Research Report Summary-The Role of Learning in Digital Transformation
Become a digital leader by leveraging strategy, culture, and skills development
Posted on 12-05-2018, Read Time: Min
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Digital transformation is all around us, affecting not only how work gets done but the nature of work itself. As it sweeps across organizations around the world, leaders have the daunting task of determining how best to respond and, better yet, take advantage of such transformation. This is where Human Resources (HR) can be a powerful agent of change. HR’s mission should be to build an organizational culture that enables such transformation.
HR.com partnered with SumTotal to investigate how today’s HR professionals view and facilitate digital transformation in their organization.
Here are a few major findings from the study:
Finding #1: About 44% say digital transformation is a high priority in their organizations
As per the study, only 32% of HR professionals believe their organizations have made great or even considerable progress in digital transformation. But that’s not necessarily because it’s a low priority. In fact, 44% of respondents say that digital transformation is a high or very high priority in their organizations.
Finding #2: About half of participants rate digital transformation as a high or very high priority for Learning and Development departments
Forty-nine percent of responding HR professionals indicate that digital transformation is a priority in their Learning and Development (L&D) departments. In other words, digital transformation is seen as a higher priority for L&D than for the organization as a whole. Perhaps L&D professionals are more likely to see it as a high priority because successful digital transformation requires new skills sets, as well as new mindsets, among employees.
Finding #3: Only 40% have a formal digital transformation policy in place
Among HR professionals who are aware of whether their companies have a formal digital transformation strategy in place (18% do not know one way or the other), two-fifths suggest that their organizations have one. Larger organizations are much more likely to have formal transformation strategies.
Nonetheless, while 62% of larger organizations have such a strategy, that still leaves over a third without a strategy. Among mid-sized organizations, only about a third have a formal digital transformation strategy in place.
Nonetheless, while 62% of larger organizations have such a strategy, that still leaves over a third without a strategy. Among mid-sized organizations, only about a third have a formal digital transformation strategy in place.
Finding #4: About 74% of those who say their organizations lack a formal digital transformation strategy believe their companies are progressing without one
The study indicates that digital transformation affects so many aspects of the global economy that most organizations must progress in that direction whether or not they have a formal strategy. In fact, among HR professionals whose organizations lack such a strategy, 74% report that their organizations are “progressing toward digital transformation.”
One reason for this is that most people in developed nations have either grown up in or adapted to many facets of today’s digital world, from social media to online retail to work performed via digital devices. In other words, it is already baked into the cultures of many organizations.
One reason for this is that most people in developed nations have either grown up in or adapted to many facets of today’s digital world, from social media to online retail to work performed via digital devices. In other words, it is already baked into the cultures of many organizations.
Finding #5: About 72% identify changing technologies as a primary driver of digital transformation
Technology is not the only driver of digital transformation, but 72% of HR professionals cite “changing technologies” as the most common driver of digital transformation.
Finding #6: Digital transformation is important enough to warrant C-level attention in over 77% of responding organizations
Although most respondents do not see digital transformation as a high priority in their organizations, most (77%) do report that it gets C-level attention. This implies that digital transformation is, even if not among the very highest of priorities, it is still viewed as important enough to stay on the radar of upper management.
Moreover, among organizations where HR professionals view digital transformation as a high priority, 91% say it is a C-level initiative in their organization. That is, it’s even more likely to be a C-level initiative where it’s viewed as a high priority.
Moreover, among organizations where HR professionals view digital transformation as a high priority, 91% say it is a C-level initiative in their organization. That is, it’s even more likely to be a C-level initiative where it’s viewed as a high priority.
Finding #7: Lack of resources and technological infrastructure are the most cited barriers to transformation, but a lack of knowledge could be even more important
The top barriers to digital transformation can be boiled down to lack of resources and knowledge. A lack of resources (50%) and technological infrastructure (43%) are the two most widely cited barriers, but they are closely followed by a lack of understanding of digital trends and their impact (40%).
A lack of understanding might, in fact, be a more profound barrier in an age when computing power grows less expensive by the day and cloud-based computing services are widespread. Educating leaders and employees on the topic of digital transformation could be one of the most important steps an organization can take.
A lack of understanding might, in fact, be a more profound barrier in an age when computing power grows less expensive by the day and cloud-based computing services are widespread. Educating leaders and employees on the topic of digital transformation could be one of the most important steps an organization can take.
Finding #8: Only 37% say their core business is threatened by a new digital transformation among competitors, but history serves as a warning
Although business competition is seen as a major driver of digital transformation, only 37% of respondents say that their core business is threatened by new digital transformations among competitors.
Of course, there’s the danger that some of these respondents may be mistaken. After all, employees in the book industry likely didn’t believe that digital transformation was about to wreak havoc on their organizations just before the emergence of Amazon. The same was also likely true for the hotel industry, which has been disrupted by Airbnb, or the taxi industry, which has been disrupted by Uber. History suggests that digital transformation can come seemingly “out of nowhere” to utterly change many business landscapes.
Of course, there’s the danger that some of these respondents may be mistaken. After all, employees in the book industry likely didn’t believe that digital transformation was about to wreak havoc on their organizations just before the emergence of Amazon. The same was also likely true for the hotel industry, which has been disrupted by Airbnb, or the taxi industry, which has been disrupted by Uber. History suggests that digital transformation can come seemingly “out of nowhere” to utterly change many business landscapes.
Finding #9: Automation is viewed as the most important technical skill (66%) set needed for digital transformation
When participants were asked about which technical skill sets are most important for digital transformation, the most commonly chosen skill was “automating business processes” (66%). This makes sense: If an organization doesn’t get basic automation right, then further digitization is probably going nowhere.
However, automation is just one aspect of digital transformation, and it may not be the most important one for organizations intent on reinventing their businesses. For those organizations, agile management techniques and design thinking could be crucial as managers look for more innovative and agile ways of getting work done.
However, automation is just one aspect of digital transformation, and it may not be the most important one for organizations intent on reinventing their businesses. For those organizations, agile management techniques and design thinking could be crucial as managers look for more innovative and agile ways of getting work done.
Finding 10: Communication and leadership top the list of critical talent management skills for digital transformation
HR professionals chose communication (74%) and leadership (64%) as the talent management skills that are most important for digital transformation. These have long been developmental priorities in organizations, but these skills are especially critical in digital transformation.
After all, inside more distributed and less hierarchical organizations, communication becomes key for effective coordination. In addition, leadership at all levels becomes essential, which means those skills need to be prevalent throughout the organization.
After all, inside more distributed and less hierarchical organizations, communication becomes key for effective coordination. In addition, leadership at all levels becomes essential, which means those skills need to be prevalent throughout the organization.
Conclusion
Digital transformation is primarily a change in mindset and in the way organizations do business. It is also a journey. Today’s understanding of digital maturity will change and grow over the coming decades.
In many ways, HR is at the center of digital transformation. After all, digital transformation tends to require more than just technological change. What is most important is developing an organization that can adapt to change and use it to fuel business growth.
To learn more and to take home key tactical and strategic takeaways, we invite you to download and read the complete research report here:
In many ways, HR is at the center of digital transformation. After all, digital transformation tends to require more than just technological change. What is most important is developing an organization that can adapt to change and use it to fuel business growth.
To learn more and to take home key tactical and strategic takeaways, we invite you to download and read the complete research report here:
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