Staying Ahead in the Digital Age:
How to Make the Most of the Digital Transformation for Your Business
Digital transformation is becoming an increasingly pressing need for businesses wishing to stay competitive in the age of emerging technologies. But do you really know what it means and how it can benefit your business?
With technologies like artificial intelligence, embedded finance, big data, automation, and blockchain reshaping the way we live, adopting and embracing technological innovations—widely known as digital transformation, or DX—has become crucial, especially for more traditional industries that are less likely to quickly embrace new advancements. By now, it’s clear that adopting emerging technologies is a necessary step to stay ahead of the curve in all industries. According to this year’s State of Digital Transformation report by TEKsystems, companies are investing in digital transformation services more than ever. Exploding Topics reveals that 74% of organizations consider DX a top priority, with 77% of companies already having started their digital transformation journey. Companies that fail to adopt the latest technologies may not only miss out on potential earnings but also lose their competitive edge.
McKinsey and HBR found that some of the most rapidly adapting sectors are finance, insurance, and professional services, while healthcare, hospitality, and construction are among the industries lagging behind in digital transformation. The report also noted that while construction was the second least digitalized sector, digital transformation in the industry could result in productivity gains of 15% and cost reductions of 6%.
But is simply adopting the latest technologies really the solution? When it comes to realizing revenues and reaping the full benefits, studies show that the current outlook is quite bleak, even for companies that embrace innovation and digital technologies. In a recently published research, McKinsey & Company found that while a staggering 90% of companies have launched some form of digital transformation, only one-third of the expected revenue has been realized. In recent years, alongside the many glowing success stories of companies embracing the digital age, there have also been a growing number of cautionary tales—just think of the once-industry giant Nokia, which failed to stay competitive in the smartphone industry.
The current success rate and results of DX are indeed concerning, but this should not deter you from adopting emerging technologies. Instead, think of the digital transformation as a journey indeed transforming not only the digital solutions and tools you apply: it is not simply a tech upgrade. It is adopting a new mindset, rethinking the way your company works and adapting your organization. It’s reimagining the way you work toward success.
In this article, we have gathered a few tips on how you can make the most of the digital transformation and to identify the strategies that work best for you.
According to Foundry’s 2023 Digital Business Survey, more than half of organizations (57%) have already adopted a digital-first strategy, and 36% have plans to do so. For enterprise organizations with over 1,000 employees, 66% say they have already adopted such a strategy, and 29% have plans to do so. For small businesses with fewer than 1,000 employees, 49% have adopted a strategy, and 41% are still in the planning stages.
While digital transformation is not optional for a company aiming to stay competitive, this does not mean you should not do it on your own terms. Be bold! Set trends instead of following them—the digital world favors those who think outside the box and are not afraid to disrupt or challenge the current situation. This is what will set you apart from your competitors.
But don’t forget: planning is key. Set clear goals and create a solid strategy for your digital transformation—are you planning to increase earnings? Boost productivity? Cut costs? Adopt tools and technologies that align with your goals, and make sure you invest in the technology that will help you reach your long-term objectives.
It is also useful to look at other industries for inspiration—you may find something that is not widely applied in your sector that could give you a competitive edge. Just think about how cloud computing and wearable technology have revolutionized the day-to-day operations of the pharmaceutical industry, or how AI-powered safety management, predictive maintenance, and exploration software can reshape the oil and gas sector. The opportunities are endless.
Regulating technology is a hot topic in several countries. In the European Union, as part of the “Europe Fit for the Digital Age” Commission program, 55 legislative acts were adopted during the last legislative cycle (2019-2024), with another 10 being close to adoption. In the United States, there are dozens of bills currently in Congress just on the topic of AI. Approaches and strategies vary according to geographical, economic, and political settings, and certain industries and technologies are under more regulatory scrutiny than others—just think about the various ongoing regulatory efforts in the field of artificial intelligence. This is why it is important to do your research and explore what level of compliance is expected from your company and how you can create a long-term strategy that fits the regulatory environment of your business. Preparation and a forward-thinking mindset can go a long way in this area: you can avoid having the gains from digital transformation go towards compliance and legal costs.
There are a lot of fears and misconceptions around digital technology, especially when it comes to skills and potential job loss. While there are certain roles that might become obsolete because of digital technologies, no jobs are without skills, and these skills can still be utilized in the organization. To mitigate fears and ensure a smooth transition, it is crucial to explore whether your company has the necessary knowledge and tools to adopt the technology you chose, and whether there is any need for reskilling, improvement of digital literacy, or potentially recruitment. Make sure that you have a clear, well-thought-out strategy for change management and internal communication.
Focusing on skills and preparing your organization is imperative to avoid your efforts to adopt new digital technology being in vain. According to McKinsey, only 16% of employees believe their company’s digital reforms have enhanced productivity and are long-term sustainable, while Harvard Business Review found that 42% of employees say they lack vital office supplies at home, and the internet connection for 1 in 10 employees is not good enough to get their work done. This shows that preparing your organization for DX is just as important as setting your strategic goals or being mindful of the legal requirements that may apply to you.
knowledge of how they function can help you determine if they fit into your strategy and how they can help your business grow.
If you would like to learn more about how you can enhance the possibilities of digital transformation and stay ahead of the curve, don’t forget to join us for the first event of our recently launched KassaiLaw Academy, “Bridging the Tech Gap: Mindset, Skills, and Strategies in the Digital Age,” on 21 October, where leading technology experts from various fields will share their insights on how adopting emerging technologies can boost your business.
By keeping these aspects in mind, you can reduce the risk of being one of the companies that are unable to reach their goals and realize actual benefits from digital transformation, and you can not only stay competitive but also gain a distinct advantage in your sector.
