Are You Embracing Digital Transformation?

Your business must innovate to survive, and innovation goes hand-in-hand with digital transformation.

There is a growing digital divide between those embracing and those ignoring digital transformation. Which side of the digital divide are you on — transformational or traditional business approaches?

McKinsey&Company Report The response to digital transformation is underwhelming, according to a McKinsey&Company report summarizing recent survey data. The results indicate that most companies have a plan, but they are tentative. Investment in digitalization has been modest, being directly proportional to the revenues they are generating. The report goes on to say that many companies appear to be treading water rather than moving forward with the digital transformation. This leads to the conclusion that there is under-investment, especially with the Internet of Things, automation, and predictive maintenance.

Innovation in the Business Model Innovation is not a new concept. In this day and age, innovation is a process that should be integrated into your business lifestyle — it is necessary for survival. Once you start innovating, you can never relax. If your innovation is copied by others, then it is no longer innovative. It is more than a new product or service. It is also how that product or service is purchased and supported.

You need to create a culture of innovation that gives everyone a role in building your organization’s success. Don’t depend on a single person, but instead build an innovation team.

Build your team one person at a time — Get to know your workforce. Anyone could be a valuable team member. Consider personalities when evaluating and selecting team members. Extroverts may try to dominate, while introverts may not contribute. Look for those that confidently present well-thought-out ideas while contributing to the decision-making process. Look for diversity; include marketing, sales, IT, product development, finance, production, and distribution. Your team should reflect the backgrounds and cultures of your customer profiles. Make team membership part of the best career path.

All ideas are open for discussion — A mediocre idea may result in productive discussion that could lead to a great idea. It is risky to explore a new idea, but then it may be the next great opportunity. Recognizing and considering each person’s thoughts are key to encouraging active participation.

Don’t create a static team — Rotate members; don’t assume that the present team members will always be innovative. A lack of new ideas and bureaucracy are common roadblocks to innovation. Team members need stimulation and inspiration. The more that team members interact with others at seminars, conferences, trade shows, and on-site job shadowing, the more ideas will surface.

Direct the team spirit only towards your competition — An original idea for a unique product or service may have only months before it is copied.