Recent research has pointed to the need for continued human-centricity within Digital Transformation investment. The evolution of digital solutions has inevitably led organisations to restructure their strategies for technological development. We get insight from industry experts on how a people-first approach can aide businesses.
A recent InfoBrief sponsored by Endava – a global provider of Digital Transformation, agile development and intelligent automation services – uncovers the roadblocks, tactics and outcomes of Digital Transformation (DX) efforts in the last year, as well as strategic drivers and approaches to integrating major technologies shaping the landscape, such as Artificial Intelligence (AI) and automation.
Exploring how organisations are tackling the evolution to the digital business era, Leveraging the Human Advantage for Business Transformation surveyed business leaders and decision-makers across the globe, and revealed that the overwhelming majority (88%) said that only 50% or less of their DX projects in the past year met the expected goals or outcomes.
When businesses miss the mark on DX projects, it’s not just their infrastructure or competitive position that suffers. While 62% reported failure resulting in them being less technically mature than competitors and having a longer time to market, key challenges damaging the employee experience emerged as consequences too. Many are facing frustrated staff (56%), as well as a rise in staff attrition (50%) and a less stimulating work environment (44%).
The causes of lacklustre results from DX efforts reinforce the notion that strategies too often neglect to prioritise a people-first approach in the planning, design and implementation of digital initiatives. For example, 39% of respondents indicated that a lack of employee buy-in was a key reason for failing to meet expected outcomes, implying a need for cultural considerations to encourage user engagement. This was followed by conflicting opinions from leadership (36%) and a lack of collaboration internally (33%), demonstrating a struggle to successfully navigate organisational dynamics or engage stakeholders throughout projects.
When reflecting on failed DX projects, over half recognised that investments would have been better channelled into people-centric projects such as upskilling staff (55%) and improving IT and line of business communication (50%).
Amid the rapid advancement of AI and the Generative AI boom over the last few years, the survey also uncovered strong levels of current implementation and adoption plans in the pipeline, with almost half (49%) of the respondents having already deployed AI in their organisation or running a proof of concept. Many organisations recognised the impact of retaining a human influence on their use of AI, with 51% declaring it as very or extremely important.
Similarly, automation strategies were aimed at empowering a stronger employee experience and freeing people to work more strategically. Over half (58%) said their automation strategy is highly or very highly focused on removing mundane tasks, and 54% agree that employee engagement and satisfaction are integral. The data on DX shortcomings, however, highlights a gap between many businesses’ intentions for digital projects and the ability to bring these to fruition.
Despite this, for those who do get DX projects right, there are promising employee and customer outcomes beyond the business benefits. As well as achieving outcomes such as process optimisation (62%), cost reduction (57%) and revenue increases (53%), respondents also reported improved customer experiences (45%) and an uptick in employee productivity, satisfaction and retention (42%) when initiatives were effectively managed.
“The success of digital solutions is inherently reliant on understanding how people will respond to new technologies,” said John Cotterell, CEO, Endava. “This research reinforces the fact that nurturing amazing products and services demands a human-centric approach throughout every stage of digital evolution. In practice, this is all about people, understanding user needs and expectations, working through cultural barriers to adoption and collaborating with employees to build engagement from the outset.
“It’s encouraging that more and more businesses are recognising the importance of human response to new technologies, as well as the potential impact of not prioritising people within technical development. As they shape their digital strategies for the year ahead and beyond, developing inclusive digital solutions and constantly being mindful of people will go a long way towards bridging the gap between innovative products and market success.”
Chris Weston, CDIO, Jumar
Digital Transformation. It’s a phrase that has worn a deep groove in the business landscape since it was first coined 10-or-so years ago. So much so, that it has come to apply to a wide variety of activities involving business technology change. For the purposes of this, let’s define it as a business change programme that is driven by significant changes in technology, competitive pressures, customer expectations and evolving business models. These programmes often tackle fundamental business processes, which have been constrained by existing technology and require serious reworking.
In most cases, while we can be diverted by the allure – and cost – of the technology, the human element of change is the most complex and presents the highest risk to a successful outcome. Those people in a business with the most experience of the market and the customer base are also proficient in existing processes. Even if they see the need for change, the act of keeping the business going while building out new processes, testing and validating them, then migrating to future operating models can be a stressful and exhausting experience.
To give ourselves the greatest chance of success, we must take a human-centric approach, involving as many of our people as possible in the change process. Listening to the stories and experiences of previous change efforts, building consensus around priorities and risks and taking time to understand the concerns of the team are crucial. These are very rarely unfounded, and although we might take the decision to mitigate or accept such risks, this should be a transparent process. We can do this through discussion, surveys or other feedback mechanisms, but the important thing is that it is done and that the feedback is responded to in a clear manner.
This applies to top management just as much as it does to others in the organisation. Research published by KPMG in 2023 suggests that a fundamental reason for Digital Transformation failure is a basic lack of workplace trust and agility. Top management are often assumed to understand and buy in to the objectives of the programme but left unspoken this can be a dangerous void.
Leadership has a tremendously important part to play in this process. Promoting a culture that values empathy, user experience and innovation encourages people to stay aligned with a change programme rather than becoming disconnected or passive. No amount of pushing from a project team or consultant will move a business of hundreds or thousands of people if the road isn’t clear and understood.
Digital Transformation is more human than tech, treat it that way and your chances of success increase significantly.
Cyntressa Dickey, UK&I People Consulting Leader, EY
Over the past few years, we’ve observed a marked shift in the frequency and pace of transformation strategies. As organisations navigate numerous challenges, the push to transform and keep pace has become more urgent. Under such pressures, positioning human factors at the heart of the transformation strategy alters the focus and investment allocation of leadership.
Through a collaboration between EY and the University of Oxford’s Saïd Business School, research findings underscore that organisations which prioritise the human element in their transformation journeys are 2.6x more successful. This people-first – or human-centric approach – transcends traditional workstreams. It acknowledges leadership, vision, emotional support, culture and empowerment as essential drivers of successful transformation, harmoniously operating alongside technology and process shifts.
Implementing a human-centric strategy involves immersing employees in the early stages of transformation, fostering a rich understanding of end-user needs and the challenges being addressed. This not only makes employees feel integral to the journey but also fuels a collaborative ethos that embraces a digital culture open to innovation.
The adoption of this approach also signals a critical shift – from a typical model to a culture that cultivates care and continuous learning. Regular employee feedback becomes a cornerstone, guiding organisations in finetuning their transformation strategies to align more acutely with user needs. Empowering employees through professional development to understand the evolving tech landscape ensures no one is left behind in the Digital Transformation process.
By prioritising people in Digital Transformation, businesses can synergise their strategies with user experiences. This not only heightens the probability of successful implementation and adoption but is also critical to unlocking the full potential and value of their technology investments.
Nav Uppal, Chief Digital Officer, Pulsant
Organisations aiming for successful Digital Transformation must prioritise a human-centric approach. While the ‘digital’ may make it seem counterintuitive, focusing on people – both people and client’s – is crucial to meeting needs, creating an engaging work environment and achieving successful change.
To begin with, establishing a comprehensive understanding of day-to-day processes across the business is essential. Identifying pain points, strengths, weaknesses and bottlenecks helps organisations avoid unintentionally disrupting key activities. Actively involving people in the transformation process fosters greater acceptance and engagement, aligning their goals with the organisation’s objectives requires trust in the workforce to express their needs and concerns accurately.
Similarly, it’s important that Digital Transformation not be dictated by technology – it’s much more about what people need from technology. User-centric design and a client-centric approach are foundational, with user testing and iterative methods helping to ensure tools are user-friendly and fit for purpose. Metrics and KPIs should focus on employee satisfaction, client experience and well-being, emphasising that the system should never supersede the people it serves.
Diversity within teams is important too, bringing fresh perspectives for creating solutions that cater to a broader user base. Effective communication is vital to balance differing opinions and encourage feedback.
Leadership commitment also plays a significant role in making Digital Transformation more human. Open, broad communication and understanding of the needs of both people and clients must be integral to the transformation strategy.
Several strategies can facilitate this human-centric approach:
- Target pain points: Solutions should address pain points raised by people and clients, fostering shared goals and engagement across departments.
- Continuous feedback: Implementing feedback loops throughout the transformation process allows for constant evolution based on learning. Prototype testing and survey tools can represent employee sentiment effectively.
- Employee support and training: Providing support and training, during and after the transformation, facilitates quicker adoption of new processes and tools, reducing resistance and enhancing capabilities for long-term use.
- People-based metrics: Success measurement should include people-based metrics, aligning with the growing focus on well-being and a sense of belonging in a hybrid working environment.
- Cultural change: Throughout the transformation, a cultural shift occurs naturally, with users more open to promoting ideas, recommending enhancements and solving problems when they have leadership support.
A holistic, human-centric approach will foster a culture that values people and their well-being, driving efficiency while still affording room for personal and professional development. The success of Digital Transformation ultimately hinges on understanding and meeting the needs of the people it is for.
