Returns from DX are proving a struggle — how do you make it work?
A lot has changed since the idea of “digital transformation” came around to disrupt the pace, speed, processes, and agility of business operations.
Business leaders and decision-makers like C-suites executives have not only become accustomed to the idea of transforming, but they are endorsing actions to ensure that they become more digital.
However, adopting digital solutions is barely scratching the surface of business transformation. The challenge and pressure lie ahead — in making sure the solutions deliver on operational value, investment returns, and market growth.
Believe it or not, only 5 percent of C-suites can claim that they are able to reap significant values and returns on their digital investments.
The winning margin
According to a survey by PwC, out of 2,380 executives around the globe, just 5 percent can secure payback from their digital investments and initiatives — and consistently at that.
This signifies that there is a striking gap between businesses that are expecting to gain returns and businesses that are actually generating returns.
However, there is no need to point fingers and find flaws because, by now, it is obvious that setbacks like these are pretty common. What businesses need to do instead is learn from the winning businesses and identify what the executives are doing right.
So, how have these businesses managed to expand revenues, foster innovation, grow operations, and enhance customer experience effectively in their transformation journey?
# 1 | Turning visions into actions
The most successful businesses are the ones that don’t only imagine change, they endorse the change to happen through elaborate, long-term planning.
Not only that, the executives of these businesses make sure that every talent is involved and all available resources are used aptly.
In fact, ninety-one percent of the winning margin goes beyond encouraging collaboration between teams. They instill innovation at the core of their work culture and provide relevant opportunities to their employees to voice ideas.
# 2 | Tapping into the potential of the current workforce
It is important to prioritize a corporation’s employees when engaging with transformative efforts. Succeeding executives cite empowering employees to take charge of innovation and transformation as an enabler of their operational feats.
These leaders essentially lead their workforce to change before the digital revolution drives them out of their roles.
Reskilling, training of employees and encouraging them to exercise new-learned skills are key in the entire process. After all, these are the internal players that will drive digital initiatives into profits.
# 3 | Investing for today and the days to come
One thing that differentiates the winning margin from those that are yet to succeed is the strategies behind investments.
It is important to invest smartly, not extensively. A common mistake is to go all out with investments but failing to score much ROI.
The winning 5-percent has a clear roadmap of what they want to achieve before putting in any investment and that’s how they win — they identify results and invest in solutions that would drive those results.
At the same time, it is pivotal that businesses invest in the workforce as well. Solutions can revolutionize operational processes efficiently but the workforce will be the one to deploy them effectively.
A five-percent record is, without a doubt, a low number. When gaps like these are reported, it is easier to find flaws and pin them to the laggards businesses face — but finding faults doesn’t drive change.
So, it is best to learn from the winning margin, learn the ‘formula’ to success, and apply to the current transformation journey. Only then will the 5 double to 10, then to 20, and so on.