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Digital transformation needs culture change, too

/ 05:01 AM September 09, 2019

Most businesses realize that transforming or upgrading their digital capabilities is essential.

After all, any online sales initiative or process flow improvements, for example, will need technological support. But more surprising is how most employees resist change—even if the replacement is simpler and easier to use.

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Culture change is thus needed to address the change management that needs to occur when it comes to technology adoption and revisions in practices and processes.

We asked our resource persons on digital and culture transformation, Rey and Kay Lugtu, to give us a few insights on when and why such a transformation is needed.

How would you know if your organization needs digital and culture transformation?

Declining revenues and market share. Companies whose revenues and market share are declining would need to arrest the decline and find new revenue sources. In the retail sector alone, we see organizations folding up or closing their brick-and-mortar shops due to the rise of e-commerce that has become popular with both millennials and Gen Zs—generations for whom convenience is a key expectation, and for which they are willing to pay.

High attrition in the workplace. Companies experiencing high attrition especially with their younger workforce need to look into transformational capabilities in retaining talent. The behavior of millennials and Gen Zs leans toward working independently and organizations need to find ways to leverage on this fact.

What are the consequences if no transformation is done now?

Eight of 10 SMEs (small and medium-sized enterprises) will fail within five years if they don’t transform and adapt to the drivers shaping the world of business. These are: multigenerations in the workplace. These generations have different engagement preferences and the younger generations will drive the use of digital. Think of an organization that has Baby Boomers, Gen X, Gen Y and Gen Z employees: Boomers tend to have a higher degree of dependence on learning and engagement platforms compared to Gen Zs who are digital natives.

Technological advancements. Various tools and apps are available, cost and deployment of which are getting cheaper day by day. All these can enable companies to maintain closer relationships with their customers—from greeting them on their birthdays to offering special targeted sales offers and discounts, and invites to special events.

Emerging tech-savvy competitors. Many other market entrants that are quick and flexible in addressing customer needs threaten the business of traditional providers. Companies that have a responsive, easy-to-use website will attract and gain customers and market share over those that do not.

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Think of how Lazada and Zalora have transformed the way most of us shop today, by offering convenience, delivery and various payment options.

Rey and Kay Lugtu will conduct a workshop on “Leading Digital and Culture Transformation: Unifying Technology and Culture for Impactful Change” on Oct. 28-29. It will help you understand clearly the the concepts of digital transformation by imparting practical frameworks you can use in the workplace.

It combines with culture transformation, as culture is the biggest barrier to any digital transformation. For specific topics covered by the course, you may contact the Inquirer Academy.

The Inquirer Academy is at 4168 Don Chino Roces Ave. corner Ponte St., Makati City. For more information about the workshops or if you would like to add your input on the article, please email [email protected], call (632) 834-1557, (02) 800-8110 or (0945) 2158935 and look for Jerald Miguel or Karl Paz, or visit www.inquireracademy.com .

The author is the executive director of the Inquirer Academy.

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