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Tips for Guiding Traditional Industries Through the Digital Age
While established companies may understand the need to digitize their operations, they still must consider how to approach. That means selecting the right projects and technologies, but also adapting corporate cultures and human roles.
4 Min Read
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The digital age has sounded an urgent wake-up call that traditional industries can no longer ignore: Transform business models and customer experiences or risk becoming obsolete. Experts have estimated that companies still relying heavily on manual processes lose up to 30% of potential revenue due to outdated operations and the failure to meet modern consumer expectations.
Whether you lead a manufacturing company, healthcare provider, hospitality business or other traditionally run organization, the time is now to chart an innovative digital roadmap. Leaders must navigate these changes effectively to thrive in the digital age. Let’s explore how they can do so and why digitization is crucial for even the most traditional industries.
Urgent Need for Digitizing Traditional Industries
A failure to digitize operations poses an existential threat to traditional businesses. As the McKinsey data shows, companies still relying heavily on manual processes take a significant hit to their bottom line. This stems primarily from customer dissatisfaction and the inability to meet the digital-first expectations of modern consumers.
Legacy industries like self-storage have felt this urgency acutely. Historically operating via handwritten rental agreements, physical keys, and mandatory in-person visits, self-storage providers are now swiftly embracing technologies like online rentals, digital entry, and remote management. When my company surveyed self-storage tenants, 80% said technology is important when choosing a facility.
This dynamic is still playing out across sectors years after the pandemic accelerated digital adoption curves. Hospitality reinvented itself with mobile check-ins and keyless entry to deliver the seamless, touchless experiences travelers demanded. The automotive industry shifted to virtual showrooms and online purchases as the new normal.
One-on-one transactions and deals sealed with a handshake are things of the past in today’s on-demand economy that’s prioritizing convenience and personalization above all else. Traditional companies can’t ignore digitization anymore if they don’t want to fall behind more tech-savvy competitors.
This critical moment requires smart leadership to create a digital plan that fits each industry's specific needs. Companies that can rethink and improve customer experiences with technology will pave a path towards success in the digital age.
Strategic Leadership in the Digital Age
For leaders, steering through digital transformation requires more than just adopting new technologies. It demands a shift in leadership style and strategic thinking. Here are some key strategies for effective leadership in this digital era:
Be a digital visionary: Immerse yourself in studying technological trends shaping your industry. Develop a bold, inspiring vision for how your organization can leverage those innovations. Map out a plan for achieving your future-state vision incrementally.
Foster an agile, adaptive mindset: Encourage an experimentative culture open to taking calculated risks. Implement nimble processes like agile project management. Build cross-functional teams to rapidly test and iterate on new ideas.
Become data-driven: Invest in big data capabilities to analyze customer behaviors and operational metrics. Make decisions grounded in data insights rather than assumptions. Use predictive analytics to anticipate market shifts and personalize offerings.
Upskill for digital-first operations: Assess skills gaps within your workforce related to digital capabilities. Provide targeted training and professional development opportunities. Consider restructuring IT and operations teams to be more tech centric.
Stay customer-obsessed: Use digital tools like CRM systems and social media listening to gather customer feedback and insights. Refine products, services and experiences to meet evolving needs.
Cultivate collaborative ecosystems: Form partnerships with technology providers, startups and industry players. Join consortia, innovation hubs, or co-develop solutions to access emerging capabilities.
These strategies equip leaders to navigate the complexities of the digital age effectively. However, amid all this focus on technological advancement, there’s one more element that’s fundamental to business success: the human touch.
Human Element in Digital Transformation
As we navigate this digital revolution, it’s crucial to remember that at the heart of every technological advancement are the people who create, implement, and use these technologies. The human element remains a vital component of any successful digital strategy.
Consider the healthcare sector, where digital tools like telemedicine have expanded access to care. However, the role of empathetic healthcare providers in offering reassurance and building patient trust is irreplaceable. Leading healthcare facilities successfully combine digital efficiency with personal, compassionate care tailored to each patient’s needs.
Similarly, in the self-storage industry, while digital channels streamline processes like reservations and entry, having knowledgeable staff available on-site creates a personalized experience that fosters customer loyalty. According to our research, nearly a third of tenants prefer in-person assistance, and 80% value having an on-site manager when selecting a facility.
In essence, technology alone cannot forge the emotional bonds that inspire customers to return repeatedly and become brand ambassadors. By thoughtfully integrating digital capabilities with human empathy and customized engagement, leaders can guide companies to deliver an unparalleled customer experience that resonates on a personal level. This balance is what allows brands to transcend transactions and cultivate long-lasting loyalty.
The Imperative to Transform
Digital transformation is no longer a future option -- it's an urgent need right now. While adopting technology enables innovative services, streamlined operations and staying relevant long-term, the real differentiator is effectively blending digital and human experiences. Stay focused on cultivating technological capabilities while also prioritizing authentic personal touchpoints that build deep customer relationships.
Take decisive action now to lead your organization through this transformational shift, before digital disruptors leave you behind. The future belongs to those skilled at combining technology smarts and human empathy into modern experiences that earn loyal customers.
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