Everything you need to know about digital transformation in the workplace
The definition of digital transformation is so complex it's vast.
Sometimes referred to as digital transformation or digital transition, it represents a major challenge for the 21st century company. Indeed, we can no longer ignore the considerable impact of new technologies on our daily lives, and by extension in the professional sphere.
The consequence? To withstand the pressure of competition, companies have to come to terms with the new practices and cultures induced by digital technology, and embark on their digital transformation.
But how can they cope with the many challenges they face? By understanding the concepts and issues surrounding digital transformation.
What is digital transformation?
Digital transformation: definition
Digital transformation refers to all the changes brought about by the integration of digital technologies in our daily lives, and by extension in the workplace.
The emergence of new technologies has brought about profound economic, societal and anthropological changes. These upheavals are having an impact on
- our lifestyles:
- the emergence of new ways of communicating, accessing information, consuming and entertaining,
- accelerated circulation of information,
- greater mobility for our personal and professional activities, etc.
- our psychology:
- altered relationship with time (temporal barriers tend to disappear more and more),
- search for immediacy,
- transformed relationship with the world: the whole of humanity (or at least a large part of it) is now connected!
But Rome wasn't built in a day! The digital transformation of society, and therefore of business, is part of an ongoing process whose history is still being written.
History of digital transformation
For some intellectuals, digital transformation is the most important social and human upheaval of recent centuries. Philosopher and historian Michel Serres, for example, argues that digitalization constitutes the third anthropological revolution, after the birth of writing and the invention of printing.
But when did the digital transformation of society begin?
While the 20th century saw the development of computer technologies, many experts agree that the origin of digital transformation dates back to the beginning of the 21st century.
In fact, it was at this time that new business models emerged, enabling digitalization to go beyond mere technology, and instill new strategies and working methods.
Digital transformation in the workplace
Digital transformation takes place at different levels within the company:
- The integration of digital technology and practices into the company. This means, for example, using digital tools and dematerialization to improve organization and processes.
- The emergence of new business models:
- thanks to the contribution of digital technology to innovation, working methods and customer relations;
- attributable to the shift from a material economy based primarily on physical points of sale, to a dematerialized economy based primarily on data.
The challenges of digital transformation
Overall, digital transformation ensures a company's long-term viability:
- Increased innovation: by digitizing your business, you can innovate and seize new business opportunities (innovative products, answers to new needs, more efficient tools, etc.);
- Accelerated growth, or even business survival: in an increasingly competitive world, the consequences are harsh for those who have not yet embarked on the path to digitalization. Conversely, the success of many companies (such as Uber, to name but one) is based on adapting to new consumption patterns brought about by digital technology.
SME organizations that have embarked on and accelerated through a thoughtful and active digital transformation are 2.2 times more likely to grow than those that have not started their digital transformation.
francenum.gouv.fr
Changing ways of working
Digital transformation has inevitably led to the emergence of new practices and conceptions in the world of work. These include
- Changing our relationship to space and time. The digitization of the enterprise is revolutionizing our daily working lives, thanks in particular to the mobility and flexibility it affords, leading to the widespread adoption of new practices such as telecommuting.
- Decentralization and horizontal management. To improve the flow of information in an increasingly fluid environment, digital transformation must encourage collaborative working, the decompartmentalization of departments and the empowerment of each individual. The aim? To build a value chain that better serves customer satisfaction.
- The emergence of new forms of self-employment. This is due in particular to the development of digital technologies that facilitate the matching of supply and demand for goods and services. Uber remains one of the most famous illustrations of this trend.
- Performance optimization. Digital transformation has perfected operational processes to boost productivity. Activities are carried out more efficiently, to increase profitability and accelerate company growth.
- The general emergence of new work organizations. We are witnessing greater flexibility and collaboration within companies, but also a reorganization of space (telecommuting, open space, coworking, etc.) and the way in which day-to-day activities are carried out.
Overcoming human obstacles
Over 60% of corporate digital transformation projects end in failure.
étude Forrester Consulting
Any profound change implies a reconsideration of one's beliefs, and digital transformation is no exception to the rule. That's why the human factor is so central to the race to digital transition.
It's all about :
- anchoring it in the company's culture: this is above all a question of cultural transformation, rather than a purely technological consideration;
- combating resistance to change: many people (even in management circles) do not at first grasp the benefits of modifying working methods that have always worked well.
Adopt a customer-centric vision
We don't make money when we sell books. We make money when we help our customers make buying decisions.
Jeff Bezos, fondateur d’Amazon
The introduction of digital technologies into consumer patterns has shifted the balance: the customer must now be at the heart of a company's concerns, not the product.
Adopting an appropriate digital marketing strategy and responding to consumers' new needs has become a priority in the face of the competitiveness of new market players.
Consider the rise of the mobile
The cell phone has become not only the primary means of communication, but also the tool of choice for bringing digital technology into our daily lives.
- On the consumer side: it must provide the best possible access to services and products available online, as well as to information, communication and sharing tools, etc. ;
- On the business side: it helps meet the challenges of increasing mobility, responsiveness and agility inherent in the digital transformation of the enterprise.
An example of successful digital transformation
Faced with these many challenges and the ensuing challenges, some companies have nevertheless successfully carried out their digital transformation.
💡 Did you know, for example, that Lego avoided bankruptcy thanks to its digital transformation?
After 20 years of prosperity, the famous company came close to bankruptcy in 2004. But by developing an in-depth digital transformation program, the Lego group was able to leverage digital to achieve +20% sales in 2009 alone.
Lego has finely tuned its learning values to ensure that they continue to be passed on through digital means:
- The launch of the "Digital Designers" 3D design platform has engaged customers by involving them in the creation of new models.
- Through Lego Mindstorm, attractive mobile applications and video games, the company has developed an ecosystem connected to its brand that federates and builds loyalty among an intergenerational community of fans that grows daily.
Known today as the "Apple of toys", Lego has harnessed digital technologies to transform its business model and benefit from new sources of revenue.
The state of play in the digital transformation of businesses in France
Transform today... for a better tomorrow
Ultimately, digital transformation is inseparable from a company's long-term viability.
Restructuring workflows, evangelizing teams, innovating... each company, depending on its degree of maturity, needs to manage its digitalization project intelligently.
But if the digitalization of the company is a current challenge, it also means being able to meet the challenges of tomorrow. This is an ongoing task: smart data, big data, augmented reality, robotics... you need to keep abreast of the ever-changing challenges of digital transformation.
That's why you need to put innovation at the heart of your preoccupations, so that you can better adapt to market changes.
Updated article, originally published in November 2019.
Article translated from French