22 Aug, 2022
Digital Transformation & Lessons Business Leaders Learned From Covid-19
Over the past two years, business leaders have gained a lot of things from the Covid-19 experience. For instance, they have learned to lead teams remotely and to help employees manage the incredible levels of stress they face. In many cases, they also mobilize their entire workforce to work from home practically overnight.
Business leaders have learned to communicate effectively with their teams and use conference rooms and trade whiteboards for online communication and collaboration tools. In addition, they have learned how important it is to be aware of the many challenges their employees, colleagues, and partners face in their lives. Despite major disruptions, productivity in the United States has increased dramatically.
Over the past two quarters, US employment in the nonfarm corporate sector grew very strongly at an annual rate of 4.3%, while manufacturing declined at an annual rate of 2.3%. This is despite the fall in production in the US, compared to the number of hours worked in the quarter before the pandemic began. Since then, production has grown faster than hours worked, increasing steadily each quarter until the end of the fourth quarter of 2021.
It is no coincidence that the rapid adoption of digital transformation has caught up with this significant increase in productivity. With continual advancements in technology, workflow automation is becoming more and more sophisticated, and the range of tasks that can be successfully automated is widening. That’s why the implementation of automation is increasingly being used in many major industries. In addition, digital transformation has made advanced data collection and data analytics a reality. Here's more proof of what software development companies have known for years: Innovative and well-implemented information technology is one of, if not the biggest, levers that enterprises have at their disposal to improve their productivity.
Digital transformation is not just the latest buzzword. There are many ways for companies to digitise their businesses. The more companies digitise their businesses, the more productive they will likely become. Whether you're building a new digital marketing strategy or developing an e-commerce app, the right digital shift to make for your business depends on the business’s needs and goals. As more and more organizations understand the significant impact of IT on productivity. This topic will become an increasingly important part of strategy discussions in boardrooms, strategy courses, and at the C-suite strategy retreat.
Business and team leaders have an overview of a group of people and motivate, guide, and monitor performance. They need to be prepared to not only engage in that conversation but also lead it. This means understanding your partner's business priorities and talking to them in those terms rather than in traditional "budget-wise" discussions.
Your C-suite colleagues share the same set of high-level goals that are used to measure the business. Everyone is looking for ways to boost growth and profits, control costs, and, at the top of the list, increase shareholder value. While that common goal is always on their minds, each business leader focuses on a different path to getting there.
For example, leaders in the finance department may want quick access to accurate data about your business performance so they can accurately and quickly predict and report on business results. They care about ROI, but they also care about more than that.
On the other hand, your COO could be focused on growth and efficiency. Productivity is key for them. Since their resources are limited, they have the duty to determine the best way to use them in the implementation of the company's strategy. They will be open to proactive concepts to leverage technology to make their sales force more efficient, improve the customer shopping experience, or leverage data to help them expand with new offers and incentives into new markets. However, the focus of these discussions should be on outcomes rather than technology.
At the CEO and board of directors level, strategic discussions focus on allocating the company's investments towards opportunities that help differentiate the company, support brand expansion, and increase shareholder value. Here, you should understand how the company's equity is valued.
Equity value, commonly referred to as market value or market capitalization, can be defined as the total value of a company attributed to equity investors. It is calculated by dividing the share price of the company by the total number of outstanding shares.
For instance, an industrial distributor investor might measure return on investment (ROIC), while a software development company might be valued based on multiples of revenue. Active discussions with ideas that can improve these key indicators are welcome.
In short, business leaders have learned a lot about their organizations during the pandemic. An obvious lesson is that using a digital transformation that drives productivity and improves productivity is critical to profitability and growth. Through this lens, technology leaders are better equipped than ever to lead strategic discussions in the C-suite and with the board of directors.