- Less than a quarter of U.S. companies feel their digital transformation is "highly mature," according to Disruptive Decision-Making, a new global study by Telstra. Among the poll of 3,810 senior decision makers, representing 12 industries in 14 markets worldwide, 29% of U.S. firms and 30% of companies abroad have failed to begin a digital transformation at all. The study also looked at the focus on people, level of decision-making and financial investment involved in making a digital transformation successful.
- Telstra said that U.S. companies as a whole place "too much importance" on technology in the digital transformation, and many can do more to invest in “people, processes and partnership.” While more U.S. organizations are increasing their investments in digital infrastructure, measuring success by increased profit margins scored the lowest in decision-making effectiveness — highlighting the required focus on the role of people in a journey toward digital transformation, Telstra said.
- U.S. organizations want to protect their digital assets from cyber threats, optimize their technology to be more adaptable and deliver good customer experiences, but all three priorities are also among the most difficult for U.S. companies to deliver during the digital transformation.
Not only is a new mindset necessary to conduct a successful digital transformation, according to a 2018 Randstad US study, but a new kind of leadership may be necessary to address the kind of changes to organizations' structures and operations that digitalization requires. Leaders of the future must be able to inspire others, promote collaboration, manage risk, leverage technology and, of course, drive innovation. As HR prepares its succession plan, it must identify new leaders with these qualifications in mind.
With so much responsibility for preparing employees for a digital transformation falling on HR, its leaders understand the impact digitalization will have on the workplace. Many feel they lack the resources to make the transformation successful, but HR can make a case for the investment. The initial financial outlay might be substantial, but the long-term benefits can be well worth the investment if the workforce gains the skills and organizations acquire the level of competitiveness needed for the workplace of the future, as the Telstra study implies.
HR might need to build a digital culture to get workers onboard with the transformation. Employment experts think that merely giving workers digital tools and instruction isn't enough to get them through the process. According to a 2018 Boston Consulting Group study, cultures that support digitalization are five times more successful at making the transformation with management and employees' support.