{"id":647532,"date":"2024-02-08T17:02:09","date_gmt":"2024-02-09T01:02:09","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=arcuser&p=647532"},"modified":"2024-05-07T09:27:28","modified_gmt":"2024-05-07T16:27:28","slug":"is-digital-transformation-still-a-thing","status":"publish","type":"arcuser","link":"https:\/\/www.esri.com\/about\/newsroom\/arcuser\/is-digital-transformation-still-a-thing","title":{"rendered":"Is Digital Transformation Still a Thing?"},"author":1031,"featured_media":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","castos_file_data":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[369852,791,25012],"tags":[23402,21622,441081],"arcuser_issues":[487872],"class_list":["post-647532","arcuser","type-arcuser","status-publish","format-standard","hentry","category-artificial-intelligence--ai","category-digital-transformation","category-managers-corner","tag-automation","tag-digital-twin","tag-geoai","arcuser_issues-winter-2024"],"acf":{"short_description":"Yes, digital transformation is still a thing. It always will be.","pdf":{"host_remotely":false,"file":647642,"file_url":""},"flexible_content":[{"acf_fc_layout":"blockquote","content":"

Yes, digital transformation is still a thing.\r\nIt always will be.<\/h3>"},{"acf_fc_layout":"content","content":"If digital transformation talk has faded, then I think it\u2019s due to lingering confusion about the term itself. Many people treat and discuss digital transformation as a single tech-driven initiative\u2014an IT undertaking primarily focused on replacing or upgrading an organization\u2019s core technology stack.\r\n\r\nThis is off in my book.\r\n\r\nDigital transformation<\/a> is about business transformation. I think of it as business transformation through digital means. That means that as technology evolves, the opportunity to transform digitally persists. The problem with thinking that digital transformation is a one-time event or even a multiyear initiative is that it implies that a digital transformation can somehow be complete, as though it\u2019s a project with a start and end date.\r\n\r\nIn fact, digital transformation is a process\u2014an ongoing, continuous evolution in how an organization leverages digital technology to run its business, interact with customers and deliver its products and services. And, as long as technology keeps advancing the minute you finish one transformation effort, you\u2019re presented with a new world of digitally driven opportunities.\r\n\r\nTo quote Jeff Bezos, \u201cIt\u2019s always day one for digital transformation.\u201d Sadly, success with digital transformation has been modest. While digital transformation is never dead (and results may vary), transformation successes have unfortunately been few and far between.\r\n\r\nIn a recent study, the global management consulting firm McKinsey took a fresh look at digital transformation in the banking sector to determine who\u2019s succeeding in their efforts and who isn\u2019t. [The study<\/a>, a Finalta benchmarking study by McKinsey, tracked the performance of 80 global banks from 2018 to 2022 against a set of normalized metrics.]<\/em>\r\n\r\nThe results were disappointing. While 89 percent of organizations surveyed indicated they actively pursue digital transformation, only 31 percent indicated that they\u2019ve realized a significant return on their investment\u2014not exactly a resounding success.\r\n\r\nMuch of this shortfall gets back to the problem of perception. Many of the organizations surveyed focused their digital transformation efforts on keeping up with technology rather than leaping ahead in their business. And lagging organizations, in particular, were focused on implementing \u201ctable-stakes\u201d digital tools\u2014tools such as a customer-facing mobile banking app. Ten years ago, this might have been transformational, but not anymore, especially from a competitive standpoint.\r\n\r\nAs the study noted, \u201cAs soon as one bank introduces a mobile feature, others see it and follow suit relatively quickly.\u201d Organizations that play a perpetual game of catch-up never truly transform anything about their businesses relative to the rest of the industry. What was once innovative quickly becomes just the cost of doing business.\r\n\r\nSo, what do those leading the way with digital transformation do differently? In short, they focus on creating value that\u2019s hard to copy. According to the study, organizations enjoying the greatest benefits from their digital transformation efforts go beyond table-stakes apps and focus on transforming core functions of their business. They focus on reengineering or optimizing complex processes and workflows. This involves integrating dozens of use cases, multiple stakeholders, volumes of data and numerous external systems.\r\n\r\nIn the banking sector, leaders go far beyond customer-facing mobile apps and transform the entire digital sales process. They leverage foundational digital technologies (such as cloud, mobile, analytics and social) to optimize the entire customer journey. This includes developing personalization analytics to improve marketing campaign uptakes, providing omnichannel customer contact center access, enabling real-time financial product approval, and offering extensive customer self-service tools to support day-to-day banking.\r\n\r\nDigital leaders don\u2019t just change technology; they fundamentally change how business is done. Technology that enables and optimizes complex integration will drive the next wave of digital transformation.\r\n\r\nWhat stands out from the trends in digital transformation identified by McKinsey is how central the concepts of integration and connectivity have become. Re-engineering complex business processes is essentially an exercise in integration, where you undergo a deep rewiring of systems, workflows, and behaviors.\r\n\r\nModern digital transformation rests heavily on achieving broader and tighter integration inside and outside an organization, and the technologies that enable and accelerate this deep connectivity will compete for mindshare. That\u2019s why conversations around digital twins, generative AI and geospatial technology have reached a fever pitch.\r\n\r\nDigital twins are virtual replicas of physical systems and are, in essence, the ultimate integrative concept. Whether it\u2019s a digital twin of a manufacturing production line, a transportation network, or a river basin, implementing a digital twin involves integrating numerous datasets, systems, and processes to model a real-life functioning system. That includes how humans interact with and maintain these systems, often in real time and in 3D, depending on the degree of sophistication.\r\n

Digital Twins and Geospatial Technology<\/h3>\r\nA twin with a high degree of integration and richness provides the basis for complex digital transformation. Managers can confidently model scenarios across complex workflows and identify process improvements. Essentially, digital twins are a vehicle for modern digital transformation.\r\n\r\nUnderpinning digital twins are two critical technologies: generative AI and geospatial technology. These are central to digital twin systems, as they provide the means to generate, simulate, and adapt digital representations that closely mirror real-world systems. Generative AI delivers predictive and prescriptive powers. Geospatial technology provides the spatial context. Put them together, and you get an integrated, intelligent digital twin that can tell you where, when, and why to take action or make changes.\r\n\r\nGeospatial technology is a foundational component of digital twins and plays a vital role at each level of maturity. Table 1 summarizes a general digital twin maturity model.\r\n\r\n "},{"acf_fc_layout":"image","image":647692,"image_position":"center","orientation":"horizontal","hyperlink":""},{"acf_fc_layout":"image","image":647702,"image_position":"center","orientation":"horizontal","hyperlink":""},{"acf_fc_layout":"content","content":"

Generative AI and Geospatial Technology<\/h3>\r\nGenerative AI has the potential to accelerate outcomes at every stage of the geospatial data life cycle, shifting human involvement toward data-driven interpretation, decision-making, and innovation.\r\n\r\nHow do I see the digital twin-driven transformation era unfolding? It is hard to say overall, but here are a couple of examples from city government organizations that are already underway:\r\n
    \r\n \t
  • Infrastructure Development and Investment<\/li>\r\n \t
  • Uses generative AI to assess economic indicators, demographic trends, and urban growth projections to recommend strategic infrastructure investments<\/li>\r\n \t
  • Uses geospatial technology to map existing infrastructure and growth areas<\/li>\r\n \t
  • Integrates both technologies to create a planning twin to guide city officials in making informed decisions about where and when to invest in new infrastructure projects<\/li>\r\n<\/ul>\r\n

    Citizen Engagement and Services<\/h3>\r\n
      \r\n \t
    • Uses generative AI to analyze residents' feedback, service requests, and sentiment analysis data to identify trends and improve service delivery<\/li>\r\n \t
    • Uses geospatial technology to provide location-based insights into service demand<\/li>\r\n \t
    • Combines these technologies to enhance resident engagement, tailor services to specific needs and optimize resource allocation for improved public satisfaction<\/li>\r\n<\/ul>\r\n

      The Bottom Line<\/h3>\r\nDigital transformation is not dead; it\u2019s thriving, evolving, and adapting to the changing times. The integration of digital twins, generative AI, and geospatial technology (and other innovations) into business operations is a testament to its continued relevance. Organizations that embrace these technologies are better equipped to innovate, stay competitive, and meet the demands of an increasingly digital world.\r\n\r\nSo, let\u2019s not bury digital transformation prematurely. Instead, let\u2019s recognize its enduring importance and harness modern digital advances to shape a more efficient, creative, and sustainable future for businesses and societies alike."}],"references":null},"yoast_head":"\nDigital transformation is an ongoing process<\/title>\n<meta name=\"description\" content=\"Digital transformation is a process\u2014an ongoing, continuous evolution in how an organization leverages digital technology to run its business, interact with customers and deliver its products and services.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esri.com\/about\/newsroom\/arcuser\/is-digital-transformation-still-a-thing\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is Digital Transformation Still a Thing?\" \/>\n<meta property=\"og:description\" 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