Digital evolution: 5 positive impacts
“What’s in it for me?”
At Logient, this is a question we often hear. While transformation, evolution and digital maturity make sense in theory, you want to know how it will impact your organization — and how it will impact you as a manager.
Studies by McKinsey & Company and Boston Consulting Group arrive at much the same conclusion: Organizations that are more technologically advanced are more resilient and profitable than the average in their industry. They’ve also done a better job of weathering the pandemic.
But they also have something less tangible: those elements that bring long-term value, even if they don’t immediately translate into dollar signs. Here are five of those elements that create a positive impact during a company’s digital evolution:
Impact #1: Freeing up time allows processes to be revised, and better processes free up time.
Recently we visited several customers to discuss new provincial and federal subsidies that could accelerate their digital transformation. These grants cover a large percentage of the costs of a new project. But the response we got from managers surprised us: “That’s all good, but I don’t have time to deal with it!”
Time is a scarce commodity in the 21st century — and we constantly feel like we’re running out of it. There are only 168 hours in a week, after all. But there are several ways to save time in our daily tasks. Technology makes it possible to automate repetitive processes, especially with advances in artificial intelligence. This frees up time so you can devote yourself to other tasks with greater added value for you and your organization — so you can develop the next great innovation!
Impact #2: Integrating new technologies attracts skilled labour, and skilled labour integrates new technologies.
A recent study published in the Journal of Knowledge Management shows that qualified employees — such as those with specialized expertise — are more inclined to stay at an organization that evolves proactively, adapts to new technologies, is open to new ideas and promotes knowledge sharing. On the flip side, the study also suggests that organizations lacking this approach may have difficulty recruiting and retaining employees who could help them effect change.
It’s not a matter of integrating each new technology that comes onto the market. Rather, the idea is to offer your teams the freedom to analyze new technology and adopt a “fail fast” approach to test the most promising ones. This approach also ensures that critical technologies are constantly revalidated.
Impact #3: Training our experts allows our experts to train our experts.
The CFO asks the CEO: “What happens if we train our employees and they leave?” The CEO replies: “What happens if we don’t train them and they stay?”
You’ve probably seen this quote before. It perfectly illustrates the paradox of training: It’s expensive to train your experts, and there’s no guarantee that this new knowledge will serve the organization if these experts leave. However, this “necessary evil” can help to attract and retain talent, in addition to creating a competitive advantage for your company.
With the proliferation of quality online training (which can be consumed asynchronously) and internal sharing tools, training is less expensive and more accessible to employees than ever before. This opens the door to a culture of knowledge, where trained employees can in turn train their colleagues. All you need is the right tools in place, such as knowledge management software (KMS).
Impact #4: Reducing technology debt frees up resources, while available resources help reduce technology debt.
From an IT perspective, one of the greatest challenges that organizations face is technological debt: the costs associated with maintaining outdated technological tools. In the context of a labour shortage, it’s not uncommon to see IT teams spend more than half of their time maintaining these tools. This is time that cannot be used elsewhere and often creates little to no value for the organization.
To tackle technological debt, it’s inevitably necessary to set up major transformation projects to upgrade ERP, CRM and other management software. However, once these projects are launched, the impact is quickly felt. As technological debt decreases, more resources are available to further reduce that debt, until it no longer exists.
Impact #5: A culture of transformation brings innovation, and innovation reinforces a culture of transformation.
Intrinsic to the notion of digital transformation is innovation. According to McKinsey & Company, organizations that integrate a culture of transformation are more likely to innovate than their peers. And, as they experience the returns of a successful innovation, they want to replicate that success, which results in continuous evolution. This makes the company more resilient and, above all, more agile when an unexpected situation occurs (such as a pandemic).
Gaining digital maturity is good for your organization — and for you. While it brings change and uncertainty, studies show that robust change management brings positive returns. So if you feel like you’re short on time, aren’t intellectually nurtured or struggling to keep colleagues engaged, digital evolution is part of the solution.
Each of these impacts will be covered in detail in our upcoming articles. Subscribe to our newsletter so you don’t miss a thing! Stay on top of the latest trends in the field by following us on our LinkedIn and Facebook accounts.
