There is a lot of buzz about digital transformation and the opportunities new and emerging digital technologies offer organizations. Understandably so. Shifting to - and thriving in - a digital business environment is shown to improve operations, employee productivity and time to value.
What research from Constellation Group, Deloitte, MIT Sloan and others show is that failing to keep up with these digital trends could lead to businesses becoming unsuccessful. The truth is digital disruption is already here. And it means the ability to adapt and succeed in a rapidly changing market is critical.
So what is digital disruption, really? And what does it mean for your organization and your people?
Holger Mueller of the Constellation Group describes digital disruption as "the creation, implementation and operation of new best practices and business models, enabled by digital technologies." Disruption comes in the form of "macro trends, changes in the dynamic workforce, disruptive technology adoption, [or] the creation of new digital business models."
Mueller remarks that more than half of the Fortune 500 firms since 2000 have either gone out of business or lost the Fortune 500 title. (Source: Holger Mueller, Digital disruption: Top tips to leverage today's changing technologies for your learning programs" webinar for OpenSesame).
To remain competitive in these emerging digital market environments requires an intentional move towards digital transformation across critical areas of the business - from organizational strategy and structure to culture and talent development.
How your organization can meet the challenge of digital disruption
To meet the challenge of digital disruption, many companies are launching digital transformation initiatives. Clint Boulton of CIO highlights how IT executives are "making sweeping organizational changes, adding key roles, reskilling employees, setting up innovation labs and experimenting with emerging technologies to meet strategic mandates issued by their CEOs and boards."
Yet, digital transformation isn't just about changing technology and businesses processes nor is this kind of readiness limited to Information Technology teams. As George Westerman at MIT Sloan notes, digital transformation requires "a radical rethinking of how an organization uses technology, processes, AND people to radically change business performance."
Digital transformation isn't just about changing technology and businesses processes nor is this kind of readiness limited to Information Technology teams
Much attention is focused on how technology is changing rapidly but the demands on employees have increased dramatically too.
Leading the charge to tackle this massive talent development challenge, HR and L&D professionals need to mount their own transformation as the talent development practices that drove company success in the past may not drive it in the future.
This infographic provides an overview on how digital disruption is impacting organizations and their people, and what to do about it.