The gig economy is not a new phenomenon—freelancers have been around for a while. So have consultants, temps. The gig economy has been under scrutiny for the past couple of years because technology has lowered barriers to entry so much that “gigs” have become easily accessible to an unprecedented number of people.
2020 & 2021 zoomed by, and we are now beginning in 2022. Covid19 pandemic is has shaken many sectors in an unprecedented way. Some sectors thrive, but most face much uncertainty. Overall, the key takeaway from the previous year entering into 2022 are:
Covid-19 drove changes in consumer behavior so rapidly, and we witness the massive surge in e-commerce penetration in 2020. It is still going strong as the world has slowly opened up.
What began as a necessity for safety has turned into disruption and evolution. It changes the way we work, eat, shop, and live. Digital tools have their merit with the situation. From organizing a team ZOOM meeting to project management using ClickUp to ordering food delivery using Grabs food. Companies that have adopted this swiftly and effectively earlier on prove to be on the advantage side. Digital transformation has become a must rather than a need for some industries. Brands need to learn how to take advantage of the situation.
We noticed the ‘great resignation’ last year. The reasons for quitting or dropping out of the labor force vary. The top reasons cited by experts continue to be lack of adequate childcare and health concerns about Covid, now exacerbated by Omicron. There are just as many reasons to suspect that many quit searching for better work opportunities, self-employment, or, simply, higher pay.
We foresee more people trying out gig and remote work, especially with more younger people entering the workforce. In their book, The Human Cloud, Matthew Mottola, and Matthew Coatney argue that traditional full-time employment will be a thing of the past, as organizations shift to hiring people on a contract basis – with those contractors working remotely.
Compounded with the above changes, work organization needs to adapt to the changes and take advantage of the new environments. Traditionally, organizations have been very hierarchical and rigid in their structures. A hybrid working environment and freelance workers (gig workers) can benefit from the flatter, more agile structures that allow the business to reorganize teams and respond to change quickly.
This is the age of flatter organizational structures, more like flexible communities rather than a top-down pyramid structure.
Today’s consumers are seeking a more meaningful connection with brands. And this need for connection has given rise to authenticity as a business trend in its own right. Authenticity helps to foster human connections – because, as humans, we like to see brands (and business leaders) display important human qualities like honesty, reliability, empathy, compassion, humility, and maybe even a bit of vulnerability and fear. We want brands (and leaders) to care about issues and stand for more than just turning a profit.
We live in a time where pretty much anything can be achieved by outsourcing. The global business world has never been so integrated. Moreover, it is an excellent job because it is great to work together to solve critical business challenges. Indeed, it will become increasingly difficult to succeed without really close partnerships with other organizations in the future. In practice, this means greater supply chain integration, more data integration and sharing of data between organizations, and even cooperation between competitors.
Source: INC, Financial time Forbes, Entrepreneur,Humanresourcesonline, Theguardian
Digital Transformation is a transformation of a business to adapt and leverage digital technologies. Conclusion: there are many upsides of the transformation as it opens up possibilities that were not possible before, such as geography restriction of clientele, speed of delivering services, and more. This involves modifying existing business processes, culture, and customer experiences.
There are two stances, defense, and opportunity.
Defense stance. With the changes of environments & behavior of consumers due to the advent of technology, the digital transformation ensures the business stays relevant to the market demand and survives the changes.
On the other hand, opportunity stance. As previously mentioned above, on the upside of the Digital transformation. For example, how Netflix came up with the Squid Game series by tapping into their customers’ behaviors database.
Digital transformation is more relevant to a company that started before the digital age, but it is also relevant to new ventures today! Technology enables many tools which have become accessible to everyone. For instant social media, OOT chats apps, the payment system have become a norm today, and practically many people have a second life within the digital ecosystem. Therefore, how consumers interact with tools, people, & life changed how they engage with your brand and services. As a brand, if we are not part of their life in this ecosystem, another brand will be very high. Opportunity cost here is a high stake one.
Many ventures, new or old, failed in their attempt for digital transformation. According to the Mckinsey survey, less than 30% of digital transformation initiatives fell short. Only 16 percent of respondents say their organizations’ digital transformations have successfully improved performance and also equipped them to sustain changes in the long term. An additional 7 percent say that performance improved but that those improvements were not sustained.
Digital transformation is more than just the tools. Hundreds of SaaS products and services popping up in recent years do not help the confusion. Each claim how they can transform your business around in a simple integration. Plug & play! Unfortunately, great tools without the change of other elements in the organization will not work. Imagine letting a regular driver drive an F1 car. Imagine what will happen?
According to an article from a Forbes publication, The six pillars of digital transformation are experiences, people, change, innovation, leadership, and culture. Let us take a look at each pillar and understand the backbone of the digital transformation.
Before adopting new technology, a deep understanding of your customer experience CX is vital. Why the company needs the tool? What are the consequences of the CX as of the technology? These expectations should be the basis of any investment, instead of asking their customers to change to fit new processes, perhaps losing them altogether in the process. The only way to do this is to focus first on the customer’s experience. This is why companies like Disney, Apple, Starbucks, and Nike have become iconic in their respective industries. They lead with experiences and create deep connections with their customers that go far beyond a product or service.
Are you and your organization ready for digital transformation? Ultimately it is the people who run the organization and the customer we cater to. People likely will be the most critical part of the six pillars of digital transformation. Without the right talent or focusing on your employees, your organization will struggle. The key is to use this technology to create meaningful experiences that are more profound for employees, customers, and others – still connecting humans to humans.
Any transformation will fail without proper change management. Change in as mentioned above: mindset, ways of things even to the leadership role. Managing change is the hardest thing in an organization. You cannot force it, and if you do, the results are short-term at best.
Change management is a process that must be planned & run meticulously and swiftly. One of the go-to frameworks of change is Kotter’s 8 steps of change management. Communicate your expectations to your employees. Develop a strategy to encourage change and deal with pushback simultaneously. Provide the necessary tools and environment for employees to embrace and succeed in this change. Doing this effectively will lead you to the next of the six pillars of digital transformation.
Transformation and innovation are not the same. Both go hand in hand. You cannot run things the way you are after technology transformation. It does not work this way. Here are the areas of innovation: Operational innovation, Product innovation, Business model innovation, Strategic Innovation, and Management innovation.
Innovations are not accidental. It has to be cultivated within the organization. Top management must fully support innovation initiatives and the company must have a process and system to nurture and manage innovation.
Leadership can come in many forms, but it must come from the top if you want the organization to change. The saying that you have heard a million times is true, you must lead by example. In an article for Forbes last year, it was found that most tech initiatives fail when the CEO is not involved. However, the CEO should not only be involved, by he or she should lead.
Leaders should be proactive and on the lookout for things coming down the pipeline. As technology moves quickly, there is no time to wait. You should also bring order as a leader instead of going with the flow. As much as technology can sound like the perfect plan, take your time to scrutinize all options. Think differently than the rest and lead others within your company to do the same. Don’t just follow the digital transformation crowd – lead it.
You may be surprised that the first thing to transform for a digital transformation initiative will be culture transformation. It makes complete sense. Culture determines how we do things and how people are motivated to push when there are challenges. After all, the people will manage and deal with the new technologies implementation. By creating an open space where employee and customer experiences reign supreme, where people matter most, change is planned for and innovation takes center stage, you will lead your organization into a culture that transforms on its own.
