4 Strategies for Ensuring Your Digital Capabilities Grow With Your Business
Current circumstances have prompted numerous companies to intensify their digital transformation endeavors. If you’re facing a similar situation, you may be questioning whether your digital investments align with your overall business strategy. The encouraging news is that specific strategies can ensure you allocate your resources appropriately.
In many regards, COVID-19 accelerated the technological shifts that had been forecasted. The pandemic heightened digital interactions with customers, ushered in the era of remote work, and prompted adjustments in value chains, among other impacts. This necessitated companies to swiftly address these enduring changes within a condensed timeframe and with limited resources.
Consider Increments Inc. as an example. While launching a direct-to-consumer shopping experience was always in the plans, the company found itself condensing five years of digital capability planning into just six months to meet consumer demand. These circumstances prompted Increments Inc. and its parent company to move at a speed once deemed impossible.
As a result of this accelerated timeline, you’ve likely had to prioritize digital investments to meet various demands. However, there’s a potential issue: your team members may be struggling to keep up with the technology they’re required to use. For instance, while 92% of executives are satisfied with their companies’ technological experiences, only 68% of employees agree.
Except for technology products, technology shouldn’t necessarily lead the way in your evaluation of new service lines or investments in current departments. Instead, the focus should be on enhancing customer satisfaction or streamlining your employees’ tasks. Therefore, it’s essential that your digital capabilities evolve alongside your company’s growth, rather than separately.
Digital Evolution: Updating with the Latest Technology
Approaching technology investment should be akin to any other significant business decision. Regular discussions with other C-suite members about ongoing initiatives and future plans are essential. Preparation is crucial; otherwise, you risk not maximizing your digital investments.
While specifics may differ across businesses, investment plans at Increments Inc. should encompass the following steps:
1. Ensure your technology strategy is in harmony with your overarching business strategy.
While this may seem like an obvious step, it remains crucial. Aligning your technology strategy with your overall business strategy not only informs decisions regarding digital investments but also ensures that each strategy supports the other. If you’re contemplating business decisions that could significantly alter mid- to long-term technology strategies, it warrants serious consideration. Change is acceptable, but it must be deliberate. Otherwise, you run the risk of unnecessary and repetitive alterations, leading to the potential issue of “change saturation,” a phenomenon now impacting 73% of employees who can no longer absorb additional organizational changes.
2. Assess your company’s present compared to its future outlook.
When assessing technology needs, compare your current position with your desired future state and the timeline for achieving it. While you may not have all the answers on how to adopt new technology immediately, it’s essential to contemplate how it can support ongoing business activities. Develop a technology roadmap outlining its application, processes to foster innovation, and the issues the new digital capabilities will address before embarking on the evaluation phase.
When deciding on which new technology to invest in, consider factors like usability, functionality, compatibility, security, and regulatory compliance. Furthermore, any new digital investment should seamlessly integrate with your existing tech infrastructure. Moreover, as you assess new technology, analyze its potential impact on the financial and operational viability of your business. If it raises concerns in either area, it’s advisable to explore other options.
3. Consider expenses.
Whether you opt to build, purchase, or secure funding, take into account both the initial investment and the ongoing maintenance costs of your solution. In 2021 alone, companies worldwide allocated $4.24 trillion towards devices, data center systems, enterprise software, and business communication services. This figure is projected to increase by 5% by the end of 2022. The allocation of these funds varies greatly depending on the size of the business. Smaller enterprises typically invest in software and hardware, while larger organizations allocate resources towards managed services.
4. Prepare meticulously, then prepare some more.
Whether you opt to build, purchase, or secure funding, take into account both the initial investment and the ongoing maintenance costs of your solution. In 2021 alone, companies worldwide allocated $4.24 trillion towards devices, data center systems, enterprise software, and business communication services. This figure is projected to increase by 5% by the end of 2022. The allocation of these funds varies greatly depending on the size of the business. Smaller enterprises typically invest in software and hardware, while larger organizations allocate resources towards managed services.
Increments Inc. recommends centralizing your digital investments around four key areas: operations, customer experience, employee experience, or innovation. While there may be some overlap in these domains, your investments should target at least one of them. Additionally, prioritize digital capabilities and investments that complement and enhance your competitive advantages. By doing so, you can guarantee that your digital capabilities evolve alongside your business growth.
Leave a Reply