Digital transformation is all about using technology to better solve customer problems. But a new report from global telecommunications company Telstra found that many U.S. companies lean too heavily on the technology side and don’t focus enough on the people behind the decisions.
According to Nicholas Collins, Telstra President for the Americas, digital transformation loses its effectiveness if companies forget about people. Brands need to continually evolve their businesses as technology and customer needs change. Instead of chasing technology, companies need to focus on what they want to be for their customers.
“Technology alone is not a silver bullet for digital transformation. While investing in the right technology is crucial, placing too much importance on the role and performance of technology in digital transformation is a barrier to success,” Collins said.
There are huge opportunities for companies that have yet to start a digital transformation. Collins says it starts with a top-down commitment from leadership. Companies need to strategically decide what they want to achieve through digital transformation. From there, they should assemble the right teams to bring those goals to life. The foundation of successful digital transformation is people, especially through strong leadership and culture. Telstra’s study found that focusing too much on technology can lead to stalled progress and a lack of measurable outcomes.
It’s easy for companies to get caught up in the technology behind the transformation, but the most effective digital transformation simplifies how people work so they can be engaged and better serve customers. As businesses grow, they often add new products and services that only add to the complexity of the company. Collins recommends that companies regularly take stock of their offerings and processes and find ways to simplify. Work back from the customer and what the brand is trying to achieve and then streamline or simplify as much as possible relating to the customer experience.
Digital transformation really comes down to using technology to simplify and streamline how a brand operates interacts with customers. Collins recommends involving the employees who are closest to the customers because they can often provide insights that people who don’t regularly interact with customers might not see.
Digital transformation is a journey, not a destination. No matter where companies are on that journey, there is still plenty of opportunity to grow and develop. But in order to be successful, companies have to think about people and not just technology.