Technology defines an organization’s success, so enriching the digital IQ is crucial to extract profit from these technological solutions.
As technology continues to advance rapidly, Digital IQ will become even more vital to the
resilience of a business. In the age of digital transformation, most businesses undertake the technology stack improvement initiatives to ensure more competitiveness in the marketplace. Unfortunately, a substantial number of these programs struggle to deliver on their stated goals, with a decrease in operating costs and an increase in revenue.
In fact, as per the 2016 McKinsey report, about 70% of the digital transformation programs
aren’t successful. According to a PwC survey, the most often cited reason for this remains the lack of digital skills, inadequate IT integration methods, and outdated technology. In other words, insufficient organizational Digital IQ remains the primary reason.
To promote and improve the organization’s Digital IQ, it is important to:
Offer Comprehensive Training
Lack of sufficient training remains the major drains on a company’s Digital IQ. Over 75% of leaders surveyed by the PwC report agreed that the teams were under-skilled, while 54% of the workers felt they required continuous training.
These percentages indicate that the companies may need more dedicated training teams that promote consistent improvements in the curriculum through regular feedback and metric-based analysis. Additionally, encouraging and motivating employees, to be honest about the points of stress, helps identify the chronic issues that training staff can tailor to address programming around.
Leaders should be ready to redesign such training programs as necessary. It is important to
consider it as a learning experience rather than a failure. About two-thirds of the high Digital IQ companies have achieved successful digital transformations by reshaping their training throughout the process.
Align Businesses with the Tech Goals
A 2017 CIO study said just 24% of respondents agreed that everyone across the IT department was clear about how their work truly relates to business objectives. Since the actual point of the digital transformation is to enhance the business outcomes, this is unacceptable. Ensuring the IT and business objectives alignment is the major factor in raising the overall Digital IQ.
Creating a strong line of communication between senior management and IT is important.
Leaders should share a holistic vision on how to move forward, and IT strategies need to be presented clearly, connecting with the advancement of business priorities. If the links between the two are challenging to see, reevaluation of the IT programs is needed until they get obviously aligned.
With a roadmap, enterprises need to decide which set of metrics actually needs to be
monitored throughout the process. If these metrics, like ROI or revenue growth, are not being met regularly, a quick re-evaluation of the plan is the key.
Increase Investment in Technology Solutions
From 2007 to 2017, firms only increase their budgets for emerging technology solutions by
about 1%. During the same period, the pace of technological advancement exceeded far
beyond the investment increase.
In order to increase Digital IQ and to achieve more success with digital transformations, firms have to get serious about the investment into digital resources. As per PwC’s 2020 Global Digital IQ research, enterprises with high digital IQs spend over 33% on digital innovation projects. Better funding makes it more likely for these companies to have an increased overall commitment to the cause. It doesn’t prohibit teams from trying to implement the changes, and it fosters buy-in from frontline employees and lower management.
When enterprises prioritize Digital IQ, not only with words but with concrete actions, it focuses on the entire organization for progress.
Digital IQ Requires Dedication
Enhancing the company’s Digital IQ to achieve successful digital transformation is not an easy and quick process. It takes buy-in from the management and all teams.
With the above guidelines, businesses will have a much greater chance of being successful. Take it seriously, and devote the resources necessary so that the company stays competitive in the ever-evolving business landscape.