Digital transformation: 3 myths the pandemic busted
When the pandemic struck, most organizations had no choice but to accelerate their digital technology adoption. Many condensed into a matter of months what might otherwise have been years of consideration, strategizing, and change.
According to a survey by McKinsey, the pandemic sparked a seven-year increase in the rate at which companies developed digital or digitally enhanced offerings. It accelerated the digitization of their customer and supply-chain interactions and internal operations by three to four years.
This shift sparked a new reality for today’s organizations to remain competitive and meet customers’ changing needs. But while enterprises have certainly dedicated more resources to the process of digital transformation, many misconceptions still remain.
Here are three digital transformation myths the pandemic busted, and some thoughts on how enterprises can shift their thinking around the movement.
One of the most common and persistent misconceptions surrounding digital transformation is that it is too risky. Many organizations took a slow-and-steady approach to carry out their digital transformation initiatives, being careful not to rock the boat or jump in too quickly. Then cutting-edge companies like Netflix and Tesla emerged and proved the importance of adopting digital trends, influencing many organizations to embrace new technologies and processes.
The pandemic served as yet another disruption and accelerant for digital transformation, highlighting that a cautious approach would no longer cut it. Tomorrow’s most successful organizations will be the ones that are willing to disrupt themselves faster than disruption meets them.
In markets where competitors continually strive to meet (or better yet, anticipate) the next innovation, the luxury of time isn’t available. Consider the automotive industry, for example – some of the dominant players now face tenacious startups such as Rivian. The electric vehicle and automotive technology company recently filed for an IPO and is seeking a valuation as high as $80 billion – and its trucks aren’t even on the road yet. The company could soon rival Tesla – because it saw a void in the market and braved risks to fill and disrupt it.
With innovations constantly emerging, enterprises can no longer ignore the impact these will have on business; no competitive advantage is safe for long. Rather than cautiously adopting new technologies or waiting to see how they’ll impact others first, enterprises must embrace change and move fast to remain competitive.
