The Role of Artificial Intelligence Within the Scope of Digital Transformation in Enterprises

The Role of Artificial Intelligence Within the Scope of Digital Transformation in Enterprises

M. Hanefi Calp (Karadeniz Technical University, Turkey)
DOI: 10.4018/978-1-5225-9550-2.ch006

Abstract

Digital transformation, which is the beginning of a new era, and performed in order to provide a more effective service, has become a compulsory situation for the enterprises that take into account the increasing corporate volumes. However, the processes and technologies used in this transformation may change according to the enterprise volume and needs. At this point, activities that implement artificial intelligence technologies will make significant contributions to digital transformation. Artificial intelligence technologies serve many purposes such as search, reasoning, problem-solving, perception, learning, estimating, analytical thinking, optimization, and planning. The purpose of this chapter is to demonstrate the effects of artificial intelligence techniques on the processes of digital transformation utilized in enterprises by considering the difficulties experienced in the realization of digital transformation. It is expected that the study will provide a perspective for other studies on digital transformation and thus create an awareness.
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Introduction

Nowadays, the findings obtained show that the real world is rapidly digitized when the researches in digitalization topic and the statistical results in global digitalization are investigated. Digital transformation is generally the ability of organizations to provide more effective and efficient services, in line with the opportunities provided by rapidly developing information and communication technologies, and changing social needs. Within the scope of digital transformation, analog recordings are processed in a digital environment by transferring the processes that realized in the enterprises to digital media with the support of technologies such as of industry 4.0 components (smart factories, cyber-physical systems, internet of things, big data, autonomous robots, simulation, system integration, cloud computing, augmented reality), digital media, Artificial Intelligence (AI) and internet, and thus automation is provided. Today, all corporate assets and stakeholder relations are largely transferred to digital media. Thus, organizations can always make their automation more efficient with new technologies and improve the digital technology experience they use to deliver services (Bohnsack et al., 2018; Hanelt et al., 2015; Kamalipour & Friedrichsen, 2017; Gimpel & Röglinger, 2015; Morakanyane et al., 2017; Westerman et al., 2012b; Fitzgerald et al., 2014; Piccinini et al., 2015; Liu et al., 2011; Tas et al., 2017).

The digital transformation of economic processes, transactions, and human interactions are transformed into an inevitable mega-trend in unexpected ways with each passing year, and it is still at the initial level. Digital transformation has become a necessity with demographic changes, reduced availability of resources, increasing international competition and globalization of markets (Marquardt, 2017). At this point, digital transformation brings new features to the applied management strategies and plays an important role in the correct and fast decision making of business managers. However, businesses should follow innovations in digital transformation and update themselves in line with business strategies. Because digital innovations lead to new opportunities that were not possible before in management strategies. The technologies to be used in the digital transformation process also change with the rapid change in the business environment. The effective determining of these technologies bring to organizations significant advantages and opportunities such as transformation, earning, creating value and protecting their competitive advantages. Businesses must systematically develop their digital capabilities and resources to take advantage of these opportunities and respond to potential threats. The digital technologies determined in accordance with the enterprises provide better communication between different stakeholders; this turns leads to increased cooperation, quality and success in digital transformation (Hyvönen, 2018).

Managers who face the need to protect their competitiveness in enterprises must develop strategies, methods, and techniques that adopt the effects of digital transformation and provide better operational performance, and carry out these activities in full. Otherwise, they will be doomed to disappear in the evolving digital world (Morakanyane et al., 2017; Fitzgerald et al., 2014; Piccinini et al., 2015). In this context, AI techniques are used in almost all areas for different goals (Calp, 2011; Sahin et al., 2011; Erkalan et al., 2012; Sahin et al., 2014; Edwards et al., 2018; Calp, 2018; Calp & Akcayol, 2018; Dener & Calp, 2018; Brynjolfsson et al., 2018; Elkatatny et al., 2018; Méndez-Lucio et al., 2018; Qi et al., 2018; Calp, 2019). There are two main reasons why AI is so fast in the context of solutions: The first reason is that this technique can successfully solve problems that cannot be solved. The secondary reason is that it can provide very good solutions to the problems that cannot be solved by classical methods in the effective and efficient level. For these reasons, AI has become preferable in application processes (Köse, 2017).

Key Terms in this Chapter

Enterprises: A unit that produces goods or services in a planned and systematical way.

Digital Transformation: The developing new strategies and increasing efficiency to ensure competition using digital technologies.

Management: The process of using financial resources, tools, materials and time factor in a coherent and effective manner in order to achieve certain objectives.

Technology: Skills, methods, and processes used in the production of goods or services.

Production: The activities done in order to obtain the goods and services that will meet the human need.

System: The whole of the interactive parts that are brought together to achieve or achieve a common purpose.

Artificial Intelligence: The computers techniques that provide to behave like humans.

Decision Making: The action to be taken to reach a conclusion.

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