Businesses are moving forward on the road to digital transformation. They are learning to adapt to modern technology for improved last mile connectivity with customers, partners and employees.
These modern or cognitive technologies, viz., Artificial Intelligence (AI), advanced analytics, Internet of Things (IoT), blockchain and 5G, along with automation are reshaping their business architecture, providing a seamless experience through innovation and also helping brands build trust.
A National Association of Software and Services Companies (Nasscom) survey of 100 CEOs stated that AI and data would be the game changers for businesses. Furthermore, advanced analytics and AI were the No. 1 priority for over 50% of the CEOs, besides hybrid cloud and cyber security.
Also, CEOs said that digitizing the business and enhanced customer experience were the top two spending areas for IT and business process management (BPM) sector.
Businesses are looking forward to ride on AI and convergence of other technologies and transform into next-generation organisations catering customers of tomorrow. Such businesses would be recognized as ‘cognitive enterprises’.
The term ‘Cognitive Enterprise’ is a relatively new. What does it mean and how can organisations transform into one? Let’s find out..
Simply put, an organisation that applies cognitive technology, such as AI, data analytics, machine learning, etc., at every business function--be it capital allocation, mergers and acquisitions, talent strategy, consumer behaviour, feedback and innovation-- to create an overall winning strategy.
A cognitive enterprise should use new technology and strive for agile innovation to cater to ever-evolving demands of partners and consumers.
In the meantime, it should also look inwards and enable digital innovation in front-and-back office processes and decision making, and lay emphasis on data to support key workflows.
Having said that, everything about a cognitive enterprise is not about technology alone. It is the ‘people’ who form an integral part of any organisation’s core. Cognitive enterprises will always value personal touch, human interaction and empathy that will enable these companies to stand out from the crowd.
As per a PwC report, businesses are increasingly providing personalised services to customers for a premium, and people are willing to pay the extra price for customised and superior service by AI. However, they still need the ‘human touch’ whenever required and cannot completely rely on having a fully functional artificially intelligent customer service system.
The big question here is—how and where does one start? Businesses are ready to upgrade, upskill and turn into a cognitive enterprise. But, how does one marry new tech with the legacy systems?
The answer lies in the ‘garage’.
The garage approach involves the creation of cross-organizational spaces where cross-functional teams can come together with strategic partners, such as IBM, and other ecosystem players and startups to co-create, co-execute and co-operate the new business platforms.
Under a typical garage environment, you can put technology options into the context of customer journeys, critical workflows, pain points and value potential, and ultimately innovate.
In the garage, new business platforms can be developed at greater pace and lower risk, enabling benefits from continuous learning.
The transition to a cognitive enterprise can be daunting, but that’s the way forward. Here, incumbents and disruptors are willing to navigate through challenges and explore a huge chunk of opportunity.
Are you? Schedule a consultation with an IBM Garage expert to begin your journey.