[V+ AI Observatory] AI Transformation, Digital First: A Survival Guide for Enterprises in the AI Era

The Rise of AI: An Era of Digital Transformation for Enterprises

The wave of artificial intelligence (AI) is sweeping across the world at an astonishing speed. From generative AI powering content creation to predictive analytics driving business decisions, the disruptive impact of AI is everywhere. For many companies, embracing AI is no longer a choice, but a mandatory step crucial to survival and growth. Yet, one reality often overlooked is this: the foundation of AI transformation lies in solid digital transformation.

Imagine building a skyscraper without a stable foundation—how could it stand tall? Similarly, if a company’s data remains scattered on paper, workflows still rely on manual processes, and infrastructure is outdated, even the most powerful AI models will be nothing more than castles in the air. For traditional industries or enterprises yet to complete digital transformation, this is not just a challenge but an urgent crisis of survival.

Digital Transformation: The “Infrastructure” of the AI Era

Digital transformation is not simply about adopting digital tools. It is a comprehensive change spanning business mindset, organizational culture, talent, processes, and technology architecture. At its core, digital transformation means leveraging digital technology to change business operations and models—to create new value, improve efficiency, and optimize customer experiences.

Why is digital transformation a prerequisite for AI transformation? Here are three key reasons:

1. Datafication: The “Fuel” of AI

AI’s learning and decision-making are highly dependent on data. If data is not digitized and structured, AI cannot “read” or understand the information, much less learn and generate insights from it. Digital transformation brings scattered data together, cleans and standardizes it, providing AI with the essential “fuel” for analysis and training.

2. Process Automation: The “Runway” of AI

AI applications often require deep integration with business operations. Digital transformation enables process automation, improving efficiency and paving the way for seamless AI integration into business workflows, unleashing its potential for automation and optimization.

3. Cloud Infrastructure: The “Soil” of AI

AI models, especially deep learning models, require powerful computing resources and flexible infrastructure. Cloud computing offers scalable compute power, efficient network connectivity, and vast data storage, providing the fertile “soil” for AI to develop and operate.

For Companies Yet to Digitally Transform: A Three-Step Strategy for the AI Era

For enterprises that have yet to complete digital transformation but are eager to embrace AI, VENTURE⁺ recommends the following three-step strategy: progress step by step, and build a solid foundation.

Step 1: Datafication & Infrastructure Modernization

This is the starting point of digital transformation, and the cornerstone of AI.

• Inventory and digitization: Conduct a thorough inventory of all data sources (customer data, sales records, production data, inventory information, etc.), converting paper and offline data to digital formats.

  
  

• Implement core management systems: Gradually implement ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), SCM (Supply Chain Management) and other core management systems to digitize and systematize key business processes.

  
  

• Embrace the cloud: Consider migrating data and applications to cloud platforms. Cloud services offer flexible storage and computing power, as well as enhanced data accessibility, security, and collaboration efficiency—laying a strong foundation for future AI applications.

  
  

• Establish data governance: Begin defining rules and best practices for data collection, storage, cleaning, security, and use to ensure data quality and reliability.

Step 2: Process Automation & Optimization

Building on digitization, enhance operational efficiency and create conditions for advanced AI adoption.

• Identify pain points and repetitive tasks: Find highly repetitive, time-consuming, and error-prone manual workflows (e.g., report generation, data entry, responding to common customer queries).

  
  

• Introduce automation tools: Consider implementing RPA (Robotic Process Automation) or other automation solutions to handle repetitive tasks, freeing up staff to focus on higher-value work.

  
  

• Optimize existing processes: Before automating, review and streamline workflows to eliminate unnecessary steps, ensuring reasonableness and efficiency. Remember: “Automating a bad process only speeds up bad results.”

  
  

• Pave the way for AI adoption: Automated processes are more standardized and data is clearer—this creates an ideal “runway” for embedding AI in the future (e.g., intelligent approvals, predictive maintenance).

Step 3: AI “Crawl, Walk, Run” & Talent Development

With digital foundations and optimized processes in place, companies can begin experimenting with AI—but should proceed pragmatically.

• Start small, see quick results:

  • Select low-risk, high-value use cases: Start with areas like automated FAQ customer support, sales data auto-reports, or anomaly detection in production lines. These projects require modest investment but deliver quick returns.

  • Avoid trying to solve everything at once: Don’t expect to address all challenges in one go. Begin with small projects, iterate quickly, and accumulate experience and confidence.

    
    

• Balance internal and external talent:

  • Improve internal AI literacy: Offer training and workshops to help employees understand and use AI tools to enhance productivity.

  • Collaborate with external experts: For complex AI projects, seek help from AI consultants, SaaS solution providers, or professional investors.

    
    

• Build a data-driven culture: Encourage employees to make decisions based on data, turning data into the common language of your company.

Conclusion: Digital Transformation Is Your Ticket to the AI Era—Not the Final Destination

The advent of the AI era brings unprecedented opportunities and challenges to all businesses. For those yet to complete digital transformation, this transition is a battle that must be won. Digital transformation is the ticket to the AI era—it provides the solid foundation and fertile soil for AI applications. Only by completing digitization can companies truly embrace the power of AI, achieve leaps in efficiency, innovate business models, and carve out their own path to survival and growth in fierce competition.

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