A new decade began last year but nobody could have predicted how are global pandemic would set in and define the strategic approach to be taken by multinational organizations around the world.
Such has been the impact of coronavirus that many industry insiders now believe that we are entering a decade of digital transformation. While digital transformation has long been a priority for many organizations, the impact of the pandemic has been so profound that it has simply demanded a certain level of digital transformation be undertaken in order for many businesses to simply survive.
This means that while some organizations are responding to the pandemic by upgrading their digital technology stacks, others are taking a longer-term view with the realization that the effects of the pandemic on the business landscape will be felt for many years to come. As a result of this, their digital transformation priorities now take on a much longer-term view then perhaps they originally anticipated.
In this article, we will examine what the implications are of global corporations entering into a decade of digital transformation. How will such a shift towards a technology driven landscape change the way businesses and consumers interact with each other and what will it mean for the delivery of business-critical services?
The global business reaction
While many businesses entertain the idea and benefits of a new digital technologies across a number of their business services, and some even considered it critical to their future growth and development, nobody would have considered it mandatory.
Yet this is exactly what it became due to the restrictions being placed on businesses by a global pandemic which necessitated a huge percentage of the workforce to shift to a remote working environment. Such a swing towards the remote delivery of essential services would not have been part of even the most optimistic and ambitious digital transformation project managers-nor would it have been supported by leadership figures- too much of a shock to the system and lacking feasibility.
Nonetheless, it did happen, simply because it had to happen-governments imposed restrictions worldwide and businesses were forced to comply with the law and the new normal of remote working and service delivery. Any multinational companies struggling with legacy technology or who had fallen behind with digital projects suddenly found themselves in a very uncomfortable position and were forced to ask themselves if their technology stacks were sufficient and robust enough to withstand the challenges of a global pandemic. For many, the answer was no, and a fast and hugely inconvenient adoption of new technology and processes was quickly put in place as organizations did their level best to keep their heads above water while managing a global workforce struggling to adapt to a new digital world.
Not a temporary challenge
Over a year later, the coronavirus pandemic continues to wreak havoc on the business landscape and provide serious economic challenges for governments and multinational corporations in every industry. It is very clear that this is not a temporary challenge that will go away quickly followed by a resumption of normal business processes but instead it is a transformation of business models, IT ecosystems and customer experience that could be felt for a decade.
This global pandemic may forever change the way companies do business and the way global employees execute the obligations of their employment to these companies. The future of the office is uncertain, human resources departments are scrambling to put together guidelines and legislations around employee location and remote working procedures. And we can expect cloud computing, cybersecurity and digital capabilities to dominate decision-making in this new digital economy.
Global payroll departments are dealing with challenges around paying employees who are no longer located in the same country as they were a year ago but are nonetheless carrying out work under the same entity or company location. the vaccine process is thankfully gathering momentum but there are many unanswered questions, and the future remains very uncertain. The only real clarity is that new technologies and digital platforms are likely to play a major role in any solution. the challenge is not temporary, it is a long-term challenge which requires a long-term solution - for this very reason, money companies believe that they are entering a decade of digital transformation.
Digital transformation therefore is no longer a project or a box to be ticked- it is now a mindset and perhaps a cultural identity at an organization. companies with a digital mindset and innovation in their nature are optimistic about what they can achieve with this challenge- however, organizations who had a traditional reliance on in office culture and operate with legacy technology are now facing a series of challenges that may take years to resolve.
Creating lasting value
Many multinational companies are involved in serious debates and discussion with senior IT leaders such as the CIO or digital transformation senior project manager. They face a precarious situation - moving at slow speed or any kind of inactivity is simply not an option -the global marketplace is unforgiving, and they will be left behind.
Move too fast however, and a risk going full steam ahead with a digital transformation project that has not been fully considered and analyzed. Many organizations face an urgent and immediate need to equip their now remote global workforce with innovative digital tools that help them communicate, collaborate and deliver on their duties in an efficient and speedy manner.
Other organizations, lucky enough to have this digital platform technology already in operation, are facing different challenges -namely finding the right approach that ensures this digitally innovative technology provides lasting value and delivers on a coherent long term value creation plan.
Effective digital transformation requires the use technology to transform business processes and deliver on new market strategies. IT leaders everywhere will confirm that this all requires a shift in mindset. Employees spread across multiple locations must agree to this new direction and actively participate in this level of change.
While it is important to introduce cloud platforms and digital innovation to enable the management and maintenance of remote workforces -there is also a need for a longer-term plan to ensure lasting value. The responsibility for this will likely fall on leadership teams across human resources, global payroll and finance departments who delivered the kind of day-to-day business critical services that keep an organization ticking over.
Digital transformation projects were not really designed to help global employees cope with unforeseen upheaval- instead, they had a broader, strategy driven long term view. despite the need to keep the lights on and the engine running in the short term, digital transformation projects most at some point returned her focus towards delivering lasting value. This is another reason why it is likely to be a decade of digital transformation.
Technology will continue to innovate
Technology advancements are only heading in a forward direction - companies need to seek out a competitive edge and they will always leverage the latest technology advancements to do so. Innovation will continue to be prioritized as long as there is budget to support it.
Digital transformation is only likely to increase over the next 10 years -it will be a mix of trail blazers who lead the way in digital transformation, and they will be followed by a huge amount of companies who either copy their innovation or attempt to keep pace with digital investment of their own.
The pandemic has forced anybody who was previously suspicious of digital transformation projects to come around and accept the reality that digital innovation is now a necessity rather than a luxury. Business cases for investment and financial support from the CFO office should in theory be a little easier to compile while achieving buy-in across a globally dispersed workforce should also be a little easier.
Both employees and end user customers can expect to see a lot more robotic process automation, machine learning and AI in the systems and digital platforms they interact with on a regular basis. Automation is a common feature of digital transformation efforts and the use of it is only going to increase.
The next few years will likely feature a range of companies going back to previously dormant digital transformation projects and taking a second look. They will approach these projects through a new digital age lens and likely with a lot more enthusiasm as the pandemic has changed the business landscape significantly.
The likely result is that digital transformation projects will become another new normal inside multinational organizations. digital transformation officers and projects will become commonplace and there will be opportunities for skilled stakeholders to get involved and shape the end result.
Those companies that anticipate and tear down the barriers to digital transformation progress while ensuring widespread adoption across both their workforce and customer base will likely see their digital transformation projects as being the catalyst for success.