Digital Transformation

Cultural Changes Driven By Digital Transformation: The Beginner’s Guide

Why are cultural changes driven by digital transformation essential for a successful DX journey? Read on to learn more.

Cultural Changes Driven By Digital Transformation

According to a recent McKinsey study of worldwide leaders, company culture is one of the main obstacles to company success in the digital world.

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Three digital-culture issues were noted in the survey: functional and divisional silos, a fear of trying new things, and problems setting up and acting on a better user vision.

These three issues are common in technology-focused companies or departments, such as IT. Employees use many of their own chosen tools and solutions.

They also do this without engaging or sharing data when an organization’s culture is swiftly and digitally dependent. This could result in a variety of opinions about consumers and their needs. 

True, technology allows us to streamline. So, companies can choose whether to prioritize optimization above innovation. But, that can limit experimentation and potentially slow growth.

Do You Have a Digital Culture Encouraged by Transformation?

Identifying the need for digitalization can be tough. This also happens when nothing seems to be problematic with your company’s current processes.

A frequent myth is that digital transformation is finished when a company upgrades its technologies. But, DX is not simply about software or technology. Instead, it is about organizational change.

So, companies must be quick and adaptable to keep up with the change driven on by digital transformation. With this, organizational culture is pivotal to the survival of any digital project.

Digital Transformation Changes in Culture

How can you tell if you have cultural changes driven by digital transformation?

Well, here are some before-and-after digital transformation projects.

In the past, you may believe that there’s no need to engage with customers. Like other businesses, it was common to rely on statistics and the business’ own goals.

But after DX, you realized the value of your consumers’ voice. You may even say that you now know your customers at heart. This also shows that you’re now providing products and services that meet their expectations. 

Pre-transformation, you may use data to measure the success of your operations. But, transforming allows you to identify and anticipate your customers’ insights.

It’s also natural for people to avoid risks and pitfalls. At first, employees may be hesitant of embracing change. And that’s because we don’t want to get out of our comfort zone.

Now, your organization takes risks and learns from the possible failures. After all, that’s the only way to grow in this industry.

Before the transformation journey, your company also relied on your executive team. They may be the ones who make all the decisions. Then, employees will just have to get on board.

Now, the value of listening to ideas across the company is clearly visible. So, business leaders focus on communicating and gathering ideas from everyone in the company.

Wrapping Up

Technologies make processes better. But, employees are the key to cultural changes driven by digital transformation.

For one thing, the whole change won’t happen without their adoption. So, a company-wide and employee-wide buy-in is critical.

Technology never becomes useless as a result of cultural change. But, while technology is necessary, it does not reflect the entire plot of digital transformation. Culture is something that is critical for success.