Digital transformation: where will it lead your business?

Our Digital Transformation Team Leader, Derek McCamley, shares his thoughts around some of the pitfalls businesses find themselves in when introducing digital solutions to their business and how his team is on hand to help.

<Warning: This article was created without the aid of ChatGPT>?

"Chat GPT, Bard, the Metaverse, Non-fungible Tokens (NFTs), Virtual Reality (VR) and Cryptocurrency. On the surface, they promote exciting opportunity and futuristic connectivity. But there’s also several warnings over potential impact on employment levels, job quality and distracting companies from their core business objectives.??

Some could have a short burst impact, some will have a bit more endurance. Others will disappear in a flash, like Google Glass or, ironically, Flash.??

You might be feeling the pressure to adopt these new, shiny technologies and get ahead of the competition. But, unless you’re in the tech sector, for the majority of SME businesses, the answer isn’t always to be the early adopters. You should absolutely consider the new tech on the block, but ultimately only engage with what is going to work for your business objectives. The key is to have a well-defined digital and IT strategy guiding you, giving you the ability to quickly determine opportunities, risks and wider industry impact. ?

For example:?

• Is Chat GPT going to help you create your next innovative product??
• Is creating NFTs of your product going to help you grow online sales in the next two years??
• Is the Metaverse & VR at a stage it’s going to help improve productivity and immediate workforce culture issues??
• Do you really have enough surplus cash in the business to be paying attention to cryptocurrencies??

Ultimately, it’s the juggling act of time and money with your short-term needs and longer-term goals. With most significant digital and IT projects, the reality is that day-to-day business operations are likely to endure some pain during the process of implementation, before the productivity gains of new systems, processes and employee skills are realised.??

Part of the role of Scottish Enterprise’s Digital Transformation team is easing this transition and making sure you’re properly prepared. Unfortunately, however, we too often see fatal errors before we’re brought in to help, such as poor pre-planning and scoping of requirements, the lack of an options appraisal, unrealistic expectations on the delivery or issues through unknown or unaddressed skills gaps needed for successful adoption. Fortunately, when our team is engaged in the early phases, we’re able to work with your business and technical leaders to make sure plans are thought through and align with your business objectives. We want to help you identify and compare different options and the realities of cost and time to implement.???

We also expect to see a rise in businesses turning to Artificial Intelligence (AI) like Chat GPT and Bard for its digital marketing content and customer interaction. But it’s a double-edged sword. Ubiquitous use of the same tools will be able to support the generation of quality and focussed content but could also serve to further saturate the marketing noise on digital channels. Your challenge is to stand out in an AI heavy crowd, and to keep an eye on the technology as it develops to see if it will serve your purposes better than traditional content. This is particularly pertinent if SEO (Search Engine Optimisation) is part of your marketing efforts, as increased use of AI chat bots will likely disrupt traditional SEO approaches, for better or worse.?

Digital Carbon Footprint vs Scotland’s Net Zero Ambitions?

Another area in the digital arena that is gaining emerging attention is how digital transformation affects Scotland’s Net Zero ambitions. There is a growing realisation that the use of digital devices, IT hardware, software and digital communication channels isn’t always environmentally friendly. Despite their intangibleness, there is a carbon cost to everything online, including email traffic, storage of files, coding, how and where data is hosted and disposing of obsolete devices when technology outruns itself.?

• In 2020 the internet used 10% of the World’s electricity, by 2025 it is estimated that the figure will be 20% (Guardian source)?
• Chat GPT is estimated to produce 3.8 tons of CO2e every single day (source)?
• An estimated 30 billion trees would need to be planted every year to offset the pollution caused by unopened attachments, unread email and spam (source)?
• One Instagram post from Cristiano Ronaldo consumes as much electricity as it takes to power 10 average UK households for a year (source)?

It’s potentially a similar time as before we realised smoking was bad for us. By the time we get the facts of carbon impact of digital activities, we might be too late and too addicted to stop the long-term damage. But the reality is, businesses within Scotland need to have a sustainability strategy to stay competitive and help Scotland meet its Net Zero targets, so any digital transformation plans must consider this. Here are some simple, practical steps you can take immediately in your digital activity:?

• Run your website through an online carbon calculator??
• Check if your website and data is being hosted in a Green Data Centre?
• Delete old emails and files?
• Review your hardware recycling policy?
• Consider carbon impact as a factor during supplier procurement??

Ways the Digital Transformation team can support your business?

We understand how much of a confusing world emerging technologies can be. So, if you’re an SME business looking for advice in developing a digital strategy, digital project scope, options appraisal, change management approach or digital and IT technology implementation, then we’re here to help.???

We can support you in navigating both the details of the tech and their potential impact on your business, goals and sustainability strategy through providing:??

• Digital & IT Strategy review and development.?
• Ecommerce support – improving your route to market through digital channels (domestically and internationally).?
• Digital marketing review & planning – developing your online marketing strategy for better customer engagement. Improving cost per sale conversion rate.?
• Data review – how to get value from your data through analysis and insights.?
• Digital Manufacturing support – applying digital technologies to the design, manufacture, and operational processes.?
• Business Systems – review of existing systems to ensure full effectiveness is being realised. Supporting the scoping and implementation of new systems.?
• Cyber security review & best practice advice.?

Get in touch if your business would benefit from a discussion with one of our Digital Transformation specialists about these services or to receive specialist advice on a current or potential digital project in your business, or any other topics mentioned in the article.?

You can submit an enquiry through our website or call our enquires team direct on 0300 013 3385."