Resilience isn’t enough. You need to be digitally elastic

Resilience isn’t enough. You need to be digitally elastic

At its core, resilience is about weathering a storm and bouncing back. But what we’ve experienced in 2020 is a tsunami, not a storm. 

Resilience, as we typically define it, isn’t enough to deal with this crisis. So, dig deeper and you’ll find an important facet of resilience: elasticity — the ability of a substance or object to spring back after being pushed down and beaten up.

If your company wasn’t elastic before COVID-19, you should learn to be now. There’s a simple formula — and it doesn’t involve complex chemistry or polymer science. Digital transformation is how you get there, technology is the engine, and your people are the drivers. 

A full 66% of companies surveyed last year for PwC’s 2020 Global Digital IQ said revenue, growth and profitability would suffer if they didn’t digitally transform quickly. Imagine how many now lament their failure to act.  

Many executives may think it’s already too late to transform, but it’s not. Uncertainty brings opportunity for those who seize the moment — in this case, by turning years of digital lip service into actions needed to become elastic. Automate menial tasks. Free up time for strategic work. Choose the right technology and the best experience for your needs. Invest in online capacity beyond today’s requirements, and turn to remote-only digital monitoring and marketing.

Of course, to do all that with constrained budgets and fewer people, stop doing the same things you’ve always done, just because you’ve always done them. The trick: Be ruthless about what you keep and what you leave behind. 

What’s this look like in practice?

Companies that invested heavily in digital transformation before COVID-19 pivoted more quickly than competitors, were more resilient and elastic, and saw better results.

A pullback in advertising threatened Spotify’s business model, but it had already been exploring content creation, inking celebrity deals and curating podcast playlists. Bumble and Facebook had what they needed in place digitally to begin offering video dating, and Airbnb accelerated its transition to a lifestyle company, connecting hosts with travelers for everything from online cooking sessions to art therapy. 

And, a little over a year ago, Chipotle was in its digital transformation homestretch. The company revamped its website and hired new delivery partners. Chiptole also invested heavily in customer experience, tech transformation and becoming digital. It examined order and payment experiences, and developed a proprietary technology to schedule digital orders and forecast wait times. The burrito giant also implemented a highly personalized, cross-platform loyalty system and built kitchens to cater specifically to online orders. Then, Chipotle eliminated paying for online orders in-store. In the second quarter of 2020 — amid the pandemic —digital sales more than tripled.

These success stories should be eye-opening for any company that hasn’t already gone all-in on digital. It matters. And more and more executives are realizing that digital tech is a must-have business tool, not a nice-to-have option. Of planned investment cuts, only 17% of CFOs around the globe reported that they are deferring or canceling investments in digital transformation, while budgets for things like operations are set to be slashed.

It’s not just tech 

Digital transformation is not just about cutting costs or wringing efficiencies. Instead, the focus should be on increased innovation, faster virtual collaboration, more resilience and elasticity, and a mindset that drives the best ideas to the top — and to market faster. How can you accomplish that? With BXT Works, a proven process that changes how you work, think and engage to bring the best ideas to life. It’s how PwC built a $500M product business in the last three years — and now helps clients do the same.

If your strategic initiatives don’t have a mix of business strategy, immersive technology and creative experiences, you probably won’t get far. And if your C-level team doesn’t work in an agile, elastic, human-centered way, you’re only talking the talk. It’s time to walk the walk. 

The small group of companies doing this consistently reap returns across digital initiatives and achieve a 17% higher profit margin growth. They also say their people have more impact on the bottom line and are generating more innovative ideas. This elite group, which we call the Transcenders, are also good at disruption and being resilient. 

How? Transcenders — just 5% of companies surveyed— transformed themselves to become digital-first firms. Most (84%) mandate employees work across functions and departments and create ways for staff to do so. Transcenders also provide the tools, culture, and infrastructure needed to make transformation happen: They spend 33% more on digital initiatives and ways of working. The result: speed, agility, speed to market and the ability to weather a tsunami. They’re more resilient and elastic.

Want to know how to become elastic? Come back next month for our ideas.


Amy Dean

Content Creator-Ghostwriter-Copywriter

3 年

Spider?webs can withstand hurricane strength while they can bend and spin into whatever shape they want. Be the spider web.

Andrew Dixon

Founder @ Element Content | Driving B2B Growth

4 年

Excellent insights! Thanks for sharing.

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Don Choi

Strategic Change Leader | Organizational Transformation Expert

4 年

Great article. Thanks David!

Ben Drumm

Travel & Hospitality I Business Development Executive

4 年

David, great article. Thanks for sharing. What resonates, is it's not just about DT. "Focus should be on increased innovation, faster virtual collaboration, more resilience and elasticity, and a mindset that drives the best ideas to the top — and to market faster."

Robert Yelle

Global Client & Partner Enablement Director

4 年

nailed it... "elasticity"

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