The Fortune 500 is a list that highlights the top 500 companies in terms of revenue at the end of every year. Only about 10 percent of the Fortune 500 companies are still existent in the modern market since 1955 (the year the list was first published).
So how did these old companies manage to survive for so long? They did so because of their constant innovation, adaptability to modern technology, and digitalization. Using digital technology to improve a company’s performance in terms of revenue is integral for its survival in the long haul. This is where a company’s “Digital IQ” becomes a factor.
What is Digital IQ?
Technology can play a vital part in the success of any organization. Digital IQ is a measurement that highlights how good an organization is at profiting from digital and technological solutions.
How Digital IQ Affects your Company?
We are undergoing a rapid digital transformation at the global level. The companies that remain oblivious and ignorant to digital technologies are going through huge losses due to rapidly evolving consumer behaviour.
Companies are, therefore, investing large chunks of their budget in undertaking effective technological initiatives or improving the existing ones. Unfortunately, reports suggest that most of these initiatives fail to deliver their targeted goals. So what are the reasons behind the failures of such initiatives? According to multiple surveys, these ineffective technological changes are attributed to a lack of digital skills among employees, outdated tools, and having poor IT integration methods. Putting all this together, it is safe to say that the companies are suffering from insufficient Digital IQ at the organizational level.
Declining Global Digital IQ
You might be shocked to know that even as time progress and companies start investing more and more in technology, the global Digital IQ is still seeing a decline. It is an apparent fact that all the major and even new companies are dipping into their funds to set a high budget for the IT departments, cashing in to purchase new digital tools, technologies.
So how is it that the Digital IQ is still dipping? The issue behind a lagging Digital IQ is that the pace of digital innovation is too high for companies to keep up with. The key is to integrate digital transformation smartly and selectively.
This brings us to the next and the most important part — what are the ways through which you can boost your company’s Digital IQ at an organizational level?
Let’s find out.
How can Companies Improve their Digital IQs?
With so much emphasis on digitalization, companies would face enormous losses if they fail to capitalize on their investments. Improving a company’s overall Digital IQ is the most effective and perhaps the only way to ensure that they can maximize profits through technology. Here’s what needs to be done:
1. Have a Strategic IT Plan
When you encounter new technology, it won’t be that difficult for you to understand its specifications. But, integrating it with a company’s ecosystem to boost the performance can be tricky. A company can only make the most out of any new technology if it is compatible with the needs and requirements. Having a strategic roadmap can help you overcome the complexities of novel technologies.
2. Train Your Employees
One of the primary reasons most technological initiatives fail is that the employees are not well-versed with the technology they are using. Keeping this in mind, organizations tend to recruit employees who are adept with computer and digital skills. Unfortunately, this is not a feasible solution and doesn’t yield a tangible return on investment.
Training your existing employees to get acquainted with your company’s technologies is a more foolproof tactic. They promote Digital IQ by providing comprehensive guides and providing regular feedback, and metric-based analysis. They also encourage clear communication between the training teams and the employees to prevent any form of friction in the process.
3. Aligning Company and Tech Goals
You might not believe, but most of the company’s IT department employees don’t know anything about a company’s objectives and goals.
The goal of digital transformation is to make use of technology in a way that contributes to the overall goals of the company. If the people behind such technologies don’t know about the company’s objectives, they won’t be able to do justice to the company’s digital potential.
Creating a direct link between a company’s overall goals and tech goals is essential to get the maximum return.
4. Designing Digital Initiatives
Constant digital innovation and adapting to the latest technologies can help a company stand out from its competitors. That is why pushing out effective digital initiatives should be a company’s topmost priority.
But designing these initiatives needs a certain baseline. Before making a decision, companies need to ask themselves the following questions:
- What are the skills required to make this initiative a successful one?
- Do the employees and workforce have these skills?
- Are the appropriate tools needed for this initiative available?
The answer to these questions is integral in digital transformation success. More often than not, poorly thought-out digital initiatives can actually be a setback for a company.
5. Diagnosing the Existing Initiatives
Just because a digital initiative was successful at some point doesn’t mean that it won’t require any updates or changes. Technological transformation is all about keeping up with the latest changes. Collaborating with digital experts and IT employees to perform periodic audits on existing digital initiatives is the key to ensure that it keeps performing at the maximum level.
6. Building External Dynamics
No company or organization can handle all the digital aspects by itself. There are some areas where the organization lacks, for example, technology. In such cases, having external contacts can help. Keeping in touch with external collaborators like universities, start-ups, and other digital experts can help companies stay updated with the know-how of the latest tech in the market. Moreover, these third-party entities can also serve as backup consultants in times of crises or any form of digital disruption within the organization.
Boosting Digital IQ is a Process
You can implement all these tips to kick-start the process of improving your company’s Digital IQ at the organizational level. But, if you expect results overnight or even within a few weeks, you’ll end up disappointed.
If you wish to see results, you need to be patient. Moreover, your strategies will also need improvements and tweaks from time to time. Taking this journey as a learning curve and making the necessary changes to get the highest returns on technological investments is the backbone for any company’s success.
While all the other companies are scraping the bottom of the barrel in terms of digital IQ, your organization can make a real mark in the industry by being one of the few that are taking valiant inroads into creating a more digitally adept workforce. Best of luck!