change. The scale clearly indicates individuals’ willingness to embrace new ideas, facilitating agility in decision-making and adapting to evolving circumstances.

How to implement Fist to Five successfully

To successfully implement Fist to Five, certain prerequisites and organizational requirements should be considered. 

Understanding organizational change adoption is vital, as it allows the method to be tailored to specific needs and dynamics. This includes creating an environment where collaboration and consensus-building are encouraged and where the input of all team members is valued.

A unified communication solution also plays a critical role in the successful implementation of Fist to Five. Team members must be aware of the importance of strong consensus building and understand how their active participation can contribute to better decision-making. 

Clear communication channels should be established to facilitate open dialogue and ensure that concerns and ideas are effectively shared and addressed.

In situations where voters’ concerns are unmet, it is essential to have mechanisms to remedy the situation. This may involve revisiting the proposal, engaging in further discussion and negotiation, or exploring alternative solutions that accommodate the team’s needs. 

Additionally, if a deadlock is reached where a consensus cannot be achieved, the option of conducting another vote can be exercised. This allows for a reassessment of the proposal and allows one to consider fresh perspectives and potential alternatives.

This approach values and integrates diverse perspectives, ensuring that decisions are well-rounded, comprehensive, and reflective of the team’s collective wisdom.

Fist to Five – A Qualitative Approach to Consensus Voting

When it comes to consensus voting, the qualitative approach offered by methods like Fist to Five proves to be superior and more advanced compared to quantitative voting methods. 

Traditional quantitative voting methods, based solely on numerical calculations or majority rule, often overlook the diverse range of perspectives and ideas within a team. This can lead to decisions that lack depth, fail to address critical concerns, and hamper the organization’s overall progress. 

In contrast, Fist to Five allows team members to express their level of agreement or disagreement on a spectrum, enabling a more comprehensive understanding of the group’s sentiment and facilitating meaningful discussions.

Smooth team dynamics are essential in any organization, particularly in the era of digital transformation where agility is the key to driving business value. 

By emphasizing the importance of open communication, nuanced perspectives, and effective collaboration, Fist to Five enables teams to make better-informed decisions and cultivate a culture of inclusivity and adaptability.

Fist to Five FAQs

Q: Is 100% consensus necessary in Fist to Five voting?

A: No, 100% consensus is not required in Fist to Five voting. The goal is to reach a general sense of agreement or support within the team rather than requiring unanimous agreement.

Q: Can we use fractional votes in Fist to Five voting?

A: Yes, fractional votes like 3.5 or 4.5 can be used in Fist to Five voting to represent a moderate level of support or opposition, indicating that someone is leaning towards a particular position but not fully committed.

Q: How is the final decision made in Fist to Five voting?

A: The final decision in Fist to Five voting depends on the level of agreement among team members. The facilitator may use the vote tally as input for further discussion or negotiation to strive for a resolution that satisfies most team members.

The post What Is Fist To Five? Benefits, Process & Implementation Techniques appeared first on Digital Adoption.

These four values are reflected in the concerns of US adults in 2023, reporting that 74% are concerned that AI will negatively impact personal privacy and 70% are concerned that AI will lead to the spread of disinformation. 

The human-centered approach tries to offset these concerns through user-focused AI digital adoption, implementation, and design, as well as streamlining AI risk management.

To help you understand what human-centric AI is and how to implement it, this article will explore the following topics:

• What is human-centered AI?
• Why is it important today?
• What are the human-centric AI values?
• What are the advantages and disadvantages?
• Industry-specific use cases for human-centric AI
• How to implement human-centered AI into your workflow

What is human-centered AI?

Human-centric AI prioritizes human values, needs, and well-being in the design and application of artificial intelligence. It emphasizes transparency, explainability, fairness, and privacy, ensuring AI tools are beneficial and trustworthy. 

By focusing on user control, safety, and ethical considerations, human-centric AI seeks to avoid harmful consequences and biases. It champions accountability for AI actions and promotes inclusive design that respects diverse perspectives. 

In short, human-centric AI ensures AI technologies serve as beneficial tools for individuals and societies rather than causing harm or unintended consequences.

Why is human-centered AI important today?

Human-centric AI becomes ever more critical as enterprises use generative AI tools like ChatGPT and Google Bard more. 

To remain competitive, businesses must adopt AI, but they should also be mindful of its potential negative effects on their staff. The urgency to adopt AI is highlighted by projections indicating that the AI market value could reach $308 billion by 2026.

The three primary reasons for the significance of human-centric AI are:

1. AI, on its own, lacks the nuances of human creativity and innovation. Directing its output towards human perspectives guarantees its relevance and usefulness.

2. While AI has the potential to supplant human roles, especially in customer service, human-centric AI serves as a vital bridge, preserving the indispensable human connection.

3. Ensuring that AI outputs are beneficial requires consistent human oversight. Human-centric AI refines this interaction, making AI systems more aligned with human needs and comprehension.

What are the human-centered AI values?

Phrases like ‘human-centric AI’ can sound can sound idealistic and may be difficult to realize without clearly defining the underlying values.

Consider the values below to understand human-centric AI.

Fairness and lack of bias

AI system biases can stem from various sources, including skewed training data, flawed algorithms, and unconscious human biases. These biases may yield discriminatory or unjust outcomes, harming users and undermining trust in AI solutions. 

AI systems like ChatGPT may manifest inaccurate information due to demographic, confirmation, and sampling biases.

Security

Inputting sensitive third-party or internal company information into ChatGPT integrates it into the chatbot’s data model, exposing it to others with relevant queries. 

Doing so poses the risk of data leakage and could violate an organization’s data retention policies.

Ethical implementation

The rapid progress and incorporation of generative AI have prompted numerous ethical concerns regarding the new and extensive human-computer interaction, use, and continuous expansion. 

Ethical AI implementation tries to regain human control of digital AI tools by implementing AI by tackling the following issues by prioritizing human values:

• Job displacement.
• Inquiries about research bias.
• Worries about consumer data privacy.
• Consent for data usage in language learning tools.

Reflect on these ethical considerations to ensure the responsible utilization of generative AI tools.

User-focused design

Building AI with the user in mind is crucial for meaningful and seamless integration into daily life. 

User-centric design ensures that AI aligns with human needs, preferences, and behaviors, fostering user acceptance and engagement. 

This approach not only enhances user experience but also maximizes the positive impact of AI on individuals and society as it produces human-centered outcomes by making it easy to create human-centric inputs. 

What are the advantages of human-centric AI?

There are many business benefits to using human-centric AI, as well as it being better for the wellbeing of your staff in the short and long term. 

Informed Decision-Making

Human-centered AI aims not to replace humans but to augment our capabilities through intelligent, human-informed technology using adaptive AI.

Combining NLP machine learning precision with human input and values empowers businesses (specifically, their human assets) to make informed decisions and devise clearer strategies to address challenges.

Reliability and Scalability

Human-centered AI harnesses human thinking abilities, enabling ideas to scale for more extensive data requirements and avoid data silos. 

While AI serves to assist humans, its effectiveness suffers limits without human input and comprehension. 

A human-centric AI approach shares the computational load with technology, utilizing emotional and cognitive input from humans. 

This approach facilitates expanding processes and information on a larger scale without compromising data integrity or escalating human resource expenses.

Enhanced Software and Product Development:

Applying behavioral science principles to technology through human-centered AI allows developers and designers to delve into user behavior and subconscious patterns. 

This action results in creating products and services offering more satisfying, informed, enriching, and, in the case of platforms like Instagram or games, addictively rewarding user experiences.

What are the disadvantages of human-centric AI?

Despite its advantages, human-centric AI still carries some disadvantages that affect all forms of AI. 

Job displacement 

Despite its best attempts, any form of AI, even AI with a human-centric approach, can lead to job losses as this technology can make some roles obsolete. 

Resource intensive

Much like psychology-focused change management models, human-centric AI can involve more time and effort while staff receive training on correctly using it. 

Less emphasis on efficiency

Because human-centric AI focuses on user design and ethics, it does not exist to maximize profits or efficiency. 

Other forms of AI may extract higher revenue, though they may lead to burnout. 

Industry-specific use cases for human-centric AI

Understanding human-centric AI is much easier when you see it utilized in use cases. 

See the examples below to strengthen your understanding of these types of AI that can teach you that using tools that utilize machine learning doesn’t mean your employees have to behave like machines. 

1. Healthcare

Human-Centered AI enhances efficiency in the healthcare sector for patients, doctors, and professionals. 

The algorithm analyzes diverse healthcare data, organizing it to reveal insights, patterns, and new drug applications, as demonstrated in developing a COVID-19 treatment. 

It organizes clinical trials, medical claims, and images effectively.

2. Human Resources

Organizations facing bias allegations in hiring can adopt Human-Centered AI to eliminate biases. Utilizing job-related data in applications ensures hiring decisions prioritize diversity, fostering an inclusive hiring process.

3. Education

AI significantly influences teaching and online education and optimizes the utilization of data science. 

Human-centered AI aids educators in course creation, student assessment, time-saving, and task automation, catering to individual student needs.

4. Cybersecurity

Basic AI detects network intrusion, fraud, hacks, user authentication, and spam. 

Human-centered AI systems anticipate attacks, fortifying security preemptively.

5. Renewable Energy

Human-centered AI is essential for harnessing renewable energy. It manages decentralized grids, balances, stores, and optimizes real-time electricity demands and supply. 

Gas turbines with attached sensors linked to AI systems adjust fuel valves, ensuring low emissions and informed decisions to reduce environmental impact.

How to implement human-centered AI into your workflow

Follow these steps to implement human-centric AI into your organization’s workflows. 

1. Prioritize user experience

Begin with research to grasp the user experience and pertinent data for interactions. Utilize methods like surveys, focus groups, and customer interviews. Apply these insights to craft AI applications.

2. Build human-centric AI applications

Develop solutions aiding users in task completion. These solutions are versatile, fitting into various platforms like apps, websites, ads, or mobile devices.

3. Deploy human-centric AI solutions

Extend these solutions across multiple touchpoints, ensuring easy user interaction for task assistance or information-seeking related to desired products/services.

4. Collect feedback, review, and adjust

Assess solution effectiveness by constructing a prototype. Monitor user interactions, purposes, and satisfaction levels to gauge the quality of their overall experience.

Adopt human-centered AI for outstanding employee experience

Embracing a Human-centered AI approach transforms the employee experience, fostering a workplace where technology aligns seamlessly with human needs. 

By prioritizing user-centric design with a human-centered approach, AI applications enhance task efficiency, decision-making, and digital employee experience. 

This approach ensures that technology becomes a supportive ally, minimizing biases in hiring processes and promoting a diverse and inclusive work environment. 

Adopting Human-Centric AI and the neural networks they utilize alongside human expertise enriches the overall employee experience, driving productivity and well-being.

The post What Is Human-centered Artificial Intelligence? appeared first on Digital Adoption.

However, recent insights from Gartner suggest otherwise, emphasizing that job manageability might play a more significant role in ensuring your success and that of your team.

Imagine a corporate world where nearly eight out of ten employees expect more support from their managers, whose roles have become increasingly complex and demanding. This isn’t a hypothetical situation— it’s the current state of the workplace as backed by Gartner’s data.

In this article, we’re going to distill the research and insights from Gartner’s reports, and together we’ll reflect on the importance of manageability over skills development and how you can implement strategies to enhance your effectiveness in the ever-evolving corporate environment.

What is job manageability?

Job manageability refers to how manageable a job is, with a particular focus on managerial roles. It relates to how effectively you can conduct your responsibilities with the resources and support available. 

Picture yourself juggling—your workload, autonomy, resources, support, and clarity are all in the air. If you’re managing your job well, you’re keeping these elements in motion smoothly, not just in fleeting instances, but as a constant practice.

Understanding job manageability

Your effectiveness as a manager is crucial—it ripples through your team, significantly boosting performance, engagement, and well-being. 

However, there are many factors that can impact your effectiveness. You are likely spending more time on project management than on leading and developing, with Garnter’s data suggesting nearly half of your peers are reporting the same. 

While this issue isn’t new, Gartner’s research reveals a notable correlation: Managers who view their roles as manageable tend to be markedly more effective. To unpack this further, Gartner has highlighted several critical insights:

• Your ability to effectively manage your workload, coupled with organizational support in resetting role expectations and simplifying tasks, can make your job 1.4 times more manageable.
• When you self-discover your fit for your role, your chances of finding your job manageable nearly double. 
• Habit-building within your organization can also lead to a significant improvement in job manageability.

So, with these insights in mind, what are the key elements that define job manageability and make a manager’s role not just doable but sustainable for long-term success? 

Workload

It’s not merely the volume but the complexity of the tasks that counts. 

Manageability means being able to tackle your responsibilities without feeling perpetually on the brink of burnout. 

Consider a day packed with meetings that leaves you with no time for reflection or team development— this is a sign your workload might be tipping the scales.

Autonomy

This defines your capacity to make work-related decisions. 

When you have the freedom to decide the ‘how’ and ‘when’ of your tasks, your job’s manageability improves. 

For example, choosing to delegate tasks to team members to better focus on priority areas where your expertise is crucial demonstrates autonomy.

Resources

Adequate resources mean having access to the right tools and people. 

This could look like being equipped with the latest project management software or leading a team that has the necessary skills to fulfill the demands of a project.

Support

Support encompasses the help you receive from your organization, including leadership and HR. 

Effective support can manifest as a mentor who helps navigate complex leadership issues or an HR department that resolves team conflicts efficiently.

Clarity

Having a clear understanding of your role and what’s expected of you is essential. 

Clarity in expectations and objectives means you’re better equipped to meet and surpass them.

The direct benefits of job manageability

Your well-being thrives when your job is manageable. 

Consider this: individuals who report manageable workloads experience a significant 12.5% increase in physical and mental health. This means you’re likely to feel less stressed, be in better health, and maintain a more optimistic outlook on life, which can ripple out to affect all areas of your performance positively.

Manageability plays a crucial role in your work-life balance. With a job that fits within the reasonable confines of your capabilities and time, work doesn’t have to spill into your personal life. 

You can wrap up your day with a satisfying sense of completion, knowing that you’ve accomplished what you needed to, and then disconnect to recharge.

Here are five ways job manageability directly enhances your professional life:

1. Sustained performance

You’re more likely to maintain high-performance levels without burning out, as a manageable job can mitigate stress even in high-stakes roles.

2. Enhanced engagement

With a 13.4% increase in engagement for employees under effective managers, a manageable job can help you stay invested in your tasks and more responsive to your team’s needs.

3. Higher retention 

Employees with manageable jobs are 3.2 times more likely to intend to stay with their current employer, indicating that manageability can foster loyalty and reduce turnover.

4. Elevated team success

With employees 15.4 times more likely to be high performers under effective managers, it’s evident that your ability to manage well translates to your team’s success.

5. Personal health and well-being

The 12.5% boost in well-being among employees with manageable jobs shows a clear link between job manageability and personal health.

By prioritizing job manageability, you’re not only setting yourself up for success but also paving the way for a healthier, more engaged, and dedicated team. 

The emphasis on manageability transcends mere productivity— it’s about nurturing an environment where you and your team can consistently perform at your best.

The indirect benefits of job manageability

When your job is manageable, it doesn’t just improve your direct output and well-being— it also sets off a chain reaction of positive effects within the workplace. 

The reach of manageability extends far into the realms of engagement, workplace culture, and adaptability.

Here are three indirect benefits of job manageability:

1. Fostering engagement

Engagement at work often hinges on the feeling that your tasks and responsibilities are within your control. 

When you’re not overwhelmed, you can dive deeper into your projects, contributing innovative ideas and demonstrating a greater level of commitment. 

This sense of engagement is contagious— when you’re invested, your enthusiasm can motivate your peers, creating a dynamic and collaborative team environment.

2. Cultivating a positive workplace culture

Job manageability contributes to a positive workplace culture by building a foundation of trust and support. 

A manageable workload implies that your organization values your time and well-being, which can lead to increased job satisfaction and a shared sense of purpose. 

In a culture where manageability is the norm, you and your colleagues are more likely to have the energy to support each other, celebrate successes, and work through challenges collaboratively.

3. Adapting to change and uncertainty

In an ever-changing work landscape, the ability to adapt is crucial.

A manageable job provides the bandwidth necessary to navigate uncertainty without succumbing to stress. 

When you’re not constantly at capacity, you can flexibly shift gears to address new challenges, learn additional skills, or re-prioritize tasks as needed. This resilience is invaluable, both for individual career progression and for the organization’s ability to stay agile in a volatile market.

The problem with over-emphasizing skill development

The current trend in many organizations is an overemphasis on constant upskilling. 

While staying current is undoubtedly important, an overzealous focus on learning new skills without addressing manageability can lead to burnout and diminished returns. 

Skills are not developed in a vacuum; they need an environment where they can be nurtured and applied. Without manageability, even the most well-intentioned upskilling initiatives can backfire, leading to frustration and a sense that the time and resources invested in learning are wasted.

A more sustainable approach recognizes that skill development and job manageability are interdependent. 

By fostering a manageable workload, organizations not only enhance the well-being of their employees but also set the stage for continuous, effective professional development. 

Manageability creates an environment where learning is integrated with doing, where employees can experiment with new methods, and where innovation is born from the ability to apply skills in a thoughtful, impactful manner.

How to integrate job manageability and career planning

Understanding and integrating job manageability into your plans can serve as a significant driver for both satisfaction and success as you navigate your career path.

Here are ten strategies and approaches that you, and the organizations you are part of, can employ to enhance job manageability.

Individual strategies for manageability

1. Assess your workload: Regularly evaluate your tasks and responsibilities. Are they reasonable? Do you have the necessary resources? If not, it might be time to speak with your manager about realigning expectations or securing additional support.
2. Seek autonomy: Advocate for autonomy in your role where possible. Autonomy can empower you to work in ways that suit your strengths and can make your job feel more manageable.
3. Build a support network: Cultivate relationships with colleagues and mentors who can provide guidance and assistance. A strong support network can ease the burden during challenging periods.
4. Develop clear role clarity: Work with your leadership to establish clear expectations for your role. Role clarity can eliminate uncertainty, allowing you to focus on your tasks with confidence.

Organizational approaches

1. Reset role expectations: Organizations should continuously reassess the scope of managerial roles to ensure they are realistic and aligned with individual capabilities.
2. Simplify managerial tasks: Introduce tools and processes that simplify managerial responsibilities. This can reduce the “work about work” that often burdens managers.
3. Invest in development programs: Tailor manager development programs to focus on practical skills that enhance manageability, such as delegation, prioritization, and stress management.

Policy recommendations

1. Industry standards for manageability: Industry leaders can create standards and benchmarks for job manageability, helping organizations to understand and measure how well they are doing.
2. Government role in workforce well-being: Policymakers can incentivize companies to prioritize job manageability through legislation or tax benefits. This could encourage investment in training programs and the development of more manageable job designs.
3. Promote transparency and accountability: Encourage organizations to be transparent about their efforts to improve job manageability and hold them accountable for their progress.

Job manageability: Redesign your role for success

In summing up our exploration of Gartner’s research on job manageability, we’ve underscored its pivotal role in shaping sustainable career trajectories. 

We’ve seen that manageability is a substantial factor that enhances work-life balance, fosters engagement, and sustains high performance. 

It’s clear from the data that while skills development remains important, the capacity to effectively manage one’s job is five times more influential in improving managerial effectiveness.

You’ve been equipped with the knowledge that job manageability extends far beyond the simplicity of tasks— it encompasses workload, autonomy, resource availability, support, and clarity. And you’ve discovered that when these components are in alignment, the ripple effects are profound, leading to better job performance, greater employee satisfaction, and a stronger, more resilient organizational culture.

For individuals, it’s crucial to recognize the power you hold to shape your job’s manageability. 

Engage in open dialogues with your leaders, assess your role regularly, and be proactive in seeking the support you need.

For leaders and HR professionals, the challenge is to pivot focus from constantly pushing skills development to fostering an environment where job manageability is a central concern. 

This can be achieved through resetting role expectations, simplifying tasks, and investing in development programs that promote practical, manageable skills.

And finally, for policymakers, it’s essential to step up and play a part in promoting job manageability. By creating incentives for businesses, setting industry standards, and ensuring that the workforce’s well-being is a priority, you can effect meaningful change.

It’s time to move forward with the understanding that our ability to manage our jobs effectively is a cornerstone of thriving organizations and economies.

The post Job manageability: From overwhelmed to overachieving appeared first on Digital Adoption.

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 evokes excitement but also carries a hint of fear. Any type of transformation holds the potential to bring prosperity, happiness, and profitability to an organization. 

However, beneath the surface of this transformative journey, a subtle threat lingers that things may not unfold as planned.

That’s why you must be careful about transformation programs in any organization. Whereas organizational evolution happens naturally, transformation programs will take place in a relatively short space of time. 

This article will introduce you to transformation programs in a business context. 

With a particular focus on digital transformation programs, we will:  

• Explain what the phrase “transformation program” means 
• Introduce five key examples of transformation programs from the world of digital transformation
• Examine some research-based advice about avoiding significant problems in your change program. 

Amidst rapid change, implementing a successful transformation program becomes a pivotal strategy to maintain a firm grasp on business success.

What Are Transformation Programs? 

To get us started, we’ll outline some of the fundamental knowledge of transformation programs: the meaning of the term, their objectives, and the challenges they involve.

The meaning of transformation programs 

In April 2023, a McKinsey analysis pointed out that “transformation has been a catchall term for how organizations make the right moves to achieve their full potential.” 

In other words, a transformation program refers to how organizations can adapt to new circumstances: change initiatives, business transformation, digital transformation, organizational change, and more. 

But if transformation programs come with risks and benefits, why do managers and leaders go through with them?

Transformation Programs: Common Objectives 

Like any difficult decision, transformation programs are about good business: increasing revenue, improving profit margins, and reducing costs. 

A transformation program may target some more specific areas. For example:

• To improve customer experiences 
• To reduce the number of staff employed 
• To make more sales 
• To appeal to a different portion of the market
• To continue to meet demand while scaling  

The good news is that “transformation” doesn’t simply entail “terminating all your employees.” In the 2020s, businesses are adapting to keep pace with significant shifts in commerce. 

Transformation projects sometimes have a bad reputation. Transformation efforts won’t magically fix all of the problems in your organization. And if your preparation is inadequate, they might cause you a lot of fuss (without much in the way of a return).

Fortunately, analysts are already familiar with some major challenges in today’s business environment.

Common Challenges for Transformation Programs 

The challenges for transformation programs come as a surprise to newbie transformation agents. However, if you ask some experienced transformation agents, they will tell you these challenges are not new. 

The following challenges are common across various transformation programs: 

• Human resistance to change. If your drivers have been using paper to sign out their deliveries for years, how will they feel about using a tablet?
• Poor communication. If you didn’t tell everyone that the new HR system was going live next Wednesday, can you be surprised that no one is using the new software on Thursday?
• Insufficient training. Transformation programs will often make processes simpler. However, there is a period of adaptation where front-line employees are getting used.  
• Rapid roll-out.  When you’ve discovered a brilliant solution to an old problem, rapidly rolling the whole thing may be tempting. It’s important to leave enough time to address the challenges of transformation programs.
• Unintended consequences. Quick changes may disrupt existing processes, creating unforeseen bottlenecks or inefficiencies.

It’s easy to see these problems when you look back on a failed project. But they’re very hard to predict! 

The good news is that a clear strategic plan can be enough to secure the success of your project. 

We will talk more about the ingredients of a successful project later in the article.

Five Examples of Transformation Programs in Action

Although “Transformation program” can refer to any kind of change project, we are limiting ourselves to digital transformation programs in this article. 

Perhaps these are some of the most important change programs you’ll see in 2023.

So you’re thinking about transformation programs. What does it look like? What might it be? 

Let’s check out five quick examples:

Replacing legacy systems with new technology

“Legacy system” can apply to many types of outdated technology.

It may be a move from outdated digital infrastructure to more efficient systems. But it might also involve a substantial shift from paper-based processes to computerized solutions.

Surprisingly, even as we enter the final stretch of 2023, some companies are still in the early stages of embracing full-scale cloud adoption. 

This transformation endeavor presents an opportunity to harness the capabilities of cloud technology for enhanced scalability, flexibility, and data accessibility, and it is a crucial step for businesses to remain competitive and adaptable in the evolving digital landscape.

Transformation programs can be a great way to “start over” when it comes to older technology.

Creating a one-stop customer self-service portal

Today’s customers, whether they are individuals or businesses, have heightened expectations for seamless and efficient experiences.

Achieving this requires robust software solutions, thorough testing procedures, and seamless integration with a spectrum of services. Developing a comprehensive self-service portal empowers customers to access information, resolve issues, and perform transactions independently. 

Such a transformation endeavor enhances customer satisfaction, streamlines operational processes, and strengthens the organization’s competitive edge by delivering the convenience and efficiency that modern customers demand.

Harnessing AI appropriately and effectively

IT leaders have been dealing with the challenges of rogue IT (also known as Shadow IT) for many years. 

Now, there’s a new enemy in town: shadow AI. If you didn’t know, that’s how we talk about all the unauthorized AI applications that employees might use.

Many businesses will need a transformation process to bring AI on board quickly and effectively. It will take planning, risk management, and thoughtful decision-making to ensure that AI gives you a competitive advantage in the years to come.

Introducing an enterprise-wide software platform

Comprehensive software solutions like ERP (Enterprise Resource Planning), HRM (Human Resource Management), or CRM (Customer Relationship Management) packages are some of the most transformative technologies today. They can radically improve your business processes, rapidly returning business benefits across the organization.

However, introducing these packages can be a big deal, including updating existing systems, replacing outdated digital infrastructure, introducing entirely new functionalities, or a vendor switch. 

The details involved in configuring, integrating, and deploying enterprise-wide software platforms underscore the non-trivial nature of this transformation effort, which, when executed effectively, can optimize business processes, enhance data management, and bolster the organization’s overall efficiency and competitiveness.

Implementing a wide-ranging data security

Data security can be a transformation program on its own. However, it should be on your radar whenever you introduce new digital technologies in your business.

This kind of transformation involves looking at and making better the rules and tools for keeping data secure. This includes using special codes to hide data, controlling who can access it, setting up systems to catch any threats, and teaching employees how to keep data safe. 

The main goal is to strengthen the organization’s defenses against the many kinds of online threats and to follow the rules about data protection. This change is important but tough because it needs careful planning and ongoing work to deal with new threats. However, when done right, it reduces the risks of data breaches and makes customers and others trust the organization more.

How to Organize Transformation Programs: Twelve Tips From The Research 

A successful transformation program can distinguish between success and failure in today’s competitive market. But how can you ensure your digital transformation program gives you everything you hoped for? 

To put it simply, you need a digital transformation strategy. There are so many ways to organize digital transformation projects – and many tried-and-tested change management models would work very well. 

But the good news is that business researchers from Morocco have compared all these models and discovered 12 crucial success factors to improve things. 

They outlined the 12 most crucial factors in the success of transformation programs: 

1. Clear vision and strategy for change

2. Change readiness and capacity for change

3. Change team performance

4. Activities for managing change management

5. Resistance management

6. Effective communication

7. Motivation of employees and change agents

8. Stakeholder engagement

9. Leadership and sponsorship

10. Reinforcement and sustainment of change

11. Approach and planning for change

12. Monitoring/measurement

We’d be lying if we said it was simple. 

However, it’s heartening to know that the ingredients of a successful transformation are all there. If you have a project transformation office set up, they can make sense of these challenging priorities. 

To get a clearer idea of how to improve your transformation, you can look at some sector-specific guidance. And on this site, we have a lot of relevant articles! For example, see these articles: 

• Digital transformation programs for financial businesses 
• Transformation programs for the procurement process  
• Educational transformation programs
• Business digital transformation for the airline industry 

Get set for a successful transformation project 

Over the past year, we have witnessed remarkable advancements in the realm of digital technologies and global events. These developments have brought about significant changes, impacting various aspects of our lives. 

For those fortunate enough to have remained unaffected by these changes, it is important to recognize the opportunities they present. However, for the rest of us, it is time to contemplate the scope of our transformation program and embrace the possibilities that lie ahead.

As we have observed, achieving success in the face of these transformations is not akin to rocket science. It requires a thoughtful approach and a clear strategy. Start by formulating a comprehensive plan that considers your industry’s unique challenges and opportunities. Seek sector-specific insights on transformation, understand the trends and emerging technologies, and identify the potential hurdles that lie ahead.

With a solid foundation in place, you will be prepared to rally your team and garner their support for the impending change. Engage them in the process, communicate the vision, and demonstrate the benefits that the transformation will bring. Together, you can navigate the complexities of this ever-changing landscape and emerge stronger and more resilient.

Remember, the path to success may not always be easy. But with the right mindset and a proactive approach, you can transform challenges into opportunities and drive meaningful change in your organization. 

Embrace the journey and let the winds of transformation propel you towards a brighter future.

The post Transformation Programs in IT: How to Make The Right Changes appeared first on Digital Adoption.

Teams responsible for infrastructure and operations consistently seek proficient methods to construct and deploy agile, flexible, and scalable applications across various industries. So, the surge in popularity of IaC tools can be attributed to two primary factors.

Initially, the escalating complexity of industry cloud platforms and architectures has rendered the manual management of these resources repetitive, time-intensive, labor-intensive, and susceptible to human error. 

Moreover, it’s financially inefficient, as manual alterations need to be duplicated multiple times, diverting your engineering team’s time from more productive pursuits.

Thus, IaC tools can help you become a digitally mature enterprise by automatically managing infrastructure or overseeing existing cloud services and resources through code.

What Are Infrastructure as Code Tools?

Infrastructure-as-code tools facilitate the automated administration of IT infrastructure by using programming languages and automation instruments. 

They diminish the necessity for manual processes and hardware manipulations during the deployment and configuration of servers, storage, databases, and networks. 

In this way, an ideal IaC tool can help multi-cloud deployment, automatically detect problems, and is important for businesses undergoing digital transformation.

Documented configurations are preserved in version control systems, ensuring consistency and diminishing time lags.

IaC tools champion agility, scalability, and resilience, serving as a conduit to streamline DevOps and NetOps by orchestrating provisioning and sustaining repeatable processes. 

What Are The Benefits Of Infrastructure as Code Tools?

IaC (Infrastructure as Code) tools allow you to manage, provision, and deploy infrastructure resources in an automated and repeatable manner.

This approach is becoming increasingly popular in the IT industry as it offers many benefits over traditional manual methods.

Advantages of adopting Infrastructure as Code tools include:

Streamlined Process Automation

IaC tools can enable comprehensive cloud infrastructure management with a lean team of engineers without straining your organizational budget.

Dependable Repeatability in Deployments

Infrastructure as Code tools provides a robust, tested, and automated framework to deploy and manage infrastructure daily, briskly and extensively.

Efficient Scaling Capabilities

Defining your infrastructure necessities in code facilitates a smoother transition when scaling up or down, thus ensuring IT efficiency by minimizing costs and time spent on repetitive tasks.

Adoption of a Declarative Paradigm

The implementation of IaC tools notably simplifies the provisioning of infrastructure. Once you integrate it with your workloads, there’s no necessity to sift through extensive documentation or perpetually adjust the state of your infrastructure. 

The declarative paradigm of IaC allows you to specify the desired state while the controller ensures provisioning and sustains the system configuration accordingly.

Fostering Enhanced Collaboration

As IaC operates like code, it unveils expansive collaboration possibilities, which could be explored through version control systems or Cloud Engineering platforms, such as Pulumi.

Alignment with Best Practices and Compliance

Infrastructure as Code tools enables you to adhere to stringent availability prerequisites and security benchmarks while improving operational resilience. 

Thus, IaC simplifies the modification and maintenance of configurations to align with your client’s requirements, which is often as straightforward as updating a singular value in the config file.

How Do You Implement Infrastructure as Code?

The strategies for writing or executing Infrastructure as Code include:

• Declarative (Functional) Approach: In a declarative strategy, the emphasis is placed on defining the desired end-state of the target, detailing “what” the actual configuration of the target should be. 

Instead of outlining the steps to establish a server, it delineates the list of prerequisites or third-party software needed to configure the infrastructure or server.

• Imperative (Procedural) Approach: The imperative strategy specifies the commands that must be executed to realize the desired outcome. The critical approach transforms the infrastructure to comply with the specified result.

Subsequently, IaC can be implemented through two primary methods, namely ‘Push’ and ‘Pull’:

• ‘Push’ Method: This approach involves the controlling server pushing the configuration towards the specified system.

• ‘Pull’ Method: In contrast, the ‘Pull’ method necessitates the server, which requires configuration, to pull its respective configuration from the controlling server.

Factors To Consider Before Purchasing Infrastructure as Code Tools

Choosing the most suitable Infrastructure as Code (IaC) solution hinges on your specific infrastructure needs. 

Several aspects need consideration when exploring and selecting IaC software:

Automation

Leveraging automation mitigates risks related to human errors stemming from manual deployment, configuration, and infrastructure management. 

Automated deployments can be economical by minimizing mistakes, enhancing speed, and fine-tuning workloads. 

Since numerous IaC tools provide automation features, evaluating different products based on their automation competencies is pivotal.

Scalability

Adhering to DevOps best practices implies the capability to swiftly and effortlessly scale up or down in response to fluctuating resource demands. 

Opt for an Infrastructure as Code tool encompassing scalability functionalities like dynamic orchestration or autoscaling to ensure your environment is adequately resourced for present and prospective demands. 

Certain IaC tools facilitate advanced scalability options like rolling or blue-green deployment strategies, enabling secure, uninterrupted updates without downtime or disturbances.

Cost

IaC tools confer notable cost advantages compared to manual infrastructure arrangement and upkeep. 

Start by analyzing pricing structures across vendors and engage with free trials before settling on a solution. 

Furthermore, explore potential licensing fees applicable for supplementary users or third-party applications.

Integration and Extensibility

In the quest for an IaC tool, prioritizing one that affords potent integration and extensibility options is crucial. 

Ascertain that the IaC tool furnishes APIs for intertwining with external services and systems and maintains a library of plugins to amplify the product’s functionalities. 

This affords you the adaptability to tailor your workflow to your explicit requirements. Moreover, robust extensibility options enable the crafting of custom integrations and connectors when necessary.

Security and Support

Numerous IaC solutions introduce inherent security features such as identity access management (IAM), encryption, and data loss prevention. 

Next, opting for Infrastructure as Code tools that include dedicated customer service and technical support teams who can guide you through the implementation and adoption phases also proves advantageous.

Determine the nature of technical assistance they offer – live chat, email, phone support, or forums – ensuring you know whom to consult in the event of issues.

9 Vital Infrastructure as Code Tools For IT In 2023 

When embarking on the journey to find your organization’s ideal Infrastructure as Code (IaC) solution, rather than gravitating towards the first seemingly suitable option, endeavor to unearth the one that genuinely aligns with your specific requirements.

To streamline your decision-making, here’s a glance at our top 9 Infrastructure as Code tools:

Terraform

HashiCorp Terraform, a premier open-source tool for infrastructure automation, focuses on configuring, provisioning, and managing infrastructure through code. 

It utilizes a declarative approach, allowing users to orchestrate IaC across diverse infrastructure providers with a consistent workflow and execute a pre-execution check to validate configurations before any provisioning or updates.

AWS CloudFormation

AWS CloudFormation, embedded within the AWS cloud platform, furnishes a user-friendly method to adeptly provision and manage a conglomeration of related AWS and third-party resources, offering integration capabilities with other AWS resources and using YAML or JSON for models and templates.

Ansible

Developed by RedHat and revered for its simplicity, Ansible facilitates expedited, reliable, and coordinated application deployments, creating multiple secure and compliant environments and contributing to an organization’s innovative and strategic pursuits.

Google Cloud Deployment Manager

Google Cloud Deployment Manager, a deployment service by GCP, facilitates automated creation, configuration, and management of resources on the Google Cloud Platform, employing a declarative language and offering deployment previews and a user-friendly console interface.

Chef

Chef, notable in the IaC tool industry, employs a procedural language, necessitating users to specify the steps to achieve the desired state via its Ruby-based Domain Specific Language (DSL), thus enabling detailed configuration of applications and utilities.

Azure Resource Manager

Azure Resource Manager enables the deployment, maintenance, and monitoring of Azure resources. 

Embracing a declarative template approach ensures consistent state maintenance across multiple deployments throughout the application development lifecycle.

Puppet

Puppet, a widely utilized open-source configuration management tool, employs a declarative approach within its Ruby-based DSL, dictating the desired configurations and allowing Puppet to determine the pathway to achieve them, facilitating quick and secure infrastructure delivery.

Pulumi

Pulumi distinguishes itself in the IaC tool landscape by offering substantial flexibility, supporting several programming languages, and retaining core concepts of established tools like Terraform. 

Pulumi provides a host of automation options for deployment delivery, quality assurance via policies, auditing, and extensive identity control, all complemented by thorough documentation and accessible tutorials.

SaltStack

SaltStack, an open-source Python-based infrastructure configuration management tool, offers a straightforward solution for high-speed provisioning, deploying, and configuring infrastructure on any platform, focusing on automating and orchestrating infrastructure, security, and networks.

Utilize Infrastructure as Code Tools To Optimize IT Success

Infrastructure as Code (IaC) tools revolve around the administration and provisioning of infrastructure utilizing code, negating the need for manual procedures. 

This involves crucial provisioning, deployment, configuration, and infrastructure orchestration.

Different tools play varied roles in setting up and managing infrastructure and applications within an environment. Two primary methodologies underpin the definition of IaC: declarative and procedural IaC. 

The declarative methodology focuses on defining the desired end state of the system. In contrast, the procedural or imperative methodology provides a sequential guide on the actions needed to achieve the intended configuration.

IT initiatives such as the infrastructure-as-code model are poised to gain a competitive edge in the coming years. For those transitioning to IaC, acquiring apt tools from the get-go can smooth the journey. 

Your optimal tool hinges on your unique needs and stipulations. It is advisable to embark on your research, scrutinize various tools, peruse reviews on neutral platforms, and seek product demonstrations or avail of free trials when possible. 

Utilizing these tools enables you to automate and streamline the management of your infrastructure, affording you the bandwidth to concentrate on delivering unparalleled value to your clientele.

Frequently Asked Questions

What do Infrastructure as Code tools do?

Infrastructure-as-Code (IaC) tools streamline and regulate IT infrastructure by employing automated, reproducible processes. Cloud-based and on-premises data centers and infrastructure are overseen through specialized computing code. 

These tools minimize the necessity for manual involvement in deploying and configuring servers, storage, databases, and networks.

What features should Infrastructure as Code tools have? 

IaC tools ought to encompass the majority, if not all, of the subsequent features:

• Automation of IT infrastructure, applicable to both cloud and on-premises setups
• Management of infrastructure provisioning
• Oversight of configuration management
• Inclusion of scripting tools
• Coordination of container orchestration
• Deployment and configuration driven by templates
• Streamlined automated workflows
• Facilitation of application deployment
• Incorporation of version control
• Support for testing procedures
• Provision of dashboards and alert systems

The post 9 Vital Infrastructure as Code Tools For 2023 appeared first on Digital Adoption.

In the conventional growth model for enterprise software-as-a-service (SaaS) companies, potential customers are not allowed to try the product.

Instead, they may be required to schedule a demonstration with a sales representative, sign a contract, and make a payment before gaining access to the product.

This sales-led approach often leads to customers needing help with the product, as they have already made a financial commitment, which can be attributed to loss aversion.

A product-led growth model offers an alternative to traditional sales-led growth and enables companies to provide value to customers quickly.

According to research by Bain & Company, product-led growth leads to expansion revenue, a larger market share, and higher third-party investment.

By the end of this article, you will understand:

• What product-led growth is, and why it is important
• Why product-led growth is the future of SaaS
• The difference between a sales-led and a product-led approach
• The benefits of product led growth and its most important metrics
• What a product-led company looks like from those who have used it successfully
• How to become product-led and put this type of growth strategy in place
• The next steps of product-led growth

What Is Product Led Growth (PLG)?

Product-led growth is a sustainable business strategy that relies on utilizing the product as the primary driver to acquire, activate, and retain customers.

In these instances, there is no need to request a demonstration from a front sales team or marketing representative, which is common with a sales-led approach.

Unlike sales-led companies, a product-led model allows users to freely try out the product through a freemium version or a free trial and discover its benefits on their own.

Why Is Product Led Growth Important?

Product-led growth offers companies a solution to scaling and growing efficiently by automating key onboarding, support, sales, and marketing functions.

Consequently, within a product-led company, staff can focus on more strategic and meaningful tasks while ensuring customers receive the necessary support and information.

In this way, product led growth should be viewed as a complement to human support and ingenuity rather than a replacement for it.

What Are The Benefits Of Product Led Growth?

By placing more importance on product quality and user experience, a product-led revenue growth model offers numerous advantages, including:

Lower customer acquisition costs (CAC)

Companies that adopt a product-led growth approach can minimize their expenditure on sales, advertising, and marketing. Instead, the product gains traction through word-of-mouth, attracting new users through free or low-cost options and gradually transitioning them to more premium offerings. 

Potential for viral growth

Product-focused companies tend to go to market and develop market-leading products. When users are enthusiastic about a product, they share their positive experiences with their networks, increasing the likelihood of the product going viral. 

Enhanced product feedback

Placing the product at the core of your strategy allows for a more extensive collection of user feedback, as listening to and understanding the user experience is crucial. 

This type of feedback can also help companies observe how users interact with their products, identifying value areas and potential problems and pain points. This persistent emphasis on user data enables the product-led team to make informed decisions on resource allocation for continuous product improvement.

Improved user retention

Customers will stop using a product if it does not meet their expectations. However, product-led companies strive to create intuitive products that effectively address real problems. By prioritizing the product, these companies achieve higher user retention rates.

Increased user satisfaction

By investing more resources in product development and feedback collection, companies with a product-led approach fine-tune their products to align with their intended audience’s requirements, leading to a better user experience.

Important Product Led Growth Metrics

Product-led companies organize their teams around standard product metrics and success indicators to achieve alignment and a shared agenda. These metrics often overlap with those used in sales- and marketing-led environments, but product-led companies typically employ them for distinct purposes compared to these models.

Time-to-value (TTV)

The period between signing up and realizing the usefulness of a product is commonly referred to as time-to-value (TTV). TTV is determined by analyzing product data to ascertain the average duration it takes for a customer to reach a critical activation event. A primary objective for a product-led company is to minimize the TTV rate to the shortest possible timeframe for customer success.

Acquisition

Reducing Customer Acquisition Cost (CAC) is a fundamental aspect of product led growth (PLG) models. The ultimate objective for a company that adopts a product-led approach is to minimize CAC as much as possible.

During the initial stage of customer acquisition, it is essential to track key indicators such as signups and qualified leads to identify opportunities and challenges in lead generation.

Retention

A metric focused on customer retention involves observing the actions of existing customers who have remained loyal to the brand. You should also monitor your net revenue churn, which can signal potential issues that require attention.

Even if all freemium users are converted to paying customers, it is only relevant if they remain loyal.

Examples Of Product Led Companies

The most successful businesses in modern times have adopted the product-led growth strategy. These companies focus on building an exceptional product and letting it drive their marketing, sales, and customer success efforts.

To adopt a product-led approach, consider the following business examples: 

Slack

Slack, an instant messaging application, was developed by sourcing copious amounts of user feedback, a crucial element of product-led growth.

When it launched in 2013, the founders initially requested companies within their network to test the application and provide constructive criticism. They diligently extracted feedback from as many early adopters as possible, progressively enhancing the product, its customer loyalty, its customer lifetime value, and its positioning.

Crunchbase

Crunchbase offers an easy initial sign-up process, requiring only your email, password, and an “I have an account” option.

However, the true highlight is when they ask how you intend to utilize the tool. This step allows you to tailor the platform to your specific interests.

Subsequently, the customer is presented with a personalized list of companies aligning with their unique preferences.

Miro

In contrast to other freemium or free trial models, Miro offers a free subscription that includes unlimited users, a valuable feature that encourages sign-ups.

Additionally, Miro boasts a collection of over 1,000 simple and user-friendly templates, facilitating quick and easy product utilization without friction, thereby delivering a seamless customer experience.

Furthermore, Miro enhances the template experience by tailoring it to individual users through seven onboarding questions.

This level of personalization is central to their customer-centric approach as it lowers the customer acquisition cost, expediting the product learning process and catering to each user’s unique requirements.

How To Put A Product Led Growth Strategy In Place

Product-led businesses focus on developing products that effectively communicate their value without requiring extensive sales efforts.

This is achieved through various elements, such as a seamless onboarding process, empowering end-users to explore the product independently, user-friendly interfaces and touchpoints, offering free trials and freemium services, and the potential for viral growth.

So, let’s look at how you can also put one in motion for your business:

Set Goals And Objectives After Getting Buy-In

Without the endorsement and support of robust and transformational leadership, it will be challenging to dedicate the necessary time, resources, and efforts towards enhancing the product, conducting experiments, and recruiting individuals who will contribute to the delivery of product-led growth.

Once the necessary buy-in has been obtained, you can start establishing specific objectives for product-led growth as part of your business strategy.

Define Each Individual’s Responsibilities In Terms Of Product-Led Growth

Product-led businesses need to establish clear ownership and accountability. Identify an individual or a team from within the organization who can take the lead in driving product led growth efforts.

This action ensures that several individuals within the business can work together towards this goal.  

Product-led growth (PLG) enhances the tech buying process by using the product itself to drive customer acquisition, customer retention, and expansion. It focuses on delivering value through the product, leading to a heightened customer experience transformation. 

Implement Analytics Tracking

To facilitate product led growth, it is of utmost importance to possess the necessary data for informed decision-making. This necessitates implementing digital tools to analyze user behavior and effectively lower customer acquisition costs.

Measure, Learn, Repeat

After you’ve run an initial experiment into the inner workings of your product, it is important to learn from it, whether it was positive or negative learnings. Gathering the entire team and allocating a few hours to review the experiment thoroughly is recommended.

The following techniques can be used to promote growth and improvement:

• Before the meeting, distribute a feedback form to the team, requesting their input on what went well, what did not, and what they learned from the experience.
• Encourage an open feedback session, like a Town Hall meeting, where all team members can contribute.
• Document all aspects of the experiment, utilizing a tool suitable for the team’s needs. For instance, Notion may be used to create a space where anyone can access and stay informed on the progress of the experiments. Visibility is crucial to product led growth (PLG).
• Incorporate the negative aspects of the experiment into the next one, utilizing them as a learning opportunity and ensuring that the same mistakes are not repeated.

Next Steps For Product Led Growth

Product-led growth (PLG) is a strategic approach that focuses on developing a product with exceptional features, minimal obstacles, clear value, stickiness, and virality, all contributing to customer acquisition and retention.

With PLG, businesses can scale their operations with minimal additional costs or resources. Companies provide users with sufficient access to the product, such as key features or a trial period, to derive value from it, often before requiring them to provide their credit card details.

Additionally, all teams within the company prioritize the product, working together rather than independently. PLG companies also benefit from shorter sales cycles and receive a greater amount of user feedback, which aids in the development of superior products.

Furthermore, when putting a product-led growth strategy in place, you must set goals for your project after getting the go-ahead from leadership and decide on the contribution you need from each team involved in this product-led strategy.

Next, product-led organizations must experiment to improve and refine their product continuously.

Lastly, remember to continue to measure, learn, and repeat the steps of your product-led growth strategy to enhance the customer experience constantly. 

The post Everything You Need To Know About Product-Led Growth appeared first on Digital Adoption.