Digital transformation is a topic that everyone is talking about. What is digital transformation? How can I introduce digital transformation in my company? How can I have an effective communication of digital transformation? We can solve some of these questions.
Digital transformation can be defined as the integration of new technologies in all areas of a company to improve efficiency, improve customer value, manage risk and uncover new opportunities for income generation. It can involve the reworking of products, processes and strategies within the organization through the use of digital technology.
According to the National Institute of Statistics and Geography (INEGI) in Mexico, there are more than 752 thousand people with occupations related to Information and Communication Technology with an average age of 36 years old. 83% of these people are men and 17% women. Of every 100 persons employed in ICT, 76 work mainly in a subordinate and remunerated manner, 20 are self-employed, three are employers and one works without any remuneration.
In order to understand more about digital transformation process in an organization, our IT Director at Prodensa, Hector Soto, shares his insights of this topic.
How can you introduce Digital Transformation in a company
DX, as some authors call it, is the application of new technologies to change processes, customer experience, and value, making businesses more efficient.
Leaders must have clear goals, opportunity areas, and solve them through technology. CIOs should always keep in mind the successful metrics and milestones that other people can track correctly throughout the process.
Vivek Kundra (US Federal CIO, first ever) said “You need to think about the results you want to achieve, and then develop the plat to get there. You also want to simplify things wherever possible.”
According to Mr. Soto, these are the skills or abilities the organization leaders should have to adopt this transformation:
- The ability to listen to opinions and try to understand the solutions of all team members. Always have an open mind.
- Be fully aware that internal processes may be poorly designed, but also, technology can be the tool to improve them.
- Improving the capacity to innovate.
- Ensuring openness and transparency.
What are the benefits that digital transformation brings to companies?
The main benefit is that the company improves the ability to innovate through technology. In this way any company can be a leader in topics such as: Machine Learning, Cloud Computing, IA, Digital Security and Big Data Analytics, which are skills that keep the company in a digital evolution.
Should the suppliers also align to such transformation?
Before suppliers can align to a digital transformation strategy, it must be the company who should guide them towards that transformation. Of course, in some cases some of the suppliers could be technologically recognized by us and learn from their good practices, creating business partners rather than simply being part of a supply chain.
PRODENSA digital transformation process.
In the experience of our IT Director, digital transformation at Prodensa has been a path full of satisfactions. The company leaders have accepted the decisions made by the IT department since his arrival. Some decisions have been disruptive and resistance to change, making each goal a great challenge.
The migration of information to the Cloud has been one of the factors that the IT department is most proud of. Before, Prodensa depended on a hosted Data Center located in one of their client’s operation offices. External factors such as the weather or electrical issues in the area, affected the client operations.
Nowadays, technologies such as Oracle Fusion Applications have made the Cloud an ally to Prodensa and the issues they had with infrastructure were reduced to zero, significantly increasing customer satisfaction and improving internal Administration and Finance processes.
“Today I can say that I feel proud and grateful for the opportunity to work in this company that lets me take an idea from scratch, to materialize it and thus obtain recognition from the organization.”, Mr. Soto said.
How to communicate Digital Transformation?
The success of the implementation of Digital Transformation depends on the capacity of the organization on how it is communicated. The message and objectives must be clear, pacifying and positive otherwise it can be perceived as an imposition. The leaders of the organization have a critic responsibility on this communication, they must inspire people to follow the implementation. The first step is to identify who are the leaders convinced about Digital Transformation, they will be the ambassadors and ensure that the message is well received by the organization.
According to our expert in Communication and Public Relations, Yoelle Rojas, these are the milestones for a communication plan:
- First, the leaders must communicate the Digital Transformation benefits, so the people will get involved and ensure its success. The main task is to create a digital transformation leaders’ team.
- Second, responsibilities and objectives of each individual on this transformation must be clear and agreed by each party so everybody can efficiently perform their tasks.
- Third, the ideas and voice of each individual must be heard in order to build together the implementation plan, this way everybody will develop the sense of belonging which is a key element to success.
According to a McKinsey poll the probabilities of success increase 5 to 8 times when the CEO is capable of communicate a good story of change and why the organization must embrace the Digital Transformation.
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