Introduction
Active and effective digitalization has become a subject of discussion for organizations of different capital levels. Competition in the global market is becoming more difficult, and every time companies must adequately respond to new challenges. Integration of modern technologies and modernization of internal processes of enterprises with the help of automation gives an impetus to increase productivity and profit. However, it is not always easy to make a digital transformation and provide stable support for internal processes.
To properly digitalize the company, developing a competent change management strategy during the transformation period is necessary. By investing time and resources and using the best available practices and experience of other companies, it is possible to carry out the transformation process into a digital space successfully. This plan will allow us to meet the challenges of the global economy and meet changing needs and goals while continuing to develop.
Why Changes are Essential and How to Manage Them Effectively
The fierce global competition and the rapid development of technologies that the industry faces are forcing enterprises to develop at an unprecedented rate. To achieve success and have sufficient profit in a dynamic world, the company improves its internal ecosystem to meet the requirements of customers fully (Kimberling, 2020). The environment in which organizations have to organize their activities is not limited to the economic component but includes external conditions (Arora, 2019). Such an environment obliges company managers to study the developed strategies during the entire activity of the products provided and maintain competitiveness.
Before the COVID-19 pandemic, companies felt the need for their presence on the virtual stage, marking the beginning of a digital transformation. The search for support in new living conditions has led to digitalization becoming an important job for most organizations (Adler, 2021). From launching a new product to integrating the company into all known social platforms and changing the business model to meet the needs, the new strategy is competitive. Using artificial intelligence and the latest technologies, leading companies have created a single standard for effective digitalization (Strategy and Business, 2014). There are many followers of this strategy, which by 2025 will make it possible to estimate the digital market at $ 3.2 trillion (Davidson, 2018). However, there are many failures behind success stories; according to statistics, about 70% of digitalization initiatives fail (Third Stage Consulting Group, 2020). The main reasons for such failures are poor planning, lack of investment, and lack of qualified personnel in technology.
Nevertheless, the long-term results and the growth of the scale of the initial efforts for digital transformation, which make it possible to meet the economy’s challenges, attach great importance to the change management strategy. The management actions that organizations will take should depend on individual needs (Murphy, 2020). One such example is developing a system that allows integrating new digital processes into the company’s work to replace paper ones. In a global market that faces serious problems every day, the only stable certainty is change. You can get the most out of digital transformation by following the best available practices in the process of developing and implementing a change strategy. Next, several such practices will help the company become more competitive.
Change Strategy with Application of Best Practices and Consideration of Possible Problems
Large organizations that have been successful in using modern technologies have made the change management strategy part of the digitization of their activities. By investing in big data technologies, the company receives information that can later use to add to its transformation initiatives in the future (David & Thomas, 2018). When developing your plan, it is important to make sure that it is flexible enough for further growth. It is essential not to make a mistake and not digitalize all company areas at once because, in the long run, it will be difficult to bring all areas to a single standard at once (Dooley, 2020). Most successful companies start with small automation in certain areas of their business. This approach has a long-term perspective as a solid foundation for larger-scale digitalization processes and facilitates the connection of other business areas. It is important to adhere to the basic priorities of the “Four C”: cooperation, communication, consistency, and clarity (Fyshchuk & Evsyukova, 2020). This rule allows the company to carry out digital transformation and continuously predict possible risks.
Shatter Silos
For cooperation within the company to bring success, it is necessary to have access to clear and complete data, which gives flexibility in making strategic decisions. Autonomy and accountability are necessary to achieve goals without encountering unnecessary obstacles (Erik et al., 2021). To avoid burnout and disappointment as a result of unsuccessful digitalization, it is necessary to create a department that will directly control the transformation process (Newman, 2018). This part of the employees will take responsibility for implementing all the company’s ideas on digitalization and eliminate the influence of bureaucracy, which slows down the process of integrating new technologies.
Strengthening the Technological Infrastructure
Digital transformation is closely connected with automation, artificial intelligence, and data analytics. Through integration or replacement, new information technologies should interact with the active software environment (Maria et al., 2018). It is important to have the potential for the development of digitalization to take full advantage of the opportunities associated with next-generation technologies. Attracting leading and experienced specialists to work is the first step towards future changes, after which planning and investing in the modernization of the organization’s ecosystem are already underway.
The transition from software to a centralized data management system has several important implications for the company. Firstly, it facilitates the release of new products that will provide proper automation and analytics. Secondly, it increases integration with outdated products, providing support for updates of office applications and audit programs. Third, it reduces company costs and physical needs, improving the versatility and potential of future products.
Implementation, Measurement, and Refinement with KPI
Supporting change and creating the benefits of digitalization depends on the competent use of key performance indicators (KPIs). This indicator monitors and improves performance in a working software environment (Andreas & Wilfried, 2020). Using such a data management tool allows for an objective assessment of the transformation and improving its components. KPI helps the digitalization control department promptly identify those processes that need to be finalized so that they do not damage overall productivity. Companies that use the mentioned performance indicator as part of a transformation strategy are more likely to achieve success than those that refuse to use it.
Creating a Network with Trusted Partners
For companies that have existed for decades and have many resources and slower development rates, it is important to personalize every aspect of digitalization within the company. For flexibility in developing a change management system and the decision-making of an organization, it is important to obtain modern technologies and personnel who have the necessary skills to support digitalization. This practice has several advantages, which the company will discuss further.
Firstly, this will reduce the possible risks of the organization’s transformation. Major changes can become a difficult and dangerous practice for many organizations in terms of finances and reputation. Choosing a reliable provider company will allow you to introduce new software elements for subsequent automation of work. Such an organization will provide staff training and continuous technical support.
Secondly, this practice will provide the company with instant access to new technologies and training in their use. Staff training in new programs is a smart investment in the long term. It is important for management to involve competent change management experts in their work to control digitalization effectively. This factor will allow you to train or fill in the unworthy skills in the company’s internal structures.
Recommendations
Suppose an organization has set the goal of investing in the long-term success of digitalization. In that case, it is necessary to accept change not as a virtue but as a powerful tool for development. Applying various practices and establishing interaction between them and the company’s internal processes will lead to benefits (Kimberling, 2018). The benefits obtained from digital transformation will contribute to the development of success in the future.
Conclusion
Modern trends in digitalization are changing the environment in which companies operate. This paper considered changes at the level of processes, organization, and business. Changes can provide new opportunities for more efficient or accessible business management. Digitalization is not only the modernization and maintenance of existing processes in the company’s ecosystem but also the analysis of outdated systems according to new standards dictated by new technologies. These changes can be translated into success, even if digital transformation is a complex multidimensional concept. The proposed model describes six main integration steps, risks, and success with proper use.
References
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