The emergence of new technology and reengineered processes has created a ripple effect that is changing the workplace and how work gets done. Disruptors continue to introduce new products and services, and new industries are being created seemingly overnight, creating a sense of urgency for organizations to transform or risk losing their competitive advantage.
According to the IDG State of Digital Business Transformation report, 44 percent of organizations have already started implementing a digital-first approach to business processes, operations, and customer engagement. Many factors contribute to the need for digital transformation within the organization. Below are three key drivers of digital transformation.
The Need to “Sink or Swim”
Given the pace of change brought about by advances in digital technology, organizations must succeed at digital transformation to survive. Digital transformation not only improves outdated and inefficient processes, but it also boosts innovation by opening new opportunities for product and service offerings that were not available before. Big data, AI, and automation are examples of digital tools that help companies understand their industry, customers, and competitors better than ever before.
However, to successfully use these tools and “swim” rather than “sink,” it’s necessary to undergo a digital transformation. This starts with building a culture in which people use digital tools to make better decisions and work more productively. When employees shift their attitudes and behaviors in support of digital transformation, they’ll be more likely to use digital tools in an optimal way, thus helping the company achieve a better return on their investment in new technology.
Today’s customers have come to expect 24/7 availability and personalized experiences that empower them to make the best purchase decisions. A recent study found that 80 percent of consumers are more likely to make a purchase when brands offer personalized experiences.
Digital transformation is key to meeting customer expectations because the effective use of digital technology makes it possible to understand and improve the customer experience. Once everyone in the organization understands their role in improving the customer experience, they will be more likely to leverage digital tools to offer the personalized experiences customers expect.
One US telecom company is making strides in digital transformation by using technology to better understand customer usage and service needs. The company is also building a “digital-first” culture aimed at boosting employee knowledge and capability through offering training and “lunch and learns” and hiring digital talent.
The Need for Digital Talent
Digital transformation is a requirement for organizations that want to attract and retain the best talent. To be successful, you’ll need to provide development opportunities through training and coaching that help employees adopt a digital mindset and improve their digital skills.
Research suggests that employees are already eager to increase their digital knowledge. A report by PWC found that employees are willing to spend, on average, 15 hours every month sharpening their digital skill sets. When individuals possess the necessary skills to help them succeed in the digital world, they’re better equipped to give their best effort and achieve results.
Some examples of learning and development that can bolster employees’ digital skills include:
- Learning reinforcement that leverages digital tools to help employees retain newly learned skills.
- Leadership development that teaches individuals how to lead and support others through a digital transformation.
- Customer centricity training that enables individuals to see their role in delivering exceptional customer experiences.
Achieving a successful digital transformation is a requirement for survival in today’s ever-changing environment. Digital transformation is about more than just using new technology; it requires a focus on the people who make it happen. By understanding the drivers of digital transformation, you’ll be in a better position to build a culture that leverages individual skills and knowledge to succeed in the digital age.