Chris Bedi, Chief Digital Information Officer, ServiceNow, on how businesses can maximise their IT spending and successfully adopt AI to improve customer experiences.
Driving efficiency with digital transformation requires balance.
We’re all under pressure to do more with less, but how do you prioritize digital spending? It’s a debate I hear in boardrooms worldwide; too broad a focus on innovation for innovation’s sake and you risk missing key opportunities, while an unwillingness to invest at all risks the entire business. AI can feel intimidating, but experimentation is important; not getting started is not an option.
Missing the mark on technology investments
The last few years have paved the way for bigger, better digital transformation. The rise of generative AI and hyperautomation has potential to be a productivity game-changer for those who use it well. For example, a recent study by Pen.nl found that 72% of employees who already use AI at work think the technology can double their efficiency.
While some companies realise these benefits, McKinsey research reveals that many in Europe aren’t quite getting it right. IT spending has grown by 25% across European industries since 2020, but customer satisfaction with digital experiences isn’t keeping up.
Efforts to improve internal efficiencies aren’t translating to enhanced customer experiences. Some companies simply aren’t hitting the right notes for their customers when driving their digital transformation initiatives.
A survey by ServiceNow and Opinium shows what customers really care about: 95% surveyed in EMEA see efficient responses from customer service agents as a top priority. Businesses that aren’t tapping into the potential of AI and hyperautomation are finding it tough to keep up with these demands and risk falling behind competitors. Hyperautomation and GenAI can boost self-service and change customer experience for the better, while also shifting expectations from self-service to proactive service.
Putting AI at the heart of digital transformation
In Germany, the country has slipped in the ranks for attractiveness to the private sector, trailing behind other, more digitally nimble countries across Europe.
The challenge for businesses across Germany and the rest of EMEA is to invest in the right technologies that balance doing more with less while creating seamless experiences for employees and customers.
This is where AI can solve the juggling act. A 2022 NewVantage Partners survey of senior data and technology executives revealed 92% of large companies registered significant returns on AI and data investments in 2022 – nearly double the rate from a 2017 study.
The potential is massive if you get it right. AI embedded throughout an enterprise supporting recommendations, decisions and processes can drive better experiences, increased speed and effective decision making.
Take Siemens, Europe’s largest industrial manufacturing company with a global workforce. With a commitment to become a technology-led organization, AI and automation delivered more efficient services and enhanced experience – automating one million hours and earning an 87% employee satisfaction rate.
Shaping a comprehensive strategy
Of course, this isn’t a straightforward process when you consider the scale of AI integration for an entire business. The key is to take a well-rounded, step-by-step approach, starting right from the moment you decide to invest.
UK telecommunications operator BT Group realized the value of AI-led operations with its strategic digital transformation program to simplify service management processes.
By replacing and consolidating multiple legacy systems, the group reduced change efforts by 75% and had large reductions in mean time to repair. In the long term, the group forecasts £25M in savings by 2027 using more proactive and predictive operations.
Navigating adoption of AI advancements
After investment, you need to get people onboard. For a business to take full advantage of the benefits of AI, employees must become comfortable with it. That puts the onus on business leaders to spearhead their digital transformation strategy and show teams how they can use AI in their respective departments and processes for greater efficiency.
Upskilling and training employees is a critical component. Organisations should determine which roles will be most affected by AI, then deliver targeted training to give these employees the skills they need to thrive in the new digital landscape.
It’s also important to create opportunities for employees to share ideas as they become familiar with the technology. Giving the green light to explore innovation encourages collaboration that spans across different departments. Building bridges between teams are what help drive efficiency across the whole enterprise.
You’re not just transforming your business; you’re nurturing a culture of innovation and collaboration that can take your company to greater heights.
Greater efficiency, greater customer experience
Bringing together investment and adoption are core pieces of the puzzle to harnesses the potential of AI.
Employees are empowered to automate tasks and innovate, which opens the door to more agile operations across the enterprise. The result is faster and more seamless experiences for customers.
For example, Copenhagen Airport is frequently awarded as Europe’s most efficient airport and serves over 30 million customers. By streamlining operations and automating tasks for employees to work better, the more time they can dedicate to engage directly with passengers.
The airport wanted to revamp its legacy services architecture to create a consistent end-to-end experience for everyone. By identifying common pain points, ServiceNow helped them automate processes and increase user service efficiency for a 90% customer satisfaction rating.
Doing more with less, successfully
Striking the balance between digital ambition and investment is no small feat as we look to drive efficiency and speed. Making the right investments in AI can be the solution.
That comes down to honing a strategy that encompasses every facet of your business, from empowering employees to aligning with customer needs. By embracing this ethos, you can unlock the power of AI and do more with less, elevate experiences, and gain a competitive edge that stands the tests of time. The “iPhone moment” for AI is here – and we can’t afford to sit on the sidelines.
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