Digital transformation is more than just upgrading to the latest technology. It’s a business strategy that includes shedding outdated processes and mindsets as well as adopting new technologies to improve productivity, increase customer satisfaction and drive sales.
Companies embark on a digital transformation strategy for several reasons, including the need to streamline production, expand distribution, create better workplaces and deliver an overall enhanced experience to customers. In the COVID-19 pandemic, businesses accelerated their digital transformation efforts because they saw the need to be more responsive to changing market conditions and customer expectations.
Some businesses, such as Patagonia, are using their digital transformation strategies to align with their environmental sustainability goals. The outdoor apparel maker uses AI to analyze marketplace data and customer feedback to speed up decision-making and optimize supply chain efficiencies, while also promoting reuse and recycling via its “Worn Wear” program.
Millennials, the largest generation in the workforce, are proponents of the digital-first mentality. They want to work with the same powerful, easy-to-use tools that they use on their personal devices in the office. And they expect the same from their employers, says Mercer’s Swift. As a result, companies must consider how to incorporate and integrate digital transformation into the employee experience to keep pace with millennial expectations.
The best way to ensure that a digital transformation initiative succeeds is to prepare the workforce for the change ahead. Managers should engage employees in a comprehensive way, with training and workshops to help them understand how to adapt to the new digital world. They should also encourage and support ideation and innovation by establishing an “idea charter” system, where employees can pitch their ideas and help prioritize those that meet company objectives.