[Editor's Note] Since the outbreak of the pandemic, the high-frequency word mentioned for businesses is "digital transformation". Digital transformation has helped some enterprises successfully cope with the challenges of offline office stagnation and supply chain disruption, and its advantages are not only online office in special periods, but also the benefits of profit growth and efficiency improvement for enterprises are gradually being recognized by enterprises.
The fact that successful digital transformation can bring great returns to the enterprise is a tacit fact of every leader. However, not all companies that implement a digital transformation strategy will be able to successfully achieve their transformation goals.
Not long ago, BCG (Boston Consulting Group) released the "2021 Global Digital Transformation Survey", which focuses on the return on digital transformation success, the reasons for the persistent gap in the success rate of transformation, and the adjustment strategy of enterprises in the transformation. According to the survey report, only 35% of companies will achieve their digital transformation goals in 2021, entering the next stage of transformation from digitalization to cross-departmental and cross-regional scale. Moreover, the difference between companies that successfully achieve their digital transformation goals and other companies is not only in terms of large short-term profit growth, but also in terms of broader, sustainable change, such as customer experience, operational efficiency, and innovation-driven business growth.
How can companies reverse the backwardness of digital transformation? BCG's analysis of the six elements of digital transformation success, strategic goals, and shifting priorities in the report may be useful to you.
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Performance and innovation are the rewards of digital transformation
Author: BCG
Compiler: Hong Shan
The six elements of success
What is a successful digital transformation for businesses? Increasing profits is only the most basic, but more importantly, it will have a continuous change effect on the enterprise, so that it can achieve a virtuous circle: on the one hand, successfully solve individual problems; on the other hand, it will be able to promote the large-scale adoption of new technologies and new ways of working in various departments and regions.
When companies focus their digital transformation on comprehensively addressing the six key success factors, the chances of success of the transformation can be greatly improved. The six key elements are:
- A comprehensive strategy with clear transformation goals. The strategy includes the reasons, content, and approach to the transformation, each of which is linked to concrete, quantifiable business outcomes.
- Leadership input from CEO to middle management. There is a high degree of consensus among business leaders and active participation in the transformation, which also includes the active participation and sense of responsibility of middle managers.
-Deploy highly qualified personnel. Management unleashes talent potential and deploys the most capable talent to drive transformation initiatives.
- Flexible and agile governance thinking to drive broader thinking change. Leaders solve problems quickly, adapt to changing circumstances, and drive cross-functional, task-oriented, "learn quickly after failure" thinking on a larger scale. So much so that each individual approaches individual challenges without losing sight of the broader collective goals.
- Effectively monitor progress towards the achievement of established results. Companies establish clear metrics and goals around processes and outcomes, and guarantee adequate, available, high-quality data.
-Business-led modular technology and data platform. Build a modern technology architecture driven by business requirements that aligns with enterprise goals to achieve secure and scalable performance, rapid deployment of change, and seamless ecosystem integration.
In the current situation of most digital transformation "unsuccessful" businesses, people are more confident about developing a good transformation strategy than other factors, but they are not adequately addressing leadership issues. Compared with 2020, enterprises have seen the least increase in the search and deployment of high-quality talents, both because of the shortage of digital talents and because it is more difficult for enterprises and industries with weaker relevant capabilities to attract and retain digital talents.
In addition, the main obstacles for many traditional organizations are agile governance, results monitoring, and technology modularity—the inability to effectively perform cross-functional work to achieve end-to-end business results, resulting in a waste of time, effort, and resources.
Transformation is increasingly focused on strategic priorities
As the impact of the pandemic gradually changes, so do the main drivers of digital transformation. At the height of the pandemic in 2020, 83% of companies said they were sounding the alarm about accelerating their digital transformation; the latest survey conducted between May and July 2021 showed that 24% of companies still use the pandemic as a key driver of their digital transformation, while 76% have shifted their focus to changing the relationship between industries and customers, increasing productivity, generating revenue and promoting innovation, and they have made digital transformation one of their key strategies.
Source: BCG Global Digital Transformation Survey, 2021
That said, today's businesses want to achieve a broad set of strategic goals through digital transformation. While the focus of the transformation varies significantly from industry to industry, in general, these priorities can be summarized into four broad categories of strategic objectives:
■ Improve customer experience and market access
■ Innovation and growth in core and other business areas
■ Improve performance through the operational value chain
■ Customer support and performance improvement of functional departments
From digital transformation to digitally led innovation at scale
For those companies that have successfully scaled up their digital transformation in the first round, the focus is clearly shifting from digital transformation to improving innovation capabilities.
These companies leveraged the first round of digital transformation to solve the most important foundational problems in their core business: digitally redesigning the customer experience and processes across sales and marketing channels, and using digital solutions to drive increased productivity. Now, these companies are shifting their focus from fixing their core value chains (customer experience, product manufacturing, and supply chain) to focusing on innovation – whether it's core or new. The advantages of successful digital transformation are being consolidated: as they leverage digital skills faster and innovate better, the gap between them and their lagging competitors will widen.
Companies that have successfully scaled up digitally also tend to expand their focus from the core value chain to include functions such as human resources and finance. For these companies, the first round of digital transformation is a key foundation, they have begun to enter a state of continuous innovation, and gradually embarked on the path of coordinated development of people and systems - the organic combination of new technologies and people, providing impetus for innovation, advantage, growth, efficiency and enterprise resilience.
ESG has begun to become the transformation focus of some enterprises
Environmental, social and governance (ESG) goals are quickly becoming a major priority in digital transformation in some industries. The latest survey shows that more than 60% of companies surveyed listed ESG factors as a key focus or key criterion for selecting and prioritizing digital initiatives. However, this varies from industry to industry – the most focused on ESG targets are the materials and process industries, automotive, energy, etc., many of which are energy-intensive industries, so reducing emissions and achieving sustainable green development have become the focus of their digital transformation. In addition, there is the healthcare industry, which is due to the ongoing social impact of the industry.
And even in industries where the link between ESG and digitalization is relatively weak, there is a clear difference between successful digital transformation companies and other companies – companies with successful digital transformation are almost twice as likely to list ESG as a priority task.
epilogue
We are experiencing a global race against the speed of digitalization. Successful digital transformations are reaping significant rewards in terms of customer experience, employee engagement, and financial advancement; more importantly, these companies are optimizing and enhancing the impact of their digital capabilities – continuously improving digital thinking, implementing digital ways of working, and driving continuous improvement. This is a watershed between companies, and a successful transformation promises to help companies make better use of current and future breakthrough technologies and seize opportunities to grow, rather than sticking to the rules and trying to withstand the onslaught of future industry innovators.
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#读懂未来世界 #
The Economist 2022 Trend Forecast
What will happen in 2022? In the context of the epidemic, people are more confused than they are expected. Uncertainty has always existed, but there are also some signs of trends that have emerged, carbon neutrality, metacosm, "Generation Z" workplaces, demographic transformation... Changes in the general environment affect every individual, and The Economist Business has combed through several predictions for 2022:
1. There may be a major breakthrough in medicine: At present, there are two effective ways to deal with new crown pneumonia, namely vaccines and special drugs. In 2022, COVID-19 is expected to turn from a pandemic lesion to an epidemic. In addition, the HIV vaccine based on mRNA technology is expected to have preliminary clinical results in 2022. An mRNA vaccine against malaria is also expected to begin clinical trials in 2022. The non-mRNA vaccine for HIV and malaria developed by Oxford University also shows good prospects.
2. The Metacosm Big Bang. It will create entirely new opportunities, as well as new regimes and new rules.
3. The pace of green economy transformation changes. In 2022, the focus of the green economy will shift to the energy system, and natural gas may become popular again.
4. Three major trends of financial innovation: one is that financial products are becoming more and more abundant; the second is the initial attempt at decentralized finance; and the third is digital currency.
5. The new wave of the instant economy. This fast-paced economics, which not only harnesses large amounts of data, but is also directly related to real-world problems, opens up a new way of looking at the world.
#怎样形成高质量产出? #
Some interesting facts about employee productivity
A combination of multiple survey results shows:
■ Most employees prefer to work alone.
Employees believe that interactivity can nearly double productivity in the workplace.
■ Multitasking has been shown to drastically reduce productivity.
■ Employees who eat fruits and vegetables at least four days a week are more productive than employees who don't eat.
■ Employees are more productive before and after the holidays.