Dive Brief:
- At the onset of the coronavirus pandemic, some companies already had digital tools in place, while others acted swiftly to meet the acceleration of digital transformations in the workforce. But as a result, many companies are already experiencing a return on investment for their endeavors, according to a report by Randstad US released Dec. 10.
- Based on a survey of 276 C-suite executives and department heads across the U.S. who make technology purchasing decisions, 64% of respondents said investments in digital technologies have positively affected organizations' bottom lines. As a result of those investments, 69% of respondents said their organizations have saved money, the survey found. The majority of respondents (71%) said their companies will be left behind if they do not embrace digital technologies.
- More than half (63%) of respondents said the pandemic has made their companies embrace digital transformation sooner than they had expected; and 63% said they were making greater investments in technology due to the crisis. However, almost half (49%) of leaders said digital transformation was not a strategic priority before the onset of the pandemic, but has become one. Tech capabilities will determine a company's competitiveness as much as the outcomes around hiring, engagement and retention, according to Randstad. Investing capital in technology will drive talent and operational outcomes alongside each other, the company advised; "Organizations that succeed here will see bottom-line value like never before."
Dive Insight:
There’s a "silver lining" to acceleration into the digital age, according to Graig Paglieri, group president of Randstad Technologies Group at Randstad US.
"Executives report that embracing digital transformation is increasing revenue, boosting productivity and changing the way they think about organizational structures," Paglieri said in a statement. "It is a sign that leveraging the latest technology, forming strategic partnerships and shifting organizational structures can help companies emerge from the crisis stronger than ever before."
However, as companies accelerate digital transformations, upskilling of the workforce, including managers, remains behind. Less than half (45%) of respondents in Randstad’s survey said they can't implement new digital tools at the speed expected of them by management; and 42% said they do not have the knowledge needed to become a digital leader. Many executives are also understanding that structural change is a requirement for successful digital transformation, the report found. About 62% agreed that centers of excellence and networks will replace traditional hierarchies; and in 2018, "just 48 percent said the same," according to Randstad.
Amid the switch to telework, The International Association of IT Asset Managers (IAITAM) advised organizations to have a business continuity plan that included IT asset management and to make sure workers had IT assets that are accounted for and functioning properly. "Coming out of the pandemic, with a tight budget, there are questions you can ask to address the financial bottom line of IT investments," IAITAM President and CEO Dr. Barbara Rembiesa said in a statement in June. "Do you have a plan in place for turning these new technology assets into a return on investment? If not, this is the time to stop reacting and start planning."
