Digital transformation is the process every company must undertake to adapt to today’s digital world. It involves intelligently combining technology with traditional knowledge and essential processes. This combination enables businesses to become more efficient, competitive, and profitable, supported by two major forces: technology and the new customer transformed by it. The primary goal is to survive this change and then become relevant in the new context without losing the corporate identity.
It’s important to note that digital transformation differs for large corporations, medium-sized companies, or micro-enterprises, so each must be approached differently. Key factors for effectiveness include human resources, economic resources, leadership, commitment, change management, knowledge, and skills, among others.
Digital transformation is not an end, but a necessary process of profound technological and cultural change that every organization must implement to meet the expectations of their digital customers. It involves integrating viable traditional elements with new processes that make us more effective, closer to our market and its needs, while remaining profitable. It’s as simple and as challenging as developing products, services, and processes that better adapt to customers without losing the corporate identity.
It’s a process of change that every company must address, not only to survive but to leverage and grow from the immense opportunities of the digital economy. Companies must transform internally and externally to adapt to the expectations of customers and employees.
The digital economy should not be perceived as a threat, but as a great opportunity.
Every change involves leaving the comfort zone, whether material or not. It can even be the predictable discomfort of, for example, daily traffic to work. What makes it difficult to leave the comfort zone is resistance to change, a mix of laziness, fear, apathy, and expectations of loss.
Digital transformation is initiated by a crisis (like the COVID-19 pandemic that accelerated the process) or by the leaders’ commitment to continually adapt to new customers.
Crisis occurs when the old hasn’t ended and the new hasn’t been born. Change must be unleashed by inspiration, one of the engines of change also driven by necessity: Change = Necessity – Resistance
Given that change is inevitable and necessary, people in the organization will go through these phases until they feel comfortable: denial, resistance, exploration, and commitment (the change curve).
Today, three different generations coexist in companies (Baby Boomers, X, Millennials, and Z) with different worldviews and hierarchical roles. Understanding the consequences of this diversity will provide clues about business evolution.
The great challenge is to consider the human factor, as no change is achieved without the support of company members. Leaders are needed who understand the digital environment and lead this opportunity, recognizing the emotional phases of change and supporting employees at each stage. They must eliminate resistances that put digital transformation and business survival at risk.
Key points:
- Leverage generational diversity as a value; no one is surplus if they have the right attitude.
- Leaders must develop a vision for the future and share it within the organization.
- In crises, young leaders with new ideas are demanded, accompanied by previous leaders.
- Human talent focused on people is needed. The leader must guide their people to where they’ve never been before.
