Digital transformation holds the key to corporate competitiveness within a shifting and increasingly demanding market. However, for this technological overhaul to be successfully executed, it is essential to cultivate a corporate culture that fosters innovation and creativity.
Digitization is not merely an option for businesses; it is an imperative. And they are approaching it as such, according to data from the *IT Transformation Maturity Curve* survey, conducted in 2018 by the consulting firm ESG (Enterprise Strategy Group) among executives worldwide. Currently, 96% of companies are engaged in some form of digital transformation process. Furthermore, 81% of respondents believe that companies failing to digitize will cease to be competitive.
In terms of investment, the consulting firm International Data Corporation (IDC) projected in late 2018 that, for the year 2019, global spending on the technologies and services required for corporate digital transformation would reach $1.25 trillion. According to this forecast, more than half of this amount would be allocated to the Chinese and U.S. markets.
Global spending forecasts for 2022 stand at nearly $2 trillion, representing a compound annual growth rate of 16.7% relative to 2017. IDC also notes that the top 30% of companies on the international stage—those featured on the *Forbes Global 2000* list—will dedicate at least 10% of their revenue to deploying their digital strategies in 2020.
A Favorable Environment For Digitization And New Technologies
As technological investments rise, corporate digital transformation gives rise to other fundamental needs that must be met—without fail—to ensure the success of the initiative. The evolution of corporate culture stands as a prime example of this. Reforming the collective body of beliefs, values, habits, and experiences that define a company—as embodied by its employees—represents one of the major challenges of the digital era. In 2017, the consulting firm Capgemini assessed the impact of corporate culture on digital transformation through a global survey conducted among executives and employees. Sixty-two percent of respondents identified corporate culture as the primary obstacle companies face during their digitization process.
This is because corporate culture reflects the spirit of the organization: its way of thinking and acting, its values, its ethics, and its purpose. Consequently, profound change—such as digital transformation—requires an environment conducive to technological innovation in order to take root and flourish. Absent such an environment, any attempt at technological reform stands very little chance of succeeding or being implemented correctly. Digitization must be part of a gradual and continuous process, driven both by technological advancements and by the demands of consumers and employees, who expect companies to demonstrate increased agility and personalization.
How To Adapt Corporate Culture To The Digital Age?
The initial shift begins with the individuals who make up the organization. It is essential that both managers and employees acquire digital skills to navigate the digital transformation. Furthermore, creating spaces that foster innovation and the exchange of ideas will enable team leaders to quickly identify organizational gaps or employee concerns. And this implementation must take place at various levels:
Address
Leaders must believe in digitalization and convey this conviction to the rest of the staff. Subsequently, department heads must champion this strategy and lead by example: they will be the first to adopt new tools, to promote and oversee the implementation of new technologies within the company, to stay abreast of the latest developments, and to measure results, with the aim of progressing gradually toward a comprehensive digital transformation.
Equipment
Digitalization must adapt to the needs of teams and provide them with tools that streamline their work. Since each department may present vastly different challenges and requirements, an individualized analysis—combined with interdepartmental communication—makes it possible to identify the essential aspects, both for the company and for the digital transformation.
Environment
Companies must pay attention to their environment in order to identify the obstacles preventing teams from being more productive. By targeting these barriers, it becomes possible to create more dynamic spaces that foster both well-being and performance. The design of collaborative spaces or video conferencing rooms, for example, can enhance departmental performance if utilized effectively.