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What came first? Digital transformation or the virus?

Wednesday, 21 April 2021, 03:55 PM By Simon Rodie

Digital transformation is the integration of digital technology across all functional areas of a business, which fundamentally changes how they operate and deliver value to customers.

https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/a-blueprint-for-successful-digital-transformations-for-automotive-suppliersDigital transformation also requires a cultural change in organizations to continually challenge the normal, accepted ways of doing things and challenges them to continually experiment and become more comfortable with failure.

How has the COVID-19 pandemic changed digital transformation?

The COVID crisis has rapidly re-shaped companies' digital transformation agendas, both around the "what", the "how" and the “when.”

This has necessitated a shift in employee experience as a vast portion of the workforce now works remotely. This shift has repositioned employee experience of digital technology from nice skills and knowledge to have to the only way the work gets done.

In the wake of the pandemic a business may take on digital transformation for several reasons. This can range from a pure issue of survival or adaptions around rapidly changing customer expectations to supply chain disruptions.

Consultancy firm McKinsey data shows that there has been “accelerated” shifts towards online streaming services and online fitness, both of which is likely to stay permanently.

The biggest shifts McKinsey found were around food: both home cooking and online grocery shopping (a category that has been generally resistant to getting moved online). These will probably stay more popular with consumers than in the past.

The use of Cashless transactions is also normalising.

On the B2B side, McKinsey data shows remote selling is working.

The digital transformation impact on sustainability - As brands and business focus more on the environment and sustainability, organisations are transforming operations around the digital world which can reduce the use of paper, printing and power.

 

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