How to Prevent Productivity Loss After Digitalization

Here’s a common pitfall to avoid: don’t rush into new IT solutions without first thinking about your organization. Many businesses make the mistake of assuming that new IT systems will magically boost productivity. But as John Seddon explains in Beyond Command-and-Control, new IT solutions can actually decrease productivity. Why? Common reasons include IT and actual workflows not being aligned, poor adaptation, and choosing the wrong system. Here’s how to avoid these issues and make sure digitalization actually improves your productivity.

Misalignment of the IT System

New IT projects often face a lot of pressure from different people who want different things. The goals might not be clear, the expectations are super high, and there’s not much time. Trying to keep costs down while still meeting these expectations can be tricky.

Most businesses’ IT plans are about finding the right technologies to help them achieve their goals and objectives. But it’s not always easy to make sure these tech goals match the bigger business goals. Technology is changing really fast, and businesses need to get digital faster, but they often don’t think about how this affects their business model or how people work.

In 2024, almost all businesses are expected to use generative AI every day, but few IT plans thought about this change. As technology changes faster than businesses and people, organizations need to find ways to adapt.

Image showcasing how to connect IT strategy with the core business strategy

1. Human Factors: Understanding and Communication

Misalignment can also happen when employees don’t fully grasp what new IT systems can do for them. Remember, IT solutions aren’t just about controlling things or keeping track of information; they should also work well with how people think and behave.

Effective Leadership and Communication

Leaders must clearly explain why the organization is going digital. They should share the goals and objectives openly, so everyone knows their roles and why the new IT system is important.

Leaders should also help their teams understand these changes. By creating a culture of innovation and collaboration, and keeping everyone in the loop, leaders can build trust and encourage ownership. Workshops and training sessions can help employees learn more about digital technologies and use them more effectively, which will boost productivity.

2. Business Model Alignment

When new IT systems mess with how businesses operate instead of helping them, productivity goes down. This happens when enterprise architecture doesn’t connect IT with the rest of the business and IT plans.

Finding What Drives Your Business

To align your business goals with IT, identify the main drivers of your business and think about how IT can support those goals. For example, if your company merges with another, it’s important to figure out how to combine the IT systems of both companies. Creating a clear vision for your IT landscape can help you figure out what you want to achieve and how to get there.

For instance, a luxury brand that wants to provide the best customer service might not use old-fashioned chatbots for customer requests. Instead, they might hire real people to help customers. The IT systems should help the business do what it does best and make customers happy.

Processes as the Bridge

Processes can be a fantastic way to bring IT and business together. They’re like a blueprint that shows how we create value and achieve excellence. By mapping out these processes, we can make sure our operations run smoothly and find out where IT can really shine.

3. Choosing the Right IT Solution

IT systems that aren’t aligned can really slow things down, even if they’re super advanced. No matter how cool the tools are, they won’t help you if you’re using them in the wrong places.

Define Requirements by Processes

Let’s focus on the areas where the IT vision and current state differ the most. For each process, let’s identify the specific functions and information we need. This will help us create a clear and detailed requirement specification.

Concluding the IT Strategy

To create an IT strategy that boosts productivity, organizations must focus on three main areas: people, business model, and IT alignment. Remember, these factors are all connected, so don’t try to tackle them separately. Regularly review and adjust your strategy to make sure it’s still aligned with your business goals and objectives. By doing so, you’ll ensure that your IT solutions are truly helping you achieve your productivity goals.