Digital transformation in companies

• Digital transformation of the largest business
• Digitalization in the agro-industrial complex of Russia
• Digital transformation of Russian banks
• Digital transformation of public administration (strategic direction)
• Digital transformation in transport
• The Digital Transformation of Europe

Chronicle

2024

Named 30 major digital technologies that could fundamentally change companies

Gartner has unveiled a list of 30 major digital technologies with the greatest potential to change different industries. Using these solutions will help companies increase their competitiveness, optimize operations, reduce costs and increase security, including improving protection against personal data leaks. The listed technologies and trends are divided into four key groups: smart world, revolution in productivity, privacy and transparency, and critical assistive technologies. Gartner's list was reviewed by TAdviser in mid-August 2024.

Smart world

This group covers changes in how people interact with each other, locations, content and things in the convergence of user online and offline experiences.

· AI-Avatars are humanoid virtual characters created using computer images and various AI methods and applications;

· Digital twins - special models that reflect the state and characteristics of physical or virtual assets, processes, people or organizations;

· Multimodal user interfaces - allow users and machines to interact through combinations of modalities, for example, speech, gestures, touch input, etc.;

· Smart spaces are physical environments in which humans and technological systems interact in increasingly open, interconnected, coordinated and intelligent ecosystems.

· Spatial computing - computing environments that combine physical and digital objects in a common frame of reference.

Revolution in productivity

The technologies of this group reflect the potential capabilities of generative artificial intelligence (GENI), which in many respects contributes to its wide distribution.

· Model compression is a set of techniques to reduce the size of a trained neural network for deployment on small devices or to increase central system performance;

· Autonomous unmanned aerial vehicles (UAVs) - drones that are mainly used to inspect assets, but can also be used to deliver small parcels;

· GeniI is a form of artificial intelligence that can create text, images and diverse content based on the data on which training is performed;

· Genia-based virtual assistants are a new generation of assistants who use large language models (LLM) to provide advanced functionality;

· Converters for computer vision (ViT) - neural networks that calculate the relationships between pixels of different parts of the image in order to achieve more accurate classification of images, improve object detection and image generation;

· Intelligent applications - use one or more AI methods to learn from external alternative data sources;

· Synthetic data - arrays of information generated artificially;

· Self-monitoring training is an approach to machine learning in which marked-up data is created from the data itself without having to rely on historical information or people.

Privacy and Transparency

Ethical approach when implementing AI and using AI design principles that will benefit people and society.

· Man-Oriented AI (HCAI) - a general principle of AI design, in which AI constantly benefits from human contribution;

· Behavioral analytics - tracking user interaction with secure services for building trust models that allow you to distinguish between fraudsters, legitimate users and bots;

· Responsible AI is a general term for various aspects of ethical and safe implementation of AI;

· Decentralized Identification Systems (DCI) - aimed at solving privacy and transparency problems inherent in traditional systems;

· Privacy Enhancement Technologies (PET) are a set of robust approaches that allow you to process information while protecting personal data.

Critical assistive technologies

Technologies of this group can open new scenarios for using systems or expand existing user experience.

· Neuromorphic computing is an engineering approach in which computer components mimic the functions of the human brain and nervous system;

· Tokenization - cryptographically secure representation of a valuable object or data;

· Quantum processors - new generation chips based on qubits;

· Hyperscale Peripheral Computing (HEC) - a public cloud solution for a peripheral environment based on a distributed cloud platform, managed and controlled by a hyperscale cloud service;

· Artificial intelligence chips - semiconductor products optimized for processing neural networks;

· Blockchain is a technology that organizes a database consisting of a chain of blocks designed according to certain rules;

· Web3 - a new concept of the World Blockchain-based Network;

· Knowledge graphs - machine-readable data structures that describe the relationship between heterogeneous data through a network of nodes and links;

· Low Orbit Satellite Megagroupings (LEO) - such systems can provide global communication and Internet access with a delay and speed comparable to basic wired communication;

· Private network 5G - 5G cellular systems built solely for use by a specific company, individual or government agency;

· Scalable vector databases - Provide vector search capabilities and work in conjunction with large language models.^[1]

Companies in Russia allowed to hold shareholder meetings online

On July 30, 2024, the State Duma of the Russian Federation adopted a law allowing companies to hold remote meetings of shareholders. Such a format should provide for broadcasting, and the organization must keep its record.

When holding online meetings of shareholders, the identification of participants can be carried out by means of an enhanced qualified electronic signature (UEP) or - if there are relevant provisions in the charter of the organization or its internal documents - by means of two types of enhanced unqualified signature (UEP): these are public services or a signature from a corporate agreement on electronic interaction. In addition, personal data from the Unified Identification and Authentication System (ESIA), as well as information from the Unified Biometric System (EBS), can be used for identification.

Voting participants will also be able to use UKEP or UNEP to sign ballots. Plus, it is possible to sign a simple electronic signature if the identification is carried out through the ESIA or EBS services. Non-public joint-stock companies will be able to use alternative schemes: indicate in the charters other methods of "reliable establishment of persons taking part in the meeting remotely and methods of signing ballots." It is emphasized that such rules should not restrict shareholders in the right to participate in decision-making.

It is noted that if during a remote meeting of shareholders there are significant technical problems that cannot be eliminated promptly, then the vote is declared invalid.

{{quote 'We give three years for companies to technically prepare for the procedure for reliable identification of persons who take part in a meeting of the general meeting, and persons who signed the ballot, using an electronic signature, - said the head of the relevant State Duma Committee on Property, Land and Property Relations Sergey Gavrilov^[2]" }}

Russian companies are ready to spend millions on digitalization, but production is lagging behind

Comindware on June 17, 2024 published the preliminary results of the second all-Russian study of business readiness for digital transformation. The survey showed that while administrative and economic processes are automated in 50% of companies, production processes lag behind - only 40% of organizations have implemented automation in this area.

Despite the gap in the level of automation, Russian companies are ready to invest heavily in business digitalization. Thus, 30% of respondents plan to allocate up to 1 million rubles for these purposes in the next 12 months, 25% - from 1 to 5 million rubles, and 20% - from 5 to 10 million rubles. Another 15% of companies are ready to invest more than 10 million rubles in digital transformation.

These figures show that business is aware of the need for digitalization and is ready to allocate serious budgets for it, "said Igor Prostokvashin, head of the Comindware research group. - However, it is important not only to invest, but also to set priorities correctly. Automation of production processes can have a significant effect in terms of improving the efficiency and competitiveness of companies.

The study also revealed that many organizations have already invested significantly in digitalization. According to the study, 35% of respondents spent up to 1 million rubles, 30% - from 1 to 5 million rubles, and 20% - from 5 to 10 million rubles. Another 10% of companies invested more than 10 million rubles in digital transformation.

The fact that companies continue to allocate significant budgets for digitalization, despite the costs already generated, suggests that they see a real return on these investments, - said Igor Prostokvashin. - Process automation helps businesses reduce costs, improve productivity, and improve customer experience.

The survey also found that in most companies, the automation process is led by Chief information officer (40%) and CEOs (30%). In 20% of organizations, this function is performed by specially appointed project managers, and in 10% - by heads of automation departments.

According to experts, the fact that the top management of companies is directly involved in the digitalization process indicates the strategic importance of these initiatives. Moreover, the success of digital transformation largely depends on leadership and support at the level of the organization's top officials.

A final analytical report containing the detailed results of the study and practical recommendations for business will be available in the fall of 2024. The document will be a guide for companies seeking to successfully undertake digital transformation. It will help managers to understand modern realities more deeply, identify the most promising areas for investment and choose advanced technological solutions that are as appropriate as possible for the specifics of their organizations.

How companies tackle digital transformation fatigue

Digital transformation, which was previously considered the key to organizational efficiency and the path to innovation, is now a familiar phrase when discussing companies' business strategies. However, in addition to increasing flexibility, improving customer service and creating advantages over competitors, digital transformation is fraught with negative phenomena that many enterprises face - fatigue and burnout of specialists. This is stated in the IDC study, the results of which were released on April 10, 2024.

Digital transformation fatigue can occur when businesses and organizations undergo constant and rapid technological change. As a result, they simply do not have enough time to adapt solutions or fully benefit from previous transformations. In such a situation, there may be resistance to changes on the part of workers, as well as a decrease in their involvement in the labor process. All this leads to a deterioration in labor productivity and burnout. In addition, analysts say, there may be skepticism about the value of further digital initiatives, which makes it difficult to advance new and potentially promising projects.

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One of the main causes of digital transformation fatigue is the pace of change. New technologies are emerging at unprecedented speed, immediately making previously implemented systems and implemented strategies obsolete. This ongoing cycle of innovation creates a constant sense for organizations to keep pace with the latest trends and achievements, leaving little time for consolidation or reflection. In an effort to keep up with competitors, companies risk putting too much pressure on their teams and driving them to burnout, which in turn could jeopardize the digital transformation strategy itself.

Trying to do very much and very quickly can have detrimental consequences, as it diverts the attention and resources of the company from business development tasks, "says Andy Venables, CTO of PopX, a managed services provider (MSP).

The IDC also stresses that the scale of digital transformation initiatives can be daunting. Companies are faced with numerous problems, which, in addition to time and resources, require appropriate experience to solve. Among the most pressing tasks of analysts are the need to modernize outdated systems, as well as the introduction of cloud computing, artificial intelligence and data analysis tools. As a result, stakeholders may experience fatigue from the scale of their challenges and the seemingly endless flow of demands.

Resistance to change is another common barrier that contributes to digital transformation fatigue. Despite the potential benefits of digitalization, many employees fear the introduction of new technologies due to fear of dismissal, lack of awareness or concerns about privacy and security. Due to the high pace of digital transformation, it can often be difficult for enterprises to cope with many projects and initiatives being implemented at the same time. This can lead to delays, cost overruns and ultimately frustration.

To combat digital transformation fatigue, IDC recommends a strategic and phased approach, prioritizing projects based on their potential impact and feasibility. By breaking down transformation efforts into managed components, organizations can reduce task complexity and focus resources on areas that will most benefit.

In addition, according to IDC materials, to prevent fatigue from digital transformation, enterprises should focus on clearly informing about the goals and benefits of the programs being implemented. In this case, it is necessary to ensure the compliance of new initiatives and the general business strategy, as well as organize support and training of employees. To improve change management, it is recommended that you prioritize and pace digital initiatives. Engaging employees in the transformation process and building a culture where adaptability and continuous learning are valued are also important measures to reduce fatigue and ensure successful digital transformation.

Marketers are encouraged to use personalized content to attract attention to effectively interact with customers experiencing digital transformation fatigue. Personalization promotes deeper communication with customers, increasing the likelihood of effective collaboration. In addition, interactive marketing tools that offer an innovative approach to combating digital transformation fatigue can help. Such tools provide an exciting and engaging experience that allows customers to actively participate in the marketing process, making it more memorable and enjoyable.

The IDC study also said that B2B sellers, when interacting with customers, can use three key strategies to combat fatigue from digital transformation. These are value-oriented negotiations that affect the goals and objectives of a particular customer; Providing support and educational resources to help customers navigate complex technologies and solutions simplifying and optimising the purchase process with an eye to minimising bureaucracy.^[3]

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