As more organizations embrace AI and AI-powered tools, it has become apparent that the true power of increased digital innovation lies in the ability to more efficiently solve real-world problems by improving processes. However, digital transformation is also about creating deeper connections with consumers by providing services that meet evolving expectations in how people interact with brands. “The digital transformation we’re talking about now with the rise of AI isn’t just about replacing manual processes with automated ones; it’s about creating better customer and employee experiences, solving their problems and being able to delight them” says Hugo Hanselmann, CEO and Founder of boutique advisory firm HuHeHa and software development company Xenios.
From Digital Adoption to Innovation: The Next Evolution
“The point of any business is to solve a problem or fill a need,” says Hanselmann, whose background in marketing and digital innovation in the food, beverage, hospitality, and retail industries provides a unique perspective on how to embrace the digital transformation, particularly on the commercial side of the business. The main challenges associated with this transformation are beyond mere adoption of new technologies. it’s about people.
The companies that stand out today are those that integrate digital solutions in ways that enhance their core offerings, ultimately driving greater value for customers and employees alike. “What we’re seeing in this digital transformation is that organizations with higher cultures of innovation are able to identify the best ways to integrate AI to progress and further differentiate themselves in their market,” explains Hanselmann.
Bridging the Gap Between Technology and People for Smarter Innovation
While digital transformation has long been associated with technological advancement, Hanselmann sees the human element as crucial to success in the new era of AI. “It’s not just about implementing new tools; it’s about ensuring that employees understand and embrace these changes,” he says. Many businesses fail in their digital efforts not because of flawed technology, but because they neglect to bring their people along in the journey. Leaders who foster cultures where innovation is encouraged and failures are seen as learning opportunities are more likely to see sustainable change and progress across their organization. “Building trust in the digital transformation means demonstrating how these innovations improve workflow efficiency rather than threaten jobs,” says Hanselmann, who advises leaders to prioritize continuous learning and development opportunities alongside incremental implementation to make digital adoption more seamless.
The Risks of Inaction: Falling Behind Competitors
Organizations that hesitate to adopt digital innovation risk losing their competitive edge — the biggest mistake a company can do in the digital transformation is to do nothing. “Those who drag their feet are at risk of falling into an ever-widening gap between themselves and competitors who are embracing digital innovation, making it exponentially harder to catch up in the future,” he warns. Conversely, companies that embrace experimentation will thrive. “It’s about taking small, meaningful steps that lead to bigger breakthroughs,” he says. Businesses leading the way in their markets right now are the ones willing to test new ideas and refine their digital strategies based on data about their market and audiences.
What’s Next? The Future of Digital Transformation
Artificial intelligence is undoubtedly reshaping business as usual, but Hanselmann sees another game-changing technology on the horizon: quantum computing. “Quantum computing has the potential to redefine what’s possible” he predicts. The ability to solve complex problems at speeds far beyond today’s capabilities could unlock new opportunities in sectors ranging from finance to logistics.
However, for Hanselmann, the immediate priority for businesses should be leveraging data, AI and automation in ways that generate tangible benefits for customers, employees and company processes. “Success in digital transformation comes down to solving real problems,” he says. “Companies need to focus on optimizing their data, integrating AI where it adds value and ensuring their teams are innovation-oriented.”
Innovation: A Continuous Journey of Trial and Error
“In the next few years, AI will become a part of everyday life, integrated seamlessly into our work and personal routines,” he says. “But the real transformative change will come when we begin to harness unique company data to create differentiated services and products.” Companies that prioritize both technological innovation with own data and human-centric change management, while encouraging an environment where new ideas can be tested in real-time, will be the ones that emerge as industry leaders.
For more insights on digital innovation and the future of business, connect with Hugo Hanselmann on LinkedIn.
