While the use of technology has become vital to remain competitive in all sectors of business, digital transformation is less about technology and more about people and how they work together.
Digital transformation has been defined in several different ways. MITSloan Management Review defines it as ‘the use of technology to radically improve performance or reach of enterprises.’ While Altimeter Group refers to it as ‘the realignment of, or new investment in, technology and business models to more effectively engage digital consumers at every touchpoint in the customer experience lifecycle.’
But technology is just a tool that requires one very important element – humans.
Fashionistas vs Digerati: Getting digital transformation right
Capgemini Consulting conducted research on how companies are using digital technologies to their advantage and, often, their disadvantage. With a focus on digital maturity, the research showed that companies which had the expertise to use technology as well as the leadership to drive it forward were far more profitable than those which did not.
Companies that are happy to implement the newest and shiniest technology but lack the knowledge on how to use it to the advantage of the company have been dubbed ‘fashionistas.’ By contrast, ‘digerati’ have the ability and understanding of how to create value with technology.
Of all the categories of digital maturity, the digerati have the highest performance and are the most ‘digitally mature.’ Because of this, digerati are 26% more profitable than their industry competitors while fashionista have seen an 11% drop in profitability.
The human connection
What do the digerati have over the other companies struggling with digital transformation? They value the human connection.
At this point in time, technology is not created or work on its own. Technology is a tool driven by humans. Without the human element, technology does not advance nor is it useful. Companies that understand this are the ones that are staying ahead of their competitors.
Companies that are benefiting most from digital transformation are those that remember to keep the human element in mind. They use technology to develop analytics to better understand their customers and create customer loyalty. Internally, they enable their workforce by utilising collaborative tools that make it easier for employees to better communicate no matter where they are located.
Download the report to find out more
Is your company a digerati or fashionista or does it fall somewhere in between? Are you interested in exploring more about the human element of digital transformation? If so, then download our Only Human report. We’d love to hear what you think.
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