Digital transformation is a technological process borne out of business needs. Its success, however, is defined by the people who execute it. What does it take to win the game?
Finland is one of the global leaders in digitalization. Many leading global IT service providers work with Finnish enterprises. To their slight surprise, they often come up against similar digital transformation hurdles as in other markets.
“The same issues emerge across the Nordics and worldwide,” says Jukka Lehtinen, Regional Sales Director at HCLTech, Finland. “One above all else. A successful digital transformation process boils down to three factors. They’re technology, business, and people. Out of these, the last one is key. Without committed people, no technology will save a business.”
There are simple approaches to employee engagement that any organization embarking on a transformation journey should consider. We will discuss them shortly, but first, let’s contemplate the context of technology and business.
Digitalization – alongside the sustainability imperative – is probably the most significant global megatrend. We are facing the digitalization of everything. There is no way around rapid digital transformation in any industry vertical.
While the technological landscape is shifting, the tectonic plates of our business environment are also moving. The ongoing revolution has wiped away enterprises and entire industries. Digitalization reaches the very core of the business.
The retail industry, for instance, has been shifting from a bricks-and-mortar environment into an online and omnichannel experience. Similarly, the energy and oil industries are rapidly transforming from a fossil vertical to a renewables business.
“As companies reimagine their future, they come up with whole new business models,” says Sathya Murugesan, Digital Business Leader at HCLTech, Nordics. “To understand the scale of change, consider industry value chains. They used to be linear, but disruption has seen them turning into whole ecosystems that run on digital engines. The upside may be organizational agility and a consistent customer experience. Still, there’s a substantial risk of operations going haywire as the company settles into the new setup.”
“Transformation must be handled with care, starting with people. They deserve respect, and they have the right to be heard. They need to be allowed to understand where the business is heading and how they can contribute to the enterprise’s success.”
Mind the gap between business and technology
Enterprises adopt new technologies to retain and improve their competitiveness. Yet, many transformations have failed through misalignment of business objectives and technology strategy.
The technological environment is, in most cases, complex. Many enterprises operate legacy systems and technology, running critical business processes. At the same time, business management calls for agile innovation and rapid go-to-market to keep up with the relentless pace of change in their environment.
Legacy impedes business transformation. Hanging on to antiquated systems is a human trait. This defensive mindset is, in fact, a threat to business continuity. An accumulation of patched bits and pieces is an antithesis of innovation and rapid go-to-market.
“The real challenge is connecting business objectives to transformation priorities at scale,” Murugesan says. “And this gap resides within people. Everyone sees transformation through their unique perspective, and for many, the vantage point is one of preservation, of risk aversion. New is scary and requires an extra effort. Therefore, not everyone likes it.”
Internal alignment is at the core of the issue. It takes extensive human interaction – listening, engaging, and explaining – to keep things moving. That failing, there’s no buy-in, and transformation grinds to a halt.
“There’s a connection to the purpose of work,” Murugesan points out. “You want a dialogue around the fact that digital technologies are not only for doing things better. They are for doing better things for society, humanity, and the planet.”
Dial-in the human factor
“Confusion spreads like wildfire in the organization,” Jukka Lehtinen says. “You see situations where people are unaware of the business objectives, nor do they see the point of a technology roadmap. Imagine coming to work yourself and not knowing why and what you’re supposed to do. Hardly ideal!”
Specific steps are crucial to success:
- You want senior management buy-in and commitment to digital transformation.
- Leaders must take responsibility for driving an ongoing dialogue within ranks and hear what teams have on their minds.
- Waving the flag and banging the drum are helpful. There is no such thing as too much communication.
Front-line engagement invokes trust, spirit, and a can-do attitude within the organization. Persuasion is also about highlighting pockets of success that emerge along the way.
Digital transformation will work out when teams are motivated toward action, and the objective and vision of change are crystal clear.
Listening to customer needs, HCLTech has developed a proprietary framework for driving successful digital transformation called FENIX 2.0. The four-stage model has been highly successful in articulating transformation roadmaps from technological, operational, commercial, and governance points of view.
FENIX 2.0 helps organizations reprogram their core DNA and define their digital transformation objectives.
“I’m always thrilled by the ‘wow’ happening in the room when we lay out the model,” Sathya Murugesan says. “It’s a simple framework but helps our customers conceptualize their location on the transformation journey.”
“It’s an excellent starting point toward workable solutions – and a digital transformation journey people want to join.”
