Seven Steps to Digital Culture
62 percent out of 1700 company representatives surveyed in Europe and the United States, think digital culture is the biggest hurdle in their digital transformation journey, according to a recent study by Capgemini and the MIT. But digital culture is a key source to stay competitive.
“Culture is the glue that either keeps us doing things well, or keeps us doing things poorly,”
as Ethan Bernstein of Harvard Business School states. The main problem of achieving a digital culture still is the gap between C-Level decision-makers and employees. Deborah Ancona, professor of MIT Sloan School agrees,
“Leadership often underestimates the importance of culture.”
Seven Dimensions defining Digital Culture
1. Customer centricity
Get closer to your customer. Understanding your customer’s needs are key to drive long term customer value. Especially when customers nowadays are faced by convenience, immediacy and a overall high variety of options. Customer centricity also includes the continuous collection of feedback, creating the best possible purchase experience and align processes to support and drive customer engagement. Read more about how to build a positive customer experience in receivables management.
Without a digital approach innovation lacks behind. That’s why employees must be supported in risk taking, disruptive thinking, and the exploration of new ideas. Read more about how startups set the pace for innovation.
3. Data-driven Decision Making
Data-driven decision making leads to better business decisions. That’s why you should implement artificial intelligence tools in your business, for example in your customer service. Chat-bots, behaviour based and personalised communication strategies are no longer something new. Read more on the process of applying data to your decision making by Forbes.
Find the knowledge gaps and power centres in your team! Any digital corporate culture needs collaboration. It describes the creation of cross-functional, inter-departmental teams to optimise your companies skills. Management through traditional hierarchical norms should become a relic of the past. Read more by Capgemini.
5. Open Culture
An open culture is described by good partnerships with external networks such as third-party vendors, startups or customers. Within the transformation phase of your company it does make sense to collaborate with external specialists. It can be a way to fast-forward your digital transformation journey. However many organisations fail to collaborate with innovative start-ups. Read more about German companies who fail to take advantage of promising collaborations with start-ups.
6. Digital-First Mindset
“A digital-first mindset is a mindset where digital solutions are the default way forward,”
according to Capgemini report. It is the shift from the “why” to the “how” regarding any problem solving.
7. Agility and Flexibility
Decision-making should be dynamic so that the organisation is able to adapt to changing demands and technologies quickly. Read more of our CTO Sebastian Hoop on agile organisation.
Where do companies lag in the digital transformation journey?
Companies don’t perform equally good across all seven cultural dimensions as the study shows. For instance, applying the “Digital-First Mindset” is a struggle for many newbies on the digital transformation journey. Regarding the pace of implementation, companies can be divided into three categories: Front-Runners, Followers and Slow-Movers. Front-Runners are the digital culture leaders. One third of the organisations surveyed belonged to this group. They outperform Followers and Slow-Movers on all seven dimensions of digital culture. Which again, both consisted of one third of organisations surveyed. All companies make most progress in customer centricity and collaboration. Front-Runners have the biggest competitive advantage in the dimensions Agility and Flexibility, Digital-First Mindset and Data-driven Decision-Making.At collectAI we take part in the digital transformation journey of our clients. We contribute by digitising receivables management. One of our clients, a retail bank reduced its expenses at 88.6 percent while increasing the collection rate at 24 percent.