A Digital First Strategy
A great deal has already been written on the accelerated digital transformation that businesses were forced to embrace because of the pandemic, so I won't go back over that in any detail (see here and here). I will instead focus on the after effects of those changes and the shift that I believe is necessary to thrive in the post pandemic business environment. The fundamental changes were tied to 2 necessities; making your remote workforce productive and creating new ways to interact and transact with customers and prospects online. The application of digital strategies and tools created the environment to keep the business functioning but will the changes continue when the pandemic subsides?
The behaviors and expectations of customers changed to meet the changing conditions of the past 18+ months. Those behaviors are, in my opinion, irrevocably different. That means that in this aspect anyway, you have to ensure the new workflows, processes and employee behaviors put in place during the pandemic response continue to be improved and remain in place. Intentional digital transformation projects historically proved themselves as complex, difficult and often did not deliver the intended results. According to a Boston Consulting Group (BCG) study from October 2020, 70% of digital transformation projects fall short of their objectives. BCG also found that digital leaders see earnings growth of 1.8 times higher than digital laggards. There are a lot of reasons from a customer and business perspective then, to assess your progress and work to improve all the changes you've already implemented. From a workforce perspective the transformation efforts need to continue as well, no matter what direction your post pandemic remote work policies take.
Being a Digital Leader
What does it take to be a "digital leader"? When you first think about that question, it's easy to get lost in new technologies and tools. There are some really exciting things happening with everything from automation and AI to cloud communications. Unfortunately just focusing on technology won't make you a digital leader. It's really about people, culture, processes and strategy. All those elements would be a big part of a successful transformation, but beyond those, there's a shift in the overall organization to an approach that is digital by default, or the trendier phrase "digital first". Digital first is shifting the whole organization to a digital mindset that permeates the people strategy, business strategy, business model and business operations. It's a mindset that constantly asks "how can we apply existing and emerging technologies to our business in a way that creates competitive advantage"?
Digital first does not mean technology first though. The rapid shift to remote work at the start of the pandemic lockdown and the current resource crunch that many businesses are experiencing highlights a need to keep people at the forefront of any digital strategy. Digital first must be people first both in clearly understanding the customer interaction models to create more value, and engaging with employees to increase adoption and build the digital by default culture.
Applying Digital First
In the digital first approach you apply technology across four elements; workforce, customers, business strategy, and business operations. The goal is building a flexible, adaptable business platform that can work today, and yet future proof (as much as possible anyway) you for changes to come. This is particularly important today as the world continues to work through the pandemic and visibility into the post pandemic reality continues to be hazy. Approach the continued evolution by:
Get frequent feedback from customers
Communicate to all constituents early and regularly
Focus on the people outcomes, not the technology
Ensure you bring your employees along through every step of change
Digital first is not a one and done proposition, it's an ongoing cycle of analysis, change, and feedback.
Building a digital first culture is essential for business success. Moving from the reactionary approach of the early pandemic to a focused, ongoing cycle of improvement and change can keep your business competitive through any uncertainty.
