How to realise your true digital potential
The three pillars for firms to make a big transformation are technology, investment and people MARKET INSIGHT
Digital transformation (DT) is coming of age. In the recent Digital Change Survey commissioned by IFS covering 750 professionals across a range of industries, 80 per cent saw themselves as ‘enabled’, ‘enhanced’ or ‘optimised’ to leverage DT. Even more impressively, 89 per cent said they had ‘advantageous’ or ‘adequate’ funding in place for digital projects — a clear acknowledgment that the time of disruptive technologies is here, and that the vast majority of firms are realising that they need to invest.
But why are businesses investing? Where do they see the big profits? And how successfully are they selling digital change throughout their organisations?
Beyond quick efficiency gains
The survey found that over a quarter (27 per cent) of companies say digital transformation ‘makes them more competitive’, giving them a vital differentiating edge. 29 per cent see the main benefit as ‘accelerating innovation’ and 28 per cent ‘growth opportunities in new markets’. All these are inspiring. Companies using digital transformation to ask far-reaching strategic questions — like “can I use DT to get myself a bigger share on the market, or increase my product portfolio?” — are making the most of the long-term, strategic opportunities of the technology.
The largest group in the survey, 47 per cent, still see the main benefits of DT as ‘improving internal process efficiencies’, which makes me wonder: Do companies really see the full potential of what disruptive technologies can achieve? Innovation can make or break a company and study after study foregrounds it as a C-level priority. So why doesn’t it appear to be a driver for digital transformation? Considering technology investments, this could mean that the majority of funds are invested in making internal processes more effective and thereby failing to enable innovation.
Winning hearts and minds
Despite plenty of good news, the survey still reveals that 42 per cent of the respondents view ‘aversion to change’ as the main barrier to digital transformation. Companies need to think carefully about how they position IoT and other disruptive technologies, how they tell the story of why they are using them, and how they communicate the professionals see themselves as ready to leverage digital transformation benefits to their entire workforce — transforming staff from ‘dataphobes’ to data fans. The most successful technology shifts are embraced from the bottom up, as well as the top down — they’re driven by people. The buyin from staff is mission-critical.
Upskilling and reskilling
One in three companies are ’unprepared to deal with the digital skills gap’. How can companies bridge the skills gap affordably, sustainably and creatively? • Consider how your organisational structure needs to be developed to foster digital development. • Conduct digital competence inventory: There is a huge need for training staff in managing and analyzing data. • Developing skills properly is paramount. HR teams need to decide what current roles need to be developed and where new talent is needed. • Work together with local universities, both to attract talent and to influence the schools to focus their education programs in the right areas.
Three pillars for success
There are three pillars to succeed with digital transformation — technology, investment and people. The technology aspect is often mastered most successfully, as it is driven by technology experts with clearly dedicated areas of responsibility. Regarding investments, companies think that they are investing enough in digital transformation, but are they focusing on the right areas? Finally, people is the factor that is most often forgotten in the digital transformation process. This is important from both a talent and communications perspective.