Facing the digital storm

By Rodney Repullo *

Business leaders take up their posts after much effort. However, when they reach the “top”, it is very fragile in the face of the enormous challenges that arise, with turbulences that force them to observe reality with another look. But, what would that look be? Realizing the changes in the midst of a storm is the first requirement for success in the new chair.

A recent Gartner survey found that more than four out of ten business leaders are involved and in the process of digitally transforming their businesses, which places them at the forefront on this journey in support of their business organizations. Gartner himself prepared a document at the time (https://www.gartner.com/binaries/content/assets/events/keywords/cio/ciode5/top_strategic_predictions_fo_315910.pdf ) that offers companies the tips they need to survive the "stormy winds of the digital divide". Depending on the sector in which the company operates, the winds may be stronger than can be expected.

Organizations are, in fact, under immense pressure to keep up with and meet customer expectations and not be surprised by the competitor's innovations. Or - many times - from those who weren't even in the market and enough to turn everything upside down. It is the VUCA world, describing volatility (volatility), uncertainty (uncertainty), complexity (complexity) and ambiguity (ambiguity). It seems fashionable to quote this VUCA world in our business environment today. Yes, it is worth the reference, but it is important for leaders to pay attention to this complexity. The storm we are referring to has to do with this scenario.

The break in the measure of each business

Business processes, business practices and the commercial value of the digital divide need to be understood internally so that the company responds to the expectations of the client, so that he can feel and benefit from the impact of the change. Organizations need to have on board, visionary people, who can see the benefits of the digital divide and who can lead the internal organizational cultural evolution towards understanding the entire company for change. Quite a challenge.

Just to mention two examples, of companies that did not exist a short time ago and appear “out of nowhere” to turn everything inside out: Uber and Airbnb, which are among those on the front line of the rupture. However, your models may not be suitable for all markets or organizations. In some markets, “commercial” relationships can be questioned in court. For example, the California Senate defines that there is a working relationship between the application services platform and the workers who use them to secure their livelihood. In Brazil, this debate has not yet ended.

The long-term benefits: innovation must not always be radical

It has been considered an innovation that is born to do something new, different. But, it may be time to stop looking at the glamorous ideals of rupture and instead focus on the long-term, sustainable and achievable benefits that can be achieved. Simple changes can revolutionize internal business processes and substantially raise the quality of a product or service and, consequently, customer satisfaction.

The disruption of a company may be the seemingly “boring, irritating, untimely” implementation for a corporation, but the real value can be felt in its results. Process improvements are specific to each organization and even those in the same industry can have different challenges. It is up to the leaders to be in charge of the process. The client does not always speak up for her and she will be able to find answers to her wishes in the competition. In many countries, organizations are differentiating themselves from one another in terms of pricing, rather than in a fundamentally innovative solution or offering that meets customer expectations.

Digital investment: worth it when the soul is not small

Looking at the many researches in various areas, it may get lost in the numbers, but we can reflect on them, especially when carried out for analyzes of the digital divide. Research has shown that 68% of consumers leave a website and 74% will stop doing business with a company if they have a bad experience. Consumer apathy is rapidly eroding from digital accessibility and the ability to choose the business that best meets your needs.

Today's leaders have learned that the three main drivers of digital transformation are changes in technology, competition and customers and that digitally born companies have substantially changed customer expectations. These technological companies were born digital and never went through the analog phase.

Companies that were born analogue need to take a global approach to the organization to foster a culture of digital adoption and technological innovation. Strong leadership is essential to filter this approach across all aspects of the organization. It cannot be just a theory and, unfortunately, it is everything that most companies are prepared to invest.

Starting with people, it is not the CNPJ that “frustrates” or “enchants” the customer, but the CPF that is in front of them. It's fair. People are the best facilitators of the digital divide because they make up the human factor of business and have the vision, ideas and willingness to change. A machine does not promote innovation, but it is the people who created it. Organizations that want digital disruptions need to think differently about people and how they empower them.

People do technology, they do business. Business leaders are where they are, to take care of it, or ask to leave, to paraphrase Captain Nascimento, from the movie Tropa de Elite.

* Rodney Repullo, CEO of Magic Software Brasil.

Warning: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies