FEAR OF CHANGE

The heart of transformation is the biggest challenge for most people — change.

The Digital Transformation has spread into our habits and lives at a much faster pace than most people expected. This development has left many companies unprepared, having to adapt with this new digital landscape. The advantages to integrate a digital strategy and action plan are often understood by the top management of a company, but that is not always true for all employees.

Fear of digital

Due to this lack of understanding, digital is a word that often creates fear with the employees. For some, it relates to a more automated process of work, leaving less place for humans. The thought that at some point, machines are taking over all our jobs, will come to their minds. They see it as a threat of their current status, job and security. At the same time people don’t like change and want to stick to the known processes and systems.

Learn to Embrace the Change!

The Digital Transformation has spread into our habits and lives at a much faster pace than most people expected. This development has left many companies unprepared, having to adapt with this new digital landscape. The advantages to integrate a digital strategy and action plan are often understood by the top management of a company, but that is not always true for all employees.

Fear of digital

Due to this lack of understanding, digital is a word that often creates fear with the employees. For some, it relates to a more automated process of work, leaving less place for humans. The thought that at some point, machines are taking over all our jobs, will come to their minds. They see it as a threat of their current status, job and security. At the same time people don’t like change and want to stick to the known processes and systems.

Learn to Embrace the Change!

What can a company do to ensure a smooth digital journey?

  • Get the full support of the company’s management teams
    The digital strategy needs to be rolled out and supported by the entire management team. All staff must understand it is a strategical decision, to make the company more competitive and innovative.
  • Assign a project team
    Create a team which includes the key people who will be critical for the implementation of the project. Employees must be able to express their concerns and be heard by the management team.
  • Train your staff
    When confronted with new technology, people may feel overwhelmed. Training is absolutely critical and can be done in many different ways.
  • Change management training
    Besides training on the technical side, a mindset training will be important to ensure all the employees feel they are part of the process and have the right tools to cope with these changes.
  • Explain and exchange
    It is important to communicate to all stakeholders how the project is developing, what are the results, and to listen to their feedback. Townhall meetings are an excellent tool for this, as well as online information sessions.
FEAR-OF-CHANGE-EACIIT-BIG-DATA-WORLD

What can a company do to ensure a smooth digital journey?

  • Get the full support of the company’s management teams
    The digital strategy needs to be rolled out and supported by the entire management team. All staff must understand it is a strategical decision, to make the company more competitive and innovative.
  • Assign a project team
    Create a team which includes the key people who will be critical for the implementation of the project. Employees must be able to express their concerns and be heard by the management team.
  • Train your staff
    When confronted with new technology, people may feel overwhelmed. Training is absolutely critical and can be done in many different ways.
  • Change management training
    Besides training on the technical side, a mindset training will be important to ensure all the employees feel they are part of the process and have the right tools to cope with these changes.
  • Explain and exchange
    It is important to communicate to all stakeholders how the project is developing, what are the results, and to listen to their feedback. Townhall meetings are an excellent tool for this, as well as online information sessions.
FEAR-OF-CHANGE-EACIIT-BIG-DATA-WORLD

What can happen if we don’t adapt?

The business landscape is littered with cautionary tales of huge companies that failed due to lack of innovation. An unwillingness to innovate puts any company at risk of failure, but refusing to evolve with the market can be even more devastating.

At its peak in November 2004, Blockbuster employed 84,300 people worldwide, including about 58,500 in the United States and about 25,800 in other countries, and had 9,094 stores in total. In November 2013, the last 300 company-owned stores were closed.
As of September 2019, the only remaining physical Blockbuster (a privately-owned franchise) store in the entire world remains open in Bend, Oregon.

In 2000, Reed Hastings, the founder of a fledgling company called Netflix, flew to Dallas to propose a partnership to Blockbuster CEO John Antioco and his team.  The idea was that Netflix would run Blockbuster’s brand online and Antioco’s firm would promote Netflix in its stores.  Hastings got laughed out of the room.

Netflix proved to be a very disruptive innovation, because Blockbuster would have to alter its business model—and damage its profitability—in order to compete with the start-up.  Despite being a small, niche service at the time, it had the potential to upend Blockbuster’s well-oiled machine. Which of course it did. 

 Blockbuster went bankrupt in 2010 and Netflix is now a $28 billion dollar company…

Kodak, a technology company that dominated the photographic film market during most of the 20th century. The company blew its chance to lead the digital photography revolution due to denial.

Steve Sasson, the Kodak engineer, actually invented the first digital camera back in 1975. “But it was filmless photography, so management’s reaction was, ‘that’s cute—but don’t tell anyone about it,” says Sasson. The leaders of Kodak failed to see digital photography as a disruptive technology.

BlackBerry, a line of smartphones and tablets, was a massive success in 1998. They changed the game in the mobile industry by offering a device with an arched keyboard. Their encryption even into the early 2000s was second to none but they did not think about user experience. 

Just a few years later the entire mobile industry started focusing on bigger touchscreen displays, while BlackBerry was more concerned about protecting what it already had. Failing to adapt to changes, in 2017 the CEO John Chen announced that BlackBerry was out of the smartphone manufacturing business and that the company hads built a new strategy. “Under this strategy, we are focusing on software development, including security and applications.”

Hitachi – Japanese brand Hitachi was one of the original big 4 electronics brands along with SonyPanasonic, and Sharp. Now the company is losing billions of dollars a year. The reason? The digital revolution.

The electronics industry has changed, where consumers don’t have as high of a desire for their high price products. The digital revolution not only changed the way electronic gadgets work, they changed the way they are manufactured.

Sony changed the way we listen to music with the invention of the Walkman in 1979. By the 90s Walkman was a must have gadget for every teen. It was the iPhone of its day. But when MP3 players were introduced to the market, the sales of the Walkman started to drop. The iconic Walkman was killed by the MP3 players, which were later killed by smartphones.

Sony didn’t adapt to technological innovations such as digitalization, the shift towards software, and the growth of illegally downloadable music online. Sony actually had the technology to launch a product even better than the iPod, but it never happened. The company was too afraid to test out something new, thinking it would threaten their compatibilities on the market. 

What can we learn from these examples?

DO NOT BE AFRAID TO INNOVATE – let EACIIT help you and your business to benefit from the Digital Revolution and the incredible opportunities that new features bring!

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