Digital revolution – the fast eat the slow
It is obvious that the Internet and digitalization are changing companies. People’s purchasing behaviour, organisational communications, and marketing are rapidly changing. Here are several of my views on digital revolution and change based on my experience working at Tieto, along with the results of a study we recently carried out.
In order for us to get a better understanding of the views of the Nordic leaders, we recently conducted a study on digital revolution alongside Kairos Future. A total of 500 business and IT decision-makers from Finland, Sweden and Norway participated in the study between October 2013 and January 2014. The results were very interesting, and you can read the main points from our SlideShare presentation here and download the study here.
Benefits include better customer understanding, competitive advantage, and a better development of innovation culture
Our study indicates that from the executive point of view, the most important incentives for digitalization include improving the customer’s experience, increasing efficiency, and reducing costs. All of these are direct business benefits. There are other business benefits, and Brian Solis discusses them in this great blog post.
Luckily, discussions about whether digitality is here to stay and whether it is beneficial to the business are luckily no longer necessary.
Our study shows that 63% of Nordic executives find it impossible to participate in modern competition without utilising new technologies
According to the results, up to half of the executives think that their sector will be radically different in 2020 than it is today. So, what will drive this change?
There are three significant forces behind technology-based transformation:
1. Rapid development of new technologies
Technologies have become cheaper, better and omnipresent, and they have evolved from private use to corporate use. According to the study, up to half of the workforce has more powerful technology at home than at the workplace. This encompasses the so-called SMAC – social, mobile, analytics, and cloud – technology trends. The opportunities created by robotics, 3D printing, and BYOD (Bring Your Own Device) technologies are also applicable.
How can we best utilise and commercialise these opportunities? How they will change industries and business models in the near future?
2. Increasing requirements of customers
The consumers' requirements on services are growing; they want more for less. The next generation is used to working digitally. Their expectations of service models, times, and methods differ from the service expectations held by older generations. Still, older generations are also learning how to use digital services, leading to services that are intuitive and comfortable.
3. Dramatically increased pressures on organisational efficiency and automation
Efficiency is always at the top of corporate management's agenda. In the study results, information work automation was considered an important driver of change in every industry sector. The only exemption pointed out by marketing executives was that growth and customer satisfaction are both more important than a clear efficiency-oriented approach.
How to drive transformation for the benefit of customers and increase organizational efficiency?
57% of CMOs think that leadership is an essential success factor for technology-based business transformation. You can read a good post about that written by our CMO Mattias Isaksson here.
This post was originally posted in Finnish in Digitalist Network in Finland. You can read the original post here.