Monday, November 27, 2023

Digital Transformation: CXOs need to take this as a cultural change than a technological

The challenges in implementing the Digital Transformation are often misunderstood. It is not just about the adoption of latest technologies like choosing a Tesla over a Suzuki, it is about finding out what’s best for your business and bringing a holistic cultural shift within the company’s 4 important pillars, which are processes, policies, people and of course technology!

Why a cultural shift is more needed than just buying or getting applications developed on latest technologies?

We are all in a transition phase, shifting towards minimizing the inefficiencies and running the business in the smartest possible way. This change from traditional manual practices to a digital ecosystem requires more than just getting the best software developed on the latest technology or buying the best solution from the market. A technological change alone will not solve the problem; a perfect alignment of data-driven culture and technology is a MUST!

Here are the 3 main reasons why a cultural shift towards being a data-driven organization is need of the hour

  1. To align business operations with modern digital customer behavior
    Constantly changing customer expectations towards digital adaption and instant response from the businesses is the ‘new normal’. In order to stay relevant to the customer experience must be the one goal that all departments need to have in common. Unified customer information for the entire organization by getting rid of the ‘silo mentality’ where departments operate in isolation with each other, will result in bigger profits and reduce the costs.
  2. To make the most out of the company’s resources both human and non-human
    The smartest possible way of running a business is only possible with smart management of your existing resources. Making your human resources do the monotonous manual or repetitive tasks that can be achieved not only quickly but with accuracy through technology will only deteriorate your team’s performance. It is evident that, to generate higher profits and effective results you need to make the most out of data and use your team’s capabilities for innovative and intelligent jobs.
  3. To not deviate the focus from the core reason you started the business
    It is important not to deviate from what your company’s most important pillars are: the reason why you started your business and what you are expert at. Burying yourself under the mountain of tasks and responsibilities will only restrain you from delivering the exceptional results to your investors. The success mantra is, do what you do the best and, let technology support you to achieve your goals faster!

Here’s a perfect real-life example of what a company’s culture can do and technology cannot

Mr. Rahul, the Executive Director of one of the largest auto component manufacturers in India, wanted to change and structure one of their core business functions, manufacturing costing.

He reached out to Softude, for buying a software that would match the company’s requirement. Although the requirements were a perfect match with the software, it was difficult to implement the change within the organization. The main obstacle was getting the engineering department to invest the extra time & efforts to provide relevant information and data from multiple spreadsheets and, manual registers.

What seemed like an investment to Rahul, was an expense & mammoth task for the department.

Rahul immediately sensed that this has more to do with the resistance to change and adopt a data-first culture. He called up a meeting to communicate the benefits of the digital adoption in the short and long run, expectations were set. Soon the goal became common across all levels. This company could implement the change seamlessly, without any obstacles.

Rahul acted as the catalyst for change and transformed not only the processes but the people as well.

Cultural Change: a 4-Step Plan for making the digital adoption successful

  1. Communicating the changes happening in the business ecosystem and the benefits of a data-driven culture clearly: The first step is to clearly bring all stakeholders on same page, the reason why you need to go down the technology adoption path, the expected benefits and outcomes across the company.
  2. Be predictable- Any change is not easily acceptable; people tend to resist it. Be the catalyst for change – determined about your vision and consistent in your approach.
  3. Deal with the Adversary in the Room- Quite often, you’ll find there are a few in the organization who don’t agree with you. Address the resilience and face the heat if you wish to bring the big cultural change towards becoming a tech-driven company.
  4. Would you rather be in good books or grow your business? – Firstly, attempt for a change management to execute your organization’s digital strategy but if not then, you need to be a determined professional to take some hard decisions. The ultimate goal should be the growth of your business.

As a seasoned CXO, you have two choices – 

  1. Let it continue the way you are doing your business right now and be happy with the limited growth;
    OR
  2. Bring the workforce & cultural transformation for creating a digital-friendly company and the limitless possibilities of business growth!!

Digital transformation is impossible without the workforce & culture transformation. Transparency, continuous training and persistence is required to keep everyone unite and energized to achieve a meaningful cultural shift in your business. And we’re sure, you are one of them who think that digital transformation is imperative.

Sachin Gadia
Digital Transformation Strategist
Softude (By Sytematix Infotech)

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