Human factors in digital transformation

Digital transformation (digital transformation) is a transformation of people; therefore, building"digital human"is the most important factor.

There are 2 important factors for building"digital human"is:"Digital awareness"and"Digital capability". Digital awareness plays a very important role, because digital transformation is disruptive and completely changes the old way of working. If a role is not correctly understood, there is no resolve to carry out the change.

Attitude, knowledge, and skills, for their part, are what enable us to work in a digital environment. Innovation will have no meaning if we do not have the skills to use it. Investment must therefore be selective, so that people can adapt to new skills, stay eager to learn, and remain flexible.

In digital transformation, people are the most important factor

Digital transformationis to add value to every interaction with users and customers, and to change how an entire business or organization operates. In some cases, it is to create an entirely new business model.

“In an agency, a company, or an organization, if processes and ways of working are not changed together with workplace culture, the way people exchange, work, and communicate with one another, and the way the apparatus and the hierarchy are built, then investment in technology or software will bring no benefit.”

Digital transformation is about people; it is not simply about technology. Buying modern equipment and machinery is not the difficult part. What matters is unlocking the potential of the people who use it, so that it is effective and waste is avoided.

“Digital transformation must, first of all, take the human factor into account. Innovation will mean nothing if we do not have the skills to use it. People are the most important factor. Investment must be appropriate, and the ability to adapt to technology, the eagerness to learn, and flexibility must be improved.”

Digital transformation is not merely a technical matter

The success of digital transformation is closely and critically tied to each person's ability to accept change in corporate culture, as well as in traditional ways of working.

Managing change becomes essential, requiring leaders at every level to have a full and accurate understanding so they can communicate the benefits of digital transformation to individuals effectively.

Resistance to change is 1 common form of the factionconservative. This is a common challenge in human factors management.

People often tend to resist change, especially when individuals feel comfortable or proficient with old traditional processes, something commonly seen in society and in politics.

At times, change can make individuals feel a loss of control over their work environment.

Therefore, providing employees with adequate training and support is a prerequisite, and is necessary to ensure the transition proceeds smoothly.

• Implement a comprehensive change-management strategy.
• Communicate the benefits of digital transformation regularly and clearly.
• Provide continuous training and support.
• Establish a hierarchy of roles and responsibilities, ensuring that individuals understand their contributions to the shared effort.

Digital Awareness and Understanding of Digital Technology

According to survey reports, a shortage of adequately skilled personnel is one of the leading challenges throughout every stage of digital transformation.

Limited awareness and understanding of digital technology can hinder the adoption of digital transformation. Employees may have difficulty adapting to many tools and technologies with many different interfaces and functions.

Investment is therefore needed in comprehensive training, education, and skills upgrading. Technical knowledge should be spread and applied to management capability so that digital tools can be directed effectively.

The leading challenges in each stage of digital transformation% of companies responded that the level of challenge they face is "to a moderate extent"(moderate) or"to a greater extent"(greater) (non-online companies).

Planning
Shortage of skilled staff	██████████ 20%
Lack of capital	█████ 10%
Return on investment risk (ROI)	█████ 9%
Lack of leadership	█████ 9%
Fear of change/internal resistance	████ 8%
Cybersecurity risk	████ 8%

Trial
Shortage of skilled staff	███████ 14%
Fear of change/internal resistance	██████ 12%
Lack of capital	█████ 10%
Cybersecurity risk	█████ 9%
Integration with existing systems	█████ 9%

Implementation
Shortage of skilled staff	███████ 13%
Cybersecurity risk	██████ 12%
Return on investment risk (ROI)	█████ 9%
Integration with existing systems	█████ 9%
Limited understanding of technology	█████ 8%

Sustained operations
Cybersecurity risk	███████ 14%
Shortage of skilled staff	███████ 13%
Fear of change/internal resistance	██████ 12%
Integration with existing systems	█████ 9%
Lack of capital	█████ 9%

Leadership vision

Change in an organization usually comes from the highest level. If the leadership includes people who understand technology, the annual digital transformation strategy is more likely to succeed.

In the context of digital transformation, major change cannot be expected unless it begins by selecting and starting from the most senior leaders.

“Leaders must emphasize the urgency of digital transformation, and at the same time create the conditions for employees to work in new ways, encouraging ways of working that change behavior across the whole system. Employees should be allowed to offer views and contribute on which functions should be digitized, whether implementation should proceed, and on greater use of digital tools.”

Successful digital transformation requires a clear vision and strong engagement from leaders.

Clearly defining the vision will guide the transformation journey, inspire, and give employees confidence. Leaders are the people who nurture a culture of change and innovation for the enterprise.

The executive board needs to define and communicate the digital transformation vision clearly to employees, allowing them to take part in decision-making and contribute to the overall strategy.

This will help individuals recognize their own worth and feel that they are heard and respected, thereby encouraging participation and removing resistance.

Collaboration and communication, Breaking down Silo

Digital transformation applies new collaborative structures between people, and between people and machines, and will inevitably disrupt traditional structures to some extent.

Cultureworking in silos- behavior that focuses only on one's own work without sharing information with colleagues or other teams - will obstruct a seamless, effective flow of information in the digital transformation process.

Different technologies may have different communication features. Promoting an environment that encourages open communication and collaboration will break down traditional barriers, allow stakeholders to work together more effectively, and prevent misunderstanding or gaps in the exchange of information.

Adaptability and feasibility

The rapid pace of technological development in every field and across many occupations requires the workforce to be highly adaptable.

Employees need to update their skills continuously, learn new tools, and adjust to a digital world that is changing. Alongside individuals — often younger people — who can adapt quickly to technological progress and who have many opportunities to develop, other personnel from earlier generations — or people who are more introverted — may experience stress that leads them to resist change and innovation.

The enterprise needs to recognize this issue in time, and needs experts capable of providing advice, counsel, support, or coordination suited to each individual.

In summary,digitization provides the advantage of doing everything faster, better, and at lower cost. The efficiency gains are realized when digitized data is used to automate processes, deliver better returns, and create more opportunities to produce value.

Digital transformation uses the constant, rapid innovation of technology to solve problems. It is urgent work in the age of the Internet’s explosion: a strong and comprehensive renewal of how the entire enterprise operates, in every aspect, such as supply, production, cooperation, and customer relationships, or even the creation of new enterprises with entirely new ways of operating.

The greatest difficulty of digital transformation is changing habits. The greatest challenge of digital transformation is having the right awareness: whether leaders dare to act or do not dare to act. The focus of digital transformation is not technology but people.