The key to digital transformation is not technology, but people

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Taking a step back and having a look at all the technology we use daily really gives a sense of perspective on how much the world has changed. It seems it was only a short time ago that dial-up internet connectivity was the big new technology breakthrough, both in homes and in businesses.

Technology continues to develop at a startling pace--so fast, in fact, that governments can’t set new legislation fast enough to keep up. Major businesses are struggling to implement changes fast enough to remain competitive against nimble, digital native newcomers. But this changing business landscape also brings opportunities, for those who are willing to change with it.

The entrepreneurial mindset
In the increasingly digital global economy, fostering technology talent is paramount for competitiveness. Successful businesses are built on the people, and more specifically on the entrepreneurial minds that pave the way for innovation, progress and growth. No one can predict where the next big business idea is going to come from, so creating a culture of curiosity and constant learning is crucial.

When businesses embrace artificial intelligence, innovation can accelerate further. Humans and machines work hand in hand, with the former focusing on the idea creation, and the latter supporting workflow creation or problem solving, for example. AI could also enable better decision making by offering different, out-of-the-box perspectives, so that teams can avoid the danger of groupthink.

A recent study, AI and the Future of Work, highlights this complementary nature of collaboration between humans and machines. While much has been said about robots taking people’s jobs in the future, I think this is just scaremongering; instead, AI will allow us to bring the best out of people, maximising the most powerful human traits such as creativity, empathy and communication in our work.

Promoting a culture of change
Any new ways of working due to technology, let alone organisation-wide digital transformation programmes, are likely to be met with scepticism or resistance at first.  To bring people along on this journey, it’s crucial for leaders to invest the time in communicating how this change will contribute to the future growth of the business.

Leaders also need to be completely transparent and have an open dialogue with employees on what the change means to them as teams and individuals, and how they can, through their actions and new ways of working, help accelerate the organisation-wide transformation. And of course, while talking about leveraging new innovations like IoT, AI and blockchain, leaders need to ensure that they offer their employees the right tools and training to enable upskilling and maximise the transformational potential of these technologies.

Change to thrive in the global economy
The pervasiveness of Internet connectivity and widespread use of smartphones has enabled businesses to grow seamlessly across borders and spurred innovation in both developed and emerging markets. Yet, in this global digital economy, there is a talent gap between rich and poor nations that is increasing year on year, and impacting on countries’ competitiveness.

On one hand, talent competitiveness is strengthening in countries where it is already comparatively high; on the other hand it’s weakening in those where it is relatively low. One possible reason for this widening gap is that the economic expansion of more developed countries in recent years has generated a greater demand for talent, which, in turn, has led to an uptick in policies and practices that promote talent competitiveness. It is also possible that high income countries have been quicker to recognise the need to close the talent gap, taking more resolute measures towards it.

Talent is not just about technology talent. Yet, as technology continues to shape how organisations operate and how people engage with the world around them, it is becoming a major enabler of competitiveness and growth in organisations.

Some 20 years from now, AI and blockchain might seem as old as dial-up connectivity today. As the breakneck speed of technology innovation continues, the most successful, forward-looking businesses will embrace the changes that innovations bring, putting people at the heart of their transformation. This will be crucial to enable them to thrive in the global digital economy.

The author is MD and Group CEO at Tata Communications Ltd.

The thoughts and opinions shared here are of the author.