Digital transformation, what are the future challenges for businesses?

Digital transformation is revolutionizing all organizations. Whether it is the business model, jobs, corporate culture or work structure, everything is being called into question. Today, companies have no choice but to embrace this change to remain competitive.

A real lever for development for companies, digital transformation is also synonymous with agility and resilience in the face of a crisis, such as the one the world has recently experienced. However, the big questions are: how to manage this digital shift? What are the challenges that companies will have to overcome to ensure the success of this transformation?

The opportunities of digital transformation

In just a few decades, digital transformation has become increasingly essential for the prosperity of modern economies. All sectors are concerned: energy, transport, telecommunications, industrial production, health, agri-food, etc.

The development of new technologies (such as artificial intelligence, Big Data, robotics, etc.) is considered one of the main manifestations of digital transformation, a positive contribution to the productivity of organizations and economic growth. .

Whether it is to face new competitors on the market, to adapt to new customer behaviors, or to take advantage of new technologies that encourage innovation or boost productivity, it is essential that companies take this digital turn and completely rethink their activities without delay. This is a phenomenon that has also been highlighted by the health crisis! However, this digital transformation will raise various human, technical, economic and social responsibility issues, which must be anticipated.

In the future, employees will have to work with computers on a daily basis and in some cases may even become dependent on them. In order for people to be fully integrated into , three major themes must be addressed.

Digital adoption

It’s not just employees who will need to embrace this digital shift wholeheartedly, but managers and directors as well. This level of commitment will be absolutely necessary for the success of  any company’s digital transformation, and for the return on investment that such an approach brings. It will be necessary to identify ways to persuade everyone to commit to this change in order to develop appropriate deployment strategies for all stakeholders in the company.

Skills development

With the introduction of digital tools at the heart of businesses, employees can expect to have to take on more strategic roles and tasks with higher added value. It will of course be necessary to plan for the new skills that the teams will need, particularly digital skills. Indeed, more than 90% of jobs already require basic IT skills.

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To reskill their staff, companies will have to allocate a budget for training, rethink their human resources model and encourage lifelong learning. However, we must not forget that soft skills are also taking centre stage. This is particularly the case for buyers who will have to become more creative, develop their relationships, extend their influence, etc. in the near future. Unlike technical know-how, these interpersonal skills will not become obsolete or will not be taken over by machines.

Adaptation to the labor market

It’s time to put an end to the myth that artificial intelligence will permanently replace office workers. It’s highly unlikely that this will be the case. However, many professions will have to be reorganized, while new ones will be created. This is already happening, as purchasing managers are transforming into value managers, and with the emergence of new professions such as Chief Data Officer and Data Scientist. In addition, new ways of working are spreading, with people working as independent contractors, freelancers, or even interim managers. “As precursors of new ways of working (agility, continuous learning, value orientation), freelancers can act as catalysts for the digital transformation of companies and their new work model,” as Vinciane Beauchene, Managing Director & Partner of the Boston Consulting Group (BCG) points out in a report co-authored with Malt.

The challenges of social responsibility

Digital transformation also raises issues in terms of corporate social responsibility, both on a human and ecological level.

Protection of personal data

Building trust in the new digital environment is essential, especially when it comes to personal data protection. Otherwise, some stakeholders may be reluctant to participate, which would hamper the economic development of companies and slow down the pace of innovation.

This topic is all the more important as the amount of personal data shared on the Internet and social media is increasing and, in the near future, will increase further with the introduction of connected objects (IoT). This is why personal data, which has been called “the gold of the 21st century”, must be protected.

The European Union has taken up the challenge with the introduction of the European General Data Protection Regulation (GDPR) on 25 May 2018, forcing companies to rethink how they collect and use data. However, international cooperation will be essential with the globalisation of data exchange.

Ecodesign to reduce the carbon footprint

At a time when the topic of corporate social responsibility (CSR) is gaining momentum, the digitalization of companies also raises environmental issues. It is important to emphasize that the development of digital tools will inevitably have an environmental cost. This is all the more true if we take into account the rebound effect.

 

This is a paradoxical phenomenon in which the reduction in environmental impact induced by the introduction of a new technology is partially, or even totally, offset by the overuse of this 1000 mobile phone numbers same technological solution. In order to limit the environmental impact on the planet, companies will have to focus on the eco-design of their products and services, while controlling their application and use to limit this rebound effect.

 

However, it is also important to note that these same technologies. Offer great opportunities to reduce the environmental footprint of companies through. The analysis and sharing of data in real time. The smart grid is a key example: this intelligent system for distributing electrical energy automatically adapts production to demand, thus promoting rational consumption of resources.

Technical and economic challenges

Digital transformation will also revolutionize the way organizations operate, from  .

A completely new organizational system

Including its processes, practices and job descriptions. To do this, companies will have to define a new governance and management model and align new technologies with their business strategy, in order to ensure that they have the key skills they need internally. Often, a dedicated department is set up to be responsible for implementing the strategy and leading the digital transformation, relying on the executive committee to validate the process.

Transforming digital capital into economic value

New technologies are set to transform the business models inherited from the industrial revolution. As we have already mentioned, collecting and processing data will be important steps for companies.

The digital revolution, with its abundance of information and network effects, challenges the institutional framework as it is currently understood. If its challenges are met, it will mean increased productivity. Efficiency and employment opportunities within companies, heralding a better future for society.