Kelly Dowd - Leading Digital Transformation with AI and Human-Centered Design PDF MASTER.pdf
1. Leading Digital Transformation with AI
and Human-Centered Design Innovation
With Kelly Dowd, MBA, MA
Human-Centered Innovation and Experience Design Lead, KPMG US
2. Takeaways Explore the role of leadership in AI-driven digital
transformation
01.
02.
03.
04.
The “Four Elements” of Innovation
By Kelly Dowd, MBA, MA
Encourage the interplay between human-centered
design, Innovation, and technology strategy
Empower teams to discover the blueprint for
collaborative innovation
Establish measurement for the impact of digital
transformation initiatives
3. The Leadership
Imperative in AI Transformation
Explore
Encourage
Empower
Establish
Leadership in AI transformation is the art of navigating the uncharted waters of technology to steer
the organization towards innovation and growth. Leadership is not just about guiding the present but
also about architecting the future, therefore, leaders must embody the dual roles of strategic visionaries
and pragmatic planners to harness the transformative power of AI.
Leaders Strategic Roles
Championing AI
initiatives
Securing resources
Aligning AI with
business objectives
Companies that integrate AI into their operations see a 15-20% increase in productivity. Microsoft's
turnaround with its cloud and AI investments under CEO Satya Nadella has seen a tremendous ROI.
Microsoft recently signed a $2 Billion AI investment deal with KPMG. AI can be used in decision-
making, customer service (e.g., chatbots), and operational efficiency.
Data Source: McKinsey
Leaders are the
catalysts for AI-driven
change, and their vision
shapes the future of
their organizations.
Successful AI
transformation requires
visionary leadership, a
robust strategy, and a
commitment to culture
change.
Use Cases
4. Human-Centered Design
and Technology Strategy
Explore
Encourage
Empower
Establish
Human-centered design isn't a buzzword; it's a business imperative. For every dollar invested in UX,
there's a return of $100 (ROI of 9,900%) – Forrester. Human-Centered Design (HCD) is an approach to
problem-solving, commonly used in design and management frameworks, that develops solutions by
involving the human perspective in all steps of the problem-solving process.
HCDT Framework
Okta is an AI tool for doctors that reduces the time for diagnosing diseases by analyzing patient data
and suggesting personalized treatment plans. Airbnb's use of AI and HCD to enhance its
recommendation system, leading to a 10% increase in bookings. This involved understanding user
behavior, preferences, and feedback to tailor the search and booking experience.
Data Source: Airbnb
Design
Ideate Evaluate Iterate
Understand
Discover
Integrating HCD with AI
ensures that technology
solutions are not only
innovative but also truly
meet the needs of users.
Use Cases
6. Synergy in Cross-Disciplinary Teams
Explore
Encourage
Empower
Establish
Cross-disciplinary teams consist of members with different expertise who collaborate to achieve
common goals. The synergy lies in combining diverse skills and perspectives to foster innovation.
Research indicates that companies with high diversity in their management teams have innovation
revenue that is 19% points higher than companies with below-average leadership diversity.
Cross-disciplinary Synergy Framework
Stage of Team
Formation
Stage of Team
Norming
Stage of Team
Performing
Google’s Project Aristotle as a case study found that the best teams are those that feel safe to express
diverse ideas. Unilever showing how managing a diverse team led to groundbreaking product
innovations and a 25% faster time-to-market. NASA manages diverse teams to achieve unified goals
in space missions.
Data Source: McKinsey
Diverse teams, when
effectively managed, are
more creative,
innovative, solve
problems faster, and can
achieve greater success.
The success of diverse
teams' hinges on strong
leadership that can
unify various
perspectives towards a
shared vision.
Use Cases
7. Metrics of Success
Explore
Encourage
Empower
Establish
Metrics of success are quantifiable measures used to evaluate the effectiveness of digital transformation
initiatives. Success metrics in digital transformation are quantifiable measures used to evaluate the
effectiveness of the transformation efforts. On average, a successful digital transformation provides a
23% increase in customer satisfaction and a 22% increase in product/service innovation.
Digital Innovation Success Framework
Efficiency Effectiveness Engagement
Nike’s digital transformation strategy, which led to the development of the Nike app and a 36%
increase in online sales. Amazon's use of metrics to refine its recommendation engine, contributing to
a 35% revenue increase. Zara's use of real-time sales data to optimize inventory management,
resulting in a 20% rise in profits.
Data Source: Forester
Innovation
Impact
Measuring the impact of
digital transformation
initiatives is critical for
understanding their
value and guiding future
efforts.
Use Cases
8. Take
a
Step
Be the architects of change in their organizations
01.
02.
03
Lead with vision, design with empathy, collaborate
with diversity, measure with intent, and innovate with
humanity
How will you drive a 10% improvement in your
team's innovation output this quarter?
9. “The true essence of
innovation is in the
employment of these
elements (Explore, Encourage,
Empower, and Establish)”
– By Kelly Dowd
10. Lead Digital
Transformation with AI and
Human-Centered Design
Innovation
Kelly Dowd, MBA, MA
Human-centered Innovation
and Experience Design Lead,
KPMG Innovation Lab
Kdowd@kpmg.com