The world as a big company witnessed a decade-long Digital Transformation within 2 years globally. Trends in every industry starting from workplace culture, education, healthcare, supply chain, manufacturing, banking, retail, and commerce have been fast to adapt to the technology advancements to avoid crashing due to the crippling economy and technology overtaking process and operations.
“The enterprise that does not innovate ages and declines, and in a period of rapid change such as the present, the decline will be fast.” -Peter Drucker
When thinking about digital transformation in the enterprise, several what-ifs and whys are inevitable. Overcoming the challenges of DT and successfully implementing it on time is vital for every business to stay on its feet.
Benefits of Digital Transformation Businesses
Digital transformation benefits businesses on several levels. But, 360 digital transformations for businesses and to successfully introduce it for operations and processes, training and equipping employees to efficiently utilize these robust tools and technology and ensure adequate infrastructure to support DT is a growing challenge today.
More than 90% have either implemented or plan to use digital transformation in industry growth strategies when it comes to businesses. However, the success rates are not as impressive. Less than 30 % of the companies succeed with their digital transformation technology. 7% of responders of a study said they did not see sustainable improvements in performance. Success rates for digital transformation did not exceed even for 26% of the tech-savvy business, traditional industries, such as oil and gas, automotive, infrastructure, and pharmaceuticals saw only 4-11% success rates in their digital transformation technology.
The companies that did make success stories have focussed on key factors that companies with failed DT strategies did not. There are several reasons why these digital transformation companies were successful with their digital transformation in business which can be narrowed down to 5 key reasons
1. Tech-savvy leaders who knew what they were doing
Companies with a chief digital officer were 1.6 times more likely to have successful DT stories. Leaders who are aware of the power of technology and harness it to improve processes at their companies are important for digital transformation in enterprises. Leaders must stay committed to the process and make improvisations and changes wherever necessary and monitor the performance of the changes to get the best out of the DT models.
When leaders are well aware of the technology and its ins and outs, they can cater to challenges and prescribe the best suited DT models for their organization.
2. Implementing technology to benefit the workforce for the future
Implementing digital transformation technology must be followed with training employees and users to help them perform better and utilize the new resources efficiently. This is especially vital for implementing digital transformation in industries that thrive with human expertise and skills. Advanced technology must focus on improving their abilities to perform better.
These are some examples:
- Digital transformation in healthcare can focus on data storage and management to help workers access a complete overview of patient records instantly for quality treatments and care.
- Digital transformation in banking has already taken the spotlight with the accelerated use of online banking and e-statement trends, replacing physical transactions and records. This has made data retrieving and records keeping simpler and has made data available instantly from anywhere. This has also increased the security of funds and has helped bank employees serve their customers better.
- Digital transformation in retail has led to a boom in e-commerce over the past few years. Every shop owner today needs an online store too, to make maximum use of the resources readily available and make decent profits. The pandemic and lockdown regulations have forced offline businesses to gain more visibility and profits by taking their stores online.
- Digital transformation in the manufacturing and supply chain industry has also become a necessity. Keeping track of processes, activities and enabling members of organizations and their partners to gain access to the overall performance and data of the company and its workers has increased transparency and built trust among themselves.
The digital transformation when introduced with quality training of employees and providing adequate resource teams for assistance has helped businesses stay on their feet during the pandemic and will pay off even in the future as trends and technology rapidly evolve.
Technology and innovations that are better funded and are readily accepted by trained users are more prone to be successful. Also ensuring that these DT implementations are scalable for new hiring, and future expansion of the enterprise is a lot more cost-saving than the DT models that are not planned for future scaling.
3. Empowering people to work differently
Digital transformation benefits are more when DT models are structured around the comfort and needs of the employees. Employees must be able to communicate areas that require digitization and identify pain points in certain processes that can be met with digital transformation.
Success rates for DT models are higher when senior managers and implementation officers encourage employees to try new ways and experiment with the technology to utilize them to the fullest. Leaders that personally use DT models for communication, collaboration, and other process see 1.8 times higher success rates.
DT models require a lot of change culturally and behavior-wise. They work best when leaders practice and preach these improvements and build a foundation for employees to embrace new changes and innovations.
4. Enhance work experience for employees
Enterprises loved DT models for 3 main reasons that greatly improved their day-to-day tasks:
I. Easy and instant access to knowledge
II. Self-serve technology for employees and business partners
III. Modifying SOPs to accommodate new technology
Tools and technology implemented for DT focussed on making everyday activities, processes, and operations easier which ultimately increased performance and speed and was readily accepted with the least resistance from employees.
5. Improve communication and collaboration both online and offline
DT Models are successful when senior managers and leaders reestablish the need for increased collaboration and communication with their employees. Using traditional channels for communication must not die out. However, remote and digital communication methods were proven to be 3 times effective to reach employees better.
When leaders emphasize why communication is central to the enterprise and why it is an urgency it can foster a rich success story for DT models.
The Bottom Line
The digital world is evolving at an exponential rate, and so should your business in order to keep up with the technology. Digital transformation of business is not only a tech thing. It is equally about the mindset of leaders, employees, and their perception of digital transformation itself.
Understanding that digital transformation aids in improving and increasing the expertise of employees enhances performance and optimizes operations and processes of a business, will surely result in successful DT implementations. Businesses can see ROI in no time when DT is readily welcomed into workplaces instead of with resistance.