“ServiceNow CEO Bill McDermott said this week that $7.4 trillion will be invested in Digital Transformation over the next three years. “
The Real World has done the Digital Transformation for Us
For all the fluff and ambiguity that the “Digital Transformation” has suffered through in the past 5 years, the change is finally here. Don’t be stuck behind waiting for the perfect time to dive in, COVID has made the opening for the industry and we won’t be going back anytime soon.
Bill McDermott is correct about the investment in DT that the industry is about to be inundated with more programs and projects to transform the way we live our 9 to 5 day.
Microsoft’s CVP Jared Spataro also wrote this week that “we have seen 2 years of digital transformation in 2 months” as the company’s “Teams” product grows its customer base 37% in one week. COVID-19 has left its impact on the idea of remote work being some far away phenomenon. The first pandemic of the 21st century has been this year’s most powerful Digital Transformation forcing function. But what has changed and what does that mean for the new digital reality?
Remote is the New Norm
Even though many will be able to return to work in the next few months (crossing fingers), we know that many have chosen in the past to stay home, even if that means a pay cut. The workforce market is definitely speaking, and it wants to stay in pajamas while coding the next big product feature or pitching that new transformation plan, companies should take note. The best time to invest in enterprise software and a remote workforce was years ago, but the second-best time is now. Remote work will soon become the standard and forward-facing business should accept (maybe even celebrate) it.
Higher productivity and lower commercial real estate costs are just the beginning of the pay off. Multiples studies show that remote workers are the best teammates, in fact 92% of workers say that video collaboration technology helps improve their relationships and foster better teamwork. If you aren’t cloud first/remote first, you’ll be stuck holding the bag with antiquated licensing contracts and a lower productivity workforce.
Going Forward
So, who are the big winners in this new frontier…the answer is anyone with a scalable cloud offering! Microsoft boasts its increase in its office collaboration software, but office productivity isn’t the only winner in the COVID-19 world. Amazon has now generated over $10 billion in net quarterly sales for the first time ever and shows no signs of stopping.
Large players like MSFT and AMZN aren’t the only companies cashing in here. Cloud 100 startups like Snowflake and Stripe have still managed to raise 100’s of millions of dollars and increase their valuation by billions in the middle of the world-wide pandemic.
The New Digital Transformation Playbook
So what is the new playbook to win in this “post pandemic” environment? Firstly, brush up on your digital transformation skills! Need some inspiration of those who have went before you? Pick up Harvard Business School Process Sunil Gupta’s “Driving Digital Strategy” to read how the market has re-imagined their business.
Do you want some more practical and “down to business?” Check out David L. Roger’s “Digital Transformation Playbook” to get your Digital Transformation Portfolio off the ground. Don’t forget to peruse MIT’s “5 Building Blocks of Digital Transformation” if you need something quick and dirty to get started!
The Digital Transformation is here to stay. The question now is: “Will your business be able to stay with it?”