The pandemic has triggered an extensive change in many companies and accelerated the digital transformation. Cloud computing has democratized access to modern technologies, and numerous companies have seized this opportunity. This enabled them to increase sales, margins and profits, open up new markets and introduce additional products and services. The operating and production processes became more efficient, and costs fell. In addition, this change made it possible to increase customer proximity.
The Corona crisis clarified what many companies already knew: They were good at dealing with “Business as Usual”, but they were not prepared for unexpected developments that required rapid and comprehensive organizational changes – above all without a corresponding roadmap. Even so, companies everywhere rose to the challenge and adapted their business models to meet the needs of their customers. The slowly returning normality is now tempting many board members to slow down the speed of their transformation again. But right now, the rolling train must not be stopped.
Accelerated Transformation In Many Companies
According to the AWS study “Reinventing Without a Roadmap”, 94 percent of executives made adjustments to their business model during the pandemic. 56 percent even changed it significantly. It is noteworthy that digital transformation initiatives have been brought forward by almost two and a half years. As a result, these companies are more optimistic about the coming year: 89 percent said they expect average sales growth of 21 percent for the following year. That is too great an asset to be abandoned in favour of returning to the old ways of working.
More and more managing directors want to build on their successes from the pandemic and further modernize their corporate culture because they have recognized the potential in experiments on a small scale. Thanks to minimal upfront investment in time and money, the risk can be kept low without lengthy analysis or paralysis and with clear options for measuring the return on investment – with great benefits. This enables companies to initiate innovations and changes by redesigning processes. Even if such experiments fail on a small scale, the knowledge gained can be used for successful strategies in the future.
Keep The Momentum
Many companies cannot sustain the changes introduced during the pandemic over the long term. But agile working methods and collaborative decision-making processes can be embedded in the DNA of a company even after the crisis. This is important for companies to stay competitive. After all, their customers still have high demands on quality and delivery times. If you don’t pay attention here, you lose customers to disruptors and competitors who deliver better offers.
With this in mind, it is astonishing that only 50 percent of company bosses assume that their business processes will continue to transform after the pandemic. However, the pressure on these companies will increase on several fronts, not only through companies with disruptive business models but also through a new generation of companies that have emerged from the pandemic. Their advantage is an agile attitude: the tendency to renew, cloud-first strategies and a transformation accelerated by years.
Five successful vital principles have emerged among companies transforming through the cloud:
Driving Transformation From Above
The lack of support from a manager is often a problem. This can have a severe impact on how changes take place in a company and determine whether it is successful or not. A visible leader is crucial to carry out a transformation in a meaningful and efficient manner. She should get involved and bring in different perspectives to promote well-founded and joint decision-making. She should also be ready to share the vision and mission for change at all levels of the organization. Such a manager encourages the development of cross-functional, independently acting and informed teams.
Align Business And Technology
For successful transformations, both business processes and technologies must be optimally coordinated with one another. Until now, a company’s IT was more concerned with day-to-day business than with renewing processes. Therefore, in many companies, people are used to only using the existing tools and thus achieving specific results – or not. The alignment of all business processes and devices on a uniform strategy for the cloud introduction facilitates the controlled use of the cloud. Technical and business requirements are met.
Make Change Normal
Some people shy away from change because they “have always done things this way”. But this attitude prevents necessary innovations. Teams are often very reluctant to propose new ideas or redesigns. They shy away from confronting the gatekeepers. Successful transformations, however, require continuous questioning and reassessment of processes.
Establish A Culture Of Innovation
Numerous companies have shown themselves to be open to new things during the pandemic. That was an advantage because cloud structures can be introduced most successfully in an environment that cultivates a uniform culture of reinvention and innovation. Ideally, the managers create an atmosphere in which changes are part of everyday life.
Develop And Promote Know-How
Many companies want to change, but they lack the right know-how for a successful transformation. It is therefore essential to promote this knowledge. This does not only mean training and certification for employees. Real and practical experience and the willingness to question the status quo are also necessary.
These principles lay the foundation for successful digital change and should be at the centre of any business strategy. The pandemic was why many companies started – now, the task is to drive the transition further.