Digital transformation is a journey, not a destination – Absa COO

Digital transformation is not about technology, it is about how technology is used to drive purpose and business objectives in a manner that delivers the best customer experience.

These perspectives were voiced by Absa Chief Operations Officer Dr. Philile Mkhize, who spoke during a panel discussion on digitalizing financial markets at Bloomberg's Future of Finance event in Johannesburg, South Africa, this week.

Mkhize said that digital transformation is not a destination, it is a journey, with several key milestones driven by both customer and employee demands that continue to evolve.

"There are several areas where technology enables digital transformation, and the pace that transformation is accelerating requires organizations to think differently, so that even our mindsets need to continue to transform," she continued.

Dr. Mark Nasila, chief data and analytics officer for FirstRand's Risk Office, weighed in, citing that global pressures are driving the context of digital transformation.

"I am talking about the global reality driven by geo-political complexities, interest rates across the world that keep on changing. We are talking about the digital expectations of the customer of today, who expects personalized experiences," he explained.

He added that digital transformation is also about managing cyber risks, as well as data, artificial intelligence (AI), and other emerging technologies, which has meant that complex regulations need to keep up.

"Digital transformation is about reimagining operational models, business models driven by technology and people. So, organizations today are looking at how to bring all this together to drive efficiency and effectiveness but also using human intelligence to keep up with the current realities," he said.

Measuring the impact of emerging technologies

Rademeyer Vermaak, STANLIB portfolio manager and head of Systematic Solutions, said going digital brings measurability, and only when something is measured can it be properly managed.

He believes that a company that adopts AI and other emerging technologies will eventually see productivity improvements.

"I see significant productivity just over the horizon, and that is very exciting," Vermaak explained.

Experts speaking at Bloomberg's Future of Finance event in Johannesburg, South Africa, agreed that companies needed to evolve to keep up with emerging technologies. (Source: freepik – AI-generated)

Nedbank Head of Global Markets James Glover, meanwhile, said he has never seen anything as over-hyped and underappreciated as generative AI (GenAI) has been.

"The real task is to separate the hype and the promise from the real-world applications and where we are going to. I think GenAI is not the answer or solution for everything because when it actually has to make complex decisions it sometimes fall short," he said.

Nasila added that strategy is not based on the value of promise, it is based on what is being measured.

"If you tell me that you are efficient because of GenAI, show me how you are measuring it. If you are telling me that you are driving a digital experience, show me what you are measuring. If you measure, it gets done," Nasila continued.

AI's threat to human jobs

The experts also weighed in on public speculation over whether AI is a threat to human jobs, as machines and algorithms become capable of performing tasks traditionally done by humans.

"I think in the short term, AI will not take your job, but a person who can use AI will take your job. That is why it is important to upskill and make sure that we all stay at the forefront of these technological revolutions," Vermaak asserted.

Nasila said there is no organization that will keep up without AI or by doing things the old way, and there is going to be a shift on the ways of working, mostly around tasks.

"When you implement AI, the nature of work changes. You perform with better quality of work. It is about investing more in human intelligent skills. Jobs and tasks will be shifted a bit, but there is more for people," Nalisa concluded.

Related posts:

— Matshepo Sehloho, Associate Editor, Connecting Africa