Digital transformation, the integration of digital technology into all areas of a business, is not solely a technological shift but a cultural one too. The success of this shift is heavily reliant on an organisation’s culture and leadership. Two types of company cultures, the Unaware and the Proactive, can either hinder or help this process.
Unaware cultures are typically found in older, established companies. They are resistant to change, lack digital savviness, and have leaders who fail to recognise the benefits of digital transformation. This resistance can lead to a slow, ineffective transformation, damaging the company’s competitiveness in an increasingly digital market.
On the other hand, Proactive cultures understand the importance of digital transformation. They are typically found in younger, digital-native companies. These organisations have leaders who are digitally literate and understand the benefits of digital transformation. They encourage their employees to innovate and experiment, leading to a more effective and efficient transformation.
To successfully navigate digital transformation, a company must foster a Proactive culture. This includes promoting digital literacy among leaders, encouraging innovation, and embracing change. Failure to do so could result in an ineffective transformation, damaging the company’s competitiveness in the digital age.
In conclusion, company culture plays a pivotal role in digital transformation. An Unaware culture can hinder the process, while a Proactive one can facilitate it. For a successful transformation, companies must strive to foster a Proactive culture.
Go to source article: https://hbr.org/2015/08/the-company-cultures-that-help-or-hinder-digital-transformation