Digital transformation is changing and reshaping different industries. No wonder companies have started to pursue efforts to capture the benefits of this trend. They also want to keep up with their competitors. As per the McKinsey Global Survey, 8 out of 10 respondents say that their organizations have undertaken these efforts over the past 5 years. However, they haven’t been able to achieve success. It is actually true, the success rate of digital transformation is quite low.
In fact, research has shown that the success rate of such efforts is less than 30%. That’s becausedigital transformation is quite difficult. It is not just small businesses, even the organizations that are digital savvy (tech, telecom, and media) are struggling. The success rate among these industries has not exceeded more than 26 percent. The stats are even poor in traditional industries like pharmaceuticals, automotive, oil, and gas. Their success rate is between 4 and 11%. The success rate also varies from one company to another.
What Is The Key To Success?
What Is The Key To Success?
In order to be successful, companies must make technology supported changes. That is one way they will become more successful than others in digital transformation. There are some factors that contribute to success. Let’s have a look:
You must have the digital savvy leaders in the organization.
Capabilities must be built for the workforce.
Businesses must empower their people to work in new ways.
The employees must be provided with day to day tools that support digital transformation.
The employees must communicate using traditional and digital methods.
Whenever digital transformation is happening, changes are taking place at all levels. The top teams of the organizations change during this transformation the most. This happens when new leaders who are more familiar with technology join the team.
It is indeed crucial to add a leader like this for the success of the transformation. Having a digital savvy leader is not enough, the leader must show leadership commitment, too. When individuals in key roles are involved in digital transformation, the transformation takes place faster and it is more likely to be successful. The role of a chief digital officer counts, too.
Another key to success is to communicate the change story. When employees don’t really understand where their organization is headed and why it is changing, they show reluctance to change. However, if you successfully and continuously communicate with your employees and make them understand the importance of change, you are likely to make the entire transformation successful. Along with communication, there should be a sense of urgency to make changes within the units. Other than this, the employees must be supported all the way through to make this change happen. Once they are able to understand what is happening, that will facilitate digital transformation on a greater note.
If your business or organization is among those who haven’t thought about digital transformation, then it is high time you do. In the advanced tech times of today, it is actually hard to survive without digital transformation.