Challenges of digital transformation: Shaping cultural change.
Since the start of the pandemic, digital transformation is no longer just a gamble for the most advanced, but an obligation for all companies that want to survive in challenging times. This article provides an overview of the challenges of digital transformation for companies that want to compete at the highest level.
What is digital transformation and what are its advantages?
The benchmark publication The Enterprisers Project defines digital transformation as “The integration of digital technology into all areas of a company, fundamentally changing the way it works and delivers added value to its customers”.
As we have already mentioned, digital transformation is based on the use of digital tools in all areas of a company. The ultimate goal of these tools is nothing other than to achieve a positive impact on operations and the delivery of services.
This is therefore a radical change that entails a restructuring of processes. These are some of the most important advantages of digital transformation for companies.
Abolition of manual processes
One of the most important advantages of digital transformation, if not the most important, is the shift from manual processes to digital processes, which gain in efficiency and speed.
Here are some important tasks you can digitize to reduce manual labor:
- Invoicing
- Payroll
- Trigger-based push and email notifications.
- Creating tickets for technical support.
- Collection of customer data.
- Tracking the time spent on different tasks.
Although digitizing these tasks individually is a great help, the true value is achieved when entire processes are automated, e.g., accounting, inventory control in your e-commerce, or relationships with your customers.
Increased customer satisfaction
As a result of digitalization, the customer perceives improvements in service, e.g. waiting times for orders or shorter service times of the support team.
Further advantages of digital transformation for the customer include easier interaction with the company, e.g. via email, live chats, etc.
Improved decision making
Another major advantage of digital transformation is that it allows us to obtain a large amount of data.
Unlike in the past, they are now stored digitally, making it easier to identify patterns and areas for improvement. These improvements can then be used to lead to faster and more precise improvements in decision-making.
Greater flexibility and scalability
Another major change brought about by digital transformation is the shift from restrictive legacy systems to modern alternatives. The technology used by legacy systems often requires manual input, which can lead to bottlenecks as workloads increase.
Increased digitalization brings greater scalability opportunities. The more processes you digitalize, the more actions, plans, and projects you can implement.
Digital transformation in Switzerland
Now that we are clear about what transformation is and what it is not, let us look at the situation in Switzerland.
According to a study by the consulting firm PwC, 80% of Swiss companies believe that their sector will fundamentally change in the next five years.
Changes in internal processes, communication channels with the customer, and massive data processing will lead Swiss companies to utilize digital transformation within the next five years.
Challenges of digital transformation
However, it should be noted that digital transformation is not a process with a defined endpoint.
This is a journey that must go hand in hand with the natural development of the state of technology, the purchasing habits of companies, and the general development of the market.
Therefore, there is no alternative but to understand the challenges of digital transformation in order to address them in the most intelligent way.
Openness and willingness to learn as pillars of a digital culture
Traditional corporate structures often have a restrictive culture regarding mistakes.
Mistakes should always be avoided. This approach proves ineffective in a digitized world. Only a culture of openness is capable of keeping pace with an increasingly dynamic market environment.
Companies need to work on developing an MVP mentality, because the ability and willingness to develop, measure and learn quickly, or fail quickly, is crucial for a successful digital future.
A culture of learning goes hand in hand with a culture of learning from mistakes. Every team member should constantly seek opportunities to develop their skills and improve their work.
The willingness to learn should not be imposed, but can be specifically promoted, for example through flat hierarchies and a culture of learning from mistakes.
Diversity as a cross-cutting requirement
Diversity means recognizing the value of different perspectives and incorporating them into the work process itself.
Diversity in the context of corporate culture refers to a diverse workforce and diverse teams, but also to diversity in decision-making.
The agile mindset from a management perspective
A company culture can’t be transformed overnight, and rules can’t be imposed. It’s made up of the people you work with every day. However, management can create a framework that motivates and inspires employees. Help shape and articulate a digital vision.
It’s worthwhile to involve employees early on and ask for their ideas. This is the only way to create a sustainable culture that is shared by all employees.
Digital transformation requires a cultural shift
Shaping digital transformation within a company also means transforming the corporate culture. Through targeted initiatives, leadership can… Develop and promote a vision, which effectively communicates an agenda for change and inspires an innovative environment in which teams confidently shape change.
At DATA UNIT, we are experts in the application of technology in digital transformation processes. Rely on our business consulting services to learn how you can overcome these challenges of digital transformation.