Digital transformation is a significant shift in how companies function, connect with customers, and compete in the global market. Businesses that accept the potential of data, cloud computing, AI, and other cutting-edge technologies can gain chances for innovation, efficiency, and competitive advantage.
According to Gartner, digital transformation may encompass anything from IT modernization to digital optimization to the creation of new digital business models. Organizations opt to conduct digital transformations for many reasons, including the need to remain competitive and relevant in a quickly changing digital environment.
Deltek’s study showed that professional services organizations are confident about growth potential and want to spend heavily on technology to achieve their goals. According to the most recent Deltek Clarity Trends and Insights for Architecture, Engineering, and Consulting Firms report, 84% of project-based organizations plan to boost earnings in 2024, up from 71% in 2023.
According to the survey, digital transformation is critical to fulfilling these growth aspirations, with 67% agreeing that making considerable progress in this area would not result in a loss of market share.
Firms are quickly adopting AI
AI has emerged as a game-changing technology, which professional services businesses are quickly adopting. According to Deltek’s study, the vast majority of companies (98%) use classical AI and machine learning (ML) approaches, with a startling 97% claiming to use generative AI. The expectations surrounding AI’s revolutionary potential are strong, with 74% of enterprises certain that investing in AI would broaden the range of services they can provide to the market, and 41% expecting that effective adoption will increase profitability.
As a result, over three-quarters (74%) of businesses feel that investing in and successfully using AI will provide them a major competitive advantage. However, more than two-thirds (75%) of enterprises are extremely or somewhat concerned about their competitors using these technologies at a quicker rate.
Bernard Marr, a futurist and strategic business and technology advisor, warns against rushing into AI investments: “In addition to the Deltek findings highlighting the appetite for AI implementation and the pressures to do so quickly and gain first mover advantage, firms must not take a scattergun approach to their AI investment and sign up for the next new craze. Setting targets and benchmarks is critical for determining where new technology will have the most impact. Given the rapidity of innovation in the AI area, firms could theoretically update their plans practically weekly to integrate new ideas.
“The key is to understand where inefficiencies are, where technology can aid people in their jobs to streamline operations, and frequently review the effectiveness of solutions against objectives and what is new in the market,” he goes on to say.
Neil Davidson, VP of EMEA and APAC at Deltek, comments: “Despite excitement about growth potential, businesses risk failing to effectively assess their progress and identify where they are succeeding and where they need to improve. As projects get more complicated, the KPIs that businesses must monitor must adapt. Investing in Project ERP as a backbone will give insight into company KPIs, process optimization, and productivity benefits to help organizations stay on track and confidently show success to key stakeholders.
“We live in an extraordinarily exciting period for technical advancement. As AI becomes increasingly interconnected in our daily lives, we will see it become an enabler for our employment, much as search engines revolutionized knowledge acquisition and video conferencing increased connections between multinational teams. It is not simply a productivity tool; it is also seen as a must-have for improving corporate capabilities, and it is quickly becoming a significant draw for top people seeking to achieve more with their expertise without being inhibited by administration.”
Source- Technologymagazine
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