Could 16% of Taiwanese Businesses Miss Out on International Opportunities? Two Key Strategic Approaches

According to data from the National Development Council (NDC), approximately 97% of large global enterprises are embracing digital transformation. However, if domestic companies in Taiwan don't expedite their digital evolution, there's a risk that 16% of them might miss the chance to tap into international supply chains. "Digital transformation and AI enablement" are critical steps for Taiwan's industries to venture into the global arena. This entails integrating comprehensive systems and leveraging AI technology to enhance core business capabilities. Only by taking these measures can companies effectively respond to the rapidly changing global industrial landscape, break free from current market constraints, and emerge as leaders in the new era.

Challenges faced by businesses, both internal and external, can be addressed through two major strategies: "Digital Transformation,and AI enablement."

In collaboration with Oracle NetSuite and Z+ Consulting, the Taiwan Eastbound Alliance - Landing America (TeaLa) organized the "Digital Transformation AI Enabling Seminar" on July 18, 2023. The event took place at the International Conference Hall of the Chung-Hua Institution for Economic Research and received guidance from the Digital Development Department of the Administration for Digital Industries. It was co-hosted by Profet AI, the Taiwan Digital Governance Association, and Zhiwu Limited. This seminar delved deeply into three major trends: digital transformation, AI development, and ESG, which have become pivotal drivers of global economic growth and are essential actions across various industries. The objective was to provide innovative insights to Taiwanese businesses, helping them lay a robust foundation for their development.

Shu-Kai Fan, the Dean of the College of Management at National Taipei University of Technology, as well as representatives from Profet AI, Oracle NetSuite, and other industry experts shared the internal and external challenges currently faced by businesses. These challenges included the rise of new markets and competitors, the relocation of production bases, the lack of an integrated system and operating platform within companies to assist different departments in achieving business strategies, inflexible systems hindering rapid global expansion, and more. They also offered several recommendations for businesses regarding digital transformation and AI enablement in response to these challenges.

Addressing Enterprise Challenges Through Digital Transformation:

For businesses embarking on their digital transformation journey, it is advisable to develop a digital transformation blueprint, akin to laying the digital foundation for the company. A robust foundation is essential to accommodate the integration of digital tools and AI capabilities. Furthermore, finding suitable digital transformation tools and constructing an operational management platform for the enterprise enhances information transparency, aiding different departments in working collaboratively to execute business strategies. Lastly, actively listening to customer feedback and gaining insight into their genuine thoughts helps determine whether customers are satisfied with the changes brought about by digitization.

During the seminar, industry leaders shared how they overcame business challenges using digital transformation. For instance, a manufacturing company confronted issues such as inadequate system support for continuous global business expansion and delayed management information in manual operations. Through a digital transformation project integrating Oracle NetSuite across multiple countries and companies, they optimized critical aspects, including real-time BI databases, demand and capacity forecast analysis, global inventory transparency, supply chain big data analysis, quality control analysis and optimization, and customer relationship management. This laid a robust digital foundation for the company, supporting its stable growth.

Applying AI to Business Operations: Concerning the application of AI in business operations, industry experts highlighted five core points:

1. Validate with Minimal Resources: Break down multiple achievable objectives from the enterprise's digital transformation value blueprint, customer requirements, and operational pain points. Validate whether the expected results can be achieved through AI tools. Use the initial validation results to evaluate the current stage and plan the next practical solution.
2. Effective Accumulation of Experience: Continuously engage in planning, execution, and verification cycles within a small scope. Accumulated experience gradually transforms into discussion topics, solutions, models, and effective knowledge within the enterprise. Every goal achieved during the transformation represents effective experience accumulation.
3. AI Enablement in Business: During the AI-driven digital transformation process, introduce standardized implementation processes to expand AI to every department and individual within the enterprise. Foster an AI-friendly mindset among all employees, accelerating enterprise digital transformation. This acceleration follows a geometric progression and allows for continuous adjustments during the process.
4. Four Key Points for AI System Training: These include generative AI training, coaching AI growth, selecting use cases, improving employee skills, and effective risk management.
5. Talent Cultivation: Convert accumulated operational management experience into AI models, offering substantial support during the initial stages when manpower is limited. This enables new employees or those encountering new technologies to adapt and contribute more rapidly.

The "Digital Transformation and AI Enabling Seminar" concluded successfully with insightful presentations by the speakers. It planted numerous seeds of digital transformation opportunities, and it is believed that well-prepared Taiwanese businesses will successfully transition in the global digital innovation wave. Through the implementation of practical and effective AI intelligent applications, digital transformation and AI empowerment are only the beginning. It is hoped that businesses can utilize appropriate methods and tools to build a stable growth highway for their enterprises, enhancing Taiwan's industrial and economic development with fresh momentum.