The Power of People in Digital Transformation

Technology implementation and adoption is vital in every industry for companies to stay competitive. While this can offer many new opportunities, it also means that companies are compelled to continually review and update the processes around these technologies in order to get maximum efficiency and productivity from their investments. As a result, we are now seeing a greater strategic focus placed on more holistic approaches to digital change.

While technology is undoubtably a key enabler towards a successful business transformation, either through automating operational processes, incorporating AR/VR capabilities or simply improving data analysis, the importance of people cannot be overstated. In fact, the human impact is integral to the very fabric and function of the modern-day digital factory. According to a recent Kalypso study, 61% of respondents said they struggle to build the process and culture needed to embrace digital transformation, while 44% said they lack the necessary talent.

For digital change to take root, it takes an investment in the people who will be using it. Your employees must buy into your plan and support the adoption of new tools and processes.

A People First Mentality

It’s a common misconception to think that transformation means investing in the latest, most advanced equipment and devices. While this approach may bring new capabilities, if it isn’t solving specific problems for the employees using the technology then it isn’t going to generate value.

While many organisations understand this on an intuitive level, they still fall into the trap of presuming the needs of the employees and investing in solutions based upon a perception of what’s required rather than the reality. As such, they will fit the needs of the equipment around the employees, instead of the other way round.

Doing this can cause instability as it replaces established methods with unfamiliar processes. This is where setting a vision plays a key role in getting employees onside and demonstrating that the new ways of working are beneficial to their development.

A Clear Vision

To avoid the risk of negative repercussions from digital change, business leaders need to promote awareness of this transition, and importantly, why it is necessary.

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Achieving this all starts at the top. Having someone act as an advocate or a sponsor for this change helps to create a conducive culture from the outset. With their backing, the programme can build momentum and maintain energy over a longer timeframe, as employees will feel more informed of the process from the start. The incorporation of demos, pilots, training practices and design processes also helps facilitate greater understanding of the new technologies while providing an outlet for feedback to be offered and received.

The input of employees across the process is invaluable. Based on daily interaction with processes, they will know what works – and what doesn’t – better than anyone else. After all, these are the people who will be most impacted by this change on a day-to-day basis, so they need to be involved at all points. Changing the way things work without this foresight is the equivalent to pulling the rug out from under them.

A digital transformation process needs to be perceived as a way to make their working life easier and more productive. Workers can be wary of a too-much-too-fast approach, as they may view technology as their immediate replacement. The way you convey the message to them needs to paint the picture of what’s to come – and their role within that image – otherwise they will reject it outright.

Transparency is Key

Getting this messaging right requires transparency throughout the transformation, from its inception to implementation and eventual review. The first step is to build an effective communication strategy, which should be designed and implemented during the first phase of the transformation.

It’s crucial to take the time to be open with employees and implement a structure that prepares them, clearly illustrating the how, what, when and, most importantly, why this will help them perform their tasks more effectively.

When people understand this, it can actually accelerate and energise the entire process, boosting productivity, encouraging greater efficiency and promoting a more energised workforce.

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You may also benefit from taking this transparent mentality one step further through the use of Smart Factory Experiences to help provide greater levels of understanding. These hands-on exercises and training platforms introduce the user to the devices or software they will be using regularly, building familiarity with the concept and, in turn, greatly demystifying this new technology.

Take Your Team with You on a Digital Transformation Journey

There’s no single blueprint for a successful digital transformation. Indeed, any approach copied directly from other companies has a high chance of failure. Instead, the strategy needs to be unique to your own situation and, more specifically, your own people.

It’s crucial to remember during the transformation process that people enablement is a two-way dialogue for communication, feedback and questions. Regular announcements, updates, and milestones need to be delivered to employees, not just C-suite executives. Doing so helps keep spirits high and ensure ongoing motivation throughout the journey on which you are taking your team.

It might even be appropriate for your OCM team to lead and deliver the process under a one banner strategy, with culture, digital, and technology all linked together and aligned from the start, underlining the fact that they go hand in hand and bring mutual benefits.

Regardless of how innovative the technology you are implementing is, it’s unlikely to serve its intended purposes if people don’t embrace the change. And once you have lost them, it’s incredibly hard to win them back. After all, companies are defined by their people, not their machines.

You can find our more about the importance of your people in any digital transformation journey at the Management Perspectives hub. There you’ll also find a wealth of resources for executive industrial decision-makers, providing the information you need to thrive in the evolving digital landscape.

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Published May 6, 2021

Stefanie Gunia

Manager, Kalypso

Connect:

Ashkan Ashouriha

Senior Global Enterprise Solution Architect Smart Manufacturing, Rockwell Automation

In the nine years he has spent at Rockwell Automation, Ashkan's focus has been on digital transformation and how the individual customer journey should be supported. In his current role, he also leads our EMEA partnerships with PTC and ePLAN. By combining IIoT and digital engineering, Ashkan has a unique insight into the ecosystems in which our customers operate.