Technology delivers more power than you realise
Stine MathisenBusiness Driven Architecture
Leaders are struggling to understand the power of the digital investments they've already made. Companies have systems and platforms that can provide enormous power and value creation yet are rarely prepared for the change digital transformation requires. The goal should not be new systems but to increase implementation power and creating new value.
- In recent years, the willingness to invest in technology in all businesses has shot to new heights. The big question is whether all these investments have actually provided the value creation we had hoped for? Many initiatives are launched without considering the two most important perspectives, namely people and data, says Leiv Thomas Sandnes, Director of Technology at Evidi.
Investing but not making changes?
Figures from renowned Gartner show that technology investment increased dramatically throughout the pandemic. At the same time, it is argued that CFOs globally will continue to spend more or as much on new technology, even if inflation continues. In fact, the figures also show that those who invest in technology are 2.7 times more likely to retain their customers and 3 times more likely to have more revenue than competitors in the same industry.
At the same time, another survey from Gartner shows that many managers do not make changes to their operations and organisation that take advantage of the opportunities provided by newly purchased technology.
There are strong indications that Norwegian and Scandinavian businesses need help to exploit the potential that already lies in the digital tools they have. In recent years, investments in digitalisation have increased considerably and many believe that they have understood how important this is. That is good, but the understanding of how important digitalisation is, is unfortunately not enough. Many simply must learn how digital tools become an integral part of the company's operations and often be the catalyst for change.
The opportunities inherent in digitalisation are what is important. It's no longer about getting a tool that helps you do what you already do better – but rather about changing the way you do things so that both your business and your customers get better products and services.
The value of freed data
People often talk about releasing data but the examples of what it actually implies,and means are not always so easy to obtain. Take one of our examples, OBOS, which introduces a common CRM system across departments that work with different segments and customers.
The ambition is to become "One Obos". Through a larger project, they have managed to get rid of old technical debt, opened opportunities for sales across the organisation, and, most importantly, saved a lot by not doing the same job twice in different departments. Another benefit is that you gather customer data in one place which enables you to market the right message at the right time.
This example shows how there can be very concrete gains to be made from freeing up a company's data, instead of letting each department sit on its own. The ability to implement increases, new values and revenues can be realised.
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How do you reap the value of your investment?
We believe that the greatest benefits from the solutions a company adopts or plans to implement are created through enthusiasm for the opportunities they provide. Enthusiasm is created again by involving managers and employees. Having a structured approach around change management and digital competence building is guaranteed to increase the company's efficiency and innovative power.
When the business combines a scalable, modular IT architecture that provides access to real-time data with strengthened digital capacity, this together can give the business the increased competitiveness needed to succeed with the ambitions they have.
People are the most important thing
As often stated, technology is not the most important thing, it's the people. In all processes where people are involved, there is a learned behaviour and a learned expectation of how things should be.
If there is one thing we humans are programmed to avoid, it’s uncertainty. Therefore, just as it is important to understand all aspects of the technicalities, it is equally important to have a deep understanding of what it takes to get the people in the organisation to be part of the change. If the change concerns an internal process, providing security and a clear expectation of what the new everyday life will be like and how it will affect their work situation is crucial. Despite this understanding, it is surprising how few major IT initiatives take care of the human aspects in a digitalisation project in a structured way.
For us as a service provider, the future seems clear. Proving the value of investments and the value of data is the most important thing for us and for everyone who buys our services.