KNOLSKAPE, an end-to-end learning and assessment platform for accelerated employee development unveiled the digital readiness research “Ears to the Ground.” The digital readiness research from KNOLSKAPE gauges digital preparedness of organizations in India. The study was conducted by way of structured interviews with thirty talent transformation leaders in India including Chief Human Resource officers (CHROs), talent management heads, Heads of learning, Leadership & Development professionals and thought leaders. The research assesses Digital strategy, Digital capabilities and Digital culture for 15 industry verticals.
Insights for Digital Strategy:
While in the industrial era, the focus was on leveraging economies of scale, in the digital era, there is an equal emphasis on augmenting downstream product strategies by unlocking digitally enabled new experiences for the end customer. The surveyed organizations were high in intent for aligning organizational strategy and execution around digital. 85 percent of leaders surveyed believe their mission / vision / strategy is aligned with the digital world.
Digital adoption is unique for each industry type:
When it comes to digital adoption, there isn’t a one-size-fits-all approach for all industries. While defining their downstream strategy, organizations may take the marketing, services, or product route as the seat for digital strategy. Some examples include: FMCG firms are carving out their digital strategies to empower marketing and branding teams. Banks and NBFCs are carving out digital-first product strategies to cater to the demanding needs for the digital savvy millennial consumer.
Mapping HR goals with an organization’s digital strategy:
· 66 percent Of respondents agree that HR in their organization has clear and quantifiable goals for measuring the success of digital strategy.
· 60 percent of the respondents routinely hire digital savvy talent for critical functions within the organization.
While Digitization adheres to converting something from the physical domain into its digital equivalent in the virtual world; Digitalization in HR involves lever ging technology to create exceptional candidate experience, embrace data agility to unlock new value.77 percent of the surveyed organizations have teams accountable for crafting employee journeys.
Insights to build Digital Capabilities:
In large high-growth organizations, the organizational structure may be optimized for agility and efficiency, but not necessarily to enable collaboration.
- Enabling collaboration: While 62 percent of leaders believe their organizational structures promote cross-functional collaboration, they believe a lot more can be done to enable collaborative work further.
- Organizations typically enable collaboration by way of projects that are executed by Cross-Functional Teams (CFTs).
- The problem is particularly amplified for conglomerates that may have empowered individual business leaders who execute with speed, but may struggle to enable synergy between different lines of businesses.
- Hiring for digital: Firms recognize the need to hire digitally-savvy talent, and 60 percent of organizations surveyed say they are routinely doing so for critical functions.
- Gap between intent and execution:
- Access to digital infrastructure: 40 percent of the organizations have access to digital infrastructure (apps, tools, analytics engines) to fulfill their organization’s digital vision.
- Design Thinking: 37 percent of firms adhere to frequent usage of design thinking principles in daily work; however wide scale adoption of design principles for problem solving is still some time away
- Real time data sharing: 62 percent of respondents believe data is shared across business units for real-time decision making.
- Agile way of working: 62 percent of organizations follow agile practices for product or service development
- Digital Learning and leadership is key to capability building:
A digital savvy leadership style complemented with a collaborative, supportive and entrusting leadership style is more conducive to a large scale digital adoption, vis-à-vis a purely directive and autocratic leadership style. 63 percent of the respondents felt that they have digital savvy leaders who proactively execute digital strategy. 90 percent of the remaining 37 percent respondents hail from traditional industries such as manufacturing and infrastructure.
Insights to build Digital Culture:
The last leg of the research, captures the voice of the respondents in support of building a culture that normalizes failure. Embracing smart experiments is characteristic of a culture that innovates at break-neck speed befitting the digital era.
Risk taking is restricted to the Top Management:
Most organizations believe that measured risk taking at the top is a regular feature, as it helps them stay relevant in a competitive marketplace. However, this does not automatically translate into a culture where risk-taking and smart failures are the norm at the execution level.
40 percent of the organizations believe that they have a culture that encourages smart failures. Digital native start-ups are more likely to encourage a ‘fail fast and learn fast’ culture.
Commenting on the inaugural digital readiness report, Rajiv Jayaraman, CEO KNOLSKAPE said “The report highlights the need to build momentum in sync with the fourth industrial revolution. Building digital execution capabilities in line with strategic initiatives is imperative for businesses to leap into the new and the next. In the coming years agility will not only be characteristic of digital native start-ups but of traditional conglomerates as well. As data drives the new age millennial customer experience, organizations will also begin to reimagine and reeingineer the employee experience.”