Development of Digital Transformation - Case Study Example

Introduction

According to Corver and Elkhuizen (2014), it can be stated that digital transformation is referred to as the use of consistent and rapidly changing technology in order to solve the issues faced by the companies. There is a considerable transformation in the economy, along with a change in the lifestyle of the individuals and the rising possibility of staying connected with the entire world. This has enabled the society to move towards the digitalization with increasing use and connectivity of the internet with the machines and people. Moreover, in order to develop the digital environment, there is a need of certain skills along with understanding the needs and requirements of the individuals. The study focuses on the development of the digital transformation proposal of the U.K. based manufacturing company, Harvey water softeners, which is engaged in manufacturing water softener.

Identified issues

The main technological issue which is found in Harvey is product recalls. This happens because of the inflexibility of the processes involved in manufacturing. A product recall is defined as the process through which the defective goods are retrieved and replaced. The issue in product recalling can impact the reputation of the company while affecting its customer base, which can be decreased due to the failure of product recalls. This restricts product improvisations as well. Another major issue of Harvey is the threat of potential hackers who intend to gain accessibility to the data of the company and get control over the systems. Harvey has a huge range of data that has been classified and specialised on the systems. This includes the ongoing projects, future product blueprints, confidential data related to finance, and the other information. According to Garni and Fernando (2019), it is evaluated that there is a risk that hackers can create the threat of data breaches to use the data. This overall has a huge negative impact and consequences. Hence, these identified issues need to be taken into consideration in order to safeguard the company from any major loss and impact on the business.

Solution

With the help of the identified issues, it can be stated that the company requires digital transformation. Organisations that have adopted digital solutions are found to be highly benefited. There are a large number of solutions based on information technology, which can help in increasing the efficiency of the business operations along with the capabilities of the organisations. However, many organisations fail to understand the significance of digital tools and solutions, which creates a significant challenge in decision making. Hence, there is a lack of opportunity for the growth of these businesses. According to Bughin et al. (2017), it is averred that the digital transformation mainly helps in having a better understanding of the customers, along with focusing on providing a better experience to the customers and solving the issues as well as improving the service levels.

Harvey can implement Artificial Intelligence, which is referred to as the human intelligence simulation that is found in the machines. It is a technology that is programmed to think similarly to humans and follow their actions. As per the opinion of Yao et al. (2017), it can be posited that the use of Artificial Intelligence is rapidly growing in all the sectors. It might be costly for the organization initially. However, it is expected that the investment will be highly beneficial for the organisational in the long run. As stated by N.G. (2020), the manufacturing industry operating throughout the globe can witness a transformation by using artificial intelligence. However, according to MAPI Foundation, only 5% out of more than 200 manufacturing companies have been found to implement the Artificial Intelligence technology in their business process. As per the report provided by Accenture, it is mentioned that 76% of the respondents out of the 16 industries who were the C-suite executives stated that the difficulty is in scaling the technology. In contrast to this, Artificial Intelligence systems provide ease in production of the search results, translation of the language as well as targeting the advertisements. In this case, Artificial Intelligence can help in flexing the processes involved in manufacturing to improve the flaws in the products. Artificial Intelligence technology can use online reviews to understand the pressing issues that are faced by the customers of the organisation and speed the product recall process. As per the reports of IFT.org (2019), it is posited that in the case of Amazon, the Artificial Intelligence model was used to predict the product recalls of the food from using the customer reviews of Amazon. There was an accuracy of 74%, which helped in recognising the issue in the products with the help of using amazon reviews. Also, Artificial Intelligence can act as a reliable solution to mitigate the risk of Cyber-attacks. The system can help in detecting any malicious activities that are done by hackers or unauthorized persons. Artificial Intelligence is an accurate and reliable solution to existing issues.

Prototype

Artificial Intelligence Pricing

As opined by Kerns (2019), it is found that there are so many companies that face the primary concern of the cost of digital transformation and adopting new technologies. In the year 2020, it is expected that Harvey has to incur charge implementing Artificial Intelligence in their business process in between $54.547 to $89.565. The cost includes the following factors:

1. Estimation of the variables, 

2. SDLC model

3. Understanding the artificial intelligence capabilities which is machine learning in this case

4. Composition of the right team for the project

5. Documentation

6. Estimation of the development of the workforce for different phases, which includes requirement phase, design phase, development phase, testing phase, deployment phase, and post-development phase.

7. Estimation of the cost of the PaaS platform.

8. MBaaS platform cost estimation

9. Evaluation of the API Artificial Intelligence cost

10. Other tools cost estimation

11. Ascertaining the value of A.I. solution development

Conclusion

With the help of the advancement and development of the technologies related to communication and the internet, various significant changes can be witnessed in the global economy. Moreover, machines are also connected by creating a compelling virtual world. Industry 4.0 is considered to be the era that has resulted in knowledge and innovation. It will impact the needed skills which are expected from the human workforce. The study focuses on the digital transformation proposal of Harvey water softener that is operating in the U.K. as the small scale manufacturing company. It is facing the risk of cybersecurity threats along with the product recall issues for which implementation of the Artificial Intelligence technology in the organization has been suggested. It is expected that the A.I. technology will be helpful for the organisation in many ways along with solving the identified issues. Taking into consideration the time required and the cost included for the adoption of Artificial Intelligence, it can be deduced that the digital transformation for the manufacturing company Harvey will be highly beneficial in the long run.

Reflection

While proposing the digital transformation for the manufacturing company Harvey, I was able to gain knowledge about the new technologies, which can help in transforming the organisation with better and more effective tools and techniques. I was able to learn about Artificial Intelligence with the help of the proposal. I was facing difficulty in understanding the sector that was required to be chosen for Digital transformation initially. With the help of the research and the learning, I was able to realize that manufacturing industry is one of the most critical sectors that is working towards using effective technologies and focusing on innovation so that the cost can be reduced along with data security, quality work, and possibility of satisfied customers. Taking into consideration all these factors, it was easier to select one of the companies from the manufacturing industry.