Companies are neglecting digital workforce transformation, with their focus instead on IT and business processes, as they look to combat digital disruptors, according to a new study.
The report – 'Workforce Transformation in the Digital Vortex' from The Center for Digital Business Transformation (DBT Center), a joint initiative of IMD and Cisco – involved the study of more than 75 disruptive workforce start-ups, with interviews conducted with key individuals within the organizations.
Senior human resources practitioners and operational leaders at large global enterprises were also interviewed, as well as 941 global executives, to get a good feel for the how companies are going about digital transformation.
The research revealed that, in the area of people, fewer than one in ten companies have achieved a level of excellence in three key capabilities of digital business agility: hyperawareness, informed decision-making, and fast execution.
However, it is these three foundational capabilities that organizations must build in their workforces in order to compete successfully in the Digital Vortex, it states in the study.
The DBT Center's findings indicate that many companies have focused business transformation efforts on IT and business processes, but technology solutions alone are not the only answer to transforming the workforce, warned Kevin Bandy, Chief Digital Officer, Cisco.
"Transformation is more than a summation of digital solutions," he explained. "Digital transformation is rewriting the rules of business and will require a workforce that is appropriately equipped to work with the speed and agility that this level of change will demand."
The study claims that companies that digitize the workforce will be the biggest winners in the Digital Vortex. In the Digital Vortex, business models, offerings, and value chains are digitized to the maximum extent possible. As innovative disruptors drive toward the center of the Vortex, they reshape markets and industries.