Everyone is talking about digital transformation — the integration of digital technology into a company, resulting in fundamental changes to how it operates. But it’s not clear how to undertake digital transformation in the most effective and efficient way. Here are some tips for successfully evaluating the first steps in the process:
Understand that there is no end in sight. When you think about how far technology has come in the five years since the COVID-19 pandemic started, you will have some idea of how far we might go in the next five years. In early 2020, most businesses used the traditional 9-5, five-days-a-week, in-the-office model. Today, 63% of high-growth companies use a hybrid work model, and many companies that have mandated a full-time return to the office are struggling with compliance. This has all been made possible by new technology. Digital transformation is predicted to continue at this accelerated pace, and while it is unclear how changes will manifest going forward, it is already apparent that whatever happens will continue to be profoundly disruptive.
Be strategic in adopting new digital assets. Digital technology, from generative artificial intelligence to changes in processing and staffing, is affecting businesses in so many ways that it is important to take a step back before investing in the latest. For example, ask yourself:
- Does the new technology integrate well with the company’s strategic plan? Does it help the company meet its growth goals (e.g., greater efficiency, better data, more market penetration)?
- Does the new technology integrate well with the company’s existing technology? If not, what extra steps should be taken to make the technologies work together? Would it be more efficient to look for a different technology entirely? Or find a workaround?
- Will the new technology produce (more) reliable data? Can the new technology be expanded to meet anticipated future needs?
- What metrics will be used to monitor progress? Measuring the success of technology initiatives is an important part of the digital transformation process — as is being ready to make changes based on the outcomes.
Understand that cybersecurity is key. Data privacy and ownership are hot-button issues. Is your business compliant with the laws and regulations for each jurisdiction in which it operates? Do you have documented plans detailing how to handle a potential cyberattack?
Consider how you will support new technologies. New technology is only as good as already established technology unless you support it. Ask yourself the following:
- When did you last revise your organizational chart? The digital revolution may make old charts obsolete. For example, having a chief information officer to oversee the management, implementation and usability of information and computer technologies is essential, yet many companies don’t have this position in their C-suite or the job description is outdated.
- How do you integrate continuous learning and training into your plans?
Can you store and access the data produced by new technology reliably and in real time? - How does your company respond to and handle failures? They will be inevitable in this rapidly changing environment. Learning from mistakes shapes company culture and influences the future prospect of success.It is not enough to just invest in the best digital technology for the company; you have to know how you will use it.
Together, these goals can create a stronger company culture in a business poised to be competitive and prepared for coming digital disruptions.
