Back in October 2020 McKinsey published an excellent article that suggested recent levels of disruption had pushed companies over the technology tipping point – and transformed business forever.
Including the fact that executives were reporting that the share of digital or digitally enabled products in their portfolios had accelerated by 7 years. Yet, over 3 years on, enabling effective user adoption of technology remains as challenging as ever. With high levels of user adoption being the holy grail to getting full benefits and value from your Digital Workplace investment.
Everything begins and ends with the user, regardless of the change. And the key to success rests in:
And what contribution is your Change Management making to it?
With the introduction of advanced technological capabilities like Artificial Intelligence (AI) and Machine learning, there may very well be obvious benefit inherent in the technology itself that is driving improved financial performance.
But, there will also be a proportion of ROI that is highly dependent on user adoption – which is reflected in confident usage with the knock-on effect on capability and productivity – of technology digital solutions. The type of things that are only truly that are realised through effective Change Management.
And very often that is the missing link for organisations trying to get true value from their technology investment. We call it the Adoption Services Gap and it is something that we explore in more detail in our Effective Change Management ebook.
At Changefirst we have a strong focus on identifying data that will help us better understand key Change Management issues.
So, what do the data highlights from 8,830 surveys across different organisations globally tell us about adoption? Here are some of the findings:
Of course, it is important to point out that this benefit contribution is not guaranteed. In fact, insights from our practitioner community also confirm that:
The easiest way to put this in context is to take inspiration from the real world.
Consider these two real customer examples – where we have removed names to respect confidentiality.
(a) Customer X - major digital transformation roll-out
Customer X, with an investment budget for major transformation in excess of £800m – affecting different business units, processes and included introducing digital technology to advance service delivery. Transformation project benefits excluding user adoption and behaviour change were just 37% - leaving a substantial contribution to project benefits to come from Change Management.
We worked with the client to deliver this, with activities including:
(b) Customer Y - Salesforce implementation and cost reduction
Customer Y had a goal to significantly optimize their cost structure across all enterprise functions with Salesforce being implemented as a commercial enabler to drive sales and marketing efficiencies. One of 3 main objectives of the project was to target global savings of USD1billion over a 4-year period.
Project benefits estimated to come from the technology and associated process redesign (i.e. benefits considered independent of people’s commitment and adoption of Salesforce and new Operating model design) were calculated at 43% - the remaining 57% of savings were highly dependent on delivering the people aspects of the project.
ROI (%) = project benefits – project costs
project costs
Not only was time of the essence for this customer, but they also needed to reduce the people-component of project costs by 25-30%.
To deliver against this the customer decided to:
By providing digital access to tools and learning across a distributed network, they were able to yield a 40% reduction in costs associated with developing capability.
The other contribution to project benefits was to build a data-driven culture – quickly putting digital tools in the hands of 15% of the business globally. So that go/no-go decisions over a certain dollar value would also be informed by key people analytics to improve the quality of decision-making. NXBcnxbc
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Is improving your digital ROI high on your Change Management agenda? If it is, then why not schedule a no-obligation discussion with one of our change experts around your needs? |