In a sea of rapid, continuous change, traditional companies will either need to deliver continuous transformation–or go extinct – according to a new report by NTT DATA, Acorio and ServiceNow that defines what successful transformation looks like in 2022. Digital Transformation 2022
The report, which incorporates insights from seven executives from ServiceNow and NTT DATA across the globe, explores why experiences are still the focal point of transformation, the key criteria to building the capacity for successful change, and what’s ahead for digital transformation in 2022.
“We have entered a new era-one where leaders face constant uncertainty on all fronts. While having a vision and strategy at the forefront is still critical, it’s just as important to build the capacity to see changes on the horizon and respond to them with agility. Transformation is no longer just a project-it’s the defining skill set of tomorrow,” Hiroshi Sugiyama, Senior Vice President, NTT DATA Corporation, said.
The executives interviewed for the report overwhelmingly agreed that businesses must maintain a focus on experiences as the driving force of transformation. However, according to NTT DATA’s Innovation Index, that’s easier said than done – nearly 60 percent of those surveyed said that customer needs and demands are changing too quickly to provide high-quality experiences. The same challenge extends to employee experiences-just 28 percent of respondents said that they are highly effective at providing flexible work options.
“Any transformation that you’re driving should deliver a better experience. If there is no improvement in experience, you might be digitizing, but you’re not transforming,” said Dave Wright, ServiceNow’s Chief Innovation Officer.
The need for innovation in today’s post-pandemic world is obvious – but the organizational capacity for it lags. More than one-third of organizations said in the NTT DATA Innovation Index that their culture holds back their investment in digital technologies and only slightly more than 40 percent of them have a proactive approach to innovation.
“In the past, you designed with the aim of lasting over time,” Andrea de Stefano, Vice President and Head of Business & Service Process Automation, NTT DATA, said. “Now, you need to design something that you already know will change, but you don’t know how it will change.”
Successful businesses in 2022 will have an agile culture that embraces change. The leaders interviewed for the report advocate for a bold approach to pushing through four challenges to build the capacity for successful change:
- Setting a vision for the future employees to rally around
- Bringing the right people together
- Choosing the right technology
- Tracking value in real time and adapting as needed
Technology advancements make digital transformation possible, but it’s data that makes them meaningful. And yet, data is still not driving decision making in many areas. Technologies like AI, machine learning, and predictive intelligence have surpassed buzzword status and will become integral elements of future digital transformations. Across all of them, the trend is to tap into the power of an organization’s data to focus and prioritize efforts-then measure their success and adjust accordingly.
“Leaders are taking on the biggest transformation efforts of their careers-not just because the technology is there to support it, but because they know they will be irrelevant if they don’t,” Ellen Daley, Senior Vice President of Acorio, and NTT DATA company, said. “Leaders must recognize that to serve their customers better, they need to enable their partners and channels better. This transforms not only the partner’s experience, but the ultimate end customer’s experience.” Digital Transformation Initiatives 2022