why CEOs should implement this strategy to ensure the company’s future – WAU
In times of Digital Marketing, Customer Success and SEO being part of the day to day of more and more companies, it is natural to conclude that we are migrating en masse to digital. But this migration reaches its peak with digital transformation, a theme that attracts the attention of executives from the most diverse organizations and goes far beyond adopting a […]
In times of Digital Marketing, Customer Success and SEO being part of the day to day of more and more companies, it is natural to conclude that we are migrating en masse to digital.
But this migration reaches its peak with digital transformation, a theme that attracts the attention of executives from the most diverse organizations and goes far beyond adopting one or another technological measure.
We are talking about reshaping organizations, business models and even regulatory laws and make a positive impact on society like never before.
In view of the size of the challenge, the first person who needs to look more closely at this concept within a company is the CEO – Chief Executive Officer.
See why CEOs should take this issue seriously and act quickly to make digital transformation a reality!
Before, what is digital transformation really?
Nothing better than a small context before exploring further the reasons why today’s CEOs should dedicate themselves to digital transformation.
If you are looking for a detailed explanation of the topic, including tips on how to implement digital transformation in your company, it is worth reading this complete post we did on the subject.
But, in a brief summary, we can describe the digital transformation as the widespread use of technology to improve performance and ensure better results for a company.
This does not mean using digital strategies, however good they may be, in isolation.
Therefore, the fact of being present on social networks, investing in ads or in Content Marketing does not mean that a company is making this transformation.
Rather, this change involves the organizational structure itself, and is based on 3 pillars:
Only when a company reaches these 3 targets, which encompass all aspects of the business, will the digital transformation be achieved and its benefits reaped.
Want to understand more about the digital transformation before reading on? Check out our complete ebook on the subject:
Why should digital transformation matter to CEOs?
We have already realized that the digital transformation is not just another expression of the moment, but a concept that has been prepared for a long time. It is the highlight of all technological advancement.
But this process will not happen by chance, as part of the common actions of companies.
The leap between using some technological resources and reaching digital maturity is huge!
See why CEOs need take the initiative if you want a project like this done the right way:
You need to have a broad view of the subject
Digital transformation is not a simple matter, nor is it limited to adopting digital initiatives in isolation, since change involves all sectors of a company.
There are many myths about the topic, in addition to the obstacles that hinder the mission of making a company truly digital.
All of these variables point to the same conclusion: to create a digital transformation program it is essential to have a wide sight from the company.
It is necessary to think about the context of the business as a whole in order to make the best strategic decisions, and the CEO is the person best able to make this assessment.
By maintaining good communication with managers, the CEO can gather the most relevant information to start the necessary planning.
Transformation starts at the top
Imagine the following situation: the company grows and the need to change buildings is perceived, moving to a much larger and better equipped location.
Soon the preparations for the new work began, such as the search for land, the development of the project and, finally, the construction of the new building.
Would this task be delegated to the marketing, sales, finance or customer service teams? Of course not! This project requires the care of CEOs and other directors.
What they need to do is ask for suggestions from the professionals who work under their supervision in order to create a project that best meets everyone’s needs on a daily basis.
The principle is the same with digital transformation. In practice, this is exactly what will happen: a great structural change, towards more efficient and profitable means of work.
A project of this level, which involves time, resources and affects everyone, needs the CEO’s initiative and leadership.
Naturally, he will count on the help of other directors and, little by little, spread the transformation across all sectors, to create a solid structure that allows everyone to do the best job possible.
In addition, as in a physical construction, the CEO will use specialists, more specifically the IT team, to implement the changes.
Digital transformation requires radical changes
Think a little about the 3 pillars of this transformation, which we mentioned above: customer experience, operational processes and business models.
Each of these aspects, separately, already requires excellent planning and execution to work.
Now do you imagine changing all three at the same time?
It is undoubtedly a series of radical changes, but that is no reason to give up on the digital transformation.
On the contrary, knowing the size of the challenge should serve as an impetus to start as soon as possible.
And we already know who should kick-start: the CEO.
When seeing that the leadership is committed to progress and that specific action plans are being put into operation to ensure that this progress occurs, employees will get into the project head on.
The digital transformation is still in its infancy
As already said at the beginning of the text, migration to digital is still in its first steps.
Although it seems a little strange to speak of it as something that is still happening, this is the truth.
According to a McKinsey study, digital initiatives in industries are at an average rate of just 35%.
However, those that are betting on digital transformation showed an average growth of 45% in revenue.
This means that there is much to be done before companies reach a state of digital maturity.
Therefore, whoever takes the lead has everything to gain a huge advantage and reach that state first, which can bring very positive results for the company.
The dangers of waiting too long to face the digital transformation
The most risky is not to risk it.
This phrase, used by successful figures in the world of entrepreneurship, such as Jorge Paulo Lemann and Mark Zuckerberg, summarizes well what can happen to CEOs who take too long to face the digital transformation.
Just look at the direction that society, as a whole, is taking to understand that the digital transformation has already started and will not go back.
Automated house designs, smart cities, fully digital and automated services, virtual currencies and a host of other initiatives prove it.
Faced with this scenario, we only have the question: what will happen to CEOs who do not join the digital transformation right away?
Whatever the reason for leaving this change aside, we can think of at least 3 bad consequences.
See what they are:
CEO can also be fired
Like any other position in a company, the position of CEO is linked to the results that this professional is capable of bringing to the company.
Many CEOs in large corporations have been fired for lack of competitiveness against companies with greater digital power.
The leader of the company needs to be the person with the greatest ability to take risks at the right time and make decisions that will have a positive impact in the future.
Failure to follow the digital path is to ignore what the market itself indicates, and there will certainly be another professional more inclined to do so.
The market does not expect anyone
It is true that the digital transformation is just beginning, but we must also remember that this whole process takes time.
That is why, waiting too long now can be a big delay later. Customers will not be willing to wait for their adaptation and will certainly look for qualified competitors to meet their demands.
It is like someone who takes snacks to a party, but it is only time to cut the cake. The action itself is right, but the timing is wrong and everyone’s interest has already changed.
Likewise, taking too long to start the digital transformation can make the company offer something that customers no longer want.
The pressure will only increase
The pressure is always great for the CEO.
After all, it is he who has the responsibility to guide the company on a successful path, always thinking a few years ahead.
But think of the CEO who waited too long to start a transformation program and begins to notice that the market has evolved faster than he thought.
The pressure will be much greater, and if it is difficult to carry out this project when things are going well, a crisis would make everything even more complicated.
It’s just not worth it to “cover the sun with a sieve”, the best is to go ahead and learn from mistakes, as is typical of any pioneer.
There is no point in postponing the inevitable and leaving the necessary changes for later.
It is the CEO’s role to be aware of market developments and act quickly, and there is nothing more relevant today than creating a digital transformation program.
Starting such a transformation requires a lot, and reading is one of the best ways. So learn and be inspired by the 20 best marketing books of all time!