Digital transformation is not an easy task. Your company will have a better chance of success if you master some essential skills.
The future of business is digital transformation. Mordor Intelligence’s 2020 study estimated that digital transformation will cost $263 billion and reach $767 billion in 2026. Digital transformation can include many things. It could be process automation, new websites, better user experiences, or migration to the cloud. What skills are required to make a company-wide transformation successful?
1. Digital fluency
To implement digital transformation successfully, workers must first have a basic understanding of digital fluency. Digital fluency will vary depending on the industry. It can be basic knowledge of Microsoft Suite or a deep understanding of cloud computing.
All employees must master this skill. Professor Tsedel Neeley at Harvard Business School points out that digital fluency follows a fundamental tenet in linguistics. I often refer to the 30% rule derived from the study languages and apply it to digital fluency. It states that every company must have at least a 30% baseline level of digital fluency to effectively move in a digital direction.
Executives are the ones who need to be digitally fluent. It is up to organization leaders and managers to encourage digital fluency. Leaders who can be digitally fluent will be better equipped to address the gap between employees and executives – whether it is regarding the perception of digital changes or the reality of data architecture caliber. This often leads to failures in digital transformation.
2. Data analytics
Companies often fall prey to a flood of data and find it challenging to analyze and draw conclusions. Data analysis expertise – including data visualization and cleaning and technical skills like R, Python, and MATLAB – is crucial to processing data acceptably and productively.
It is easy to see the value of data analysis skills in today’s economy. The U.S. Bureau of Labor Statistics predicts heavy growth and projects that data science will grow by 28% through 2026. This is far more than average. Past data support this. Fortune’s report reveals a $231.43 billion global job market for data analytics. That’s a 10.6% increase over 2020.
3. Digital marketing
If the final product cannot reach consumers effectively, it is worth streamlining company processes. Marketing skills are crucial for engaging customers and ensuring product success. Marketing is now dominated by digital. Companies must be proficient in search engine optimization, email campaign management, and social media. This will enable them to gain and use customer feedback, promote their product, and, most importantly, bring customers along on the digital transformation journey. Users must also be taught how to best reap the benefits of digital transformation.
Companies are alert to the importance and price of digital marketing. According to emarketer.com, in 2021, global digital marketing spending rose 17% to $333 Billion, mainly within advertising.
Cybersecurity is a critical component of digital transformation that is often overlooked. Research and marketing company ThoughtLab found that cyberattacks increased by 15.1% between 2022 and 2021. These are alarming results: Chainalysis, a blockchain analysis firm, reports that ransomware victims paid almost $700 million to their attackers in 2020.
Companies should hire cybersecurity professionals to cover potential risks as the digital transformation process speeds up. This investment has great potential, as evidenced by the disparity between cybersecurity demand and supply. Cybersecurity Ventures, a research company covering the global cyber economy, projects that there will be 3.5 Million unfilled cybersecurity jobs by the middle of the decade. The U.S. Bureau of Labor Statistics predicts a 33% rise in security analysts’ requirements by 2030.
Multiple times, it has been proven that company culture is the most significant barrier to digital transformation. Employee perceptions of change can be significantly affected by company culture. A culture that is not responsive can lead to millions of dollars in wasted effort to implement a digital transformation.
It can be complicated to change company culture. However, it is up to the company leaders to determine the effectiveness of a cultural overhaul. Company leaders must possess many soft skills to bring about change, including empathy, communication, influence, and strategic thinking. To promote digital transformation, a good leader must be able to leverage core company values.
Digital transformation is complex, costly, and all-encompassing. You will need a strong leadership presence and investments to make it happen.