Why digital transformation is more about people than technology

Digital transformation is not only about how an organisation adopts the latest technology. It also requires investment in people, structure, operations, and culture.

Most businesses would agree that digital transformation is a necessary step forward to safeguard their future, especially after a year of much uncertainty and change. But, making this shift involves more than upgrading your technology. It’s also vital to consider the skills of the people who use these technology solutions.

?We should also recognise that digital transformation does not happen at once. It is an ongoing journey that continues to develop as it streamlines business methods, making them more agile, innovative and successful.

New technology is always coming to light,?be it artificial intelligence (AI), virtual reality (VR), machine learning or the internet of things (IoT). Bearing the large pool of services in mind, how do we implement new technology solutions sustainably??

Malaysia Airlines’ Head of Organisational Design and Effectiveness, Dr Esther Loo – a strong advocate for digital transformation – recently said on the?People People. Unfiltered podcast that while companies must invest in new technology to ensure speed, creativity and resilience, they cannot forget about their people. By combining people's creativity with the utilisation of technology, only then can the organisation grow their culture of innovation and collaboration.

“Change is the new norm,” Esther said. “Businesses should focus on technology that offers personalised experiences for their clients and employees. While also ensuring that the strategy in place is flexible enough to cater to disruption and changes in the market.”

In 2019?Harvard Business Review?published a survey of senior leaders and CEOs showing that digital transformation risk was their top concern. Yet 70 per cent of all digital transformation initiatives did not reach their goals. So, why are some digital transformation efforts successful while others fail?

“Successful digital transformation is when current processes are digitised, and corporations embrace a culture of change,” Esther said. Thus, digital transformation heavily rests on how the organisation develops and upskills their employees, who are imperative to the long-term vision of transformation. This change is driven largely through culture and mindset.

It’s not just about the number of processes that change. It’s about the number of people who can challenge the status quo, experiment, innovate and be comfortable with failure. Innovation is born from people’s drive to change the way things are done. Companies can incite change on a micro or organisation-wide level to further invest in their people while applying new technology to accelerate their methods.

The HR department also plays a vital role in this digital advancement and employee experience. People react differently to change, including digital transformation, and HR needs to leverage its understanding of people and their emotions to ensure a successful transition.?

“We need to create alignment by maximising communication,” Esther said. At the same time, companies need to focus on developing employees and helping them adjust to the changes through mentorship and training opportunities.

Malaysia Airlines began amplifying its digital journey a few years ago by adopting several innovative processes, including shifting its entire data centre and 200 applications to the?Hybrid Cloud model. The carrier has also collaborated with SAP on several projects, including the integration of its finance procurement and human resource functions to ensure Malaysia Airlines’ digital evolution is seamless.

“The airline industry united in adopting change when COVID-19 hit. It was a matter of survival. We were able to accelerate our digital transformation because everyone was united and aware of what was happening,” Esther said.

Through digital transformation, a cohesive ecosystem within Malaysia Airlines, together with its partners was formed. Employees were helping each other across divisions, stepping outside of their roles, leveraging their networks and working together to tackle ongoing challenges. This advancement helped build a culture of growth and collaboration at the airline.

During this time of change, Malaysia Airlines centred in on its people and their experience. The company had realised that in a digital future, where hard skills are less vital due to automation, soft skills were imperative to keep teams thriving.

It looked beyond nurturing a team of software engineers and data analysts because soft skills need as much, if not more, attention to future proof its workforce.

As the title suggests, digital transformation is more about people than technology… This was never more apparent than when the mobilisation of soft skills was particularly vital when Malaysia Airport had to gather around 1,000 staff to assist airlines and air passengers while the systems at KL International Airport were down. The systems disruption affected major functions such as the WiFi connection, flight information display system, check-in counters and the baggage handling system. The airline deployed more than 100 volunteers under its MH Rangers program to support airport staff handling check-in, boarding, and assisting passengers all over the airport.

During COVID-19, the airline also gave employees the option to either take a career break to upskill or try their hand in a different field. For example, some of the cabin crew received training on working in the contact centre which involved introducing customer-centric methods and empathising with clients approaches.

COVID-19 pushed businesses further towards digital transformation and employing new processes. But now, as the world continues to adapt, it’s critical to keep moving forward. The world is changing, and organisations need to evolve with it. To make sure your business comes out ahead, start by building a customer and people-centric culture that’s backed by innovative tech.