Digital Technology has become a pivotal contributor to global growth and economic development because of the ease of access and global access to individuals and businesses. "It fosters globalisation".
One of the most impacted areas of human activity by digital technology is communications. Through social media channels, geo-mapping technology and telecommunication, digital technology has continued to evolve as a necessary amplifier and disseminator.
During the Covid-19 pandemic, digital communication channels experienced a significant surge globally. Three hundred and sixteen (316) million people joined the existing number of internet users globally, representing a 7.3% increase from 2020 to 2021. Western Africa experienced a 96% increase in internet users between 2020 and 2021. 1
The increase in internet use and mobile connections by individuals and businesses simultaneously led to the rise in e-commerce activities, an effect that was amplified by the pandemic. Due to this growth impact and social effect, organisations and industries have continued to invest in technology to communicate with their stakeholders.
Before 2020 and the COVID-19 pandemic, organisations made routine investments in generic technology and often attained less than expected results. In a study conducted by MIT Sloan management review and Capgemini Consulting, the collation of 1,559 responses from executives and managers across a wide range of industries revealed that those managers understand and believe in the transformative abilities of technology. 2 However, they felt frustrated by how hard it was to get the desired results from the new technology they procure.
To achieve the maximum positive result from digitisation of company processes there should be an alignment between an organisation's strategic goals across three dimensions. Externally, ensuring digital adaptations enhances the customer's experience; internally, assessments of technology's impact on business operations, decision-making, and organisational structures; and holistically the effect of technology on the overall business model.
The outcome of a misalignment in company strategy and digital technology structure within an organisation often leads to low returns on investments of the technology provided. The impact felt can be like those felt by the executive in the Capgemini Consulting research.
With the changing economic climate and increasing opportunities in digital technology, an organisation needs to invest in technology for technology's sake but with strong alignment with its business strategy to bring about positive digital transformation for the company.
pcl. understands that organisations cannot get their desired value by simply investing in high-end technology. As such, we offer essential strategy alignment services to organisations that aim to leverage digital technology tools for growth and expansion.
Previous Posts by Phillips Consulting
12. Effective Performance Management Practices in the New Normal