By not digitalizing the people-related processes, the companies fail to build necessary capabilities that they need to succeed in an era of digital disruption, says a report released by the Center for Digital Business Transformation (DBT Center), IMD and Cisco. Titled as ‘Workforce Transformation in the Digital Vortex’, the report describes the steps that an organization can take to digitize its processes.
According to Cisco, nearly 50 billion objects will be connected to the Internet by 2020 and this will generate massive streams of data. To handle these data, the people must be equipped with new communication tools. The companies currently focus only in digitizing their business processes and not its people assets.
DBT Center’s Digital Vortex report foresight that four in 10 industry incumbents will be displaced by digital disruption over the next five years.
To derive the findings, The DBT Center studied the business models of 75+ disruptive workforce startups and conducted in-depth interviews with founders and/or CEOs of these companies. Interviews were also conducted with senior human resources practitioners and operational leaders at large global enterprises. Besides, the DBT Center surveyed 941 executives globally to assess the current state of their digital transformations and their workforces.
The result showed that, in the area of people, less than 10% of companies have attained a level of excellence in three key capabilities of digital business agility – hyperawareness, informed decision-making, and fast execution.
“We speak to companies every day that are trying to understand the role technology plays in their business strategy,” said Kevin Bandy, Chief Digital Officer, Cisco. “Many of their most pressing questions focus on how they can empower their employees through digitization to help them improve decision-making, accelerate innovation, and be more productive.”
Alongside the technology solutions, the efforts must be aligned to the business process changes that occur across organizations as they reinvent their operating models to compete effectively in a digital era. Furthermore, workforce transformation requires sustained commitment from leadership. “Transformation is more than a summation of digital solutions, explains Bandy. “Digital transformation is rewriting the rules of business and will require a workforce that is appropriately equipped to work with the speed and agility that this level of change will demand.”