Digital intelligence powered by information technology1

14 Oct 2022 Dr. Muhammad Al-Hadi


part One:

In the contemporary era, information technology has developed and is closely related to digital intelligence, which has become the ability to understand and employ the power of information technology, and it has become a critical skill for all users in today's world (Mithas, 2016). This shift was partly due to fundamental changes in the business environment over the past 50 years. Information technology has also changed remarkably since the 1960s, when it represented a back-office function focused on mechanism and cost reduction, and was not well integrated with business functions, as it was not strategically important as explained by Dresden and MacFarlane in 1966... Read More...

part One:

In the contemporary era, information technology has developed and is closely related to digital intelligence, which has become the ability to understand and employ the power of information technology, and it has become a critical skill for all users in today's world (Mithas, 2016). This shift was partly due to fundamental changes in the business environment over the past 50 years. Information technology has also changed remarkably since the 1960s, when it represented a back-office function focused on mechanism and cost reduction, and was not well integrated with business functions, as it was not strategically important as explained by Dresden and MacFarlane in 1966 ( Dearden & McFarlan, 1966). As a lot of information technology work was done in different organizations at that time by information technology departments or centers with a small number of service providers.

Digital intelligence represents the new contemporary guide to digital transformation. While the significance of digital transformation may be to rely on new digital technologies to build successful businesses, today's world is moving towards moving quickly to make every decision according to strategies that are in line with the mission, vision, and clearly defined user journey, especially within the framework of technology. As with everything in life, there must be a correct way to measure progress in order to succeed. In the simplest terms, the various business leaders could not bear the costs of decisions based on improper channels or throwing things in order to see what might result from that, knowing that we live in an era when leaders need communication and cooperation at every level of the organization in order to confirm their alliance and commitment to the movement straight ahead.

2. The development of information technology and its relationship to digital intelligence:

Much has changed since 2010, and about 50% of the capital expenditures of companies and various organizations go to information technology costs, compared to less than 10-15% in the past in 1960 until information technology became very important because of its vital role in increasing revenues with Its strategic potential for organizations and countries applying it. In addition, information technology has become more integrated with the many different and diverse business functions with many options that have been made available to the businesses and functional units formed by the information technology itself instead of relying on the activities and centers of internal information technology in organizations. In this regard, the Strategic Influence Network presented by Warren and McFarlan in 1983 was a useful tool in designing changes in information technology over time and preparing companies to respond to it.

Despite the great progress associated with the technology introduced since that time, it has been observed that there is a multiple rise in the digitization of business processes, products and services. Also, many existing organizations have failed to some extent in synchronizing their information technologies and business strategies (Roberts & Sikes, 2008), where an apparent tension was deduced between each of the standards and controls that are led by information technology departments and the extent of rapid responses that businesses still need. McFarlan's examples illustrated many large companies that have come to explain why digital intelligence should be part of the current information economy debate (McFarlan, 2016).

Digital intelligence has been considered more than the ability to work with computers or information technology, as it includes understanding how business strategies and information technology synchronize together in the context of controlling information technology and implementing projects with enterprise systems.

The following review discusses some of the key elements of digital intelligence to gain and sustain a competitive advantage in the rapidly changing digital age.

2/1 Synchronization of business strategies and information technology:

All business managers of all types and levels need to have a correct vision in order to apply information technology and recognize that it has a fundamental impact on the performance and productivity of the organization. When talking about all managers, we are referring to all business and IT managers in that their companies and organizations showcase how ICT-based capabilities have helped them create sustainable value in many vastly different industries and ways. Also, other companies faced great difficulties in managing information technology and dealing with the transformations based on it, while some other organizations, as in the case of Xerox Corporation, failed to benefit from the innovations provided by advanced information technology applications.

2/2 Information Technology Integration:

Information technology should be an integral part of any strategic discussion, which is the prerogative of senior leaders in various organizations to develop a comprehensive strategy for their organizations that may not be informed by long-term organizational sustainability capabilities. In this context, these leaders must understand the inherent duality of information technology that points to the idea that technology can be sustainable or be harmful in underpinning adaptation in shaping competition. It provides new competitive advantages even if those advantages are highly visible and reproducible, and enables cross-sectional aggregation with vertical detailing. It can create significant digital uncertainty even when you provide tools to manage it.

Thus, the concerned leaders question the concepts of their traditional strategies based on barter, because information technology is in its ability to help overcome many of the trade-offs that may result. For example, information technology can help organizations/companies in terms of revenue growth and cost reduction, or achieve higher quality and lower costs in relation to the collections.

t may not have been imagined from the start.

An easy way to understand the role of information technology that is related to creating and creating a competitive advantage is the value created by information technology that distributes it in all the six different components available to the organization shown as follows:

1. Add Revenue: Information technology adds revenue through inorganic or organic leads that may include increasing sales to new or existing customers through existing or new channels by tracking existing and new status products.

2. Differentiate: Information technology can help increase or enhance perceived characteristics such as quality related to ease or convenience that often increases customer satisfaction.

3. Reduce Costs: Information technology has the ability to prepare the company to reduce its overall costs through outsourcing, while investing in internal capabilities as well. In the context of measuring the costs of information technology, it can be counterproductive when information technology investments help reduce non-related costs.

4. Optimize Risks: Information technology can help maximize risks, not necessarily reduce them. Managers argue that minimizing downside risks by not investing in information technology by engaging in counter-thinking. As part of ways to reduce negative risks, IT projects divide what needs to be done, what components do, and project management that relates to having real options for resolving technical or marketing uncertainties. Managers should also consider the impact of IT investments on tangible customer satisfaction that can reduce negative or discriminatory risks.

5. Innovate: Information technology helps companies and various organizations track innovations and innovations embodied in technology, or those supported by information technology, by doing the most effective research and development and by using innovation and creativity developed outside the company or organization.

6. Transforming Business Models and Processes: This may be accomplished by replacing or supplementing particles with bits, which requires dealing with different transformations.

Through these six components, managers can examine and calibrate their responses to the triggers that cause transformation in order to protect their existing revenue streams to the extent possible, while they may find other ways to develop or grow new revenue. Thus, capabilities can be developed to deal with change and transformation without unnecessary rush, by outsourcing key capabilities that are necessary in order to reach a competitive advantage.

All of this contributes to helping managers think about the role of information technology in a holistic manner, in sync with its desired strategy.

3. Discovering new information technologies:

Managers and entrepreneurs need to frequently examine new technologies to assess their importance and use to stay current and transform their organizations. May this not be a one-time exercise; Rather, these actions must become part of the manager’s routine, because the discovery of newer information technology is in its ability to facilitate new ways that are more effective for doing business, as experimentation to gain vision and insight into applications, technology and change is a major factor that is difficult to dispense with, which confirms the importance of understanding new technologies on Ongoing current basis so that any changes that may occur can be avoided.

It can also be seen that merely examining new technologies and recognizing their importance is not enough, especially when it comes to digitizing organizations, although the frameworks prepared and methodologies used as in the case of existing methods, such as Badridge Criteria; Design Thinking; or Agile can be motivators for business leaders in the visible progress that made these opportunities available for improvement and available to achieve the success they desire.

Transfers, whether they are technologically feasible or otherwise, require capable leadership, continuity of management, and their integration with incentive systems, and business processes that achieve the desired results. This is more than relying on the charisma of business leaders themselves. Organizations must also focus on creating processes that center around long-term thinking, as continuous improvement, scrutiny of new technology, and agile transitions to stay relevant become routine.

3/1 Controlling Information Technology:

The formulation of the strategy is rarely sufficient in terms of dissemination as important. Since the successful publication needs to take into account the governance of the decisions of each of the information technology, the various business departments and the supply that all take place in conjunction with the strategy of the organization to avoid the problems of both the culture that does not fight business, and the information technology related to the various businesses. In this context, there are no simple solutions through their structures and capabilities of the employees of these organizations. Different organizations will come up with different responses to the desired components of governance. Also, governance issues are not addressed in a zonal or traceable manner that demonstrates the waiver of administrative responsibility, because solid governance provides a platform for integrating many different initiatives together, just as it allows a diverse operating system to build applications by utilizing a common platform. Also, the failures of the dimensions of governance in some organizations illustrate the possibility of finding an important vital place for improvement in the aspects of governance.

3/2 Implementation of Information Technology:

Information technology projects need to be managed very carefully, in addition to complying with the contemporary technology revolution, with the concerned organization's strategy, business processes, the value of those businesses and the benefits obtained from their performance. while

Confirm the purchase and sponsorship of the business when possible. Thus, it becomes the responsibility of business managers and IT managers to be clearly aware of the latest technology revolution, to make informed decisions regarding technology upgrades and advancements, and to understand how to assist in the adoption, deployment and exploitation of information technology systems. Managers must also understand what risk management strategies must be applied and adopted when implementing various projects by the organization that are consistent with a broader and broader strategy.

It is recognized that it is not just information technology systems, artificial intelligence, or big data that can each provide desirable business results on its own, but rather all of this must be accompanied by important analyzes and measures that also perform the required analyzes and measure the degree of quality that is inferred. Where it becomes in the ability of organizations to measure the extent of success achieved for them also when they focus on the measures associated with that. Besides, it is managers' job to ask critical questions related to data interpretations, and perform some pre-thinking about how to analyze data to be used to inform business decisions, confirming over time that data-driven decision-making becomes the norm by which it is taken.

In short, managers need to pay close attention to information technology, as the resulting technological progress affects most industries and multiple functional areas. Thus, smart managers will be able to use information technology as a lever to enhance their personal and professional competitive advantage. It incorporates information technology into both business processes and new initiatives, allowing most managers to be directly involved in IT projects.

Given the seriousness and importance of these projects, the necessary effort must be invested to understand how these projects can be managed to ensure success. All of this represents a set of good reasons that managers should adopt to invest in their digital intelligence related to the humans and organizations that supervise their performance.

4. Changing roles in a changing world:

Digital transformation is not only about changing business and service supply models to meet user/customer expectations, but it is also changing how employees in an organization interact with each other within the specific roles played in creating digital intelligence. Thus, scattered silos no longer have a place in the contemporary digital world. In fact, most of the long-standing positions in the case of marketing directors and CIOs should get an overhaul. As many organizations have become aware of the collective value of common visions and insights, in addition to the novelty and quality of learning that leads to creating experiences that the user/client wants and needs, within the framework of the emerging roles of the organization’s managers as follows:

4/1 Marketing Manager:

The Marketing Director has become the central focus of the organization's digital transformation. Various organizations and companies seek to create a stronger user journey by understanding the requirements of users / customers, which means that the marketing manager must be included more in all IT procurement projects because of his responsibility to achieve the expected generation of experiences of these customers / users of those technologies and obtain their outputs.

4/2 Information Manager:

The CIO is tasked with leading a broad, robust technology vision for the organization in which he or she works. His roles are not based on just managing and maintaining daily technology, but rather he faces new challenges, as in the development of information technology and cybersecurity operations that are very important in order to shape the features of smart organizations digitally.

4/3 Chief Financial Officer:

The finance manager must learn a lot about the technology the organization uses in terms of how much it contributes to saving money, making money and moving the organization forward.

4/4 Emerging Jobs:

Through the development of the uses of new emerging technologies of a digitally intelligent nature, many new emerging jobs have begun to appear, including jobs such as data manager, customer manager, digital manager, analytics manager, and talent manager to participate with the previously mentioned traditional jobs in the era of digital transformation catch up requirement. Some may say in successful and digitally intelligent organizations that all these emerging functions must be aware of the roles played in the customer / user journey in order to obtain the desired product or service that is provided equally to all customers. Thus, it can be said that all customers/users are also an integral part of the digital intelligence unit.

5. The role of data in digital intelligence:

Big data called Big Data is not just a stand-alone trend, it is an essential component of any digitally intelligent organization or company. Thus, big data can be thought of as the most important and powerful tool in the reach of customers/users in terms of creating a useful experience and expertise regarding their lives.

Primarily and above all, data with smart targeting and personalization aids success with this smart personalization ensuring increased engagement, revenue and conversations for the company or organization. In fact, being a digitally intelligent organization does not only mean collecting data but is related to its presentation and use in a rational and intelligent way, which means using tools such as artificial intelligence, machine learning and predictive analytics to sort and analyze the huge amounts of data currently available to the organization. Much of the published research has shown that about 80% of the data collected daily by companies is not actually used to make improvements or changes as necessary by customers. This is likely due to the lack of investment in the right resources needed to use them, and it represents a big mistake in the digital scene that occurs daily, and the reason for this is that many of the

Companies have actually lagged behind in the number shift, which raises the issue of the user/customer journey in the past where companies viewed their customer relationship as something that begins with communication and ends with the supply of a product or service at a specific point of sale. Now digital transformation is seen as otherwise, in that it allows customers/users to talk about what they want and need. Thus, the customer journey does not end with purchases. In some ways, it is just the beginning. Thus, helping marketing teams use data intelligently can map the user/customer journey more clearly, as it explains why some customers respond to marketing campaign ads, migrate shopping carts used in stores, or leave websites once they are found. All of this contributes to explaining what the user needs in the specific product or service that is best for him and how to find or change it. In addition, the extent of customer loyalty to a particular brand can be measured by the length of the process growth. And the fact that this represents a digitally intelligent digital transformation means the possibility of embracing the new stages of the user’s journey, not as a new responsibility, but as an opportunity for growth.

6. Building a digital intelligence platform:

For a company or organization to become digitally smart does not need to be overwhelming. In fact, marketing teams can help organizations and companies shape the customer/user journey in a way that has clear strategic dimensions. The following is a figure that shows the features of the real digital intelligence segmentation, which were collected in four groups that are very clear:

6/1 Data management:

Robust data management is central to any digital intelligence platform that includes good predictions linked to underlying data sources. When the data is outdated, unmanageable, or cluttered, it is difficult and cannot be used. When you imagine finding a new batch of leads, all your old and outdated contact information can be discovered in no time. It is noticeable that many of us have encountered and heard the term “data lake” and the term “data swarm”. In the case of a data lake, it needs useful data analysis assets that link with machine learning or artificial intelligence to market customer behavior, in partnership with CRM software. When the data is full of old data that is considered as junk when it is extracted from the data lake, it should be excluded. Therefore, before building a platform for digital intelligence, resources, and data management workforce, it must be in place.

6/2 Implicit Analytics:

Analytics includes predictive analytics that aim to collect data, and provide opportunities for large amounts of aggregated words and numbers. The problem that many organizations and companies face is that they either follow analyzes that do not have a value that can be distinguished, or that data management systems do not allow the type of data to actually create and create the desired analyzes. In addition, analytics needs to have a lot of access, so the best way to do this is through customer intelligence platforms that have an analytical nature that use technology tools and do not require the availability of elite talents that contribute to finding the target value in the collected and available data. However, before moving to the path of digital transformations, implementing companies and organizations must involve all relevant parties in order to ensure that the information chosen will lead the company or organization forward, then, analytics must be included in the tools used by people daily.

6/3 Artificial intelligence and machine learning:

With the availability of large numbers of information, the gap between accessible data and better data that can and must be enhanced by machine learning and artificial intelligence is increasing. As for why that? There is simply no way for users to understand the huge amounts of data collected in digital transformation. Which can manage a few keywords at once. And artificial intelligence can manage hundreds of thousands of obvious interactions, and it can process millions of them per minute. Of course, this will lead to taking less time in defining problems and working on administrative tasks, which means that the administration is to serve customers for longer times related to the nature of customer relationships and improving their experiences to facilitate services directed to them. This represents the power of artificial intelligence and why it is critical for any digitally intelligent organization or company.

6/4 Real-time decision making:

The most digitally intelligent organizations or companies are within the framework of making faster decisions in real time through artificial intelligence technology, or what is called hyperintelligence. For example, marketing software should be fully automated to decide which words and shapes can be accessed by the largest number of customers/users in real time if possible. The choice of analytics to process pop-up customer/user information through multiple channels, whether through social media, web or data warehouses in different organizations or companies will contribute to creating clear customer characteristics for smarter personal marketing. And when companies/organizations allow machines to make and process decisions that are based on real data. We can note from the previous presentation, that the four elements to form a digital intelligence platform are highly effective not only in terms of enhanced customer loyalty, but also to increase sales, and enhanced efficiency when they are used to map the customer/user journey that contributes to meeting business and marketing objectives. For example, implicit analytics, machine learning, and artificial intelligence allow companies and organizations to better understand customer issues. It is also possible to determine how the recovery is carried out

Doing the best in an appropriate and growth-focused manner. Thus, real-time decision-making is an aid only when linked directly to solid growth goals for the organization or company, which in turn are linked to the target customer segments as defined by implicit analytics and artificial intelligence.

Of course, this cannot happen without appropriate data. All the aforementioned elements work together to create potential value that will not be realized until translated into a positive customer experience. Although this may seem daunting for many companies and organizations, especially the traditional and old ones that still aspire to digital transformation, although there are large organizations/companies that provide technology that makes this process easier and more accurate.

7. Digitally Intelligent Industries:

While digital intelligence is the basis for a successful transformation in all industry activities, there are many industries that have already climbed to the top in terms of adopting smart technology even in the case of change as in industry. Below are a few examples of technologies that help solve unique challenges faced by specific industries. There are also many strategies and technologies that can be applied to other industries as well, including:

7/1 Retail industry:

If anyone is benefiting from digital intelligence, especially when considering the customer/user journey, they are the retailers of today. In today's world, retail is all about personalization using big, automated data, and artificial intelligence that helps retailers understand their customers' preferences and anticipate their needs better. Where AI can be used to stop marketing products or start marketing to customers, it can also win back customers and increase profits. When you use analytics to target customers accurately, profits increase and relationships with customers also increase. In fact, analytics enables automated guidance of the product or service that the customer should try and send coupons for things they have already purchased and used, which are smart beacons that take the target marketing line up perfectly well, sending text coupons or discount codes if any when customers pass by a virtual store. Specific allows collecting data to enhance the effectiveness of a marketing campaign immediately.

7/2 The entertainment industry:

When any industry exists, it becomes the industry that flows with the multi-channel customer experience as in the case of the entertainment industry. The rise of mobile and smart phones has given the fall of traditional cables, which presented many challenges. However, the experience of things such as web content and social media has also provided rich new opportunities to meet the needs of customers and viewers that relate to every single point of the customer/user journey sometimes at once. In fact, the supply of content is no longer linear, and viewers seldom do so through a television program or through a movie without examining social media or sharing the experience performed. However, marketing in this case has moved from being a one-time event to becoming a comprehensive event linked to interaction. Thus, media companies and digital media used digital intelligence to decide how to take advantage of the better means that became available to them. For example, by getting viewers to share the brand and gain greater reach, marketing teams and writers are no longer just thinking about what makes a great TV or movie scene, but what looks best on web social media like Facebook as an interesting image. Attractive, or how they can sell a product in the process of the scene presented.

7/3 Financial Services:

Seeing the shift to the use of mobile and smart phones in the current market. The digital technology solutions that have become available in financial applications and mobile payments have given users/clients a much broader market to invest, manage and borrow money without having to be physically present in the same bank or using intermediaries to do so. It is now possible to obtain a loan to buy a house directly through the use of a smart mobile phone. Without a doubt, many banks have been forced to increase their digital intelligence, and do market research on what customers actually want, and how to provide banking services to them quickly and safely. Banks are also allowed to make money withdrawals from their accounts using smart mobile phones as well. As the blockchain technology continues to grow and spread on a large scale, it will likely also face more pressure to provide financial services via mobile smartphones.

7/4 connections:

If there is an industry that needs to implement digital transformation, it is the telecommunications industry. In fact, communications seem to be in a state of flux over the past twenty years, evolving in mobile, smart phones, and now the Internet of Things (IoT). The most powerful telecom companies have become the ones that have learned to flow with them any changes as a result of continuous development. For example, US-based AT&T Digital Life applications, while operating like a network, allows users to add services to them without subscribing to any external source. When there is anything in the digital transformation that users desire, it is considered simple to meet. Telecom companies such as Telener have begun to take a special look at customer behavior by employing analytics methods, which has contributed to the creation of nearly 70 models to help customize and increase purchase offers, and this initiative has also allowed customer service teams to provide a significant increase in sales without an increase in contact time .

8. The challenges of national intelligence and its future:

Looking to the future of digital intelligence, there are many challenges that represent a mixture of extrapolation and communication issues from the past, in addition to some of the more important issues.

Completely new. Among these challenges to be addressed in research and development are the following:

8/1 New technology:

New emerging technologies will continue to grow and dramatically develop in processing capacity and storage capacity related to chips, software and networks. New emerging information technology will also be based on openness mainly to different services. New applications such as Cloud, Big Data, and Internet of Things (IoT) are driving digital intelligence forward. As new technologies have supported the emergence of new applications during the past sixty years that have become digital and analytic. These new emerging technologies will allow greater digital capacity than ever before, and therefore will need to manage the transformation of the public and technology on an ongoing basis, leading to push these applications towards successful conclusions forward.

8/2 The world of the future will become significantly more digital:

It is difficult to predict the future, because many of them, as in the past, will respond in leaps and bounds. It is noticeable that the history of industry blossomed with industrial transformation applications much earlier, which is related to the four industrial revolutions that it went through, which contributed to the emergence of various forms that helped lead to the expectation of this happening on a continuous basis globally. This forward shift to the penetration of information technology has contributed to the base of global economies, in which the volume of data that has become digital is greater than ever. The performance and improvement of ICT products have also increased as a result of the introduction of documentation and data analytics activities to help digital verification faster and larger. Continuous and growing performance and improvement in communications products will also help ensure faster and larger digital data communications.

8/3 Not all business is electronic in nature:

Information technology is not applied to all operational tasks in organizations and companies, but there are many operational tasks that are still not applied in many organizations. This has affected the information technology to work in transcendence with each other. For example, Amazon's online availability represents the end of the introduction to some of the world's largest stores and distribution networks. A website such as Renttherunnway.com is an extraordinary success of the clothing rental ordering system. Behind the brilliance of this online application is a network of world-class clothing designers, as well as the largest dry cleaning company in the United States of America. Which illustrates the extent to which both the physical world and the digital world are intertwined in an unstable way at times.

8/4 Security and Operational Reliability:

Operational security and reliability has been a major challenge for decades. Which was first noticed as an independent case of a special nature since 1969. This case has always existed. It has also become more complex than before to increase the digital data dealt with, and it has become more complex at the present time with gaps in performance created with more consequences for both companies and individuals alike. There is also a significantly increased social vulnerability to hacking mistakes and unintended errors, and in this context cross-border war between states has taken place today through battles in the cyberspace of cybersecurity. The ability to manage security has become sufficiently high with regard to information and communication technology, and it has become noticeable that there is no 100% reliable or timely security.

 

 

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