It was only about thirty years ago that journalists were asking each other on the air about the internet and its purpose. Today, the internet plays a role in nearly every aspect of our lives. The digital world is omnipotent, but its most exciting innovations are still novel, meaning that the nitty-gritty is probably only understood by a minority of professionals. Since our reliance on digital technology is not going anywhere any time soon, then the time has come for us to emphasize its real-time impact on our business models.
Before the pandemic, a McKinsey survey found that 92% of companies believed that their business models would need adjustments due to the digitalization rates at the time. Of course, these rates no longer apply because of COVID-19 and the massive shift to remote work. Some even estimate that we have moved between three and four years forward in digital adoption in only a few months.
Digital technology and transformation are not something to look forward to; they’re happening whether our organizational leadership likes it or not. Here are some highlights for your organizational leadership, specifically its executives, on preparing for digital transformation.
Offering valuable guidance on how technology impacts the workplace
Your organization’s executive leadership should be able to understand and communicate how technology impacts its employees. An excellent example of this lies in the emerging field of artificial intelligence (AI). Some organizations may fear that employers will rely less on personnel with more AI in the backend. If there is a growing concern over AI’s impact on staffing, employees may not care to understand its value because their job security is at stake.
The more your executive leadership can communicate the value of digital technology and its employees, the more likely it is for a digital transformation to improve your organization. If your executives do not feel equipped to give their employees the information they need, they should not hesitate to introduce experts. Alternatively, the organization can also choose to bring on new directors with a technology focus or put board members through intensive training programs focused solely on technology.
The impact of a digital transformation on competition
Digital transformation is a proven way to generate novel revenue streams. Take recent research from McKinsey, for example. When studying cloud economics, McKinsey found that 75% of the $1 trillion at stake in cloud economics will come from business innovation. Here, we see exactly how valuable it is to exceed expectations and outpace market trends.
Since innovation will drive a majority of that revenue growth, your organization’s leadership must take a closer look at how its competition moves. More specifically, have your board examine what is missing from your competition’s innovation. After finding a gap in market trends for your organization to fill, offer a solution that makes your consumers’ lives more simple. That way, you can rest assured that your innovation applies to both short and long-term revenue goals.
“Wait … is this even effective?”
Digital transformation is the norm. If we always expect the technology that we rely on to change, we need to be clear about what these new technologies set to achieve. Overall, setting intentions that affect the organization’s measurable business goals ensures the efficient allocation of resources. Therefore, to assess whether digital transformations positively or negatively affect the organization, leadership should make sure that its technological development coincides with a handful of areas that increase the company’s value.
In tracking the organization’s overall progress with digital transformation, your board should hone in on two sets of metrics: one involving outcomes and leading indicators tied to value and one involving overall progress. The first involves an investigation of data measuring customer habits, return on investment, etc. The second method is more holistic, taking note of how behaviors and processes alter the organization as a technological consequence.
About Krishen Iyer
Krishen Iyer is a renowned California entrepreneur with an expert in insurance, contracting, and marketing. After graduating from the San Diego State University, Iyer began his career working with insurance distribution centers to build their traffic and brand recognition. Since then, Iyer has bought and sold multiple companies, including the Fresno-based Managed Benefits Services.
Managed Benefits Services, the predecessor to Iyer’s MAIS Consulting Services, focused on optimizing the marketing strategies of the firm’s health and dental clientele. MAIS Consulting is proud to build on Iyer’s legacy at Managed Benefits Services from its location in Encinitas. Iyer is also the owner of a full-service property management company that draws from his marketing expertise to promote and share rental properties on behalf of its clients.
No Deccan Chronicle journalist was involved in creating this content. The group also takes no responsibility for this content....