When most people hear the words ‘digital transformation’, they probably think of cloud technologies, the Internet of Things, paperless workplaces, or mammoth data centers. But what about the people?
In this blog, we’ll break down why a people-first strategy is the best way to undergo a digital transformation with your Microsoft products.
For Microsoft cloud users, there are countless products and services on offer to help organizations make the most of their digital transformation. But the servers and the software don’t implement themselves. Even the most innovative, intelligent cloud platforms can’t operate in a vacuum.
Without support from the right people with the right skills, your digital transformation will struggle to provide a return on investment. From migration to configuration and development to ongoing administration, every single stage of the process requires support from tech professionals with the knowledge and experience to help you get maximum value from your cloud stack. The simple fact is that to successfully achieve digital transformation, you need people.
The cost and consequences of digital hesitancy
The importance of digital transformation has never been more obvious. In a post-pandemic market where many consumers expect a digital-first experience, even skeptical organizations have embraced the need for digital transformation.
All this means that many companies have begun to modernize their services and implement the tools they need to keep their customers and employees satisfied. But as the rate of digital transformation grows, so does the potential consequences of falling behind. Customer and user expectations have shifted, with the majority of consumers favoring a digital-first approach that facilitates fast, high-touch, personalized experiences.
Businesses are taking note and transforming their processes and operations accordingly. In fact, the global digital transformation market is projected to grow from the $469.8 billion it generated in 2020 to a staggering $1,009.8 billion by 2025. That’s a huge chunk of revenue that companies will be missing out on if they fail to keep up with their competitors, not to mention the impact of lost productivity, lost cost savings, and lost talent.
And then there’s the issue of resiliency. In a world where change is the only constant, businesses need to adapt quickly and weather any unexpected changes in the market. According to research by Deloitte, companies that have embedded digital strategy and infrastructure across all areas of their business are more resilient and agile in times of crisis than those that haven’t achieved digital maturity.
And with human capital at the core of digital transformation, planning a people-led strategy is the best way to set your business up for success. But no matter how big or small your business is, modernizing your operations is a complex, multi-faceted task. Plus, effective digital transformation isn’t just a job for the IT department; it touches every aspect of an organization, from processes and business models to domains and company culture.
Process transformation
Core processes within a business can vary hugely, depending on function and industry. But today there are few processes—back and front-end alike—that can’t be transformed or optimized through the use of cloud technologies.
Whether it’s data analytics, IoT, APIs, or implementing machine learning, reinventing the way a business process works can have a range of benefits, such as reducing costs, shortening production cycles, or improving customer experience.
In a post-pandemic world, the way we work, live, and consume products and services has undergone a huge change. Following the customer and delivering what they want wherever they are, both online and offline, is crucial for the sustainability of any business.
Take retail giant Levi’s, for example. When the world shut down and non-essential stores were off-limits, the company’s investment in technologies like mobile apps, AI, and predictive analytics enabled it to pivot fast. As customers turned to eCommerce in droves, Levi’s was able to meet demand by fulfilling online orders with stock from both warehouses and retail stores. This is a move that would previously have taken months to plan, but thanks to their modernized logistic processes, it was rolled out in days.
Hiring tech professionals with the skills to implement new tools and architect smarter processes is an investment in the future of your business. It’s true that there will be upfront costs involved, but creating agile operations now means building resiliency for tomorrow—just ask Levi’s.
Business model transformation
Business model transformation can be anything from a small pivot to completely revamping the way you service your customers. Some of the younger generations may not even realize that Netflix used to send movies to customers by mail using DVDs.
But with postal costs rising, and the price of internet connectivity coming down, the company saw an opportunity to transform its business model and better meet the needs of its customers. By responding to a shift in customer needs and an increasing desire for convenience and ease-of-access, Netflix was able to succeed where its brick-and-mortar counterparts failed. This preference for innovative business models like subscription and delivery services has only grown during the pandemic, and organizations are scrambling to build digital solutions that will allow them to adapt.
In a candidate-short market, developing these platforms at speed is not an easy task. Many businesses are realizing that competing for the same small pool of available talent is not a sustainable, scalable, or affordable solution. Engaging professionals from new channels like cloud talent creation programs can help businesses source Microsoft cloud skills fast, and secure a talent pipeline for the future.
As the world’s most trusted talent creation and enablement partner, we’re experts in helping organizations access the talent they need to make the most out of cloud technologies. Similarly to Netflix, one of our customers needed to pivot their business model during the pandemic. Read this case study to find out how we provided them with the people they needed to move from sales model to rental, during the 2020 pandemic.
Domain transformation
One of the trickiest but most lucrative types of digital transformation is the expansion into a new realm of business altogether. A step beyond business model transformation or geographical expansion, domain transformation involves moving into an entirely new market.
These kinds of big moves are far more likely to pay off when a business already has the digital infrastructure and skills in place to support new processes. This is something that one of the most successful domain-transforming businesses in history knows well.
Starting life as an online bookseller, Amazon not only grew its eCommerce footprint but broke into entirely new industries. Having invested in its tech team and pioneered significant digital capabilities in-house to run its mammoth retail business, Amazon was able to support new branches of business like Amazon Prime. Amazon even succeeded in rolling out the technologies it developed for other businesses to take advantage of, with the advent of AWS.
Cultural transformation
All of these four types of digital transformation strategies are most impactful when they’re focused on people; the importance of tech talent and the value that skilled professionals have to the longevity of a business.
But if there’s one pillar that’s most human-centric, it’s cultural transformation. Fostering a great company culture is vital to attracting and retaining talent of all stripes. As the battle for skilled professionals heats up, modernizing your culture to meet the needs of today’s employees should be a top priority for any organization looking to build a strong talent pipeline.
Transforming culture is also crucial to making your wider digital transformation efforts stick. Creating an environment where innovation and constant learning are championed will help your business to keep pace with a rapidly evolving tech landscape, and ensure your workforce is able to derive value from your cloud tech.
Building internal skills and promoting the adoption of new technologies can take time, however. Getting the ball rolling with external talent that can execute your digital goals and disseminate knowledge of and enthusiasm for your cloud platform can help facilitate cultural change smoothly.
Why is 'people-first' the best strategy for digital transformation?
With certified Microsoft talent difficult to come by, we asked Microsoft MVP, Microsoft MVP, Exec MBA, Blogger, and Podcaster, Ragnar Heil to share his thoughts on whether a people-first strategy is an effective way for companies to undergo a digital transformation, and why.
“By people-first, we mean placing focus on finding the right talent with the right Microsoft cloud skills who can drive important aspects of digital transformation. Companies that are focusing on a people-first strategy have created a very concrete digital transformation framework—not only a vague idea—that helps them to achieve their own internal goals, the goals of their customers, and partners. Without a people-first strategy, these massive and multiple changes would not be possible and accepted.
The rise of the automated workforce will require both organizations and individuals to rethink their career models, as automation is transformative. Organizations must be adaptive enough to attract such talents. One way to keep potential hires on board is by giving them an opportunity to be part of Microsoft’s digital transformation.”
Powering your people-first digital transformation
Though taking a people-led approach to modernizing your business is a great strategy, finding the people with the skills to put your plan in motion can be challenging in today’s candidate-scarce market.
At Revolent, we cross-train experienced tech professionals into Microsoft Cloud experts and place them at organizations like yours.
Because our Revols are contracted with us for two years, we can help you achieve consistency of service and boost retention rates; your Revols can even stay on with your business after their contract ends—at no extra cost.
