Harnessing the potential of technology for business transformation
In an increasingly competitive world, effective use of technology is crucial for companies to achieve their goals
IN AN unpredictable global economy, businesses today face numerous hurdles, from fluctuating demand and escalating costs to a complex regulatory environment. While some of these challenges are temporary, businesses must adapt and transform to stay competitive and exceed customer expectations in this rapidly changing landscape.
The good news is: the advent of new technologies has made it easier for businesses to rethink their operations and accelerate change. However, a successful business transformation extends beyond digital transformation, impacting other aspects of an organisation, such as its culture and people.
Gary Chia, Partner, Head of Consulting, KPMG in Singapore, said: “A successful business transformation strategy involves adapting quickly to market conditions through a strategic overhaul of an organisation’s processes and strategies.”
Two key emerging business trends shaping business priorities and paving the way for growth are the rise in customer expectations and an increased focus on sustainability, Chia adds. “With more discerning consumers and a fiercely competitive business landscape, the demand for tailored products and services has been gaining momentum.”
Tapping on AI to revolutionise the customer journey
Artificial intelligence (AI), a technology that emulates human intelligence to perform complex tasks like data analysis, logical reasoning, and decision-making, could be the key to enabling businesses to outpace the competition and enhance their competencies to meet new expectations and swiftly adapt to changing regulations.
“From my perspective, artificial intelligence is a transformative mechanism that has the potential to revolutionise business landscapes across diverse sectors,” says Chia.
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This advanced data processing capability not only facilitates more informed decision-making and enhances staff competencies, but can also inspire creative thinking, opening up new avenues for innovation and growth, he adds.
Such capabilities can revolutionise the customer journey, going beyond just meeting consumer demands to exceeding them. Businesses can then leverage these insights to predict consumer preferences using predictive analytics tools currently available in the market.
“In an increasingly competitive business world, such capabilities become pivotal,” Chia emphasises. “They empower employees to meet the escalating demands of clients who are becoming more discerning and exacting in their expectations.”
Enhancing the customer journey will not only be useful in retaining new customers, but also expand the customer base, create new revenue streams and set the stage for growth. This will be particularly beneficial in areas such as supply chain management, human resource management and financial forecasting, where sudden changes can pose significant operational risks.
Helping companies attain greener practices
Another aspect that has been gaining traction is the sustainability transformation. Amid the escalating climate crisis, companies are pivoting towards greener operations at an unprecedented pace. With these changes, a major pain point for businesses, Chia notes, is ESG (environmental, social and governance) reporting.
The overwhelming volume of ESG data and the lack of harmonisation in ESG standards can make it difficult for business owners trying to decipher and make sense of the data. However, AI could be the game changer these companies need.
In November 2023, KPMG supported the launch of Greenprint, or “gprnt.ai” – a digital platform designed for the financial sector to access and act upon ESG data to bolster their sustainability initiatives. The technology’s intelligence, in allowing users to access, report and make sense of large amounts of data can then help businesses identify areas in which they lack, and empower them to effect a change, says Chia.
Similarly, the potential of AI to analyse large chunks of data enables it to play a valuable role in helping businesses transform into a greener organisation.
Building an ecosystem to support transformation
While AI holds immense promise, Chia advises businesses to exercise caution before jumping headlong into AI investments. Drawing from his interactions with industry players, he says some have been eager to gain the first mover advantage, implementing sweeping changes using AI from the outset.
However, Chia warns that such hasty decisions could lead to long-term implications for a business. Instead, Chia recommends a collaborative approach within the organisation to ensure that all business needs and functions are addressed.
“The beauty of this approach is that it allows for AI solutions to be applied across a wide range of areas simultaneously, amplifying their impact,” he explains. For example, KPMG’s experts have often advised companies to adopt an outcome-driven perspective, which helps them understand how AI can serve various aspects of their business. This approach can simplify the scaling and launching of similar technologies in the future, says Chia.
But for a business to truly succeed, it must also look beyond internal dynamics. “In the realm of business transformation, it’s crucial to understand that AI, while a significant development, is only a piece of a larger, intricate puzzle,” says Chia. “This puzzle, or ecosystem, extends beyond staff and customers, and encapsulates a wider network of alliances instrumental in driving change.”
Businesses should consider forming strategic alliances with external entities, such as other companies, innovators, and sometimes even government bodies or trade and industry associations, says Chia.
“These external alliances can offer fresh perspectives, innovative solutions, and the necessary support to facilitate transformation. Thriving in the era of AI and forward-looking technologies means recognising that no business can operate in isolation.”
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