What Makes a Successful Digital Transformation?
The adoption of digital transformation technologies is increasing at a near-meteoric rate across all industries and business spheres, as companies seek to gain a competitive advantage by making use of the operational efficiencies that they offer.
It’s true to say that there is a real will to adopt these technologies, with research showing that as many as 85% of global companies allocating a sizeable portion of their enterprise budgets for investment in digital transformation architecture - all with the aim of improving profitability.
However, despite growing numbers of enterprises recognising the opportunities offered by digital transformation, only a fraction of those implementing changes are seeing the improved operational efficiencies and profitability they’re are meant to.
The question is - why?
Damning Statistics
According to the Mckinsey Global Survey on Digital transformations, of those asked, 8 out 10 companies said they had undertaken a digital transformation within the last 5 years. And of those, less than a third had experienced any operational improvements and surprisingly, in certain supposedly ‘tech savvy’ industries, that figure drops down to between 4-11%.
These damning statistics could be easily interpreted as indicating that digital transformations are only ideal for a small proportion of the business world but in reality, the answer lies in how much engagement there is from the workforce and the leaders within each organisation.
Digital Partner-Leader Cooperation
When you take a closer look at those who have achieved success through digital transformation, there a couple of common denominators. Firstly, those implementing more sophisticated and comprehensive technologies across their organisations tend to be those who gain the most in terms of efficiency and profitability.
Secondly and perhaps most importantly, it’s the organisations that have leaders that fully engage with digital partners that overwhelmingly enjoy the best results. That’s because no one knows the inner workings of a given business better than its leaders and when the skills and expertise of the digital partners are combined with this insight, the full effect of digital transformation can be felt.
It needs to be frank, two-way street too, with leaders within the business needing to be truly listening to the advice and constructive criticism about their current setup given by the digital partners. It’s also imperative that the objectives and culture of each business are accurately conveyed to the digital partners so that they can provide solutions and make decisions based on what will work in that particular enterprise.
In Conclusion
Digital transformation technology is obviously an integral part of any digital transformation strategy, but the statistics clearly show that simply integrating them into your operation and hoping for the best is not likely to result in success and increased profitability. Only by fostering a collaborative relationship between digital partners, leadership and all employees within an organisation can you hope to achieve the benefits that digital transformation technologies patently offer.
Fail to take account of this and you could be one of the high number still struggling to get the best ROI on their infrastructure budget.
At HUB 360, our highly experienced expert team specialises in the development of digital systems for the logistics industry, with a specific focus on the installation and management of Enterprise Resource Planning (ERP) systems. We have the skills and expertise to help your organisation fully optimise how it uses its resources.
If you would like to know more about anything discussed above or about what the HUB 360 digital platform could do for your business, please visit us online at www.hub360.ie. Alternatively, if you would like a consultation with one of our experts, fill in the contact form http://bit.ly/2SSuuEC and we’ll get back to you as soon as we can.