Over the last decade, high-tech tools have dramatically raised the bar for service excellence. Companies like Uber, Amazon, and Netflix have harnessed technology to enhance customer convenience and process efficiency, setting new public expectations for amenities like 24/7 customer service, digital delivery, and personalized experiences.
To meet these expectations, organizations need to embrace "digital transformation," integrating digital technology into their existing business processes. Let's delve into how organizations can prepare culturally for digital transformation, assess current readiness, overcome innovation stagnation, and win over skeptics.
In 2020, Synaptiq began researching digital transformation across industries, interviewing leaders from a diverse range of businesses across sectors and industries. We identified three levels of cultural readiness:
Starting Level: These companies adopt a conservative approach to digital innovation, favoring incremental changes and relying heavily on IT, often leading to competition among various technology needs.
Exploring Level: Here, companies take an opportunistic approach, often spearheaded by tech-enthusiast leaders. Projects are opportunistic and led by technology teams with executive input.
Leading Level: These organizations embrace a comprehensive digital transformation strategy, driven by dedicated executive roles, with substantial funding and systemic prioritization.
You can gauge your business' readiness based on these criteria.
"Innovation stagnation" refers to a prolonged period without new technology adoption, leading to technical and resource backwardness. Companies at the starting level often face this issue. To combat this, start with a small, likely-to-succeed project to boost confidence and warm up the IT department. Assign it to an innovation-supportive IT manager and ensure adequate resources to avoid losing momentum.
One of the most significant obstacles to digital transformation is skeptics within an organization. These skeptics are often found in all types of businesses, especially those in the early stages of digital adaptation. Their resistance to change can be rooted in various factors, such as negative experiences with technology, a lack of understanding of new digital tools, or personal insecurities about adapting to a dynamic and evolving digital landscape. Their skepticism can pose a considerable barrier to the implementation of digital strategies, especially in companies that are just beginning to embrace technological change or are in the exploratory phase of their digital journey.
To effectively engage and convert skeptics, an empathetic approach is crucial. Here are some key strategies:
Educational Workshops and Training: Implement training programs that demystify new technologies. These sessions should not only cover the technical aspects but also emphasize how these technologies can simplify tasks, improve efficiency, and contribute to the overall growth of the company and its employees.
Open Dialogue and Addressing Concerns: Create a platform where skeptics can voice their concerns and questions. Open discussions allow for the dispelling of myths and misinformation about new technologies. It's important to acknowledge their apprehensions and provide clear, factual responses.
Showcasing Success Stories: Sharing examples and case studies where similar technologies have positively impacted other organizations can be persuasive. This includes demonstrating improved efficiency, cost savings, enhanced customer experiences, and how technology has made employees’ jobs easier.
Digital transformation is increasingly essential, offering benefits like improved project delivery, risk management, and business development. However, it requires overcoming challenges like cultural readiness, stagnation, and skepticism. Businesses must address these issues in order to successfully navigate digital transformation.
Synaptiq is an AI and data science consultancy based in Portland, Oregon. We collaborate with our clients to develop human-centered products and solutions. We uphold a strong commitment to ethics and innovation.
Contact us if you have a problem to solve, a process to refine, or a question to ask.
You can learn more about our story through our past projects, blog, or podcast.