Many technology companies are going through a period of unprecedented change as they:
- evolve their businesses from a product sale model to a subscription one including changing cultures, attitudes and behaviors internally
- look to help their customers adopt these products and services at the same time
In this video, David Miller - Founder and Chairman of Changefirst – outlines why digital transformation is not about technology and how Technology Companies can effectively meet the dual challenge and:
- Speed time to value for both them and their clients as they look to deliver on digital transformation
- Increase customer adoption of their products and drive renewal revenue
- Make the changes in behavior that is key to all of this – through a better suite of strategic change management tools and techniques to manage the entire process
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Well, I think most of the technology companies are swapping from a product sale model to a subscription model. What happens when you do that is for a period of time, hopefully not too long, your revenues decline because you've moved from upfront sales to subscription sales, license revenues, and the same time your costs increase because you're having to shift your business model. And so for them, they're going through their own substantial digital transformation and that means changes often in culture, things like mindset, behaviors, attitudes, skills, so that's one thing.
But the same time, it just makes it really complex is their own customers are having to go through the same sorts of transformations. And if these companies want their products to be adopted, they have to help their customers move through digital transformation. So they're faced with these dual challenges. And I think it's fair to say that some are dealing with it better than others.
I've been in this business probably about 30 years now, helped many organizations build the capabilities to deliver change. And I think about every five years something comes along and people say to me, "Well, this is going to be really easy to learn. People are used to change. They do this at home." Invariably, they're disappointed when those things don't turn out to be true. And that's why I was really pleased the other day, I was seeing a speech by Ginni Rometty, who's the IBM CEO, and she was saying, "A couple of things I've learned at IBM."
One, is that it's quite easy for people to become overwhelmed by change. And so there's lots of changes that mount up and eventually people stop changing. The second thing, she was particular talking about AI, but I think you could probably apply it to almost any type of digital change, is that she said, "The number one thing it's all about is behavior change." And AI will only work if people that are employees, leaders, change their own behaviors, and that requires change management.
Well, from a change management perspective, I've already mentioned digital transformation, which is a giant change that they're having to manage with their customers, but I think a subset of that which I notice is that customers now, in this day and age, want faster and faster execution, I think they call it time to value. At the same time, technology organizations need people to renew subscriptions, which is about adopting it in the first place, and lots of users use it, and then lots of users in the organization want to continue using it. And those two things really come together, they're part of the same thing, they're kind of yin and yang. But in order to do that users have to change their behaviors. And so I think the tactical challenge is to use change management techniques very early in these engagements, which help people do that rapidly.
Tech organizations definitely need better strategic tools to help them manage their own digital transformation and that of their customers. And I think that's where we come in. Our transformation platform enables people to learn and execute some really proven transformation techniques. For example, leadership, engagement, visioning. Underpinning that is some really good technology that allows people to plan and execute activities to track those activities. And I think, probably the best piece of technology we've developed is the fact that it allows people to collaborate. Collaborate is so critical to implementing transformation, and that's what this software does. It allows plans to be shared, to be commented on, to be improved, and I think it makes a fantastic tool.