For many business leaders, taking the firm through a business transformation or digital business transformation journey is a key responsibility. But it is not an easy process. Leaders can learn multiple things as they embark on this journey.
Expleo, a company that guides organisations in digital transformation, has put together some of the valuable lessons after surveying 1,395 people across 6 countries. Its Business Transformation Index 2023 codified such transformation initiatives for companies in aerospace, automotive, banking and financial services, energy and utilities, healthcare and life sciences, insurance, manufacturing, public sector, retail, telecom, media and transport.
Starting with the definitions
The report defined business transformation as the process through which an organisation makes a fundamental shift in its way of operating, providing value and customer engagement methods.
This involves rethinking culture, process and technology. While technology is the key enabler of the change, it cannot drive this transformation alone. A subset of business transformations is digital transformation, which is bringing in the right mix of digital technologies to drive improvements.
But implementing the changes isn’t easy. The report said 76% of the companies are falling short of achieving at least one target in their business transformation initiatives. The areas of concern are project discipline, which ensures delivering transformation on time and on a budget, and reliability. It also involves balancing profits with business impact. And about the impact on the customers and the users.
Skill shortages are a key area that need focus specifically around emerging technologies like AI and augmented reality. Leaders can broaden and diversify the talent hiring to address this, said the report.
To address possible instabilities, businesses should focus on improving business agility.
About 69% of the companies talked about the challenges of adopting a digital-first strategy.
Design thinking is needed to improve customer experience, and data transformation is often required before transformations can begin.
For sustainability, companies are looking to shift to more circular business models. They are taking actions for recycling of hardware, monitoring of carbon footprint, and other such steps.
Some of the specific threats mentioned by the companies in the survey included cost inflation (48% of respondents) and economic uncertainty (41%). They prioritised resilience and cost control as key aspects.
Looking at the Indian scenario, Manu Saigal, Director-General Staffing, Adecco India, said while digital transformation has enhanced efficiency, productivity and decision-making for Adecco’s leaders, it also presents challenges. Automation and data-driven insights free up leaders’ time for strategic thinking, while real-time data and analytics enable them to make better decisions. This increased agility allows leaders to quickly adapt to changing market dynamics and customer needs.
However, leaders must also keep pace with rapid technological advancements, manage resistance to change from those accustomed to traditional ways of working, and ensure data security and privacy in compliance with complex regulations. Leaders who successfully navigate both the benefits and challenges of digital transformation will be best positioned to thrive in the ever-evolving business landscape, Saigal added.
