Today digital transformation is on every company’s agenda. Firms born outside the digital era find it hard to adapt to new markets.
Evolve Or Die
A recent study done by The Economist indicates the importance of digital transformation. Of more than 600 senior executives at large global companies who participated in the survey, 83 percent say they expect to increase investment in digital technologies in the next 12 months.
The digital transformation is without a doubt one of the hottest topics in the world of business. It’s a journey that can provide you endless opportunities, but also a subject that keeps managers awake at night. However many can agree that digital transformation is inevitable. You either join the revolution or end up being left behind.
Transformation Is Hard, Digital Transformation Is Harder
With that said, transforming a large corporation is easier said than done. Research from McKinsey indicates that fewer than one-third of organizational transformations succeed at improving a company’s performance. This number is even lower for digital transformation. Traditional industries going through a digital transformation have a success rate between 4 and 11 percent. For these enterprises, one challenge is to extend the digital horizon without compromising with the values of the company. Traditional companies have a large legacy of systems and operations that are subject to change with the digital transformation. Additionally, cultural and organizational challenges follow as new technology and processes are introduced.
Beat The Odds
So where do you start? And what does digital transformation actually consist of? It is recognised that there are four categories identifiable in every digital transformation. In the heart of every transformation is the customer experience – the reason why your customer keeps returning. Apple and Amazon are just recent examples of the impact of customer satisfaction. Secondly, product digitisation is an important part of the change, using technology to improve and enhance your offer or service. Supporting these elements is employee engagement and process optimization – as important elements as the visible changes. It is thus evident that digital transformation is a balance between internal and external changes and how they support each other.
While it might seem simple to adjust the four parameters, the different ways of exploiting digital are infinite. However, what firms can do no matter size, industry or technical capabilities is to develop talent and skills throughout the organization. The same survey from McKinsey indicates Human Resources as one of the fundamental pillars in digital transformations and emphasizes them as one of the keys to success.
Want to know more?
Join our event on the 7th of September at 17:00 – 18:45 at CBS here. We have invited Henrik Amsinck, CIO and SVP at LEGO. Henrik Amsinck has previously been awarded the IT decision-maker of the year by his Danish CIO colleagues. With his experience in bringing IT and digitalization into the company, Henrik Amsinck knows what it takes to prepare for the future. At the event, Henrik Amsinck will share his experience with the digital transformation of LEGO. He will also tell us how he thinks the future employee will look like, and which competencies the students should have.