Interesting research from EY that states that companies are investing in IT for digital transformation but are not investing in the people and the process.
If we think about Digital Transformation the "benefit" to use of digital are news ways of working, new efficiencies. We are not actually getting the benefit if we slam in a new IT product but still work in an analogue way. Of course, I'm sure there are savings, most cloud systems will do twice the functionality for halve the price. But Digital transformation has never been about savings money, it's about doing things in a more efficient and digital way.
The other issue is giving people the digital skills. In the world we work we have people using 1980s tools and techniques. I've just been sent an article where marketing are suggested they need to talk to sales. Really? In what is nearly the second decade of the 21 century. And the trick of course is to use social (we use Slack) to do it.
The ignorance we see on even fundamental modern working practice is scary. I was having a conversation on LinkedIn yesterday where somebody opening admitted that they were working alone, trying things out digitally without any help. This is inefficient and ineffective, especially when there are best practice you can buy off the shelf.
If we think of "management time" as people £100 ($130) and hour, how long before you rack up the cost of an external consultant?
Now this isn't the fault of the people, the change that has taken place since the introduction of the internet, mobile and social we have seen nothing like it. But with any digital transformation, the people and the process have to be taken along with the transformation. That means .... and wait for it ...... companies spending money on outside help.
Our survey also uncovered a worrying disconnect between organizations’ digital and people strategies. Just 57% of businesses have their people strategy as part of their digital transformation agenda, while less than half (43%) of businesses have an HR strategy that looks more than three years ahead. The risks to businesses are clear. Already two-thirds (67%) of HR leaders are saying that skills shortages are damaging top-line growth, with 73% seeing a negative impact on productivity and profitability.