Breaking the Digital Bottleneck, Part 2: Future Priorities, Employee and Customer Insights in Digital Transformation

For a deeper dive into the challenges of digital transformation and what survey respondents had to say about overcoming these obstacles, check out Part 1 of this series:  Breaking the Digital Bottleneck: Service Management for Innovation and More.

As companies continue to navigate the complexities of digital transformation, emerging technologies and evolving strategies are shaping the future of enterprise operations. Building on insights from our previous discussion, let's explore trends, future priorities and impacts on employee and customer experiences as revealed by the 2024 ServiceNow Insight and Vision Report.

Rising Generative AI in enterprise operation

As we discussed in this Fast Chat discussion with our research partner Omdia, businesses are focusing on how GenAI can enhance workplace efficiency and customer satisfaction.While this technology presents significant opportunities for innovation, it also raises challenges in acceptance, governance and security.

What did organizations say were the most important value derivations from any investment in generative AI?

They ranked increased efficiency (27.9%) at the top — and nearly 7 in 10 included it among their top three responses.

• 27.9% Increase in efficiency
• 21.5% Customer satisfaction
• 21.0% Faster product and or service development
• 19.7% Time to value deliver projects and work faster.

Measuring success, employee experiences and examining future priorities

What does success look like?According to the survey, cybersecurity process enhancements (23.0%), business revenue increase (18.0%), and improved customer experience (15.9%) are the top three factors organizations are focusing on to measure and define success.

Looking ahead, organizations we surveyed are prioritizing several key initiatives for the next 18 months: retiring third-party solutions and consolidating capabilities (44.9%), broadening adoption of digital platforms across departments (39.9%), and addressing skills shortages in emerging technologies (32.7%). These priorities reflect a growing trend towards streamlining technology stacks, breaking down silos, and fostering enterprise-wide digital adoption. However, businesses said that they also face challenges, particularly in the realm of employee experience. Key hurdles include providing necessary hardware and software (19.6%), supporting flexible and hybrid work styles (18.6%) recruiting and retaining digital talent (18.6%) and improving employee communication and collaboration (18.3%).

The impact of digital transformation initiatives

Successful organizations balance innovation with stakeholder responsibility by upskilling employees, recruiting specialized talent and promoting continuous learning. Respondent organizations report positive outcomes from digital transformation: increased automation (53.9%), cost reductions (46.1%), strengthened cybersecurity (42.7%) and more efficient workflows (37.2%). These results demonstrate the tangible benefits of embracing digital technologies across the enterprise, with a heightened focus on security to safeguard digital assets in an increasingly complex threat landscape.

Investing in digital transformation optimizes employee and customer experiences

The 2024 survey indicates that businesses are simplifying their digital ecosystems while expanding platform usage. This approach transforms both employee and customer experiences, paving the way for more agile and efficient enterprises. Digital transformation requires balancing innovation with stakeholder responsibility. Organizations must upskill employees, recruit specialized talent and promote continuous learning. A unified service management platform is crucial for this transformation. The most significant employee-related challenges cited were related to the right tools, work models and people:

• 19.6% Providing employees the hardware and software required
• 18.6% Supporting more flexible and hybrid work styles
• 18.6% Recruiting and retaining the digital skills and expertise needed

These platforms also improve customer service by enabling quick issue resolution and self-service options. Notably, 22.6% of survey respondents prioritize enhancing customer experiences in the near future. Additionally, these solutions facilitate technology consolidation, streamlining tech stacks and reducing costs.

Increasing ESG importance and initiatives

Environmental, Social, and Governance (ESG) considerations are playing an increasingly important role in organizations’ digital strategies. Key areas where organizations expect to leverage technology in support of ESG initiatives include responsible hardware refresh/lifecycle programs (42.2%), calculation of technology carbon footprint (36.4%) and aggregation of ESG-related data and reports (32.8%). This focus on ESG underscores the growing importance of sustainability and responsible business practices in digital transformation efforts.

Businesses prioritize partners with strong security capabilities and professional services

The survey reveals that businesses actively seek partners who can help them innovate, enhance customer experiences and support their ESG initiatives while delivering robust security and service capabilities. When selecting a partner, businesses prioritize those that offer expertise and capabilities they lack internally.

Looking to the future

As we look ahead, several key trends emerge: the continued rise of GenAI in transforming business processes and customer interactions, an increased focus on cybersecurity as a critical success factor in digital initiatives, the growing importance of technology consolidation and simplification, and a shift towards more agile, efficient, and future-ready enterprise operations.

Organizations that can effectively navigate these trends, leveraging emerging technologies while addressing skills gaps and security concerns, will be well-positioned to drive innovation and achieve their strategic objectives in the evolving digital landscape.

By focusing on these key areas and embracing the transformative power of technologies like GenAI, businesses can unlock new opportunities for growth, efficiency, and customer satisfaction in the digital age.

Uncover the top strategic initiatives across industries and learn how ServiceNow enables digital transformation to tackle these challenges head-on. Check out the on demand replay of our webinar Unpacking the Key Findings From Our 2024 ServiceNow Insight and Vision Report.