Now is the time for companies to reconsider their pre-pandemic digital transformation plans, create new ones, and take steps to use technology to improve.
Before the COVID-19 pandemic hit in 2020, many companies had digital transformation plans that they were hoping to implement or were already implementing. Specific initiatives included advancing automation, finding more ways to take advantage of cloud technology, improving data collection and analysis processes, and more. But the demands brought on by the pandemic changed these priorities. For example, many companies have had to shift their attention to ensuring the effectiveness of remote work.
Companies that initiated digital transformations before the pandemic may now face issues such as continuing on the same path, changing direction or abandoning their previous plans. In addition to increased reliance on remote work platforms, needs have changed for many organizations. Cloud computing, data management, security concerns and customer expectations are playing a major role in how companies move forward.
The positive news is that some of the disruptions caused by the pandemic have been good for companies in terms of forcing them to take important technological steps. In the sections below, we explore what has changed in the digital landscape and how companies must adapt.
How company goals have changed
Before the pandemic, companies seeking digital transformation were trying to solve problems within their organizations, such as reducing costs or achieving specific business objectives, such as improving customer experience (CX). At the time, many of these initiatives were not urgent and some companies only accepted them because they knew that “digital transformation” was something their competitors were doing.
The pandemic forced company leaders to realize that some of these initiatives were, in fact, urgent and that they would need to make significant changes to outperform their competitors in the post-pandemic world. Companies that were able to adapt quickly were the most successful. For example, delivery services like DoorDash have had to scale up to meet demand for food delivery as restaurants become inaccessible.
Fortunately, many companies were able to change much more quickly than they imagined. And they learned that some of the things that previously held them back weren't true, like the myth that customers aren't willing to have a fully digital experience.
Remove: Companies that are still stuck in digital transformation must take steps to realize their initiatives.
New customer expectations
The pandemic forced companies into different types of relationships with their customers. Personal interactions that were valued in the past have become dangerous. Companies that recognized this fact and took steps to transact in a new way gained respect and customers. For example, Target created an efficient curbside pickup service that allowed people to get what they needed without encountering other shoppers.
Remove: Customers now value more seamless digital experiences, which can be the deciding factor between two or more companies offering similar products or services. Businesses must align their digital customer experience accordingly.
Changing employee needs
Employees have also changed how they view the companies they work for based on their ability to provide a seamless digital experience. While business leaders may not give it much thought, the fact is that negative digital employee experience (DEX) can contribute to higher attrition rates, leading to higher costs for the company, and increased customer dissatisfaction, leading to to reduced revenues.
Remove: Given the Great Layoff, companies cannot afford to create conditions that repel new talent. All companies should be aware of the quality of their company's DEX and take steps to improve it.
Importance of cybersecurity
Greater digital complexity increases the need for strong cybersecurity, especially for companies that rely on personal information such as financial or medical records. Additionally, the increase in the number of remote workers necessitated by the pandemic has created additional pressure on security, as IT team members often have little or no control over remote work environments. And as companies become more vulnerable, hackers become more active and successful.
At the same time, the IT profession is losing workers at a high rate, there is not enough training and IT teams are being pulled in too many directions, with cybersecurity sometimes failing.
Remove: Post-pandemic conditions require a greater focus on cybersecurity. Companies must consider this critically important issue when considering any digital transformation initiative.
Greater dependence on the cloud
One way to resolve the security issues mentioned above is to move some operations to the cloud. This action not only reduces the number of attack vectors, but also increases remote work opportunities and provides greater scalability and agility. Additionally, cloud operations can help companies manage the ever-increasing amount of data generated daily. The following video describes more about working in the cloud.
Remove: Cloud computing offers a path to digital transformation that can solve multiple post-pandemic concerns at once. Companies should consider migrating some (or more) of their operations to the cloud.
Now is the time
Although COVID-19 is still with us, many companies have the tools available to return to some semblance of pre-pandemic normality. Now is the time for companies to reconsider their pre-pandemic digital transformation plans, create new ones, and take steps to use technology to improve. In addition to the takeaways listed above, here are some more tips for achieving the most effective digital transformation now:
- Start from scratch to determine what digital transformation should achieve. Think about the main challenges and objectives.
- Reevaluate digital services and reduce or eliminate any redundancies.
- Find out what customers are looking for now and take steps to provide it.
- Revisit initiatives started in response to the pandemic. Many of them were quickly set up and may need adjustments to ensure they are secure and efficient.
- Understand that transformation is an ongoing process and be sure to regularly review goals and results.
For companies struggling with digital transformation before the pandemic, there is a silver lining to the COVID cloud. Companies are now moving forward with technological improvements that will help them become more efficient, productive and profitable.
