There is a common misconception that a simple digital culture transformation can change everything in corporate culture. The transformation process requires many changes, and the critical factor starts from culture. Digital transformation is not turning a computer into a supercomputer. It's about the adaptability of companies and employees by using technology in every process.
Many researchers said culture is the main barrier. According to Gartner, there are six barriers to business adaptation to the digital model, and five of the six are culture. Capgemini found that 62% of respondents identified culture as the biggest challenge in transformation.
Of course, creating a digital culture transformation would shake things up. It's like an organisation trying to find its true identity. All aspects of the organisation can change, such as workflow, procedures to organisational structure. However, the amount of change depends on how much digital transformation occurs.
Talking about digital transformation means more than just short-term goals. It's not about process automation or digital customer experience. This change aims to define how the company will compete in the digital economy in the coming years.
Why is culture change essential for Digital Transformation?
Corporate culture consists of attitudes, behaviours, goals and collective practices carried out by the entire team. Culture influences decision-making and collaboration. The way the team behaves with clients, customers or management is all set in culture.
Therefore, first and foremost, innovation starts from the company culture. Indirectly, involvement and employee productivity will increase. While there are no definitive indicators of this change, the existence of technologies such as platform management tools can identify retrogressive behaviour.
The Importance of Digital Transformation
Digital transformation refers to any IT-based modernization process in business. A simple change like making services online is not a transformation but digitisation. Here are the things that need to transform, and they are all closely related to culture:
- People: Because they will carry out the strategy
- Process: Collaboration and how teams make transformation seamless
- Platform: The technology used for the organisation to execute its strategy. Creating online services is a small part of the transformation.
- Content: Any content that supports the digital strategy
- Data: How the team collects data, analyses and makes decisions
- Product: What product or service is produced, and how is it serviced and delivered?
- Customers: How does the team understand customer needs?
In the 21st century, digital transformation is significant for companies. Both internal and external feel the effect. Revenue will go up, and the customer experience will improve and snowball.
5 pillars of Digital Transformation
Digital Culture: The Driving Forces of Digital Transformation reveals the five pillars of transformation. The book contains thoughts from leaders on this topic. The five pillars are collaboration, data-driven, centred, innovation, and purpose.
Collaboration means placing priority on the common good before personal. It also signifies that the organisation is breaking down silos of business units and functions. Virtual team collaboration has its challenges.
Data-based means decisions are made based on the results of data analysis. Organisations stay away from decisions based on feelings or wishful thinking. Data also serves to unlock new business value.
Innovation is part of the company's DNA. The team must have a mentality like "quick to fail and learn," which is integrated with the culture. It's not a massive innovation, but simple small steps like kaizen daily are innovations.
In digital transformation, customers have an important role. Organisations must be customer centred in determining responses. Changes are based on problems and customer needs, so the results are on target.
Goals include long-term and short-term. But when it comes to culture, it means more than short-term goals. Culture must support company goals, ethics, inclusion and equity.
5 keys to transforming Digital Culture
There are many ways to carry out digital culture transformation, and they must match the company's needs. Transformation can change an entire culture, take it away or add to it. If you still need to figure out how to get started, here are five key steps you can try.
1. Companies must define digital transformation
Digital transformation is not just about turning all processes digital without knowing the purpose. When an organisation follows the trend, it is a sign that it is not moving. Think carefully about what form digital transformation will take, how to implement it in the corporate culture and what effect it will have on the organisation.
After determining this point:
- Share this information with the whole team
- Let them know the company's decisions
- Remember to explain why this transformation is essential and must be done
2. Think one step ahead
Isn't it nice to know the technology that is useful for the company? Isn't it great to see an organisation grow better than its competitors? So create a digital culture that allows innovative ideas and thinking from different angles. The team may fail, but it can also succeed two times. Remember that a successful digital culture rewards both creative failure and success.
This is actual growth when the team is in a situation that loves learning, collaborates creatively, and is not afraid to fail to learn. Let this growth reside within your company.
3. Change the perception that the best candidate is the most skilled
A thriving digital culture means enabling employees to wear multiple hats. It also means letting them be generalists and sometimes specialists. Organisations should stop looking for specific employees for certain jobs (technology specialisation). Remember that technology is constantly evolving, so finding employees who specialise in technology wastes time. Start looking for candidates who have qualities and lead to bigger, stronger and forward-thinking organisations.
4. Be open to change
Technology does change companies, but technology cannot replace leadership and values. That is the primary driver of digital culture transformation, which means that companies must be prepared to accept sometimes unpleasant changes. So before an organisation begins digital transformation, prepare its mindset needs. If the team expects ordinary organisation and the leader expects more, skip this transformation. In the current era, more than half-baked digital transformation will be needed.
5. Find strength in company goals
Some organisational cultures already contain company goals. But taking time to realign goals will help transform digital culture. Plans can change due to cultural changes.
We all understand that change is difficult, uncomfortable and requires great effort. But when it comes to creating a successful digital culture transformation, everything is presented above. Successful digital transformation requires changing the company culture. Go slowly with confidence, follow some of the above suggestions, and you will get there.