In a nod to Simon Sinek, the ‘why’ for digital transformation comes down to productivity. It’s no secret that New Zealand has one of the worst productivities in the OECD. We’re working more hours for less outcome ($68 output per hour, compared to OECD average of $85). We also have ‘pandemic burnout’, where people have just had enough. That’s exacerbating staffing challenges and contributing to that low productivity. We need better tools, so we can do more in less time. Smarter and better.
How much smarter and better? Well, a lot. Consultancy AlphaBeta put out a report calculating that digital transformation can unlock up to NZ$46.6 billion worth of economic value by 2030 – while creating better-paying, higher quality and safer jobs.
Adapt or die
Regrettably many successful organisations are doing what they did yesterday, expecting continued success tomorrow. They’re ignoring change with a real risk of being left behind. Consider the average tenure of firms on the Fortune 500 S&P Index. According to the Economic Times, it was 33 years in 1964, but is forecasted to shrink to 12yrs by 2027. The implication: the relentless pace of change means ‘adapt or die’.
‘But I’m a small-town business / operating a regional organisation’, I hear you say. Absolutely, but this is as relevant (and crucially, accessible) to you as it is to anyone else.
Take a look at ChatGPT. After being awed by it, the next realisation should be that it is freely available to anyone. It heralds the increasing availability of extraordinarily powerful tools. Those who take advantage of these powerful tools will be the winners. Any readily available, affordable, and accessible tool that boosts productivity or performance soon becomes a competitive necessity.
What is digital transformation?
Essentially, digital transformation is about adopting the technologies which boost productivity and performance. It’s how your company changes outdated business processes via digital technology, to get a competitive advantage. This includes ‘generalist’ tools which work for anyone: Microsoft Teams and other Microsoft 365 applications, cloud data storage, mobile devices, faster connectivity and so on.
Digital transformation is also comparable to a journey – involving several steps. Unless you know where you are now, and where you’d like to go, getting there is pretty hard.
You need a roadmap
That’s why we stress the importance of a strategic plan for all our customers. It starts with assessing where you are now in terms of digital maturity, then understanding where (and why) change is required. We help you assess where the best return on investment is realised. Then adopt an iterative approach, delivering rapid results. The last bit is important because results build momentum.
A paradox emerges
Yes, digital transformation is about adopting the right technology. But fixating solely on the tech dooms it – paradoxically. True transformation doesn’t occur without the right people. After all, if you’re going on a long and arduous journey, you need agreeable and capable companions!
The right people include your internal staff, as well as trustworthy advisors who know your business and which technologies make a difference. That’s core to what we do at CodeBlue: mapping out your digital transformation journey. We’ll help avoid those pitfalls, as we plan the multiple steps ahead.