Welcome to Friday's issue of Business Transformation SmartBrief. Today we'll cover:

• Ill. offers digital IDs, driver's licenses
• Change management is key to digital transformation success
• Collaboration aims to decode human genome with AI

Digital transformation initiatives often focus on adding new tools, but a project led by a senior specialist at a consulting firm demonstrated that removing unnecessary software can be more effective. By auditing the digital ecosystem of a major retailer, the specialist found 142 applications in use, many of which were redundant. Consolidating tools led to lower software licensing costs, higher active usage of remaining tools and improved employee satisfaction.

Illinois has introduced digital driver's licenses and state IDs through Apple Wallet, with plans to extend the feature to Android users. The digital IDs will be accepted at select airports, bars and restaurants, although physical IDs are still required for law enforcement.

Smart Take: Illinois joins more than a dozen other states that offer digital driver's licenses. "Our goal has been simple: bring government into the 21st century, and meet people where they are," says Alexi Giannoulias, secretary of state for Illinois. Some states such as California, Colorado and Maryland also offer digital IDs through Google Wallet, while New York and Louisiana have proprietary apps.

Houston Methodist has outlined a three-year innovation strategy focusing on 10 key areas, including smart spaces, connected virtual care, remote monitoring, revenue cycle AI tools and agentic AI for data mining. The projects need time to develop because of all the change management and training involved, says Roberta Schwartz, the health system's executive vice president and chief innovation officer.

Data engineering is becoming crucial for manufacturers as they adopt smart technologies such as robotics, sensors and the internet of things. These technologies generate vast amounts of data, but many manufacturers struggle to turn this data into actionable insights because it is often unstructured and fragmented. Data engineering services can help by integrating, cleaning and transforming data, enabling real-time insights that optimize operations and prevent equipment failures.

ESG reporting has shifted from voluntary statements to a focus on auditable data, particularly regarding Scope 3 emissions, writes Behzad Sadegh, director of sustainability and consumer care at DQS. However, the fragmentation of regulations, such as the EU's potential easing of sustainability rules, creates challenges for global businesses, increasing compliance costs by up to 30%. Certification, such as ISO standards and third-party verification, is essential for credible and measurable progress, as it reduces risks and builds trust with regulators, investors and customers, Sadegh writes.

The Ichan School of Medicine at Mount Sinai and Israel's Sheba Medical Center have partnered with NVIDIA to use AI technology to explore the human genome. This three-year collaboration aims to decode the majority of the genome, unlocking new pathways for disease prevention, diagnosis and treatment. The initiative will leverage extensive genome datasets and advanced computational tools to create an AI-driven research engine, potentially transforming personalized medicine and health care outcomes globally.