Digital Transformation Requires Digital Talent

Digital transformation is perhaps the most common concept heard in recent years, and although it is not something new, its importance and need increased because of the pandemic. Many organizations had to accelerate their pace of change to survive and made decisions that they had in mind for the medium term, and not necessarily as a real and planned digital transformation.

There are different definitions of digital transformations; for instance: It is the integration of digital technology applied or implemented in all areas of a company, fundamentally optimizing the way it operates and seeking to generate value for customers.

Digital transformation occurs when companies adopt new and innovative ways of doing business based on technological advances. It is the process of making important changes to optimize the operation using digital tools, to improve or replace the existing infrastructure.

An important basis of digital transformation is continuous improvement that even allows processes to be improved, operating models are optimized, and positive results can be perceived internally by users or employees and externally by clients.

Adopting or implementing a digital transformation is not simple; each company according to its digital maturity starts from a different situation, there is no specific framework or plan that works for all organizations, and its implementation can become a long-term strategy, especially since it must include the holistic involvement of all areas and the company's value chain, as well as a global cultural change among employees at all levels.

The need for digital transformation is stronger than ever. It has become a matter of need and survival for some organizations, a source of competitive advantage essential to succeed in the coming years, and mainly to meet the changing and increasingly demanding needs of clients, who have become accustomed to receiving differentiated services that are already provided through automated, simple, easy, and technologically diversified processes.

There are several challenges on the path of digital transformation within organizations, starting by not confusing digitization with digital transformation. The big difference is that, while digital transformation affects the entire value chain, it optimizes the business model in a holistic way and adapts the technological infrastructure, making it scalable-ready for future needs, having an innovative vision of continuous improvement, focused on providing added value to the customer. Digitization is simply automating some processes, adapting technological platforms that allow more information to be obtained, and transactions to be carried out more quickly, but without generating a truly disruptive change.

Another important challenge for digital transformation in many organizations is change resistance, not wanting to automate or optimize processes due to the job-loss paradigm, wanting to remain in the comfort zone, and even fear of losing some power.

Through the optics of Three Strategic Pillars in Information Technology, it is critical to consider how a company goes about current processes, to map the “As Is” operational model through the value chain, then adapting or building the “To Be” or ideal future process. This is mainly because it will be the trigger to consider the technology needs, adjust current systems or applications, migrate to updated versions in new platforms compatible with new ways of integrating or linking with different tools that provide a friendly and nice interface that makes it simple and easy for clients or people who use web portals to complete  transactions. We also cannot forget people. At the human resources level, efficient and effective leadership is required from top management and cascading down to all levels. This  implies strengthening critical information management skills, continuous training, the adoption of creative and different thinking among all associates to create an organizational culture aligned to the defined transformation strategy.

After the whirlwind caused by the pandemic and the accelerated, rapid and short-term implementation of strategic plans to operate remotely and to deliver the digital services demanded by customers, the biggest challenge for 2022 and 2023 is digital talent. Due to the exponential growth of digital transformation initiatives, technological talent has become increasingly scarce and, therefore, more expensive. New positions are being created with flexible work schemes, mainly working remotely, and there are not enough people with the skills to respond to that demand.

The shortage of talent is even more critical in high-level positions so being able to retain them is vital. Companies must implement internal development strategies for associates with the necessary digital skills to avoid dependence on a single expert, and to avoid operational risks due to brain drain.

Replacement plans, as well career plans, should be created to fill digital leadership positions. Likewise, it is necessary that human resources departments and mainly the promotions and compensation teams, have a different vision in terms of salary, benefits, bonuses, since the market has changed and companies that find it difficult to obtain digital talent are willing to pay a high cost to cover critical positions because  the investment is justified. On the other hand, employees who know that they have the skills have sought to take advantage of the opportunity to obtain economic benefits and even to be able to decide between various offers, choosing the one that best suits them.

People are a company’s most important asset and through the years, human resources departments have been working in talent management, implementing different actions to recruit, develop and mainly to retain these assets.  Now, as a consequence of accelerated digital transformation and important changes in how companies  operate, the big challenge is to adapt all processes considering different work schemes, whether hybrid, presential or at the office, remote or home office. Another critical factor, as mentioned, is the lack of experts in digital processes.

Digital transformation never ends. It is a continuous improvement process that companies must consider as a critical success factor and must include in yearly and midterm strategies, mainly because technology becomes obsolete and if there isn’t a plan to adapt to that, companies can face significant issues, making it necessary to restart the process from zero, wasting time and money but also  possibly losing credibility with customers, damaging the corporate image, which is  more critical and will have the biggest impact.

It is better to be smart, to be proactive, and to be prepared to have the right people in the right process using the right systems. This combination normally provides greater accuracy and success.