With an all-time high demand for digital services by consumers in wake of the COVID-19 pandemic, it is an inevitable fact that the future belongs to companies that succeed in digitally empowering their consumer experiences irrespective of industries.
A BCG study pointed out that digital leaders can expect at least 1.8 times more earnings growth when compared to those that are laggards in digital transformation.
However, BCG also found that nearly 70% of all digital transformation efforts fall short of their key objectives. This high failure rate has been noticeably mentioned by several leading global research and consulting firms. So, now comes the important question – why is there a higher chance of failure for digital transformation initiatives despite the massive interest on the subject from nearly all industries?
The answer lies in understanding the fact that digital transformation is not just about bringing in new and innovative technology to power every aspect of your business. There is a need to cultivate a digital mindset within the organization amongst all stakeholders and employees to match the expectations of digital-savvy consumers. There is a need to foster a cultural evolution to help people within the organization leverage new thought processes while solving customer challenges and not just go with what a new digital platform in the market lists as its capability.
There is no doubt about the immense potential that technology can unlock within businesses. However, the key approach that leaders need to take while implementing digital transformation is to drive the technology across your business and not let technology drive on its own while the rest just piggybacks onto it. Many leaders fail to foster the need for a digital mindset amongst employees, which can backfire on the businesses’ strategic goals of achieving digital supremacy.
Let us have a brief look at how a digital mindset across all levels can enable better digital transformation within an enterprise –
With a digital mindset, your workforce can realize the importance of how different components within a digital ecosystem, mainly data, applications, and the infrastructure are dependent on each other and how each can complement the other for a successful transformation. This awareness helps to draft strategic plans of integrating different business systems, minimizing processes and workflows, and merging or eliminating bottlenecks resulting in better utilization of data within the business.
Better Customer Experience
A digital mindset allows your business to think from the customer’s point of view. Employees across departments will be able to visualize how every part of the digital journey a customer traverses, and they can make strategic, and technology-driven adjustments accordingly. By bringing on-board thoughts and feedback from all consumer stakeholders, insights can be obtained for delivering superior customer expectations not as a capability of a single application, but as a combination of different tools, processes, and critical thinking across different service layers.
Faster Time to Market
Businesses that have people at the helm and across departments with a digital mindset, will know how important it is to remove barriers and bureaucratic delays holding up decisions on digital implementation. They would work towards eliminating redundant policies and replacing them with more streamlined and agile ones, ensure access to critical infrastructure for the digital workforce, and prioritize investments for technology adoption. This will ultimately translate into the faster roll-out of digital or digitally-enabled services by the business to their customers. With competition increasing, businesses need to bring experiences faster into the market so that consumers can quickly build loyalty with it.
Eliminate the Fear of Job Loss
One of the key reasons why employees fail to leverage the true power of digital is the hidden fear in their minds about a possible future replacement of their roles by a machine or application. This would result in situations where they may willingly or unconsciously put up resistance to changes needed for digital transformation. By bringing in a change of mindset, leaders can empower employees to think beyond their fears and see digital as an opportunity to improve their skills and cater to more value-driven customer interactions. For this, they need to create an outline of what the business is aiming to achieve strategically through digital and chart out paths for every individual job role and motivate them to follow the path to ensure collaborative success.
We are witnessing a barrage of innovative technologies driven by AI, machine learning, IoT, Blockchain, etc. being introduced every now and then in the digital ecosystem around us. Businesses often face a dilemma when deciding where to focus their investments and what technology should they prioritize to reap success faster. While the choice of technology requires a detailed evaluation, the fundamental ideology of digital transformation which focuses on leveraging technology through a digital mindset is what should take the driver’s seat.