How Important Is Organizational Design For Digital Transformation?
Though digital transformation has become more than an industry buzzword, most people assume it’s only about disruption or technology. It’s not. One may describe digitalization as an “intelligent revolution” that seeks to change your company’s operations. Digitalization and automation can make your workforce more productive and the entire organization more profitable. However, less than 30% of companies are able to make this dream of digitalization a reality. Hence, this article explains how you can prepare your business for digital transformation. Moreover, you shall also learn why organizational design is important for it to work.
Preparing your business for digital transformation
Why do companies’ endeavors to digitize their structure and workflow often fail? One may argue that companies fail to revamp their workforce to meet digital standards. It means that organization design deals with creating the processes and structures needed to meet goals related to digitalization. Without restricting the organization, you cannot achieve these objectives properly. Periodically renewing your organization keeps the people trained enough for this digital transformation to work.
For this reason, the first part of this article talks about how business owners can prepare themselves for digitalization transformation via organizational design. Here’s what you must do for the transformation:
1. Improve your education
Learning about organizational design and successful digitalization can help you make this transition successful. Many digital courses are available today that help business managers influence the mind of their organizations to replace deeply-rooted practices with digital ones. You may pursue a course in digital business design to optimize your business models. Enhance your know-how about digital transformation via organizational restructuring and prepare your business for this change!
2. Educate your workforce
One of the reasons why digitalization fails is employees failing or refusing to embrace the change process. Thus, as a business owner or manager, you must focus on changing employees’ minds about how to view a transformational process. This change of mind comes from education and awareness since education prevents employees from resisting change. Make them understand how technology will not replace them but enhance their productivity. Upskill folks who lack tech skills. This is how you can restructure the organization for digital transformation today.
3. Restructure your business
Revamping your company’s organizational hierarchy means bringing a new business model to meet modern-day standards. The pandemic compelled several companies to bring this change. If your business still depends upon old-fashioned technologies, digitalization may be difficult to produce in the company. Embrace technology altogether; don’t just leverage technology, but make it a part of your everyday process. Adjust your business model so you may prepare workers for the future.
4. Follow tech trends
Closely monitor current tech trends to gain detailed insights into a present-day customer’s demands. For instance, trends like big data, machine learning, and intelligent automation – a mishmash of AI and automation – have become common in the business industry. These technologies allow people to conduct faster and better decision-making by removing the frequency of errors and bolstering the workforce’s productivity. Watch out for the trends predicted for the year 2023 by industry gurus.
5. Identify your priorities
Discovering your priorities can make your digitalization strategy cost-effective and more successful. You should determine which areas need improvement within the company and redesign your organization by making these requisite adjustments. Digitalization produces superior outcomes when entrepreneurs get their priorities right.
6. Leverage cloud storage
Digitalization involves getting rid of papers and uploading your files online for better safekeeping. Companies can’t completely transform digitally without going paperless. Cloud storage solutions can help you make information accessible to everyone who needs it. Also, an online-stored document is easier to manage. Since many companies will allow employees to work from their homes in 2022, leveraging cloud storage seems like an obvious step toward digital transformation.
7. Recruit via technology
Digital transformation can also alter your hiring practices. Your company’s recruiting process should undergo an evolution thanks to digitalization. For example, you may replace manual signatures with digital ones, conduct interviews via Zoom, and leverage automation to find ideal candidates for the interview process.
Successful case studies on digital transformation
70% of organizations either have a digital transformation strategy or are creating one right now. But all these companies should learn from the case studies mentioned in this section. The following case studies shall help business owners learn by example and attempt to imitate their successful competitors. Here are some case studies you can consider:
Walmart wasn’t always an online bazaar; it used to be a brick-and-mortar marketplace. Most people assume that creating a website for one’s business amounts to digitalization in today’s business environment. However, a company should recreate its functions around modern technology; this is exactly what Walmart did. Besides creating a website, they made mobile apps, introduced same-day pickup services, and allowed customers to buy now and pay later. They broke down silos to make info available to all employees.
Netflix started as a simple rent-by-mail service. Yet the company anticipated the growing demand for consuming content in digital format and then switched its business model. It’s now the most popular digital video content provider in the United States. Some two-thirds of American subscribers have Netflix subscriptions. Another relevant example is Amazon, which restructured itself entirely to survive in the 21st century, the age of digitalization.
The people at Ford realized that inventory management could be automated more efficiently. An employee can track the quantities of available materials via automation. That’s how Ford employees never ran out of spare parts for these cars. Moreover, Ford made an app that permits people to remotely access and control their vehicles. Remember that data-based decisions make the quest for digitalization successful. Trust the data if you wish digital transformation to benefit you properly.
How Important Is Organizational Design For Digital Transformation
This article dealt with the necessary stages of digital transformation in your organization with some case studies. It is important to realize that restructuring your organization increases the chances of successful digitalization. Use technological solutions such as cloud storage and recruit people productively via tech-inspired practices. Most importantly, educate yourself and your workforce to realize the correct approach to organizational design for digital transformation. Hone your know-how about this process.
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