Listen to this story
Everyone has a different idea when it comes to digital transformation. It is filled with technology buzzwords or jargon like social media, quantum computing, robotic process automation, blockchain, industry 4.0, big data, cloud computing, artificial intelligence, etc. These things make sense only if it is useful or relevant for the business.
Prior to 2020, only 15 percent of the companies were ‘digitally savvy’, estimated Forrester. According to Gartner, around 90 percent of corporate strategies will mention information as a critical enterprise asset and analytics as an essential competency.
Sign up for your weekly dose of what's up in emerging technology.
Simply put, digital transformation is the process of considering how best to apply digitised information to simplify specific operations. I believe it is about leveraging data to build a smarter business.
This include –
- Engaging seamlessly with your audience
- Improving operational effectiveness
- Building better products faster
- Driving better executive decisions
- Building a sustainable future
In this article, we will look into each of these pillars of digital transformation in detail, alongside understanding their impact.
Engaging seamlessly with your audience
One of the leading banks from Australia used Customer Genomics to improve product recommendations and customer attrition targeting. Using one of our platforms created a single-customer view with hundreds of features levered for strategic insights across the bank. The features include product holding, transactions, offline, and online interactions, demographics, etc. The outcome: Our platform generated an uplift in home loan applications over a control group, alongside improving attrition estimation over current models.
Besides these, the bank also witnessed higher relevance rates. The algorithms and dashboards powered by Customer Genomics have now become an integral part of its strategic planning. The bank also leveraged external data sources to improve attrition targeting (e.g., data from settlement agencies for HL refinance attrition identification).
In addition to this, the bank also saw an increase in leads across products over existing uptake models, particularly when it came to back-testing. It also saw a higher predictability rate across products over existing attrition models.
Overall, this created a frictionless omnichannel experience for the bank and offered a hyper-personalisation experience to its customers.
Digital transformation implemented
- CNNs enabled the detection of behavioural patterns from time series features fed directly into the model, which significantly improved the predictive power.
- Incrementally self-learning models enabled model adjustment over time to account for a change in population behaviour over time.
- End-to-end automation helped save AWS EC2 running costs.
Customer Genomics driven Digital transformation flow chart for enhancing customer engagement (Source: Fractal)
As shown above, executing the ‘Next Best Action’ for every customer at any stage in their relationship journey becomes crucial. For that, you need to –
- Leverage and harmonise every available data signal on the customer to develop the customer persona and journey,
- Leverage an ensemble of AI algorithms to build a holistic action recommendation engine,
- Update the customer understanding with every new signal,
- Design, automate and integrate to maximise adoption and ROI.
Improving operational effectiveness
Typically, when we do demand forecasting, the model sometimes struggles to predict demand accurately. So, to solve this problem, we need to leverage the strength of human demand partners, along with logistic plans, we can increase overall operational effectiveness. This improves productivity, improving quality and managing risks, etc.
For one of our transportation clients based in London – the biggest challenge was the delay in transport due to the doors not functioning properly – we helped them reduce the delays in the system using AI and predictive maintenance for trains.
Building better products faster
Digital transformation helps you launch new products faster and improves the success rate of new products. There are several parameters for making products better for the customers and other stakeholders. By leveraging data and analytics and how they interact with it, we have worked on several healthcare, lifestyle, and eCommerce projects to improve the overall engagement in the app and launch new features. This includes reimagining the healthcare records, scanning of reports, or adding AR/VR capabilities within the apps for simplifying the customer experience, etc.
(Source: Crux Intelligence – Fractal)
Driving better executive decisions
According to Gartner, close to 53 percent of decision-makers said that there is a higher expectation for them to explain or justify their decisions. Data science and AI helps in improving speed, accuracy and efficiency in the business. Leveraging data and analytics helps leaders make informed decisions and scale business to the next level.
Here are some of the things to keep in mind before implementing digital transformation for driving better executive decision making:
Proactively highlights important incidents in your data and provides the analysis of what drove the occurrence of the event – a critical factor in cases of adverse events.
High engagement, value realisation
Crux’s mobile-first design, natural-language search, and proactive nudges contribute to an increased engagement with data, with over 80 percent WAU (weekly active usage)
Low total cost of ownership (TCO)
Crux drives a lower overall TCO by eliminating the need for a specialist team to highlight or surface key insights or drive analysis from the data.
Crux dashboard (Source: Fractal)
Building a sustainable future
Data and analytics help reimagine the core business and build a sustainable future. Using data with models of interventions and active knowledge of both the built and natural environment becomes crucial for business and bringing positive change.
For example, Qure.ai performs better than a radiologist in a trial of 5000 x-rays.
Qure.ai platform (Source: Fractal)
A final thought
Enough has been said about the benefits of digital transformation, but the actual impact comes in leveraging data to solve complex business problems. The five pillars of digital transformation could be a great starting point for many business leaders who are looking to create an impact in the industry and stay ahead of the curve.
This article is written by a member of the AIM Leaders Council. AIM Leaders Council is an invitation-only forum of senior executives in the Data Science and Analytics industry. To check if you are eligible for a membership, please fill out the form here.