In Part 1, Robert talked about how critical importance of digital transformation for organizations. In part two, highlights the results of recent research on digital transformation with a focus on the common challenges organizations face. He also provides some examples of innovative strategies that companies such as Netflix and Amazon are using to tackle these digital transformation challenges.
What are the most common frustration or challenges your clients are coming to you with to solve? How do you help them?
As our recent research showed, security is the chief concern and the biggest challenge to solve. As I already mentioned, data mining and analytics is also a struggle for many, as well as experience design and organizational inflexibility.
On a higher, more strategic level, though, many companies understand that they need to transform, but they lack clear vision into what areas they need to focus on, where to start, and how to move forward with their transformative initiatives in the fastest and most efficient way. That’s why we have SoftServe Labs, in fact, to help our clients with research and proof-of-concept before they make large investments.
I wouldn’t describe these as purely challenges, though, as these companies also stand to gain a lot. Digital asset management, Cloud computing, mobile technologies, and the Internet of Things (IoT) approached as a part of digital transformation efforts can bring a lot of benefits to consumer facing operations, retail, the finance and banking sector, and many others.
What are some of the digital transformation challenges facing organizations today in harnessing their data?
Numerous security breaches and hacking attacks serve as a proof that we haven’t yet solved security challenges facing all businesses, small and large. Privacy is also a big concern, especially when it comes to access to personal data in healthcare, education, state and government organizations, etc.
Data security is one of the common digital transformation challenges facing businesses today.
Another aspect of it is legacy software that cannot handle the amounts of data that require daily processing, and it can’t be all substituted within a couple of days due to financial and resource strains it would put upon the organizations. Artificial Intelligence (AI), though hugely promising, is not yet at that stage when it can automate decision making for truly impactful processes, beyond initial analysis. However, it can facilitate and speed them up considerably.
It also is very important to remember that harnessing data is not an end in itself, but rather a means to help organizations achieve their business and strategic goals. And the consumer – a human being– is at the heart of all of it. So, no purely technical solution, no matter how powerful or innovative, will bring true value if it’s not applied correctly or as a part of a well-thought and comprehensive strategy.
What organizations do you feel have been especially forward-thinking and/or innovative at leveraging their data to solve? What can we learn from them to solve our own digital transformation challenges?
Well, when it comes to leveraging data and personalization, giants like Google and Netflix immediately come to mind. It’s interesting how thoroughly analyzing data and making the right predictions, Netflix managed to reduce the range of content available on their platform while improving customer satisfaction.
And look how Amazon is using data from different sensors and machine learning to disrupt the grocery business with their “Amazon Go” retail store.
When it comes to attracting new customers, which is also a challenge for traditional companies, I like the example of L’inizio Pizza Bar in New York. Their manager decided to attract Pokémon Go players to the place, and he spent just $10 to have Pokémon characters lured to his restaurant. The business went up by 75 percent. So, it’s never about technology or software only, it’s about innovative thinking and human ingenuity.
How can organizations manage their data assets more efficiently and effectively? What should their data management strategies include?
With the “Internet of Everything” and connected everything blurring the concepts of office and home devices as well as working hours and workplace, data assets need to be secure and protected and accessible from a variety of different devices, in different formats and easily searchable.
For some organizations – most likely in the government sector, finance, and insurance, etc. – it will require switching to intranet to secure their assets from any unauthorized access or potential loss of information. For others, where remote access from any place, any time is a higher priority, omni-channel and compatibility will be the key focus. The challenges here include the already discussed legacy software and integration issues.
According to IDC research, by 2022 almost all data – 93 percent – in the digital universe will be unstructured. It will also, most likely be content in different formats, including audio and video files, images, interactive content, etc. Not only will this require greater storage and processing capacity, it also means that this data will need to be easily searchable and user friendly if we want it to be used versus stored.
When it comes to customer-facing content, another requirement is consistency across various channels. On the whole, when it comes to data, the current leaders in asset management are platform providers. With these platforms, instead of building their own solutions from scratch, which is a costly and time-consuming approach, businesses can quickly customize and scale a ready-made solution, adding and discarding additional features depending on their current needs.
What are some of the most exciting Big Data trends or innovations you’re following right now? Why do they interest you?
SoftServe’s 2016 Big Data survey showed 62 percent of organizations expect to implement machine learning by 2018, so apparently machine learning and Artificial Intelligence are huge Big Data trends we’re following right now. Chatbots as a customer-facing form of AI technology have gained momentum and are quickly becoming an area of huge interest for all kinds of user support activities.
But from a high-level perspective it’s nothing new, really. Once again, it’s all focused around building a better, different experience for a consumer, so machine learning, AI and chatbots are in fact just new(ish), possibly more effective ways to achieve the same goal: leveraging data to improve customer experience and stay relevant in an increasingly competitive marketplace.
For more on challenges driving digital transformations, download the eBook “Hadoop Perspectives for 2017” which offers an in-depth look at the results of Syncsort’s annual Hadoop survey, including five trends to watch for in 2017.