One of the greatest lessons learned in 2020 is that those best able to provide continuity to their business are those who are committed to digital transformation, planning and executing the strategies that will define the success of their future. With the development of cloud tools, the growing use of Artificial Intelligence and Machine Learning as part of daily activities, organizations will need to improve to be able to focus on their main objectives. Thus, Digital Transformation has become one of the most important challenges for the coming years.

These are some trends and lessons learned that will support Digital Transformation processes and shape the next normal:

The change and rebalancing of the Supply Chain

The recent COVID-19 pandemic demonstrated the vulnerabilities in companies’ long and complex Supply Chains, even leading them to shut down production.

Once organizations began to analyze their Supply Chain processes in detail, they realized two things:

• Breakups and changes are not unusual. A McKinsey study reveals that, on average, companies can expect Supply Chain disruptions lasting a month or longer to occur every 3.7 years, with more severe events having a significant financial cost.

• Supply Chain visibility and traceability continues to be a challenge for most organizations.

Digital Transformation implies a fundamental change

Digital Transformation is not just a large-scale project, nor should it be taken for granted that if the executive team uses technology, the organization has successfully adopted Digital Transformation.

As we have mentioned previously, this is a deeper cultural change that involves an organizational reform, accompanied by training for staff, agile methodologies and platforms that support the needs of the organization. For this reason, the participation and leadership of the CEO and the company’s management team is essential for its correct implementation and adoption.

First define the business strategy

As it is a high-level design and strategic decision-making process, it is essential that its implementation be guided by a business strategy, not just by a technology or a tool. Once the specific objectives have been defined, you can decide which digital tools would be adopted.

Education is the key to adaptation

It is important to invest in the training of staff at all levels (including the senior management team, middle management and grassroots managers) to improve digital capabilities and transformative thinking in the different departments of the company, not only in the IT equipment.

The organization must recognize the value of digital competencies and cultivate the culture of the digital expert to motivate its teams to increasingly improve their capabilities.

Intelligent data management is the basis of Digital Transformation

Cloud technologies provide competitive advantages for businesses. The ability to analyze and manage data to convert it into value for the organization can determine the success or failure of Digital Transformation.

It is important that organizations adopt flexible data management platforms that allow information to be analyzed in efficient times and in a collaborative and secure environment.

Extracted and adapted from ACCA.