Competitiveness by developing the organization’s ability to change

Significant, sudden changes in recent years have demonstrated that the ability to change, adapt, and agilely evolve is central to a company’s success factors. Continuous changes in the operating environment, sustainability deficits, and rapid technological development bring opportunities and challenges to organisations and require a lot of development investment. The key question is how we can best benefit from the union of operating methods, humans, and technology, says Henna Ahtola, Director of Business and Change Consulting at Digia.

An unprecedented era of change requires organisations to focus on agility and change capability. “We live in a global world where everything is strongly interconnected. What happens in a neighbouring country or another continent also affect us through the markets. How can one prepare for all possible changes, and how should limited resources be allocated between different development areas? And how is agility maintained during change to renew ourselves when the situation changes again?” Ahtola describes the situation of organisations.

Realities force organisations to make choices. Where do we invest when we cannot invest in everything?

“At the strategic level, companies and organisations must identify which changes are essential for their operations and what to focus on. A visionary strategic partner is an unbeatable advantage in this,” says Ahtola. “Distributing resources evenly in every direction produces tepid solutions that do not improve operational or competitive ability.”

”At the strategic level, companies and organisations must identify which changes are essential for their operations and what to focus on. A visionary strategic partner is an unbeatable advantage in this.”

Creative utilisation of opportunities distinguishes future winners  

With the development of technology and especially the disruption brought by artificial intelligence, organisations must consider their processes and working methods more carefully in addition to prioritisation. Where should the resources and working time saved by digitalisation be directed?

“Quick benefits are often obtained from the cost efficiency of automation. In addition, we should think more about how the working time freed up by new technology is used effectively to our advantage so that we produce value for our customers more intelligently and comprehensively while ensuring that work remains meaningful and motivating for the employee. When renewing operating methods, we should also consider what roles people will have in the future and what kind of expertise needs to be developed,” says Ahtola.

Strategic planning and management of the whole are essential, as in addition to improving efficiency and productivity, change may conceal a future competitive advantage. Improving operating models is the key to success rather than just
seeking savings. This requires investments in organisational culture so that developing operations genuinely interests every employee.

“The time freed up by technology can create opportunities for growth and innovations. It can have a huge impact in the future,” Ahtola outlines.

Digital transformation does not arise from investing in technology alone

Many companies embark on a digitalisation journey technology-first for a simple and understandable reason: technology is easy to buy. Studies show that most change projects fail and do not achieve their goals.

“We are used to buying technology because it is concrete and easily comprehensible. Sometimes, however, it leads to buying technology without understanding what we are trying to achieve and how we could achieve the best possible result,” Ahtola describes. “In the totality of change, one must consider, in addition to technology, changing operating methods and processes and the perspective of leading people. The full benefits of technology are only realised when operating methods change.”

”In the totality of change, one must consider, in addition to technology, changing operating methods and processes and the perspective of leading people. The full benefits of technology are only realised when operating methods change.”

Change has many levels, all of which must be led. 

A successful digital transformation is a multi-dimensional entity and its systematic management requires understanding the different change levels.

“Projects fail because investments in leading the change are insufficient. At the same time, one must be able to lead change at the individual, project, and organisational levels. Actual change occurs only when all these levels meet,” says Ahtola.
Leading human change plays a significant role, as the real benefits of digitalisation are only reaped when a sufficiently large part of the organisation implements the new way of operating.

“Change management as a term has suffered quite an inflation, and often it is reduced mainly to communication and training. I think that at its best, change management starts with strategic planning, and it must always be based on concrete business goals and metrics,” says Ahtola. “The goal of a change project cannot be just to achieve a merger or get a new system in use. A good goal is measurable, for example, increasing market share by five per cent over a certain period. In addition, organisations need to build long-term change capability. Success in this will distinguish the winners of the future.”

Take control of change comprehensively with a skilled partner

The most significant benefit of digitalisation is achieved by looking at the overall picture of the business. Digia is an experienced and broad-based partner with strong technology expertise, a strong vision, and experience in business renewal. If the topic is current in your organisation, contact us, and   let's continue the discussions.

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