Why people matter far more than digital technology or capital
| Pages | 29-32 |
| Date | 12 February 2018 |
| DOI | https://doi.org/10.1108/SHR-11-2017-0082 |
| Published date | 12 February 2018 |
| Author | Michael Gale,Chris Aarons |
| Subject Matter | HR & organizational behaviour,Employee behaviour |
Why people matter far more than digital
technology or capital
Michael Gale and Chris Aarons
Abstract
Purpose –Fifty-five per cent of executivesat large corporations are extremely concerned about digital
startups becoming significant competitors in their market. If the best technology these startups use is
availableto everyone and larger companies have the budgetsto buy more, how can startups cause such
a lack of sleep for leaders?Could the reason be the people, as startupsgenerally are run and staffed by
Millennials?
Design/methodology/approach –The evidence for thiscomes via three separate research effortsand
hundreds of hours of intenseinterviews with transformation leadersin commercial organizations such as
USAA, Southwest Airlines,Citi, Hallmark, MIT and government agencies such as the GSA and the FCC.
This research lookedat how organizations were changing the way theythink, organize, invest and act in
pursuitof digital transformation success.
Findings –Sixteenper cent of larger organizations saw a real return on theirdigital transformation efforts.
Successful digitally transforming organizations could cut OPEX three times more effectively than other
organizations. Successful digitally transforming organizations (56 per cent of them) saw sales
performanceand customer satisfaction rise in unison. Forty-two per cent of theseorganizations revealed
and solvednew digital challenges that they had not recognizedbefore; 87 per cent of these organizations
saw enhancedgrowth in demand.
Originality/value –Technology is a huge part of digitaltransformation. IDC has predicted that in 2017,
$1.7tn will be invested on digitaltransformation technology and processes alone. That is the sizeof the
tenth largesteconomy in the world.
Keywords Technology, Transformation, Digital
Paper type Viewpoint
Fifty-five per cent of executives at large corporations are extremely concerned
about digital startups becoming significant competitors in their market. If the
best technology these startups use is available to everyone and larger
companies have the budgets to buy more, how can startups cause such a lack of sleep
for leaders? Could the reason be the people, since startups generally are run and
staffed by Millennials?
Technology is a huge part of digital transformation. IDC has predicted that in 2017,
$1.7tn will be invested on digital transformation technology and processes alone. That’s
the size of the tenth largest economy in the world. None of what IDC talks about is about
people. It is all about technology and services to put it all into place such as AI,
machine learning, cloud, automation, Internet of things. Yes automation has a huge
potential to restructure the working world. A recent government report in the UK argued
that 30 per cent of existing UK jobs could be severely impacted by automation. We
know from our own research that beyond the $1.7tn being invested in it, executives are
investing on average 20 hours a week of their time to the drivers, challenges and
enablement for a successful digital transformation for their organization. Nearly, two full
days a week. Ask yourself as an HR professional if you are being asked to invest that
Michael Gale is Managing
Partner at Inc. Digital,
Shoreline, Washington, US.
Chris Aarons is based at
Inc. Digital, Bee Cave,
Texas, US.
DOI 10.1108/SHR-11-2017-0082 VOL. 17 NO. 1 2018, pp. 29-32, ©Emerald Publishing Limited, ISSN 1475-4398 jSTRATEGIC HR REVIEW jPAGE 29
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