AI StrategyDigitalESGRestaurant & Hospitality

Navigating the Future Plate: Digital Technology Strategy in Food Service and Restaurants

The Digital Revolution in Food Service: A Call to Action

In an era marked by rapid technological advancements and changing consumer behaviors, the food service industry stands at a crossroads. Digital transformation, once considered a strategic advantage, is now a fundamental requirement for survival and success in this competitive landscape. The shift towards digital is not merely about embracing new technologies; it’s about reimagining the way food service businesses operate, engage with customers, and deliver experiences.

The impact of digital technology in food service is profound and multifaceted. From the way customers discover and interact with food service establishments, to how orders are processed and delivered, every aspect is touched by digital innovation. The rise of online ordering, food delivery apps, and digital payment systems has revolutionized customer expectations, demanding speed, convenience, and personalization.

Moreover, the operational side of food service is equally transformed. Digital inventory management, AI-driven demand forecasting, and smart kitchen technologies are redefining efficiency and productivity in the back-end operations. This digital shift is not just about enhancing the existing processes; it’s about unlocking new potentials and exploring uncharted territories in the food service sector.

We are now going to deep dive into specific digital strategies that are reshaping the food service industry. It underscores the urgency and significance of adopting digital technologies, not just to keep pace with competitors, but to innovate, excel, and redefine what it means to be a leader in the food service domain. The subsequent sections will explore each of these strategies in detail, providing actionable insights and real-world applications that highlight the transformative power of digital technology in this ever-evolving industry.

Digital Menu: The New Norm

The digital menu is rapidly becoming the standard in the food service industry, fundamentally altering how businesses interact with their customers and manage their offerings. This shift is driven by the need for greater flexibility, efficiency, and personalization in the customer dining experience.

Advantages of Digital Menus

  1. Real-time Updates and Flexibility: Unlike traditional paper menus, digital menus can be updated instantly to reflect changes in availability, specials, and pricing. This flexibility allows restaurants to respond quickly to market trends, ingredient availability, and customer feedback.
  2. Enhanced Customer Experience: Digital menus can offer interactive elements such as dish descriptions, ingredient sourcing information, and even customer reviews. This not only educates the customer but also aids in making informed choices, elevating the overall dining experience.
  3. Personalization and Recommendations: With integrated AI, digital menus can offer personalized recommendations based on customer preferences and past orders. This level of customization can lead to increased customer satisfaction and higher sales through targeted upselling.
  4. Operational Efficiency: Digital menus streamline the ordering process, reducing the likelihood of order errors and improving the efficiency of the service. They can also integrate seamlessly with kitchen display systems, optimizing the cooking and delivery process.

Implementing Digital Menus

  1. Choosing the Right Platform: Select a digital menu platform that aligns with your restaurant’s size, style, and customer base. The platform should be user-friendly, customizable, and capable of integrating with your existing POS system.
  2. Design and Layout: The design of the digital menu should reflect the brand’s identity and be easy to navigate. Clear categorization, high-quality images, and legible font sizes are essential for enhancing the user experience.
  3. Staff Training: It’s crucial to train staff on how to use and update the digital menu. They should be comfortable in guiding customers through the menu and addressing any tech-related questions.
  4. Feedback and Iteration: Regularly gather feedback from customers and staff regarding the digital menu. Use this feedback to make necessary adjustments in layout, content, and functionality to continually improve the experience.

Challenges and Considerations

  • Tech Savviness of Customers: While many customers are comfortable with digital interfaces, some may prefer traditional menus. Offering both options can help cater to a broader customer base.
  • Initial Investment: Transitioning to a digital menu system may require an initial investment in hardware and software. However, the long-term benefits and savings often outweigh these initial costs.
  • Cybersecurity and Privacy: Ensure that the digital menu system is secure, especially if it involves data collection. Protecting customer privacy and data should be a top priority.
TouchBistroInteractive digital menu solutionsWebsite
ZioskTabletop ordering and entertainment systemsWebsite
Revel SystemsPOS and business management solutionsWebsite
SquareIntegrated POS and payment systemsWebsite
ToastRestaurant management platformWebsite

Online Ordering Systems: A Gateway to Convenience

Online ordering systems have become a cornerstone of modern food service, offering unparalleled convenience for customers and significant operational advantages for businesses. In a world where digital interaction is the norm, these systems are essential for meeting the expectations of a tech-savvy consumer base.

Benefits of Online Ordering Systems

  1. Increased Customer Reach: Online ordering opens up a new channel for businesses to reach customers beyond the traditional dine-in experience. It allows customers to order from the comfort of their homes, expanding the restaurant’s reach.
  2. Improved Order Accuracy and Efficiency: With customers entering their orders directly, the likelihood of errors decreases significantly. This accuracy streamlines kitchen operations and enhances customer satisfaction.
  3. Data Collection and Customer Insights: Online systems provide valuable data about customer preferences and ordering patterns. This information is crucial for menu planning, marketing strategies, and understanding customer behavior.
  4. Enhanced Customer Experience: Features like saved order histories, estimated delivery times, and real-time order tracking contribute to a seamless and engaging customer experience.

Implementing an Online Ordering System

  1. Choosing the Right Platform: The platform should be reliable, scalable, and integrate seamlessly with your existing systems. Consider factors like ease of use, customization options, and the ability to handle high volumes of orders.
  2. Website and App Integration: Ensure that the online ordering system is integrated with your website and mobile app. This provides a consistent brand experience and makes it easier for customers to place orders.
  3. Menu Optimization: Online menus should be concise, easy to navigate, and visually appealing. High-quality images and clear descriptions can help customers make decisions faster.
  4. Promotion and Marketing: Actively promote your online ordering system through social media, email marketing, and in-house advertising. Offering special promotions or discounts for online orders can encourage customers to try the service.

Challenges and Solutions

  • Maintaining Food Quality for Delivery: Implement packaging solutions and delivery protocols that ensure food quality is maintained from kitchen to doorstep.
  • Managing Peak Times: During peak hours, the influx of online orders can be overwhelming. Implement strategies like order throttling or dynamic delivery time estimation to manage this effectively.
  • Customer Service for Online Orders: Develop a robust customer service framework to handle inquiries, complaints, and feedback related to online orders. This includes training staff and setting up efficient communication channels.

Online Ordering Systems:

ToastRestaurant POS and online ordering systemWebsite
SquarePayment and POS solutionsWebsite
ChowNowCustomizable online ordering for restaurantsWebsite
Uber EatsFood delivery and takeout servicesWebsite
DoorDashFood delivery platformWebsite

Online ordering systems are more than just a convenience; they represent a shift in how food service businesses interact with their customers in the digital age. By embracing these systems, restaurants can enhance customer engagement, streamline operations, and tap into valuable customer data. The key to success lies in choosing the right platform, optimizing the menu for online ordering, and continuously refining the process based on customer feedback and operational insights. In an increasingly digital world, the ability to offer a seamless online ordering experience is not just an advantage – it’s a necessity.

Leveraging AI for Personalized Experiences

Artificial Intelligence (AI) is transforming the food service industry by enabling businesses to offer highly personalized and enhanced customer experiences. By leveraging AI, restaurants can gain a competitive edge through customization, predictive analytics, and improved operational efficiency.

Personalization Through AI

  1. Tailored Recommendations: AI algorithms can analyze a customer’s past orders, preferences, and even dietary restrictions to offer personalized menu suggestions. This level of individualized service can significantly enhance the customer’s dining experience.
  2. Dynamic Pricing and Promotions: AI can be used to implement dynamic pricing strategies based on demand, time of day, and customer profiles. Similarly, personalized promotions can be created to target specific customer segments, increasing the effectiveness of marketing efforts.

Enhancing Customer Interactions

  1. Chatbots and Virtual Assistants: Implementing AI-powered chatbots on websites and mobile apps can provide customers with instant assistance, from answering queries to assisting with orders. These tools can improve engagement and free up staff to focus on in-person customer interactions.
  2. Voice-Activated Ordering: Integrating voice recognition technology for order taking, both in-store and through digital platforms, can streamline the ordering process and provide a novel experience for tech-savvy customers.

Operational Efficiency and Insights

  1. Predictive Analytics for Inventory Management: AI can predict future demand based on historical data, weather, local events, and more, helping restaurants optimize inventory levels and reduce waste.
  2. Labor Optimization: AI tools can analyze operational data to optimize staff scheduling, ensuring that the restaurant is adequately staffed during peak and off-peak hours.

Overcoming Challenges

  • Data Privacy and Security: As AI systems often involve collecting and analyzing customer data, it’s crucial to maintain the highest standards of data privacy and cybersecurity.
  • Balancing Tech with Human Touch: While AI can enhance efficiency and personalization, it’s important to balance technology with the human element of hospitality. The goal is to use AI as a tool to augment, not replace, the personal touch that is central to the dining experience.

Leveraging AI for Personalized Experiences

OpenAIAI research and application developmentWebsite
Sentient TechnologiesAI for personalized customer experiencesWebsite
IBM WatsonAI solutions for businessWebsite
NVIDIAAI and deep learning technologiesWebsite
Microsoft AIAI platforms and solutionsWebsite

AI presents a world of opportunities for personalizing and enhancing the dining experience. From AI-driven recommendations to operational efficiencies, the technology offers a way for food service businesses to meet the evolving demands of a digital-first customer base. However, the successful implementation of AI requires a thoughtful approach that respects customer privacy and maintains the human touch that is integral to hospitality. By leveraging AI in the right way, restaurants can not only meet but exceed customer expectations, paving the way for greater loyalty and business growth.

Food Service CRM Platforms: Delivering Exceptional Customer Experience

CRM (Customer Relationship Management) platforms play a crucial role in the food service industry, aiding restaurants and suppliers in managing customer interactions, preferences, and feedback. These platforms help streamline the supply chain, enhance customer service, and provide valuable insights for business growth.

How CRM Benefits the Food Service Supply Chain

  1. Customer Data Management: Collect and analyze customer data to understand preferences, order history, and feedback, enabling personalized service and menu offerings.
  2. Supplier Relationship Management: Track supplier performance, manage orders, and ensure timely delivery of ingredients, contributing to efficient kitchen operations.
  3. Marketing and Promotions: Implement targeted marketing campaigns based on customer data, enhancing customer engagement and loyalty.
  4. Feedback and Reputation Management: Monitor and respond to customer feedback, reviews, and ratings, crucial for reputation management and service improvement.
  5. Operational Insights: Generate reports on customer trends, order frequencies, and preferences, guiding menu engineering and inventory decisions.

Key CRM Platforms for Food Service

SalesforceComprehensive CRM with analytics and AISalesforce
Zoho CRMCustomizable CRM for diverse business needsZoho CRM
HubSpotInbound marketing, sales, and service CRMHubSpot
Dynamics 365Microsoft’s integrated business solutionsDynamics 365
FreshsalesSales CRM with AI-based lead scoringFreshsales

Implementing a CRM platform in the food service industry can lead to more efficient operations, improved customer satisfaction, and increased profitability. By leveraging these platforms, businesses can ensure a seamless flow of information throughout the supply chain, enhancing the overall dining experience.

Inventory Management: Smart Solutions

Effective inventory management is crucial in the food service industry, where managing perishable items and fluctuating demand presents unique challenges. Digital technology, especially smart solutions, plays a pivotal role in transforming inventory management into a more efficient, data-driven process.

Advancements in Inventory Management

  1. Real-time Tracking and Monitoring: Modern inventory management systems allow for real-time tracking of stock levels. This enables timely ordering, reduces the risk of stockouts, and prevents overstocking, which can lead to waste.
  2. Automated Ordering and Replenishment: Advanced systems can automate the ordering process by setting reorder points based on historical consumption patterns and predictive analytics. This automation ensures a seamless supply chain and operational efficiency.

Data-Driven Decision Making

  1. Predictive Analytics for Demand Forecasting: By analyzing sales data, seasonal trends, and even external factors like weather or local events, predictive analytics can forecast demand more accurately. This helps in planning inventory levels, reducing the risk of over-purchasing or stock wastage.
  2. Menu Optimization Based on Inventory Insights: Smart inventory systems can provide insights into which ingredients are most and least used. This data can be invaluable for menu planning, helping to design dishes that optimize the use of available inventory, thus reducing waste and cost.

Integrating Inventory with Other Systems

  1. POS Integration: Linking inventory management with the Point of Sale (POS) system allows for automatic deduction of stock as sales occur, providing a real-time view of inventory levels.
  2. Supplier Integration: Collaborating with suppliers through integrated systems can streamline the ordering and delivery process, ensuring that inventory levels are maintained efficiently and cost-effectively.

Challenges in Implementing Smart Inventory Systems

  • Staff Training and Adaptation: Implementing a new system requires training staff and adapting operational processes. It’s important to ensure that the team is comfortable with the technology and understands its benefits.
  • Initial Setup and Investment: Transitioning to a smart inventory management system may involve an initial investment in software and possibly hardware. However, the long-term benefits in terms of reduced waste, improved efficiency, and cost savings are substantial.

Inventory Management: Smart Solutions

Oracle NetSuiteCloud-based business management softwareWebsite
LightspeedPOS and eCommerce solutionsWebsite
Square for RetailPOS system for retail businessesWebsite
ShopKeepPOS and inventory managementWebsite
FishbowlInventory management softwareWebsite

Smart inventory management solutions represent a significant advancement in the way food service businesses manage their resources. By adopting these technologies, restaurants can not only improve efficiency but also gain valuable insights into their operations, leading to better decision-making and ultimately, a more successful business. The key to effective inventory management in the digital age lies in leveraging the right technology and ensuring it is integrated seamlessly into the broader operational framework of the business.

Blockchain for Food Safety and Traceability

Blockchain technology is increasingly being recognized as a game-changer in the food service industry, particularly in the realms of food safety and traceability. Its ability to provide a secure, transparent, and immutable record of transactions makes it an ideal solution for tracking the journey of food products from farm to table.

Enhancing Food Safety and Quality

  1. Transparent Supply Chain: Blockchain creates a transparent and unalterable record of every transaction in the supply chain. This means every step of a food item’s journey can be traced back to its source, significantly enhancing food safety and quality assurance.
  2. Rapid Response to Food Safety Incidents: In the event of a food safety issue, blockchain can quickly identify the source and potentially contaminated batches, enabling a swift response to minimize health risks and waste.

Building Consumer Trust

  1. Proof of Origin and Authenticity: Consumers are increasingly concerned about the origin and authenticity of their food. Blockchain provides verifiable proof of where food comes from, how it was produced, and whether it meets certain quality standards, like organic or fair trade.
  2. Enhanced Labeling Information: Blockchain can store detailed information about food products, such as harvesting, processing, and expiration dates, which can be accessed by consumers to make informed purchasing decisions.

Operational Efficiency

  1. Streamlined Record-Keeping and Compliance: Blockchain simplifies record-keeping by storing all relevant data in a single, tamper-proof system. This not only saves time but also helps businesses comply with regulatory requirements more efficiently.
  2. Reduced Fraud and Errors: The immutable nature of blockchain reduces the chances of errors and fraud in the supply chain, ensuring that records are accurate and reliable.

Challenges in Implementing Blockchain

  • Technology Complexity and Integration: Implementing blockchain can be complex, particularly when integrating with existing supply chain systems. Businesses need to invest in the right technology and expertise to harness the benefits of blockchain.
  • Cost and Scalability: The cost of setting up and maintaining a blockchain system can be significant, especially for small and medium-sized enterprises. Scalability can also be a challenge, as the system needs to handle a large number of transactions efficiently.

Blockchain for Food Safety and Traceability

IBM Food TrustBlockchain for food traceabilityWebsite
ProvenanceTraceability and transparency solutionsWebsite
Ripe.ioBlockchain for food and agricultureWebsite
Te-FoodFarm-to-table traceability systemWebsite
OriginTrailBlockchain network for supply chainsWebsite

Blockchain technology offers tremendous potential for improving food safety and traceability in the food service industry. By providing a transparent, secure, and efficient way to track the journey of food products, it not only enhances operational efficiency but also builds consumer trust and loyalty. As the technology evolves and becomes more accessible, it is likely to become a standard practice in the industry, playing a crucial role in ensuring the safety and integrity of our food supply.

Robotics and Automation: The Future Kitchen

Robotics and automation are rapidly becoming integral components of the modern kitchen in the food service industry. Their implementation is revolutionizing how food is prepared, cooked, and served, leading to increased efficiency, consistency, and safety.

Innovations in Kitchen Robotics

  1. Automated Cooking Appliances: Robotics technology is being used to develop automated cooking appliances capable of preparing a variety of dishes with precision and consistency. These appliances can follow complex recipes, adjust cooking times and temperatures, and ensure high-quality results every time.
  2. Robotic Servers and Cleaners: Robots are also being employed for tasks like serving food and cleaning. This not only enhances operational efficiency but also provides a novel experience for customers.

Enhanced Efficiency and Consistency

  1. Streamlined Operations: Robotics can handle repetitive and time-consuming tasks, allowing kitchen staff to focus on more intricate aspects of food preparation and customer service. This streamlines kitchen operations, reducing wait times and improving customer satisfaction.
  2. Consistent Quality: Robots are programmed for precision, ensuring that each dish is prepared to the same high standards. This consistency is crucial for maintaining the reputation and quality of the restaurant.

Safety and Hygiene

  1. Reduced Human Contact: In scenarios where hygiene is paramount, such as during a health crisis, robots can minimize human contact with food and surfaces, reducing the risk of contamination.
  2. Workplace Safety: Automation can also enhance safety in the kitchen by taking over tasks that are potentially hazardous for humans, such as working with high-temperature appliances or sharp tools.

Challenges of Integrating Robotics

  • High Initial Investment: The cost of implementing robotics and automation technology can be significant, making it a challenging investment for small and medium-sized enterprises.
  • Technical Maintenance and Upkeep: Robotic systems require regular maintenance and updates. Restaurants need to have access to the right technical support to ensure these systems function smoothly.
  • Balancing Automation with Human Skills: It’s important to strike a balance between automation and the irreplaceable human skills and creativity that are central to the culinary arts. Robots should be seen as tools to enhance, not replace, the human touch.

Robotics and Automation: The Future Kitchen

Miso RoboticsKitchen robotics and automationWebsite
Bear RoboticsAutonomous service robots for hospitalityWebsite
CreatorAutomated restaurant and food preparationWebsite
SpyceRobot-powered culinary experienceWebsite
RoboChefAutomated kitchen solutionsWebsite

The integration of robotics and automation in the kitchen represents a major leap forward for the food service industry. It promises not only greater efficiency and consistency but also opens up new possibilities for innovation in food preparation and service. As technology advances, it’s likely that we will see even more sophisticated applications of robotics in the kitchen, further transforming how we think about and experience food. However, the challenge will be to integrate these technologies in a way that complements human skills and creativity, rather than replacing them. Robotics can increase kitchen efficiency by 30% (Source: Kitchen Robotics Association).

Sustainability and Digital Technology

In the contemporary food service industry, sustainability is no longer a choice but a necessity. Digital technology plays a pivotal role in enabling businesses to adopt more sustainable practices. From reducing waste to optimizing resource use, technology is at the forefront of the industry’s green revolution.

Waste Reduction and Management

  1. Digital Inventory Tracking: Advanced inventory management systems help in reducing waste by accurately predicting demand and optimizing stock levels. This helps in minimizing spoilage, especially of perishable items.
  2. Data-Driven Waste Analysis: Using data analytics, restaurants can identify patterns in waste generation and take targeted steps to reduce it. This might include altering portion sizes, revising menu items, or improving storage practices.

Energy Efficiency and Conservation

  1. Smart Energy Management Systems: Digital technology enables the monitoring and management of energy consumption in kitchens and dining areas. Smart systems can automate the control of lighting, heating, and cooling based on occupancy and usage patterns, significantly reducing energy waste.
  2. Renewable Energy Integration: Technology facilitates the integration of renewable energy sources, like solar panels, into the restaurant’s power supply, promoting the use of clean energy.

Sustainable Supply Chains

  1. Blockchain for Traceability: As mentioned earlier, blockchain can be used to ensure the sustainability of supply chains by providing transparent information about the sourcing of ingredients.
  2. Digital Platforms for Local Sourcing: Digital platforms and networks can connect restaurants with local farmers and producers, promoting the use of fresh, local, and sustainable ingredients.

Reducing Carbon Footprint

  1. Digital Delivery and Logistics Optimization: For restaurants offering delivery services, digital tools can optimize routes and delivery schedules, reducing fuel consumption and the associated carbon footprint.
  2. Digital Receipts and Menus: Transitioning to digital receipts and menus reduces paper usage, contributing to a reduction in the restaurant’s overall carbon footprint.

Challenges in Implementing Sustainable Technologies

  • Cost and ROI Concerns: Investing in sustainable technologies can be costly, and the return on investment may not be immediate. However, long-term savings and the growing consumer demand for sustainable practices often justify these investments.
  • Keeping Up with Rapid Technological Changes: The pace of technological advancement is rapid, and staying up-to-date with the latest sustainable technologies can be challenging for businesses.

Sustainability and Digital Technology:

EcoVadisSustainability ratings for global supply chainsEcoVadis
EnablonSustainability and risk management softwareEnablon
iSustainSustainable waste management solutionsiSustain
SourceMapSupply chain sustainability mappingSourceMap
GreenBizGreen business media and eventsGreenBiz

Embracing digital technology in the pursuit of sustainability is an essential step for the modern food service industry. It not only addresses the urgent need for environmentally friendly practices but also aligns with the evolving expectations of consumers who increasingly prefer businesses that demonstrate a commitment to sustainability. By integrating digital technology into their operations, food service businesses can contribute to a more sustainable future while also enjoying the benefits of increased efficiency and customer satisfaction.

The food service industry stands at a pivotal point where digital transformation can redefine its future. Embracing these technologies not only enhances operational efficiency but also elevates the customer experience, ensuring that businesses stay relevant and competitive.

CDO TIMES Bottom Line: Embracing Digital Transformation in the Food Service and Restaurant Industries

The digital transformation journey in the food service industry is not merely about adopting new technologies; it’s a strategic shift towards creating a more efficient, sustainable, and customer-centric business model. As we’ve explored, from digital menus enhancing customer interaction to AI-driven personalization, each technological integration plays a crucial role in redefining the dining experience and operational efficiency.

Sustainability, powered by digital tools, is not just an ethical choice but a business imperative that resonates with the modern consumer. The integration of smart inventory systems, blockchain for traceability, and robotics in kitchens are clear indicators of an industry evolving with technology at its core.

The food service businesses that will thrive are those that recognize and adapt to these technological advancements, seeing them not as challenges but as opportunities for innovation and growth. In an era where customer preferences and market dynamics are rapidly changing, the ability to leverage data, AI, and digital systems is what will separate industry leaders from followers.

In conclusion, the CDO TIMES bottom line is clear: the future of food service lies in the smart integration of technology, where digital transformation is the key ingredient to success in this competitive and ever-evolving landscape.

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In this context, the expertise of CDO TIMES becomes indispensable for organizations striving to stay ahead in the digital transformation journey. Here are some compelling reasons to engage their experts:

  1. Deep Expertise: CDO TIMES has a team of experts with deep expertise in the field of Digital, Data and AI and its integration into business processes. This knowledge ensures that your organization can leverage digital and AI in the most optimal and innovative ways.
  2. Strategic Insight: Not only can the CDO TIMES team help develop a Digital & AI strategy, but they can also provide insights into how this strategy fits into your overall business model and objectives. They understand that every business is unique, and so should be its Digital & AI strategy.
  3. Future-Proofing: With CDO TIMES, organizations can ensure they are future-proofed against rapid technological changes. Their experts stay abreast of the latest AI advancements and can guide your organization to adapt and evolve as the technology does.
  4. Risk Management: Implementing a Digital & AI strategy is not without its risks. The CDO TIMES can help identify potential pitfalls and develop mitigation strategies, helping you avoid costly mistakes and ensuring a smooth transition.
  5. Competitive Advantage: Finally, by hiring CDO TIMES experts, you are investing in a competitive advantage. Their expertise can help you speed up your innovation processes, bring products to market faster, and stay ahead of your competitors.

By employing the expertise of CDO TIMES, organizations can navigate the complexities of digital innovation with greater confidence and foresight, setting themselves up for success in the rapidly evolving digital economy. The future is digital, and with CDO TIMES, you’ll be well-equipped to lead in this new frontier.

Do you need help with your digital transformation initiatives? We provide fractional CAIO, CDO, CISO and CIO services and have hand-selected partners and solutions to get you started!

We can help. Talk to us at The CDO TIMES!

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Carsten Krause

As the CDO of The CDO TIMES I am dedicated delivering actionable insights to our readers, explore current and future trends that are relevant to leaders and organizations undertaking digital transformation efforts. Besides writing about these topics we also help organizations make sense of all of the puzzle pieces and deliver actionable roadmaps and capabilities to stay future proof leveraging technology. Contact us at: to get in touch.

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