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5 Key Takeaways from Erik Qualman: Visionary Leadership in the Digital Age

Digital leaders are made, not born. In an era defined by rapid digital transformation, maintaining the balance between the offline and online worlds is crucial. While technology continues to evolve, human nature remains constant. Erik Qualman, #1 bestselling author and digital leadership expert, shares timeless leadership habits that keep you ahead of the competition and engaged with your team. Embrace these powerful habits to elevate yourself and your organization to digital leadership excellence. 

 

1. PRIORITIZE BOTH TODAY’S AND TOMORROW’S GOALS

 

Qualman outlines habits for future-proofing oneself and organizations in digital transformation, emphasizing the balance between human touch and technical expertise. He discusses the need to operate in both the “dirt” and “clouds” of transformation, balancing day-to-day work with long-term vision. “Thinking of the blue sky was seen as a waste of time but that’s shifted dramatically. It will continue to shift as we enter the quantum era because if you can dream it, you can do it. At the same time, you have to be down in the day-to-day. You have to live in the dirt and also in the clouds. That’s a big challenge today.” 

This mindset will stand the test of time as Qualman predicts leadership styles will change very little over the next 20 years. He emphasizes two things: taking action even when it’s difficult and always prioritizing people. “At your core, you need to know what you as an individual or organization are doing, and you have to take that action when you don’t want to or are afraid to. As a leader, it will always come down to the people. Leadership is not going to change too much at its core. The biggest change will be in the flexibility in the speed you’ll have to adjust.”  

 

2. OBSERVE AND SHARPEN THE STAMP TRAITS   

 

To stay resilient during the upcoming quantum era and digital decades, Qualman advises leaders to build the following STAMP characteristics:  

  • Simple: “Many of us fall into the trap of thinking about innovation or transformation as an additive thing that’s been put on our plates, when in fact, if we do it well, it’s the exact opposite. When you think about innovation, it goes back to the removal of friction. When you simplify things, which is very difficult to do, it allows you as an individual and organization to go further faster.” 
  • True: “You’ve got that compass for your True North and that’s a huge strength to have in this digital era. In the last 20 years, something new has sprung up, and it’s called a digital stamp.” Digital stamps are comprised of two things: a digital footprint and a digital shadow. Both individuals and organizations have a digital stamp. “It’s up to us to produce our best digital stamp and protect it because it’s the modern version of our reputation. The major difference is now it’s at speed and scale.” 
  • Act: “The number one reason people don’t take action is fear of failure. But we know better than most that failure is part of the process. It’s all about failing fast, failing forward, and failing better. It’s about embracing some of those mistakes and capitalizing on them. It’s what I call being flawesome.” Qualman emphasizes that it’s not perfection that makes people like a brand, but rather its perfectly flawed nature and willingness to learn from mistakes. 
  • Map: “You set your vision or goal and then you have a linear progression to go after that goal. Well, we can’t do that anymore in today’s world and we certainly aren’t built to do that in the quantum world that we’re stepping into. It’s about being firm in our destination and flexible in our path on how we get there.” Qualman shares an example of that flexibility, citing Steve Jobs’ journey at Apple and Pixar.  
  • People: “It’s all about people. Success doesn’t happen alone; you need to surround yourself with the right people both offline and online. When it comes to people, it’s all based on questions. The better questions we ask, the better our relationships can be.” 
 

3. AVOID MULTITASKING AT ALL COSTS  

 

According to Qualman, multitasking has a negative impact on productivity. He reveals that multitasking can decrease productivity by up to 40% in a team setting. Qualman proposes single-tasking as a solution to increase efficiency and happiness.  

“Ironically enough, when we’re multitasking, we’re getting less done because we’re not computers. We’re not parallel-processing things. What’s actually happening is our brains switch between tasks because we can’t handle two cognitive tasks at once.” 

 

4. INVOLVE EVERYONE FOR SUCCESSFUL DIGITAL INITIATIVES   

 

How can you transform abstract innovation into actionable digital transformation initiatives? Qualman emphasizes the importance of everyone being on the same page for initiatives to succeed. “When we work with organizations, I could get about 17 different answers on their initiative goals. That’s a significant problem at its core.” He discusses aligning multiple digital leaders for change, stressing the importance of regular check-ins and diverse opinions. He suggests asking team members questions like, “How would you rate our progress on this initiative, on a scale from one to ten?” 

 

5. TREAT EVERYONE FAIRLY, NOT THE SAME  

 

A common challenge many organizations face is the risk of losing top talent. Qualman emphasizes the shift toward treating each employee fairly, rather than equally. For instance, if you have the world’s top programmer who prefers remote work, you’re likely to accommodate that preference to retain them. Similarly, understanding that fairness, not uniformity, is crucial for employees based in the office. He stresses that this is a big leadership challenge to overcome. 

Qualman suggests frequent check-ins with team members to demonstrate care. “Just do more check-ins than ever before,” he advises. “Simply ask, ‘How are you doing, on a scale from one to ten?’ Then, over time, expand to ask about personal well-being and job satisfaction. Tracking these responses can reveal trends in morale and engagement.” 

“It’s about the combination of technology and people. Always lead with people.” 

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Antje König: Rethink Digitalization – What Is Really of Value Is Determined by Us as Human Beings

In this interview with Antje König, Managing Director and founder of HoValorem GmbH, Lean-Agile Leader, and Executive Coach, we explore the transformative power of digitalization, which should be driven by high human values. Antje König shares practical steps for managers who want to infuse their organizations with this human-centric approach, drawing on her wealth of experience. From rethinking process and requirements analysis and technology selection to fostering transparent communication, Antje offers valuable guidance for any organization that wants to put the human side of digitalization at the center. 

 
Antje König is a Managing Director, Lean-Agile Leader, Executive Coach and former CIO. She is dedicated to the development of people and organizations and has a passion for IT and optimizing the interaction between people and technology. After several leadership roles within ROSSMANN, she was appointed Managing Director at the beginning of 2022, responsible for IT, Organization & Processes and then Audit and Corporate Security. She founded and manages her own company, HoValorem GmbH, and is currently furthering her education in the fields of Business Psychology and Systemic Coaching. She delivers lectures at conferences, conducts workshops for executives, and assists companies in harnessing the potential of modern technologies. She places great emphasis on deploying technologies and methods that align with the tasks and processes at hand.
 

You are passionate about rethinking digitalization and putting value definition in the hands of the people. Can you give some practical steps that managers can take to incorporate this perspective into their digital transformation strategies?

Here, I suggest using the 10 principles of value-based engineering developed by Prof. Dr. Spiekermann at the University of Vienna as a foundation. Some of my key highlights are: 

  • Take responsibility for the entire system you aim to transform, encompassing the entire supply chain and IT ecosystem, along with any associated services. 
  • Personally and publicly uphold the values you stand for, demonstrating them through action. 
  • Practice effective stakeholder management, involving all relevant direct and indirect stakeholders in your initiatives, including users, employees, and organizations, and considering the impact on nature and the environment. 
  • Demonstrate the courage to oppose investments or partnerships that do not align with your core values or cannot guarantee adherence to essential principles such as transparency in human rights compliance, data protection, and ensuring fair wages. 

Additionally, focus not only on technical requirements but also on gathering input from all stakeholders. With this holistic approach, you can consider the human perspective rather than merely adopting the latest technology trends. Instead of starting directly with technology, begin by understanding the purpose behind your actions. This journey starts with identifying requirements and leads to the design of the desired product. 

It’s not merely about functionality or digitalization; it’s crucial to question why improvements are necessary. Are these enhancements beneficial for us as individuals? Do they contribute to a better quality of life? Our objective isn’t to be dominated by technology but to utilize it to enhance our work, products, or systems. This represents a shift in mindset towards digital transformation.  

 

Why is digitalization based on people and values important?

Because it’s about our future, we have to decide if we want to depend on technology or if we want to shape our own destiny, determining how we want to live.  

We’ve evolved from a time, I’m not sure when, perhaps during the onset of industrialization, when everything new was perceived as an improvement. However, today, not everything new or achievable necessarily represents progress. If we genuinely wish to shape our future and harness the potential of technology, we must actively engage in its creation. In recent years, we’ve allowed events to unfold without much consideration, leading to dependence. 

That’s why mindset is crucial. We must contemplate the reasons behind our actions: are we simply complying with regulations, or are we striving to innovate and improve? It would be preferable if regulations like the General Data Protection Regulation, the Supply Chain Act, the Digital Markets Act, and the EU AI Act were not solely relied upon as control-punishment mechanisms. Instead, they could serve more as avenues for knowledge transfer, providing advice, fostering ideas, and offering implementation support. 

It is important that the digital products, systems, services, etc. that we all build, use, and develop help us to preserve human freedom and privacy, contribute to respect, help to build and expand human knowledge, and support social interaction.  

 

With that perspective in mind, how can leaders effectively assess and select the right technologies for their organization’s digitalization journey?

Ask yourself: What do I want to improve? What is the task or goal I want to achieve? The first step is to figure this out, followed by an assessment of the organization’s current maturity level. For example, if the company still relies heavily on manual processes and methods, the first step would be to understand the processes and decide based on this where automation makes sense. In other words, where things can be done better by machines than by people. This can then be used to decide which type of digitalization is useful and helpful or best supports the task. So, the question is: do we digitalize conventionally either by introducing new software or by upgrading existing software, by traditional programming, or by using machine learning algorithms? 

When introducing new software or upgrades, we could, for example, consider introducing RPA, Copilot, or something similar. If I can describe my task comprehensively based on rules, I use classic programming. If the problem is too extensive and can no longer be comprehensively described in a rule-based way, as with a recipe, I try to describe what I need with the help of examples and machine learning algorithms. The basic prerequisite for a decision in favor of machine learning is a clearly formulated goal and it must be ensured that sufficient high-quality training data is available. 

The involvement of all stakeholders in the process is crucial for the acceptance of the digitalization project. This also includes the involvement of people who are critical of change, as this can only make a product better in the end. 

Even if not all stakeholders need to be involved in the final decision-making process, it is essential to include as many points of view as possible in order to develop the best possible product. Transparency and full participation are key to success. 

 

How can managers effectively communicate the value of digitalization initiatives to their employees, including those who may be sceptical or resistant to change?

In my experience, this works best with practical examples, projects, and processes from your own environment or company, because this is where there is the greatest connection and identification. In other words, in a very practical way, by grabbing relevant topics in the company and simply doing this at the beginning under experienced guidance, experiencing it, understanding it, and also involving the skeptics as stakeholders. 

 

What do you recommend managers do to measure the effectiveness of employee-led digitalization initiatives, particularly regarding quantifiable metrics and qualitative feedback?

I understand if this response may not fully address your concerns, particularly if you have a background in traditional business management. If I focus on value potential, then it’s not only about effectiveness but about good holistic solutions. The great technological developments, the flood of data, algorithms, and constantly growing computing power are having a fundamental impact on us as a society. We are talking about the impending loss of jobs, shifts in power structures, ecological effects, blurred boundaries between man and machine, and more. It’s not just about, for example, automating everything we can just because we can and it’s supposedly effective. It’s about using the advantages of technology in our favor and consciously putting a stop to the negative effects. We as human beings should take center stage again and not the return on investment or key figures on the degree of automation. 

 

What do you hope attendees will take away from your keynote at the Executive Day Germany?

One of the key messages I want to get across is the importance of a human-centric approach to our goals, putting real progress at the forefront and putting people at the center of digitalization efforts. I also believe in the importance of empowering individuals in order to create better understanding and, based on this, design better and more appropriate solutions. 

Finally, I would like to sensitize people to the fact that we should use technologies in such a way that they strengthen and support us and do not drive us into dependencies. I want us to be able to steer, use, and control current developments in our favor so that they can serve us humans and also contribute to our future well-being. 

 

*The interview answers have been edited for length and clarity. 

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Frank Astor: Stay Positive in the Era of Digitalization

In this exclusive interview, veteran entertainer and keynote speaker Frank Astor shares the inspiration behind his successful shows Future Now – the future is now! and The Human Program, insights into the latest tech trends and innovations, and advice to business leaders on how to embrace digitalization.  

 
Frank Astor is a professional keynote speaker, moderator, and entertainer with over 20 years of experience. Since 2015, he has been the CEO of Future Now Events and has performed over 4,000 shows in the areas of digitalization, motivation in the digital age, and strategies for success in challenging times. Frank conveys these themes in exciting, entertaining, and humorous shows that have been attended by thousands of business leaders.
 

Tell us about your shows, Future Now – the future is now! and The Human Program.

I’ve been a keynote speaker for 25 years and I’m always looking for new themes for my shows. I’ve spoken about motivation, finance, work-life balance, and corporate happiness. In the last 20 years, I’ve been a specialist for keynote shows about digitization, trends, and innovation called Future Now – the future is now! The show lasts an hour and is very intense, followed by 20 to 25 minutes for audience discussion.  

I also have a keynote show dedicated to robotics and AI called The Human Program. There are a lot of fears and risks associated with AI and in my show, I have a discussion with my robot, Torbi where I share my fears about AI, and Torbi tells me that AI can solve all our problems. The shows have been very successful.  

 

What are three emerging trends or tech innovations that will affect business leaders in the next five years?

Firstly, the metaverse as it merges the virtual and real worlds. Leaders have to investigate this development, especially with the creation of the recent Apple Vision Pro headset. Next is ChatGPT and other AI solutions. We have noticed how quickly AI has developed in the last few months. Everybody is still talking about ChatGPT and using it. So, it’s important to be well-informed about AI possibilities. Lastly is the management of resources and green tech as they are very important for environmental purposes. Leaders have to focus on the development of green tech, especially with e-mobility and batteries. 

 

What are the biggest threats or challenges in the current era of digitalization?

 We have to be careful not to spend too much time in the virtual world. Every day we have to remind ourselves that we are humans, and we are part of nature. Now we are spending 8 to 12 hours on computers and smartphones and in the virtual world. Isolation is also a problem because there are a lot of people, especially young people who grow up in the digital world who are unable to have relationships with real people. Digital devices also drain a lot of energy, and we have to be healthy to manage that. In addition, we have to be careful not to be controlled or manipulated by information on the Internet. We have to be able to identify what is fake news and what is real information. This will be a big problem in the near future.  

 

What is your advice to business leaders on how to respond to those challenges, especially those who are afraid of digitalization?

It’s never good to follow your fears. Digitalization is here and we have to confront it and not only look for potential risks, but also opportunities. Every manager is responsible for getting the information they need to improve their processes and create good frameworks for employees. Be aware that these developments are very quick nowadays. For example, the smartphone has only existed for 13 years and changed the world. I also think the metaverse and ChatGPT will move faster than smartphones, so you have to stay very well informed. Be open to the chances and risks and manage them. ChatGPT and other AI solutions also open up more job opportunities for consultants, developers, and instructors who can show us how to deal with these AI inventions.  

 

How can business leaders embrace and utilize the rapid pace of digitalization today?

Be honest and open-hearted about the problems and the skepticism of your employees. You have to confront the problems now before they become bigger in the future. Also, you have to look at the positive aspects and be very careful about what systems you use. As a leader, you have to decide what is the best solution for the future, what is easy to handle and manage, and not to jump on the train too fast. Have a very good view of the work-life balance of your employees as they are spending 9 to 10 hours in Zoom meetings on the Internet, computers, and smartphones. That drains a lot of energy, and you need healthy employees.  

 

What are the three things you hope Aurora Live members will take away from your show?

Be ready for the digital world and digital developments. Stay positive, look for opportunities, and always have a good balance between the digital and the real world. And don’t lose your humor!  

 

*The interview answers have been edited for length and clarity.

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The Impact of COVID-19 on Businesses

There have been many ups and downs in businesses since COVID-19 was declared as a pandemic by the World Health Organization (WHO) on 11th March 2020, and the effect of COVID-19 on businesses have been many since, as countries established lockdowns in early March, following China’s quarantine measures.

At the time, Management Events ran a survey to find the impact of COVID-19 on businesses, what they were facing and anticipating, and the strategies they were forming to ensure business continuity.

In this follow-up report, we uncovered new insights on how top companies in Europe managed business disruptions from the coronavirus, and what their strategies were as the pandemic continued.

 

Recovering from the Impact

Our previous Executive Trend Survey found that 64% of executives anticipated the coronavirus to have short-term negative business impact with the majority expecting ‘business as usual’ within 2 – 3 months.

After 5 months of the pandemic, in one of our surveys with over 1,000 decision makers across Europe, out of the organizations that were negatively impacted by the pandemic, 31% said that they were currently in the recovery stage while 12% were already headway into the growth stage.

As it had been almost half a year since the coronavirus impacted businesses and operations worldwide, it was expected that affected firms would implement steps and processes to ensure the recovery and continuity of their business.

However, post-COVID-19 effects on business growth are another matter. With the anticipation of a volatile demand environment and unpredictable market behavior, organizations started identifying new growth areas and rethinking their corporate strategies to be more resilient and competitive for the coming future.

In fact, according to our survey, 43% of respondents anticipated a growth in business within 3 and 12 months after the survey was made.

Among the industries surveyed, the majority of respondents who anticipated slow revenue were from the banking, insurance, and financial services industries.

 

Covid-19 Effects on Business in Revenues

Based on our survey done 5 months prior, results showed that 86% expected a significant revenue drop due to direct COVID-19 effects on business, whereby 33% predicted a fall of more than 15% while another 33% forecast a 10% decrease or less.

Even 5 months down the road, businesses were still anticipating the negative revenue effects of COVID-19, showing the long-lasting financial impacts of the coronavirus.

44% of respondents were forecasting a drop in revenue in the upcoming 6 months. Meanwhile, the rest expected a revenue increase, but with the majority (40%) forecasting only a rise of less than 15%.

Nevertheless, business leaders were optimistic about their future financial flow, with 52% predicting a revenue increase of at least 15% within the coming 12 months and 18% foreseeing a boost of 15 – 30%.

The healthcare services sector was among the topmost industries that predicted a drop in revenue, followed by banking, insurance and financial services, logistics and transportation, and industrial products and equipment.

 

Budget Revision for Business Continuity

Revisions of budget and business strategy were the top focus areas for organizations in ensuring the smooth continuity of their operations.

59% of business leaders in Europe were reworking their budget plans and predictions in light of the pandemic effects, followed by a revision of business strategies and goals (50%). Meanwhile, cash flow preservation was a key focal point for 42% of businesses facing negative disruptions from COVID-19.

However, a majority of companies that started rethinking their goals and budget for 2021 were only implementing slight changes to their goals albeit with a lower budget.

On another note, organizations were also reviewing their client communication and sales channels, with 47% expanding their digital customer service channels and 37% increasing the adoption of digital sales channels.

 

Remote Work to Continue

As expected, video conferencing and online chat platforms (86%) were top technology investments as organizations continued with remote working. However, a number of respondents commented that their firms were already well-equipped with digital and remote work technology even before the pandemic.

Trailing behind online communication channels was the use of cloud technology, which was a key investment for 47% of executives in helping the effectiveness of remote collaboration and productivity. This was followed by cybersecurity software (29%) and project management and collaboration tools (25%).

Throughout the months prior, it was evident that “enterprises leading in digital transformation were significantly less vulnerable to the epidemic”. However, the number of organizations that were ahead in digitalization efforts and IT initiatives was in the lower percentage.

Only 15% of our survey respondents disagreed that the outbreak forced them to accelerate their digital transformation, compared to 64% of executives who agreed with the statement.

 

Data Reigns over Cybersecurity

Pre-COVID-19, cybersecurity was named as the topmost tech adoption for organizations’ business strategy in our survey.

At the time of this survey, while cybersecurity was still a key investment for 49% of surveyed executives, data science and analytics held the highest priority for 61% of business leaders.

Furthering emphasizing the importance of data, 79% of the respondents agreed that they were looking to update their existing data analytics models to accommodate changing market behavior.

This finding was in line with Forbes’ article on analytics spending, whereby “49% of enterprises were either launching new analytics and BI projects or moving forward without delay on already planned projects.”

 

Bullish in Bouncing Back

Perseverance, determination, and innovation are driving factors for organizations navigating the business implications of the pandemic. And our findings have shown that businesses are bullish in their ability to bounce back to ‘normal’.

As seen from our previous survey, 88% of business leaders expected to have their businesses back to operational levels within 6 months.

The finding corroborates with our previous survey, by which more than 75% of surveyed executives had a positive business outlook for 2021. 39% were predicting stability for the coming year while 38% were expecting business growth.

 

Moving Forward Post-Covid-19

For certain industries, the few months prior to this survey were a bleak time for their businesses, and for some, the impact of COVID-19 on businesses might be longer-lasting than others.

However as stated by a respondent, there are positive effects of the coronavirus crisis, such as the acceleration of digital transformation and IT initiatives.

COVID-19 clearly showed that businesses cannot afford to be complacent, and to constantly reevaluate their processes and strategies – not just for the resilience and sustainability of the company, but for the good of their workforce and customers as well.

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Dennis Mulder: How Microsoft Leads by Example in Digital Transformation

As many organizations continue to search for balance in the new digital landscape, leaders are faced with the mammoth task of managing both technological and cultural change. We speak to Dennis Mulder, CTO of Microsoft Netherlands, on leveraging data in digital transformation and the crucial role of leadership in creating a smooth transition to hybrid work.    

 
Gain more insights from Dennis Mulder’s panel discussion on accelerated growth in the digital landscape during the ME Executive Day in the Netherlands.
 

Many businesses are still finding their footing in the hybrid work environment. How can leaders ensure a successful transition into the hybrid work model?

The pandemic and change of expectations of a hybrid setup have changed the landscape quite dramatically. Companies that have gone through a digital transformation before the pandemic are really thriving now in this new world.   

But with a lot of economies opening up now, I think many companies are still looking for the right balance. How much work do you do from home? What do you expect from people? How does that play into the technology that you need?  

You want to be inclusive of the people who are working remotely and that’s hard if the majority are physically in the office. So that’s it, figuring out that balance and what it means for companies.   

I think the key here is that leaders need to lead by example. They have to show that sometimes, it’s ok not to be in the physical meeting room. Showing how the balance works out for them and being a little bit vulnerable about their own struggles is going to help bring comfort to people to make the decisions that fit them best. 

 

What challenges do organizations face when transitioning to a distributed enterprise? How can leaders overcome these challenges?

What we call the digital transformation process – where more processes and products rely on digital technology – is, in many ways, also a cultural change. People need to do things differently. And in general, people are open to change and are willing to change but they do not want to be changed. So, telling them to change does not always work.   

I firmly believe leaders need to lead by example, as I said. But another key area is to address the cultural change and take the time to make it a process.   

PROSCI is a change management methodology that talks about what people need to change. The fairly famous acronym is ADKAR – awareness, desire, knowledge, ability, reinforcement. So, why are we making the change in the first place? Why do I have to change? What do I have to know to change? Do I have the right skills?  

Procedures and processes are really changing. So cultural change requires a process to drive that change. 

 

How can businesses leverage technology to support this move towards a distributed enterprise approach?

In general, we don’t have enough developers to fulfill the needs of tech for all these companies. There’s a war for talent and companies have a hard time retaining tech talents. So, we need to adopt tools to enable more people to develop or build software.   

If your enterprise developers focus on exposing the data on building APIs to access core systems, often called systems of record, then you can do systems of engagement – more on the faster apps and web app experiences and other similar things.   

Customers also want to see innovation sooner, so if you have more people focus on those in an agile way, building on top of the core systems of record, provided that they are thoroughly thought through by enterprise developers, we can get more done. We can automate more processes ourselves instead of just relying on the IT Department.   

And for that, you have a lot of platforms for rapid application development, or what they call robotic process automation platforms. Low code is what it’s often called as well. These tools in our portfolio are really needed to support this move to this distributed enterprise.

 

What should businesses focus on when implementing cloud computing in their digital transformation process?

Cloud is a key foundation for the entire digital transformation. It is foundational because it allows you to level up. It allows you to focus on functionality over raw computing. It will make you more agile.   

But what you have to do before you broadly adopt it is to think it through. I always make an analogy with a city. If you want to build a city – in this case, the city is your application portfolio in the cloud – you do need to have electricity, sewers, roads, and utilities. If you just let people go to swipe their card and do some cloud, you will get a lot of integration issues and a lot of dead roads and dead-end streets.   

So, you need to have a central governance organization that hands out access to the cloud based on the knowledge that the receiving team will have autonomy but stay within the guardrails or rules of the company. It’s about finding the right balance between autonomy versus speed.   

In cloud, you’ve outsourced many things to the cloud vendor. There’s a shift in responsibility and that requires governance. Same with low code platforms. You do need to govern what goes where. It’s tempting to jump right in, but you’ll shoot yourself in the foot if you do.

 

How can organizations use data and technology to enable growth and ensure resilience amid global disruptions?

Data is the new oil, or data is the new gold, right? That’s what a lot of people say.   

The way I look at it is we have this notion called a digital feedback loop – the prongs are engage customers, optimize operations, empower employees, and transform products. Data is produced in all four areas, but all four areas can be strengthened with data from the other areas.   

For example, Tesla collects a lot of data from the car and their product in order to improve their manufacturing and customer support processes. So how can we take data out of a certain product to make employees better, for example?  

There are some bridges to cross, though, because often the operational data is owned by someone else. Same for product or customer data. This gets into data governance across the enterprise. It is another area that requires investment.   

Ultimately, combining these data sets and applying AI on top of it can get you a competitive advantage if you think it through well. Data becomes the centerpiece that you use for data-driven decision-making.

 

What are some key trends in technologies for 2022 and 2023?

A lot of companies are on this digital transformation journey. To me, it’s about how we can accelerate that. This is where things like AI and low code platforms come into play. How can we transform the entire organization to embrace technologies to drive change?  

From that perspective, it’s more about organizational change in many ways.  As a CTO, you would argue that I probably talk about tech all the time. But most of my conversations with customers and my equivalents in large enterprises are about how we can transform the organization and people, about changing people and how they think about things instead of the next great piece of tech.   

It’s still about people-process-tech. We’ve been saying that for many years. But I think it’s also about data. I talk about people-process-tech-data as being the core thing to think about and not seeing them in isolation. Instead, connect them to really become successful with cloud and open-source platforms.   

Sometimes mindsets are blocked. In certain organizations, a CISO department may restrict access in an attempt to reduce risk. But that’s the wrong way. To take the analogy with the roads, of course, you can enter but we keep you safe with guardrails and other capabilities.  Quite a few companies are struggling with finding the right balance. 

 

How can they overcome that hurdle?

I firmly believe leaders need to lead by example. They must create this fearless organization where experimenting and making mistakes is okay and not punished. Give people enough autonomy to figure things out.   

It’s more cultural than it is technological or anything else.  I think Microsoft is an example of where that works, and we’re still on that journey. It requires inspirational leadership and good examples.   

  

*The answers have been edited for length and clarity.  

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Legacy IT System Modernization: Benefits & Barriers

A key challenge facing IT leaders in the fast-changing digital landscape is the constraints of legacy systems which limit business agility. These old systems are becoming increasingly difficult to change and no longer provide efficient support to growing business activities.  

However, the continuing process of transforming legacy IT systems is no easy task. As of 2020, 78% of companies are still reliant on outdated business critical systems, though many have started modernization efforts. About 33% are depending on legacy technology for overall systems.  

 

The Benefits of Legacy Modernization

 

Legacy modernization isn’t just about updating IT systems with the latest technological tools. Instead, it is a critical component that has helped accelerate digital transformation efforts by reducing network complexity and cost, enabling cross-platform collaboration, and optimizing process flexibility.  

 

Cost Reduction

 

The main benefit of modernization is cost reduction. Cleo reports that organizations lose about USD $1 million in total annual revenue due to legacy technology and applications. The lack of interoperability inherent in legacy systems hinders digital transformation and incurs additional costs to businesses when new technology is introduced into a non-homogenous IT architecture, creating lost opportunities.

Beyond that, legacy systems are also expensive to maintain the older they get, costing businesses up to 15% each year for just maintenance. OverOps estimates that poor quality in legacy systems cost businesses in the US about $520 in 2020. Similarly, the shrinking pool of skills and knowledge required to operate and service legacy systems will end up costing companies more in the long run as these skills become more expensive. 

Another major cost of legacy systems is technical debt – the cost incurred by reworking legacy systems due to the implementation of limited short-term solutions over effective strategies that do better in the long run.  

Overhauling legacy systems can be a complex and costly decision. However, the longer decision makers wait to implement transformative solutions, the higher the technical debt. This debt also includes the potential revenue a business loses due to the inability to stay competitive in a fast-changing market.  

Modernizing IT systems will significantly reduce these costs, saving organizations millions each year that could otherwise be channeled into other valuable endeavors.  

 

Better Mitigation of Security Risks

 

Generally, legacy systems are more vulnerable to cybersecurity threats. Over time, the security capabilities of legacy IT systems become outdated. The network may no longer have the necessary technology to deter modern attacks, making them an easy target for bad actors.  

This poses a significant business risk and additional cost for businesses. IBM’s Cost of Data Breach Report estimates that the average cost of a data breach in 2021 is $4.25 million, the highest it has been since 2015. 

Check Point Software found that state and local governments in the US experience a 102% increase in cyberattacks on critical infrastructure in the first half of 2021. Many of these were running on legacy systems. 

Moreover, the volatile global conflicts – such as the Russia-Ukraine war – also has a ripple effect on cybersecurity, with US-based cybersecurity agencies observing an 800% increase in cyberattacks in the the two days following the start of the Russia-Ukraine war. 

This makes the case for legacy modernization, which would enable organizations to shore up against more sophisticated cyber threats.

 

Increased Competitive Advantage

 

Another clear benefit of updating legacy systems is that a more integrated network makes businesses more agile and scalable. These are both important traits for any organization that wants to stay competitive.  

An agile and flexible business is better able to react and change to the environment and market demands. It is also better able to serve its employees by optimizing processes to increase productivity while also serving customers more efficiently.  

Modernized systems also free up valuable IT resources that would otherwise be occupied with putting out fires within the legacy system that is no longer supported by third-party vendors.  

Without the need to constantly babysit legacy systems, IT teams can focus on tasks that will drive the business forward such as exploring advanced technology and innovative transformation ideas to serve shifting demands.

 

Barriers to Modernization

 

Though the IT leaders are focused on legacy modernization, Cleo found that the 2021 Advanced Mainframe Report notes that 74% of organizations fail to complete these projects. The report suggested that part of the reason for this is that organizations have underestimated the complexity of the processes involved, especially as they were rushed into it due to the pandemic.

Breaking it down further, Levvel’s Legacy Modernization Report states the lack of buy-in from key decision makers in an organization is major factor, with 45% of leaders saying that a main barrier to modernization is it is a low priority compared to other initiatives.  

Another 37% said that it is because the business and IT sides of the organization are not aligned while 31% feel that there is no clear return of investment (ROI) to legacy modernization.  

Our Executive Trend Survey supports these findings, with 53.4% of IT leaders noting that the biggest internal challenge they face with tech adoption is integration with legacy systems. The incompatibility of aging IT systems creates a mounting technical debt that would only make legacy modernization even tougher task than it already is. 

In line with that, modernization efforts require careful planning to ensure that legacy IT systems are modernized in the most efficient ways possible, using the best tools and without compromising key business functions. In fact, 38% of IT leaders blamed the failure of their organization’s legacy modernization projects on a lack of planning.

 

Managing Legacy Modernization

 

Replacing or upgrading an entire IT system is a complicated process, especially when business critical systems are involved. However, there are certain strategies IT leaders are keeping in mind when tackling this mammoth task.  

Approaching legacy systems modernization with a holistic mindset is key and requires buy-in from decision makers as well as team members. After all, Levvel notes that the primary resistors to modernization are business-critical leaders (26%), executives (24%), and IT teams (20%).  

One way to encourage buy-in is by setting a clear plan and defined ROI based on frank discussion with all levels of the organization about where transformation is most needed and how it can serve them.  

Each organization will have to carefully study its current IT systems to decide across all levels where modernization will have the best impact on revenue, market share, customer experience, security, productivity and other business metrics.  

It is up to IT leaders to lead the way for legacy modernization that is cost-effective and as streamlined as possible. How would you do it?

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Günther Ghijsels: How Randstad Adapted to the Hybrid Work Environment

Going from fully office-based to fully remote and now a hybrid work model, organizations and employees alike are faced with a lot of change in such a short period of time. We speak to Günther Ghijsels, Chief Digital and Information Officer at Randstad Group Belgium, on the evolution of work culture, effective leadership in a hybrid environment, and the importance of adaptive change management.  

 

What do you think effective leadership looks like in a hybrid work environment?

I think as a leader, there’s a huge shift that you also need to make in this new world. What I see happening now is that it’s becoming much more difficult to get everybody aligned and keep working on the same vision, and realizing the strategies that you have been setting out. So, you need to try to really connect the people to what you’re doing. Whilst in the past, you’re connecting physically with people – you’re having a chat, or you’re having a presentation – it’s much harder to get into the real connection with people virtually. It’s a question of how you organize the connection between you and the people that you’re leading. 

Building the connection with what you’re doing as a company, that you know what’s on the mind of the people so that you still can have the connection as you had before. It’s having kind of the same thing that we did unconsciously in the past. You need to do it now consciously in the hybrid world. 

You need to adapt as a leader. You need to serve them in the way they want to be served because you’re in a world of a scarcity of talent. We are in a world where people need to be completely comfortable in what they’re doing. You need to be there for them one way or the other. It’s not them that need to adapt, it’s you that need to adapt as a leader. 

 

How would a leader balance that with some people preferring to work from home and some preferring to work in the office?

That’s exactly the hybrid model. We have clear rules on how much time you can spend at home and how much time you’re supposed to be in the office, but everybody’s free to come when they want to come to the office. So, you don’t have the whole team at the same time in the office anymore and that’s, from my point of view, the most difficult thing.  

Make sure that you involve everybody in the discussion, that you involve everybody in the meetings, gets his moment of taking part in the discussion that you’re having. You need to facilitate this kind of stuff.  

 

How do you think the pandemic has redefined work culture and what should organizations focus on?

From my point of view, the culture is you need to trust people. Even before, you needed to trust people, but today it’s even more. You need to trust people because you don’t see people anymore. You don’t know what they’re doing, if they’re working, when they’re working. So, you need to build a lot of trust with people. It always comes down to having clear expectations, to having open conversations about what you expect from people.  

Also, you need to really make sure that you create a good feeling with the people that are working for you, and that they know why they are working for you. You need to spend much more time to really keep people connected to what you’re doing. Because if it is all virtual and there’s no connection to the company, why shouldn’t they work for another company in a totally other country or city? So, culture is becoming much more important to connect people to you. So how can you make sure that the values that you have as a company are also transferred to them in the virtual way.  

Trust is one thing. It’s also transparency, it’s keeping the feedback open. And I really believe that there shouldn’t be a difference between the virtual world and the physical world on how you work together. 

 

What are the challenges that organizations face with change management during the digital transformation process?

I think it’s discussing the why. And if you are clear on the why, then you get people along with you on the journey that you’re in. I’m always struck by the fact that people in their personal lives, things are changing very fast. They have their own clear expectations of what is going on, and what they are doing. But when you’re changing something about the way of working in the company, that’s always a huge change to people. You need to give them the same kind of eagerness for the change as you do in your personal life.  

You will not get everybody along. That’s also something that you need to be aware of. It’s not that you have everyone looking for a change. I think you need to try to really make clear what’s in it for them and use the same arguments as they would use within their personal life on the change that you’re doing in their professional life.  

 

What about some other challenges leaders face when trying to figure out change management during the digital transformation?

You need to adapt the way you’re doing things to the new environments that we are in. The change management practices need to change, in that sense. How you do it practically, how you support these kinds of things, you also need to change them, and you need to try to align it with the way that you’re working at the moment. For the people that are doing and bringing the change, it’s also a new way of working that you need to bring in place. As a leader, you need to facilitate this. Why are we doing things in another way? It’s not just because it’s different or it’s better. No, it’s aligned with the expectation of the people. 

 
Keep up with the latest digital trends in the 90Minutes Insights webinar series. View the full schedule here here.
 

How can organizations use digital tools to spearhead change management efforts or strategies?

There are a lot of digital means now that you can use to really track and trace what you’re doing, and how far you’re going.  

If you’re introducing some new things in your organization, don’t forget from the start to also include the whole project measurements, to make sure that you measure the change and not only the business idea that you’re realizing. Because we tend to measure the results of things, but we also should try to measure the change rates that we are achieving. So how far are we in the change? There are always a number of KPIs that you can try to find out how far are you in the change. How do you measure that? If it’s about an application, for example, that you newly tried to introduce, how do you measure that people are really using all the functionalities that you have been introducing, and are they using it well? And if they are not using it well, how do you make sure that people who are using it try to influence other people? Do you see the connection between the people that are using it very well and people who are not using it?   

There’s a lot of social information available that you also need to use within your change environment. And that’s kind of new to us as a company as well. So how can we really try to use this kind of information to really steer learning? The aim is to get people comfortable with what they are doing and how can you facilitate this.  

By giving these kinds of small learning snacks to people, it’s also less overwhelming than before when people were just stuck in a meeting room or in a training for half a day. Now you can measure what people are doing and you can see where they have problems and where they don’t have problems. There’s a lot of information. Use data to also facilitate the whole change that you need to go through. 

 

How has Randstad’s approach to change management evolved in the last few years?

Yeah, it certainly has evolved. I just gave a number of examples that we are dealing with. We are trying to use data. That’s really the biggest step that we have been taking which we really need to dig into. People need to trust the data because the data tells you a lot of things, but people are kind of a little bit afraid of just using the data that we have and relying on all the data that we have. You need to build up the trust, you need to build up the process, and you need to become better and better at what you’re doing. And you need to become better and better at defining what are the right KPIs that you need to measure to change the behavior of the people because that’s what you’re doing within change management. 

 

You mentioned earlier that knowing what to do with the data and being able to use it properly are two different things, right? So how do you go about figuring that out?

It’s by experimenting. We tried to adapt to a very agile approach. Because you might draw a number of conclusions out of the data and define a number of actions, but you also need to measure the effect of those kinds of actions. You need to accept as a leader that some things don’t work, and you need to say, “Okay, this doesn’t work. Let’s try something else.”  

We had everybody working from home and at one moment in time, we came into a hybrid situation. The things that we were doing during the full lockdown and full working from home period didn’t work anymore in the hybrid world. You also need to adapt and really make sure that you measure all the things that you’re doing, and adapt the way you’re trying to implement change in your organization.  

 

How has the talent pool and talent requirement changed in recent years?

It’s changed a lot because you’re now in an environment where everybody’s fighting for talents. Everybody’s talking about the war for talent, but there is no war. The talent has won the war.  

So how do you create an environment where people are willing to work for you? That’s different for all kinds of people. You might be attracted by having a very nice work environment and having the latest tools available. For some other people, it’s about more of the purpose. So, what’s your unique selling proposition to the talent? You need to sell your company. It’s not the talent that sells himself to the company. It’s the company selling itself to the talent, and I think that’s a huge shift that we have been making over the last years.  

What I see is that with the younger people that are entering into our environment now, they have totally other needs than the older people that are in our company. So how do you, as a company, organize yourself to work with the different generations that have different needs? And how do you make sure that you have the connection between all those people? Because there are different mindsets, different ways of working, different ways of thinking. How do you make sure that you built those into one environment? Because the fast change that all the young people are used to is not always the fast change that the other people want in the organization. So, you need to balance between both, and you need to try to create an understanding between both worlds.  

*The answers have been edited for length and clarity.    

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Adrian Samareanu: Three Key Enablers of a Successful Digital Organization

Digital transformation does not happen overnight. According to Adrian Samareanu, Global CDO of Volvo Financial Services, digital transformation is an advanced type of change management that involves people, processes, and technology. In this exclusive interview, we speak with Adrian about the top enablers of digital transformation, challenges with integrating digital tools, ways to attract talent with the right digital skills, and more.  

 

There is a lot of buzz around being digital and you have been on this journey for some time. What is digital transformation from your perspective?

For me, digital transformation is a sophisticated change management approach for traditional companies. It involves people, processes, and technology. At the same time, it is about changing the mindset of a company to perform in a digital business environment and engage customers through digital channels. You get a lot of perspectives on digital transformation these days, and there are no wrong or right answers because it reflects the digital maturity in the respective organization. 

 

Out of the many technologies and digital focus areas, why are cloud, data, and customer experience particularly important in a business strategy?

Cloud, data, and customer experience are foundational building blocks for a digital business, as they are key enablers for building new services and achieving sustainable business results. In simple terms, cloud gives businesses the flexibility and ability to scale quicker. Data is the heart of a digital business. Every company relies on data, but not every company is data driven. How often do you hear, “We don’t have enough data” or “We need more data”? The reality is there is enough data, however, very often, the data is not available for consumption. Many years ago, a CEO asked me for more data. We had the data but not a cohesive strategy to play with the data. I asked what data is needed and didn’t hear back for a while, but it triggered a different conversation, and a new data strategy playing offense, rather than defense brought up a fruitful dialogue at the board level.

Traditional financial services companies always rely on data to decide mainly on credit approvals, enhance lending processes or improve back-office. Therefore, I expanded the use of data to improve customer experience, create new business models and help customers and employees more effectively. It was a bold move and an intense process to shift the minds and hearts of many leaders in the organization. This is not limited to my organization. It goes beyond the boundaries of a company because it involves many players in different ecosystems. That means using data to unlock new opportunities, services, and business models. 

 

What are the biggest challenges when it comes to integrating digital tools across all business functions? How do you overcome them?

Digital transformation is not just a matter of the front-end functions along the customer journey. It involves the whole organization including back-end operations. The biggest challenge remains the timely adoption of new technologies in a multi-generation environment. Many times, we try to get the buy-in at the executive level in the boardroom and start a top-down approach during implementation. This is a push approach. While top leadership alignment is necessary, the engagement of the entire organization builds great momentum to increase the speed of change. We often see the development or implementation of new technologies being a roadblock. In fact, it’s the ability of the organization to adopt new tools. There are many ways to overcome this. Using diverse teams working cross-functionally in small groups to form new ideas, finding new ways of working, and nurturing the culture of learning are effective ways to accelerate the digital maturity of an organization. This is a pull approach, which is more effective to create value at scale. 

 

At Volvo Financial Services, collaboration and partnerships with start-ups are key ingredients for continuous innovation. Can you tell us about a recent co-creation that excited you?

The most exciting one? There are so many. I would say, creating a platform for innovation across the enterprise. This way, I think innovation is open to everyone inside and outside the organization to enable creation at scale. I’m always happy to see sustainable progress with innovation. The truth is that the corporate environment lacks certain skills to advance the ideation or that value creation at scale. There was a boom in using digital channels in Asia and Southeast Asia, particularly China, Singapore, and Indonesia after financial crises and I saw the opportunities. I started an exchange program with fintechs and startups and decided to work with them specifically for the acceleration of innovating new products and services like digital payments in China and other parts of Asia, then in Europe and North America. We now have many creative solutions and continuous innovation going on, including mobility subscriptions and a data studio ecosystem. Nowadays, we are on a different level in establishing partnerships and customers ecosystem.  

 

How do good change management practices affect employee onboarding and retention?

It starts with leading with care. When we had to work from home during the pandemic, many startups and smaller companies transitioned well. I think for large corporations, we saw the challenge of keeping everyone engaged. I would say mental health is essential to keep everyone aware and motivated. It’s important to engage your team and ensure everyone is having fun at work whether they are working from home or in the office. 

 

The labor market has shifted drastically in the Great Reshuffle era. How do you attract the right talent to fill the digital skills gap?

Every stage of digital transformation comes with different needs. This is why partnerships are important. Five years ago, we started with a very large spectrum of digital products and services and realized we did not have enough digital skills in-house. When this happens, you have to start upskilling your workforce or hire new people. Believe it or not, some of them find it very difficult to adapt to the corporate world. It is important to ensure that the ecosystem is there in terms of partnerships with fintechs, and identify the critical competencies in-house that are needed.  

Furthermore, leadership and management must ensure necessary care to maintain that engagement across the organization. This is how I lead the digital team to keep that engagement beyond the organization with the fintechs and the startups that are involved. I also see an influx from those companies into the corporate world. Flexibility is important to address the needs of the new generation. They are the ones setting hiring expectations with a focus on work-life balance, and I think it’s very difficult for large companies these days. Therefore, the more open companies are, the more likely they will attract and engage with digital talent from the younger generation. I think the attrition rate will continue to be high as digital skills continue to be high in demand. 

 

What are the elements of an effective change management plan?

As things are changing so fast, the final outcome of change management is always a moving target. This is what I call sophisticated change management which involves processes, technology, and people. Success lies in the orchestration and progression of those three elements. For example, if you are trying to push new technologies too fast and the organization can’t adopt them, it can cause frustration. If you look from a process perspective, you may not be able to create other value propositions and new revenue streams to stay competitive in the marketplace.  

 

What trends should CDOs be aware of in the next five years?

Most CDOs play today a key strategic role in transforming traditional companies. Many focus on process automation and innovation; or shifting the corporate culture towards digital. The pandemic’s impact on the economy pushed us to reimagine business in many aspects. In the next five years, I see CDOs focusing more on digital business opportunities, as well as new products and services driven by the data economy. Other focus areas are driving digital customer engagement, growth, revenue, outcome, and sustainability. If we look to the ambitious ESG goals ahead of us, there is no way this can be done without leveraging the edge technologies and human capital. That means that CDOs should retain sight of the human element of their role. I also think there will be a clear distinction between Chief Digital Officers and Chief Data Officers, which will be higher in demand. In addition, I think the usage of blockchain and cryptocurrency in decentralized finance will play a significant role in accelerating digital transactions and taking the economy to the next level.  

 

What achievement are you most proud of in your role as a CDO?

The most important thing is the culture of engagement internally and externally and having people coming together to create solutions that make transformation happen. My organization bounced back from a financial crisis, where the return on equity performance was at -10% and now 15%, doubling the asset portfolio size, and launching digital services and solutions for the digital marketplace. Having a good ratio between the operational efficiencies, and the new products and services addressing customer needs, as well as staying competitive in the marketplace has been a journey spanning 12 to 13 years. Looking back, I think creating that digital business foundation is something that I’m proud of. 

 

*The answers have been edited for length and clarity.

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Innovate faster with cloud technology, a data strategy and digital capabilities

Those who want to innovate faster in today’s dynamic and rapidly evolving market have to keep learning and changing in line with customer experience, process and technology trends. These changes are necessary to find new ways to add value for customers, increase sales and optimize processes. For us, these changes involve balancing the use of cloud technology with a data strategy and digital capabilities. Together, these three things enable the process of digital transformation.  

 

Accelerate innovation with the cloud 

 

Most small and medium-sized businesses spend around 80 to 90% of their IT budget on keeping existing systems operational. This leaves little to invest in innovation. Innovation involves experimenting and ineffective experiments can be very expensive. With cloud technology it is possible to carry out experiments at low cost and pull the plug on experiments that fail to deliver. Cloud technology is indispensable for companies that want to grow. It is also a critical component of digital transformation.   

 

The cloud as accelerator at Dat.mobility 

 

Our customer Dat.mobility has discovered the potential of the cloud as an innovation accelerator. With AWS cloud technology the company can meet the needs of the market faster and with greater agility. Peter Kant, innovator, strategist and product owner at Dat.mobility:    

“Luminis helped us develop a digital transformation strategy that included transitioning to the AWS cloud. They guided us through everything involved, from securing internal and external stakeholder interests to identifying possible transition paths, designing conceptual (cloud) architectures, right-sizing and developing business cases. This enabled us to make the right decisions to better meet the needs of our customers.”   

 

The importance of a good data strategy   

 

In addition to transitioning to the cloud, for most businesses a good data strategy is essential to develop innovations. Smarter use of data is the key to success both now and in the future. So rather than looking at the applications used, we focus on the available data, because that’s where the real value is. Our modular data strategy ensures controlled data mobility so our customers can access the right data faster.   

 

From data to engagement with the energy transition at Omons   

 

Our customer Omons, an initiative to support citizen engagement with the energy transition, is a good example of how this can work. In each municipality, there are different priorities, rules and conditions. These include things such as tax rates and per-kWh price. Omons had to find a way to make a huge amount of data and complex calculations manageable for citizens and asked Luminis to help. There needed to be one platform that could be used by people in different municipalities, while also allowing for differences in legislation and regulations. Based on feedback from workshops, we developed a cloud-based solution that helps increase citizen engagement while identifying and communicating potential cost savings.    

 

AI translates science into reality at Whispp   

 

Whispp is a cloud-based speech-enhancement solution that enables people who stutter and those with a voice disorder to have a relaxed and (almost) fluent conversation.  Audio technology created with artificial intelligence digitally adjusts the sound of the speaker’s voice on a smartphone or laptop. Whispp can be used for live conversations as well as phone and video calls. Together with patient associations, medical specialists and universities, Luminis was involved in the creation of the product from the first study onwards. The process involved converting ideas and theories into a valuable speech-enhancement solution – one that is scalable.  

 

Digital capabilities – the missing link  

 

Digital transformation involves both technological and organizational change. In addition to implementing the necessary technology, in-house knowledge and expertise are also needed to keep innovating in the future. Addressing security, improving accessibility of data and implementing an Agile way of working to achieve value creation faster and more effectively are all key in this respect.    

To keep innovating at product level and provide customers with what they need, it’s important to keep growing your in-house knowledge and expertise. To help with this, we employ gamification of knowledge with Cloud: The Game and the Cloud Proficiency App and our Accelerate process, in which together with our partners we train the tech leaders of tomorrow.   

 

Growth opportunities for every organization 

 

Identifying, exploiting and maximizing growth opportunities is our area of expertise. We are known for our creativity, our vision when it comes to the cloud and data, and our expertise in implementing digital transformation processes. We help organizations increase their capacity to think strategically and execute accordingly while continuing to develop their knowledge.  This is how we accelerate innovation and growth for companies that want to be ready for the future.  

 

About Luminis   

 

Luminis has been generating creative ideas, innovating and doing things differently for 20 years. This makes us the perfect innovation partner for companies that want to innovate. We are a team of inquisitive minds and diverse personalities, proud to help our customers get smarter about data and harness the full potential of the cloud. We will be happy to help you discover and maximize your potential.    
  

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Matthew Bertram: The Biggest Mistakes Companies Make with Digital Initiatives

We were delighted to feature Matthew Bertram, senior consultant at Future Point of View, at a recent session, Digital Transformation: Charting the Course for Sustainable Success vs. A Temporary Fix. In this exclusive Q&A session, Bertram shares expert insights on pressing topics such as digital investments and emerging technologies, as well as advice on how to overcome talent shortages and improve company culture.  

 

The Digital Transformation Journey

 

What are the biggest mistakes companies make when it comes to digital initiatives?

Failure to invest! You need to be taking 1% of your revenue to invest in research. I see so many companies put in 0% because they have so many operational issues. They then get caught by surprise by something that they should have seen coming. It really doesn’t have to be that expensive. You can buy two VR headsets for less than $1,000 and give them to people in your organization. Ask them to take a couple of hours a week to set up a remote VR meeting and see how it goes. This does not have to be rocket science. 

 

How should different forms of automation be considered in a company’s digital journey?

My favorite is robotic process automation, which is what you do when there’s no computer interface or API available. It’s not a technology question but a business question. What metrics do you want to move? Do you want to increase profitability? Do you want to increase time to value? Do you want to reduce the error rate? First, start with the measures that are affecting your business that you want to improve, then move in with process mapping. Work backward to find out what needs changing. Once you know what to change, then it’s simply a matter of what’s the best technology.  

 

Do you think companies will keep investing heavily in digital projects?

I think it will be a mix. There’s this great desire to go back to the way it was before. I think that the further we get away from another black swan event, the greater the draw is for people to maintain the status quo and go back to business as usual. That’s why this is always a great opportunity for any company that’s willing to invest and maintain the discipline of consistent intentional investing. 

 

How do we improve employee engagement around cybersecurity to protect our assets?

One of the trends I foresee is that cyberattacks are going to get worse. I personally believe in Incident Response playbooks. For example, a ransomware attack has just occurred in your organization. What are you going to do? Being able to help them work out not just a checklist, but a playbook of what is going to happen is very useful. Not only does it prepare you when an incident happens, but it also helps with prevention. Playbooks are a great training tool for cybersecurity in your organization. 

 

Emerging Tech: Metaverse, Blockchain, and More 

 

How will the Metaverse affect businesses moving forward?

The Metaverse is three-dimensional, it moves from screens to spaces. We’ve already seen the gaming and entertainment industries move into the Metaverse. Where this is going to work well in business is with near-term opportunities like training simulations. For example, engaging customers throughout the sales cycle by walking them through a building versus just showing them pictures. Also, product design — think of remote engineering teams working on the same components together in three dimensions versus screen to screen. 

 

Is blockchain technology still relevant?

Absolutely. Back in 2018, it was at the peak of the hype cycle but now it’s going through a trough of disillusionment. The big problem is scalability because being able to scale up to real-world numbers of transactions is hard for blockchain as it’s so processor intensive. My projection is that over the next three years, blockchain is going to emerge out of the trough of disillusionment. We’re going to begin seeing industry-wide products that are built on top of blockchain. There are some early ones now with NFTs and cryptocurrencies. But we haven’t seen anything that’s really moved into wide-scale adoption yet. 

 

Are there any other technologies that are up and coming like blockchain?

Absolutely. Augmented reality is taking digital content and putting it on top of the physical world. Augmented reality blends the virtual and the real world together. Over the next several years, you’re going to see growth in this area, especially in enterprise applications, where you’ll be able to interact with objects and get an overlaid human interface. For example, this is going to change the way we interact with banks. 

 

What are you most excited and afraid of when it comes to technology?

Losing freedom of speech. When we moved into Web 2.0 and the social web, there were a handful of companies moderating all the dialogue on the Internet. They can turn people on or off as they wish. History proves to us that we need contrarian views. I’m concerned that private technology companies are going to effectively cause us to lose our freedom of speech. 

 

Talent Shortage and Company Culture 

 

What impact will the hybrid working model have on attracting talent?

I see my clients struggling with this, especially with HR policy. I know one organization with 900 employees where the HR department tried to put in an organization-wide policy on work-from-home unsuccessfully. They’re just trying to be fair, but the reality is that the work-from-home model has to match the particular job function. It is going to be a huge requirement to capture talent because the model you choose determines where you’ll be able to go look for talent, whether locally or around the world. 

 

How can organizations build teamwork and nurture company culture in a work from home environment?

That’s a tough one since every culture within an organization is different. Remote companies need to clearly articulate their branding in writing. It works very well for them to maintain their culture. If there’s a human-to-human connection, one simple thing I do is start weekly staff meetings five minutes earlier to catch up with everyone and see how they’re doing. It’s a great way of maintaining that personal connection. Something else that works well for us is scheduling physical meetups a couple of times a year so we can maintain those relationships. 

 

Do you have any advice on how to work around the current talent shortage?

Whenever it’s practical, buy rather than build, and offload the burden of finding talent to someone else. When it’s not practical, I would invest in tooling and look at how we can reduce the human workload as much as possible. Finally, there’s this idea of IT decentralization, moving a lot of functions that are curling into IT into self-serve out into the organization. It’s been very effective at being able to balance workloads within the organization. 

*The answers have been edited for length and clarity. 

 
Future Point of View is a digital consulting firm based in Oklahoma City, OK. For additional information about the firm contact at info@fpov.com or go to FPOV.com