Upend Digital: 2023 Digital Transformation Trends for Enterprises
We are only a couple of weeks into 2023, and already the tech world has been buzzing with the launch of ChatGPT, but how will this and other digital trends be leveraged to deliver enterprise success as the year unfolds?
Generative AI (ChatGPT-3 et al.)
OpenAI/GPT-3 has brought 'Generative AI' to the masses, a term that refers to a type of artificial intelligence that can generate new content, such as text, images, or audio, that is similar to or mimics existing content. GPT-3, the third Generative Pre-trained Transformer, achieves this by using Natural Language Processing (NLP), deep learning algorithms, large amounts of data, and much computing power (1).?
Generative AI has existed for decades, and we've likely all engaged with chatbots and agents; however, the results are variable at best. So how will Generative AI (ChatGPT) benefit small to medium-sized and large enterprises this year?
Increased efficiency and automation of repetitive tasks
In their book 'Human + Machine,' Accenture leaders?Paul Daugherty?and?H. James Wilson?suggest that the AI paradigm shift will arrive when humans and machines collaborate ever more closely so that it becomes fluid and adaptive (2). ChatGPT is already increasingly being used to answer questions, generate content and write code, helping remove 'writer's block' and get work started. From text summaries to developing first-draft policies and reports, GPT-3 can drive increased productivity in creating and managing enterprise content for multiple business purposes, such as marketing, advertising, and design.
GPT-3's ability to generate code and understand natural language makes it a promising tool for paired programming. Paired programming is a software development method where two programmers work together at one workstation, with one person writing code and the other reviewing and suggesting changes in real-time. Although GPT-3 should not be viewed as a substitute for human-paired programming, it does offer the opportunity to scale teams while increasing developers' speed and effectiveness. Sure, GitHub's Copilot has been using the underlying deep learning model, Codex, for some time (3). Still, the exposure of GPT-3 to the mass market feels like the tipping point for the democratization of learning to code and optimized delivery.
So has this paradigm shift arrived, or are we at the precipice? Either way, we've reached a point where the use of AI in our daily work will free up more time for humans to focus on high-value tasks and their personal life while minimizing repetitive tasks.
No-code/Low-code and the rise of the Citizen Developer
Another digital trend forecast to deliver further efficiency and benefits to the enterprise is No-code/Low-code development. According to the recent?Codemap.io?2022 report, the global no-code/low-code development platform market has seen significant growth, with a compound annual growth rate of 29.9% from 2021 to 2022, reaching $25.16 billion. This trend is expected to continue, with projections of the market reaching $68.84 billion in 2026 at a CAGR of 28.6% (4).
Before diving in, let's start with a few definitions; No-code and low-code may be marketing terms, but they also refer to the technical skill required to use a particular software platform or tool.
No-code refers to software platforms or tools that do not require coding or programming skills. These platforms typically have drag-and-drop interfaces and pre-built templates, making it easy for non-technical users (citizen developers) to create and deploy applications without writing code.
Low-code, on the other hand, refers to software platforms or tools that require coding or programming skills. These platforms typically have more advanced features and customization options than no-code platforms, and users may need to write some code to utilize them fully. However, the amount of code required is minimal compared to traditional software development.?Some prominent examples of Low-code platforms would be:
Mendix: A low-code platform that allows users to create web and mobile applications quickly and easily, with minimal coding required.
Appian: A low-code platform that enables users to build and deploy business applications quickly, with a drag-and-drop interface and pre-built templates.
ServiceNow: A cloud-based platform that provides IT service management (ITSM), IT operations management (ITOM), and IT business management (ITBM) solutions. It allows users to create custom workflows, automate processes, and manage incidents, problems, and change requests in IT operations. The platform provides a drag-and-drop interface for users to create custom applications, automate workflows and manage data, minimizing the need for coding skills.
The no-code landscape has exploded over the past three years, with a proliferation of applications entering the market, which are broadly organized into six different categories (4):
The market for no-code platforms and services has predominately been individual business owners, start-ups, and small to medium-sized businesses. Still, we are seeing increasing adoption of no-code platforms by large enterprises (5). The reason is the available inherent benefits: ease of use, reduced costs, increased agility, and the democratization of 'development' to business users or 'citizen developers' (6).
The citizen developer's rise has brought advantages and disadvantages to business delivery. On the positive side, citizen developers can create custom applications and automate processes quickly without relying on IT departments or outside developers. This autonomy can lead to increased efficiency and cost savings for organizations. Citizen developers often have a unique understanding of the specific needs and challenges of the business, which can lead to more effective solutions.?
A Gartner report estimates that a significant portion of IT spending in large enterprises, 30-40%, is on shadow IT, which can negatively impact the smooth running of a company (7). By providing employees with the tools and resources to create their applications, the need for shadow IT can be eliminated. Additionally, no-code platforms can reduce shadow IT by allowing employees to develop the applications they require, using platforms vetted by IT departments from an overall security and enterprise governance perspective.?
Overall, the rise of the 'citizen developer' can bring significant benefits. Still, it also requires careful management and oversight to ensure that the resulting applications are practical and secure. However, there are potential downsides to the rise of the citizen developer. Tools marketed as no-code still require some level of technical proficiency. While "no-code" suggests that programming is not required, some visual modeling tools may require specialized expertise or familiarity with programming concepts. Additionally, a lack of oversight and management can lead to security, compliance, and scalability issues.
X-Shaped Talent, Outcome-Driven Innovation (ODI), and Total Experience (TX)?
The success of generative AI or no-code/low-code for businesses of all sizes will depend on their ability to deliver the required outcomes for customers and the business. Those adopting these tools must still use them alongside a clearly defined strategy that combines the perspectives of business, human-centric design, technology, and data that will deliver competitive advantages.?
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X-Shaped Talent
However, it is not enough to have a strategy or a plan; as Mike Tyson once said, "everyone has a plan until they get punched in the mouth." Execution is critical, and being agile, flexible, and resilient will determine who comes out on top. We've heard about T-shaped individuals who have a deep level of expertise or skill in one specific area (the vertical stroke of the "T") but also have broad skills or knowledge in other areas (the horizontal stroke of the "T"). Perhaps we are seeing the evolution of the X-shaped individual (employees or consultants), where knowing how to combine strategic business objectives with a human-centric design that leverages technology and data to deliver outcome-driven innovations. Moreover, the ability to design teams of interconnected users (organizational design) and implement these changes into the business ecosystem (organizational change) is essential for success.
Outcome-Driven Innovation (ODI)
Leveraging technology such as generative AI and No-code/Low-code can accelerate the path to experimental innovation, but they should align with specific outcomes. Outcome-Driven Innovation (ODI), developed by?Tony Ulwick?(8), is a strategy and process focusing on understanding the particular jobs customers want to accomplish and the desired outcomes they hope to achieve. It aligns a company's efforts to create value with these customer-defined metrics, e.g., help me invest for the future (Robinhood), help me find a room (Airbnb), help me develop my career through my professional network (Linkedin), etc.?
The ODI approach emphasizes understanding the customer's needs and developing products and services that directly address those needs. It can lead to the development of new products, services, or business models that provide value to customers and help organizations stay competitive.?
Delivering a Total Experience (TX)
A continuing differentiator in 2023 is delivering a best-in-class experience for customers and employees. Total Experience is a holistic approach to customer experience management that considers all touchpoints a customer has with a brand, across various channels and over time, including the employees (9).
Total Experience combines customer and employee experience by recognizing that they are interrelated and that positive employee experience is essential for delivering high-quality customer service and customer satisfaction. It acknowledges that employees are customers of the company's internal processes and systems and that excellent employee experience can lead to great customer experience.
One example of a No-code/Low-code platform focusing on improving the Total Experience is the digital adoption platform?WalkMe??(10). The platform helps users navigate and complete tasks on websites, software, and mobile apps. It creates a total experience by providing users with context-aware and personalized guidance overlaid on the user interface. The advice can take the form of tooltips, walk-throughs, and interactive tutorials and helps users complete tasks quickly and efficiently. Additionally, WalkMe uses analytics and machine learning to track user behavior and adapt the guidance to individual needs.
Providing employees access to the latest emerging technology, such as those mentioned, generative AI, and no-code/low-code platforms can increase the Total Experience quotient for your organization. Leveraging these tools will deliver multiple additional benefits, from increased productivity to increased accessibility and collaboration among teams. Most importantly, these technologies will allow employees to elevate experiences for customers and deliver faster time-to-market while practicing outcome-driven innovation.
2023 looks like a year of disruptive innovation, creative construction, and an exciting year for digital transformation.
References
4.?????https://codemap.io/trends