Due to rapid technological innovations, businesses need to reinvent their strategies to remain relevant and up to date with their competition. There are many hard realities which businesses need to contend with when it comes to digital transformation. A recent study by KPMG indicated that more than 70% of business leaders say that the COVID-19 pandemic has accelerated their digital transformation: Here are 3 Hard Truths in this discussion.
Truth 1: Disruption is Inevitable
Statistics indicate that new companies are likely to survive the disruption of digital transformation compared to legacy companies. Over the last decade, the emergence of over 500 new companies valued at over $1 billion has been evident. Also, legacy companies continue to slump, the latest being the General Electric, dropping off as the last member of the original Dow Jones International Average.
The primary source of success in new companies is the agility and speed to embrace innovative technologies, innovative products, adopting new approaches, and creating new business models. As a result, they find new market opportunities and meet the changing market demands. As recently witnessed, digital transformation can determine the difference between a company’s longevity and demise.
In most cases, disruptive situations, such as COVID-19, are the triggers for innovation and technology changes. Thus, companies that embrace them have a significant competitive advantage over reluctant companies. Technology evolution is continuous, and businesses are racing to implement the current cutting-edge technology, such as 5G, cybersecurity, and SDI.
Truth 2: Digital Transformation is About Leveraging Continuous Evolving Technologies
Digital changes are business transformation strategies. Hence, business leaders should not only concentrate on the proposed plans, but also the digital changes and processes that can drive an organization to success.
Businesses gain a competitive edge by how they utilize the technological changes, rather than just adopting them. Therefore, success is achieved when business leaders find a balance between the technical and business objectives.
Truth 3: Digital Transformation Involves a Massive Shift in Operations, Culture and People
The most challenging aspect of digital change is the shift in people’s culture. This issue is mainly evident in legacy companies due to their profoundly rooted working and operational culture. Large organizations often grapple with the fear of change, concerns with job security, skillset gaps, and siloed thinking.
The success of an organization depends on the ability of its employees to shift to digital organizational culture. Hence, employee engagement is essential in driving technological change and the success of a company.
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