How to Get Leadership On-Board With Digital Transformation
Digital transformation has become such a large part of the business world. By now, companies and organizations everywhere are having conversations on the topic. Though not all of those conversations result in any type of digital transformation being initiated, with Forrester reporting only 27% of today’s businesses having a coherent digital strategy. Forrester goes on to say that “despite expectations that digital will influence close to half of sales by 2020, most executives don’t factor [it as] a major influence in business strategy.”
These stats are disconcerting. With all the resources out there outlining the benefits of embracing digital, why aren’t more companies taking it seriously?
There are a variety of reasons executives are disinclined to embrace digital transformation. Commonly, they are resistant to change in general and don’t want to modify processes or systems. Another reason is of course money. Leadership is reluctant to allocate a budget or spend their current budget differently. Sometimes, it is simply because leadership is content with where the company currently is. And lastly, some executives believe that digital transformation is just a passing fad.
If you have encountered any of these apprehensions, or others, when trying to discuss undergoing digital transformation with executives, we’ve got you covered. We know that if leadership isn’t on board, it is extremely unlikely that any efforts to embrace digital transformation will succeed, or even be initiated in the first place.
So how do you get leadership on-board with digital transformation? Here are 5 key talking points to help change the mindset of executives, and get your organization started on its digital transformation journey.
1. It’s where the world is headed.
The Internet of Things (or IoT) has taken the world by storm. It is increasingly shifting the business world towards digital, with no end in sight. According to Accenture, “‘Digital’ is the main reason why half the companies have disappeared from the Fortune 500 since 2000.” If your business remains static, while the world around it changes, it will become increasingly difficult for your business to stay relevant. And we have seen multiple examples of this with Kodak, Blockbuster, etc. Embracing a digital transformation mindset allows your organization to grow along with the world and maintain success regardless of digital disruptors that emerge.
2. It’s what customers have come to expect.
The same IoT that has shifted the business world towards digital has changed customer expectations of what business should look like. And it has changed the expectations about the business/customer relationship. Simply put, if your organization doesn’t live up to those expectations, customers will stop doing business with you. A study done by IDC states that “by 2020, 50 percent of the Global 2000 will see the majority of their business depend on their ability to create digitally-enhanced products, services, and experiences.” Embracing digital transformation allows your company to deliver, and continue to deliver, the type of service customers have come to expect in the digital age.
3. Your competition is doing it.
Just because your organization hasn’t embraced digital transformation, doesn’t mean that the same is true of your competition. IDC reports that “two thirds of the CEO’s of Global 2000 companies will have digital transformation at the center of their corporate strategy by the end of the year.” And 70% of executives have already started digital transformation of their supply chains (Cap Gemini). The businesses that embrace digital transformation will have a competitive advantage over the ones that don’t. To resist a digital mindset is to risk being left behind.
4. It boosts your bottom line.
Embracing digital transformation opens up new communication channels and revenue opportunities that would be otherwise inaccessible. According to the MIT Center for Digital Business, “Companies that have embraced digital transformation are 26 percent more profitable than their average industry competitors and enjoy a 12 percent higher market valuation.” Similarly, CEO’s expect digital revenues to increase by 80% by 2020 (Gartner). If your organization is unwilling to embrace digital transformation because of let’s say the anticipated cost, it will miss out on numerous business opportunities that end up costing your organization more in the long run.
5. You don’t have to go it alone.
The business world is increasingly shifting towards digital. There are a number of resources, partners, vendors, etc. that have emerged to help organizations undergo digital transformation. And turning to them for help is by no means a bad thing. 88% of firms use third party providers for at least one component of their digital transformation work (Accenture). Your organization can take comfort knowing there is a community of businesses out there that can help. Just be sure to choose carefully, picking vendors that fit your organizations specific needs.
“47% of companies haven’t started to embark on their digital transformation process yet” (Progress). Don’t let your organization be part of that number. We hope that you can use this blog post as the jumpstart your organization needs to truly embrace digital transformation.
And remember, we are here to help. Sign up for a demo of our Intranet Solution to see how we can help your organization along its digital transformation journey.