Digital Operations: Elevating Business Transformation with AI and Automation
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Digital transformation (Dx) is not just a modernization of technology and IT systems in an enterprise, it also involves re-evaluating how the business is run and how value is offered to customers. Hence, when an enterprise considers transformation, a deep dive into its processes, services/products, and technology is needed.
Nowadays, digital transformation has become a broad phrase, meaning different things to different people. However, efforts that are smaller in scope and impact remain limited to modernization, while a true transformation is a long-term engagement. In fact, one could say that transformation is a continuous activity – as businesses keep phasing out legacy systems in various parts of their organization, while also shifting the way operations are done. When done right, it permeates every aspect of an enterprise:
The organizations that truly excel don’t merely react to change—they anticipate it, making them ready to seize emerging opportunities.
Digital transformation isn’t even a very recent concept, it has been around since the 90s. Over the years though, it has evolved in terms of its value equation.
In the early days, as businesses started moving to computers, they had the task of converting the paper-based and manual processes to digital ones. Few examples would be how paper-based records became spreadsheets, manual inventory logs became databases, and physical communication shifted to email. This phase was also called digitization, and it was mainly about making businesses and their customers familiar with digital systems.
Next came digitalization, where organizations began using digital technologies to enhance their operations and customer interactions. Some examples are online banking, e-commerce platforms, and mobile apps. This was like the next step after digitization, as there was a shift in customer touchpoints and how they interacted with businesses.
This leads us to today, and to transformation. This is going beyond simply adding more tech to processes, it is about rethinking business models:
There are several forces that have caused this wave:
What began as a back-office upgrade is now a boardroom priority. And the companies that recognized this shift early (like Netflix, Amazon, and Tesla) didn’t just adapt. They reshaped entire industries, becoming market leaders.
Apparently, around 90% of all organizations are undergoing some kind of transformation, but not all Dx journeys are created equal. Even so, certain components will be similar across orgs, for example how most transformations today have strong AI focus.
At the heart of digital transformation is the adoption of modern technologies. This could include:
Such technologies make it possible to support the changes that follow, whether they happen in workflows, processes, etc.
Digital transformation often requires rethinking outdated processes. It’s not enough to digitize a bad workflow, you need to redesign it entirely. Certain aspects to consider are:
Hence, we can say that process reengineering tries to unlock the real value from the digital layer.
Perhaps the most overlooked—but most crucial—component is cultural transformation. Adopting new technology is easy compared to changing mindsets.
Organizations must:
This cultural alignment is what enables organizations to sustain momentum and respond to constant change.
In a digitally transformed business, everything revolves around the customer. From designing personalized experiences to anticipating needs through data, companies must:
A customer-centric approach ensures that Dx delivers real, tangible value, not just leaving it at operational improvement.
While we have discussed the many advantages of Dx so far, in practice there are many issues that organizations face in their transformation efforts. These challenges may be related to the tech, the people, or may persist at the organization level itself. In fact, this is often a very slow process in which certain initiatives are never realized.
Firstly, as we’ve discussed before, infra forms the base layer upon which transformation can happen. Legacy systems and infra also pose major hurdles, as they are costly to maintain and hold innovation back. Its not like the whole infra setup can be overhauled in one go, IT modernization in slow and takes place in steps. Meaning that when certain systems are updated, they still have to play well with existing systems. Attempting to build digital capabilities in this environment results in patchwork solutions that fail to perform immediately.
One common challenge related to the people aspect is that there is resistance to change. Changes in the status quo may not work in everyone’s favor. For example, automation can lead to fear in job security, while teams may struggle with steep learning curves with new tools. The leadership could be sceptical too when ROI is not immediately visible.
Equally challenging from the people standpoint to the skill shortage. While new infra that supports cloud and AI technologies can be setup relatively quickly nowadays, the skills needed to leverage them may not exist internally. This in turn requires upskilling or hiring efforts.
Subsequently, the organizational strategy must also be on the right path. What happens often is that digital transformation is applied through lots of smaller, unrelated projects, where it should ideally be a well-thought, company-wide effort. When there is mismatch between the initiatives and the wider business goals, they may offer short-term benefits but fail in the long run. A fragmented approach can also lead to duplicated efforts, wastage of resources, and internal confusion.
Finally, with the expansion of digital touchpoints comes the need for new security and regulatory considerations. As enterprises digitize more of their operations, they increase their exposure to cyber threats and data breaches. At the same time, they must navigate an increasingly complex web of privacy laws and industry regulations. Without robust governance and security practices, Dx can introduce more risk than reward.
Being aware of these barriers doesn’t mean slowing down, it means smarter planning. When organizations take proactive steps to address the pitfalls, they can ensure a more sustainable transformation journey.
