Bold decisions create magical transformation

Digital transformation is not a buzzword. I’ve been part of huge transformations throughout my career. But the pandemic fast-tracked the digital agenda and made it clear that if an organization doesn’t embrace the future and become agile now, it will soon be out of business.

Most companies know this and are hungry for change. But they can’t just flick a switch. Frankly, a few software updates aren’t going to cut it in this new world. Digital transformation demands huge organizational change: new business models, mindsets, processes, technology, and even partners.

And its impact needs to feel seamless. Science fiction writer Arthur C. Clarke once wrote: “Any sufficiently advanced technology is indistinguishable from magic.” I often cite that quote because it’s true. When I walk into a room and turn the light on, I do it without thinking; the best technology doesn't get in the way of people living their lives.

Today, how an organization implements change will impact whether a transformation captures this magic or not. At the root of this is bold decision-making. But that doesn’t mean taking risks for the sake of it.

To pull off digital transformation, decisions need to be people-led, data-backed and, crucially, all-in. Such a big commitment can feel risky. But in today’s fast-moving world, embracing change is the only way to survive.

In fact, sticking with the status quo could be the biggest risk of all.

‍People power

We talk about digital transformation, but that suggests we’re currently living in an analog world. That’s not entirely true. Most companies already use technology and, while it is a necessary component of digital transformation, specific technology solutions shouldn’t be the basis of a transformation. Technology will always keep advancing. Instead, businesses need to focus on their people first.

An organization’s people will be the drivers of any change and will, ultimately, determine the success of any bold, transformative decisions. A business may have the latest technology in place, but without its people’s support and willingness to adapt and adapt again, that investment will be worthless.

‍A foundation of data

After people, a business’s number two asset is data. It’s the catalyst for change. Once an organization takes control of the underlying data, new builds and processes become far faster, and it can become a real, strategic competitor.

But how a business manages and stores data is critical. A data fabric is one of the foundations of successful digital transformations, as is the cloud. It democratizes an enterprise’s data, breaks down silos and unleashes data’s power. A business can then use its data to inform new models and power technological change faster.

Take retail. The pandemic forced traditional, brick-and-mortar stores to commit to bridging online and offline experiences to survive. To successfully blend e-commerce and offline shopping experiences, retailers needed to break down silos and make the most of their data.

UST worked with UK retailer Boots to do just that. Boots had evolved its role as a pharmacy to include retail and other revenue streams such as ophthalmology. As a result, Boots had collected more customer records than the population of the UK.

When the pandemic hit, organizing and taking control of its data was critical to its success as an online retailer. UST consolidated millions of customer records to create a 360-degree view of Boots’ customers. This unlocked the new business model and enabled Boots to market to customers better across online and offline touchpoints.

‍Partnering for success

For organizations, keeping up with the rate of change is almost impossible to achieve alone. Business models are far more collaborative, with companies working with technology vendors like UST and, in some industries, even working with direct competitors to transform faster.

A good example of this is the evolution of car manufacturers. As electric cars become increasingly important, the business model is changing; car makers have to bring in technology partners to create these new vehicles. This has created clusters in an industry where partnerships didn’t exist before.

Partnering up is the smart way to ensure transformational change positively impacts business outcomes. But when an enterprise is making decisions affecting shareholders or share price, it has to be wise about the partnerships it forms because they will impact success.

In my previous role as CIO and Senior Vice President for Equifax, I witnessed the ability of UST to partner with a company to drive successful transformation. For example, UST helped us reduce customer onboarding from 45 days to hours, enabling our team to focus on higher value tasks. UST becomes an extension of the team and an equal partner in transformation. And you don’t have to take my word for it; our average client tenure is 13 years.

‍Creating magic

As businesses continue to transform faster and faster, organizations that want to succeed have to lean into change and develop agile business models. This demands bold, all-in decision-making. But every decision a business makes must aim for the sense of magic Arthur C. Clarke talks about, too.

By focusing on the impact their technological change will have on people – both employees and customers – organizations can be more confident in their decisions. That doesn’t mean they can ignore the data or shy away from technology and partners. Far from it. But this goal helps a business make the right decisions and thrive in a world increasingly defined by change.