10 Things You Need to Know About Digital Transformation

Digital transformation isn’t just a phase or a buzzword. Business leaders are now fast waking up to the important role technology is set to play in their growth strategies, with the latest report from Gartner showing a rise in the number of CEOs ranking IT as a priority – “The IT-related area rose from 19% mentioning it as a priority for 2016/2017 to 31% in 2017/2018.”^[i] The recent explosion of connected devices and platforms, for example, has made it imperative for companies to quickly adapt their products, services and processes, and move towards the digital world. This, naturally, requires transformation of some kind.

However, the reality is that digital transformation will require some tough choices to ensure your business isn’t dragged along or left behind. But we all know that change is not easy. You might be thinking how do you start transforming? Does it have to cost lots of money? Or perhaps you’re experiencing resistance to change. What’s the problem with doing things the ‘old’ way anyway? Here are ten considerations that that will help companies on their digital transformation journey.

Digital transformation will change your business, but focussing on the right level of change is key

New digital technologies should be seen as an enabler for better, more seamless and streamlined business operations that make your business competitive – driving growth. Focusing on where digital transformation can deliver the most benefits and add the most value in your quest for growth should be where you begin the change process.

Technology investment is crucial to growth but just because the technology is new, doesn’t mean it’s right for you

Sometimes less is more. The right use of technology can radically improve your business, but the deployment of technology for technology’s sake can be self-defeating. Being open to the transformative impact of new technologies is the most important consideration for companies around the world.

Consider where your company is on its digital transformation journey

Growing your technology platform doesn’t necessarily mean your business will grow too. Sometimes it’s better to have fewer solutions than more, but it can be challenging for business managers to keep on top of the latest tech trends and new solutions being launched in the market.

Many competing technologies profess to drive digital transformation, however, the utility of solutions depend on the stage your company is at in the transformation journey. From mobile sales and field services, to wireless sales counters and warehouses, to advanced inventory management – different solutions provide new ways to reduce costs, improve the customer experience, and improve the bottom line.

Not everyone in your company will feel comfortable with digital transformation

Society and technology are changing more quickly than most companies can adapt. From enterprise resource planning (ERP) to cloud computing, new tools, platforms, and channels are creating unprecedented opportunities to connect with customers and improve internal processes—but only for the businesses agile enough to transform and adapt to these new digital realities.

Even so, there’s no single roadmap for digital transformation and the path is different for every company and industry. However, there must be attempts to get employee buy-in from the start. This requires a commitment to digital technology from the boardroom to all levels of staff. You should have leaders with the right mind-set and motivation to lead the digital transformation process.

It’s no good having data if you don’t know what it means

Firms that undergo a true digital transformation programme put data and information at the heart of their technology focused business models. Many are shocked to see just how much information they had but were not utilising properly. The new data landscape provides you with unique opportunities to turn data into insights – the fuel for any digital transformation journey – with real-time updates providing opportunities for better business decision making.

In fact, Forrester Research has found that more than 70% of decision-makers report planned or current initiatives to encourage more data-driven decisions, making unlocking the value of integrated business data critical to success in today’s modern distribution marketplace.

Digital transformation won’t grow your profits overnight – embrace change as part of a wider growth strategy with measurable goals

Change is a constant in today’s dynamic marketplace, but it’s important to be realistic about what you can achieve in a short time. A recent survey we sponsored, highlighted how high-growth companies embrace change. Seventy-six per cent of high-growth companies prefer constant innovation to business stability, while only 49% of low-growth companies do so. In an age where innovation is driven by rising customer expectations, growing companies have distinct short-term goals that embrace innovation and business change as part of a wider transformation journey for growth.

Digital transformation should make your business more adaptable but it won’t make you immune to competition

It has never been more important for business leaders to carry the torch for digital transformation, but the most important factor is making sure digital potential is translated into competitive advantage. This requires top executives to champion the deployment of flexible, digital technologies that change the way they engage with their customers.

As Gartner rightly states, “technology shapes business strategy, but market, political and financial factors prevail.”^[ii] Nevertheless, embracing the right technology brings people together, allows businesses to land and expand into new geographic locations with minimum resources, and makes the product development lifecycle more responsive to consumer demand than ever before. 

It takes more than just digital technology to encourage collaboration across departments and divisions

To begin digital transformation, you need to look at your business from the inside out – consider the tools and systems you use, what works well, what doesn’t and ways these can be improved. But when technology is heralded above all else, there becomes an even greater disconnect between employees and the challenges that their business is trying to solve.

There might be isolated investments that are doing very well, but they’re still isolated. New solutions must be an enabler aligned with a bigger mission – to evolve internal processes, structure and culture, or to match the evolution in customers’ behaviour. Consider how you communicate both internally and externally, the strengths and weaknesses of your staff and if their skills are fit for purpose. Do you need staff with more digital skills and will you need to recruit them throughout the process?

Your customers don’t think about your digital transformation, but they do expect it to happen

The digital trends that are impacting every part of business operations will not slow down, and it’s the same playing field for all of your competitors, and every start-up that’s gunning for a piece of your world. Your customers expect that you are embracing digital transformation because they are doing so, and they need you to join them on the journey. 

You can talk the talk, but make sure you walk the walk

To make digital transformation happen, high-growth companies don’t just pay lip service to ideas such as new technology and innovation – they back them up with investment. The growth survey we did, found that in the coming year, 88% of high-growth companies are planning significant investments in technology and innovation, while only 49% of slow-growth companies are doing so.

Digital transformation is different for every business. While some manufacturers will have more challenges than others, and while some will also embrace more technologies than others, being aware of the ten considerations above will be helpful to every business that is embarking – or has already embarked on – this journey.

[i] Gartner, 2017 CEO Survey: CIOs Must Scale Up Digital Business (March 2017)

[ii] Gartner, 2017 CEO Survey: CIOs Must Scale Up Digital Business (March 2017)

About the Author:

Sabby Gill brings more than 20 years of international sales, operations and enterprise software industry experience to Epicor. In the role of executive vice president (EVP), International, Gill is responsible for operations including sales, professional services, and field marketing, with a focus on accelerating company growth throughout Europe, Middle East & Africa (EMEA) and Asia Pacific (APAC).

Prior to Epicor, Gill was senior vice president of International Sales for IGT, a gaming technology company. He has also held executive management roles with leading technology companies including HP, CA Technologies, Oracle, PeopleSoft (acquired by Oracle), and DEC.

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Growth fears: How can businesses align business growth with employee satisfaction?

Written by Sabby Gill, Executive Vice President (EVP) International at Epicor Software, specially for The HR Tech Weekly^® blog.

When a business experiences sudden growth, it creates a myriad of emotions from joy and excitement to dread and fear. The progressive mind-set that stimulates growth can inadvertently cause us to be less sensitive to the negative emotions that might emerge as a result. Because we are creatures of habit, it is probably not surprising that some of the increased complexity and ambiguity can be quite unsettling. Paradoxically, this emergent fear can start to hinder growth, as leaders pick up on it and start taking preventative measures to avoid damaging customer relations, reducing service quality, and minimize the mounting pressure on operations.

The reality is that progress is part of doing business, and with some careful planning and forward-thinking, the growth period does not have to be ridden with pain. The right IT infrastructure can help to facilitate some of these big changes and make the process a lot smoother.

Recent research conducted by Epicor has explored the different approaches organisations take to growth. It’s been found that the three priorities tend to be in turnover and sales, profits, and expansion into new industries and product areas. The outlook for 2016 is positive; 70% of respondents expect growth in 2016, and 79% have made (or are making) investments in integrated IT infrastructure as a key to supporting growth.

But what happens if the growth is unforeseen, or experienced as a surge? Leaders can find themselves on their back foot if they have not developed the appropriate skillset to handle the new changes.

Rob Morris, Head of Innovation and Thought Leadership at YSC, the premier global leadership development firm, believes that hiring for and developing the right skillset for growth goes a long way in dealing with the excessive demands placed on the workplace.

“Although we plan for growth in linear and rational ways, it often looks more like chaos in practice. When growth happens at such an unpredictable pace and scale, you don’t usually hire for that growth. As a result, you will not have the people resources to deliver on the new scale that you have created for yourself. The downside is people end up doing more than they expected, and often outside of the roles they were hired or trained for.”

A growing business can hinder employee satisfaction

A risk associated with business progress is employees becoming increasingly disengaged in the workplace due to heavier workloads, pressures, and deadlines. According to the Epicor research, 43% of leaders are concerned that as their business grows, workloads may increase to a level that places too much pressure on staff, prompting key personnel to leave the organisation.

Morris believes that a key predictor of job satisfaction is whether employees find ‘meaning’ in their work and warns that an employee’s personal values and missions can become misaligned with the company’s goals once the company starts growing.

“If I am asked to do things outside of the boundaries with which I joined the company, suddenly I may be less committed to it. If employees have less of a connection with the tasks involved or when they take on too many new tasks, too fast then it creates job dissatisfaction.”

It is vital to have the right infrastructure in place to support employees during growth. If technology can be used to ease the strain of increased workloads, employees can even find themselves empowered by growth. They may, for example, find themselves working on a wider variety of tasks, working closely with leadership to drive growth, and gaining more access to corporate knowledge if their roles are facilitated by the right technology.

How can businesses reduce the ‘pain’ of growth and plan ahead?

Any big change in a business – especially a surge in growth – can be disruptive and can filter through the organisation. According to Morris, this collective expression of pain typically manifests as resistance or disengagement. But businesses can get ahead of this curve by planning for any potential problems and ensuring they have enough resources to cater to increasing demands by the workforce[1].

The Epicor survey findings revealed that the top two stimulants for growth are ‘technology leadership’ (40%) and ‘skilled workforce’ (39%). This can be a two-edged sword. Organisations that are stuck with legacy systems might find themselves falling behind, unable to adapt to new business processes, or meet the demands of employees who expect modern technology in order to do their jobs. On the other hand, the organisations that leap onto new technology, will find themselves ahead of their competitors, ready to embrace new challenges.

A key facilitator in managing this process smoothly is to make investments in the right technology as the “demand for quick communication and transaction” increases[2].

Many progressive businesses are already doing this – according to the Epicor research 79% of businesses have made or are making investments in integrated IT infrastructure. Increased data visibility, for example through the use of the latest enterprise resource planning (ERP) solutions, can allow businesses to perform in-depth analysis of key KPIs, so that they can manage costings and profitability more confidently. Customer relationships can likewise continue to prosper during the growth period with agile and scalable ERP and manufacturing execution systems (MES) that meet their demands.

According to Morris, employees need “emotional support to withstand the pressures of growing.” He also recommends “fostering a robust culture so people can be resilient throughout the growth surge.” It’s clear that this culture can be more robust if people are supported by the technology they need to do their jobs. Although it seems counter-intuitive, e.g., deploying technology in support of an emotional challenge, investment in the right IT infrastructure is therefore essential, and will help maintain the emotional well-being of employees throughout this transitionary period.

[1] http://www.theguardian.com/small-business-network/2013/apr/22/growing-a-business-efficiently

[2] http://www.telegraph.co.uk/sponsored/business/the-elevator/12095150/steps-to-business-growth.html

About the Author 

Sabby Gill brings more than 20 years of international sales, operations and enterprise software industry experience to Epicor. In the role of executive vice president, International, Gill is responsible for operations including sales, professional services, and field marketing, with a focus on accelerating company growth throughout Europe, Middle East & Africa (EMEA) and Asia Pacific (APAC).

Prior to Epicor, Gill was senior vice president of International Sales for IGT, a gaming technology company. He has also held executive management roles with leading technology companies including HP, CA Technologies, Oracle, PeopleSoft (acquired by Oracle), and DEC.

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If you want to share this article the reference to Sabby Gill and The HR Tech Weekly^® blog is obligatory.