Digital Transformation is About People, Not Just Profits

Why should organisations, and insurance companies, in particular be embarking on a digital transformation program? There all sorts of reasons but increased productivity, improving morale and employee well-being are cited by a recent survey which shows that 53% of high-level professionals believe that their company’s digital transformation priorities are focused on how to increase profits instead of empowering employees.

It’s an important finding and one worth considering by CIOs and business owners or leaders contemplating embarking on a digital transformation program.

The employee's survey by Zensar said employees would be more empowered to better manage workflow if they were provided with the needed digital tools. 42% said these tools would speed up boring tasks and improve worker morale. 38% believe a focus on worker empowerment via IT would allow the company itself to change faster.

76% said that having digital tools makes them more productive. 53% said it makes them more successful. A third said it makes them smarter, and 28% said it makes them happier.

A huge shift in employee mindsets and aspirations is taking place in the modern workforce. Deloitte estimates that millennials will make up 75% of the workforce by 2025. Millennials came of age at a time of rapid technological advancement. More than any other generation, they consider tech as cool. They are also tech-savvy – and are plugged in almost all day. As such, anything techy excites them.

It’s not just Millenials who are tech mad, however. Most employees understand the value of having the right digital tools to get the job done. 68% of the 18 to 34 age group said having the digital tools they need at work makes them more productive. That’s a significant share. But it’s even higher – at 80% – for the 35 to 54 age group. And a whopping 83% of workers age 55 and older agreed.

To a manager, this presents an opportunity. Tech is a good way to engage, excite and motivate employees. It is a matter of figuring out how to tap into this their technological know-how. In most cases, this doesn’t just get them motivated, it can also make them more productive.

Separate research also notes that companies that are digital laggards don’t perform as well as those that embrace digital transformation. Technologists at Harvard Business School wrote, “organizations that scored in the top quartile of our digital transformation index obtained much better gross margins, earnings, and net income than organizations in the bottom digital quartile.”

According to Harvard, digital leaders are:

• 2.6x more likely to collect data on employee performance and generate recommendations for development
• 1.4x more likely to empower employees with access to self-service business intelligence and data visualization tools
• And 1.7x more likely to allow employees to define and receive real-time alerts to more effectively manage changes to the business

Someone once said that productivity is being able to do things that you were never able to do before. In a recent Insurance Day article I outlined how new technology and digital transformation is set to transform the insurance sector but I neglected to mention it’s potential to transform people. In my view, digital transformation isn’t about replacing people with technology, it’s about giving them the tools to do the things they were unable to do before.

Flexibility, taking the stress out of IT and reducing risk are the three pillars of our business. Fifth Step are experts in digital transformation, specialist IT recruitment, and innovation delivery services. If you would like to discuss our approach to business transformation, why not get in touch by email Darren.wray@fifthstep