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ET MSME Day 2023: Why your workforce is the key to successful digital transformation


In the rapidly evolving business landscape, digital transformation has become not only an essential but also a highly sought-after strategy for organisations of all sizes and industries.

This broad-based procedure isn’t just about firms’ IT processes but encompasses every process across production and assembly lines. It involves adopting advanced technologies, revolutionising company culture and optimising business processes, and enhancing the changing dynamics of the broader business environment. The ultimate goal is to achieve agility, resilience and competitiveness through the replacement of outdated systems with smarter technology solutions, making use of seamless integration of interconnected systems, data, processes and supply chains.

As all these procedures are essentially driven by human resources, experts affirm companies need to put the spotlight on workers while implementing their digital transformation strategy. By placing the spotlight on workers and their skills, companies can effectively implement their digital transformation strategies and ensure a smooth transition into the digital age.

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The utility of the “human factor” in firms’ digital transformation journey cannot be understated. Training employees not only equips them with the necessary skills and knowledge, but also empowers them to adapt to new technologies, embrace innovative practices, and contribute to the transformation process. By fostering a culture of continuous learning and development, companies can harness the full potential of their workforce and drive the success of their digital transformation initiatives. Such a concerted attempt is not only crucial for the present, but also lays the foundation for the firm’s future success, particularly MSMEs.

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Giving an example, Dilip Sawhney, Managing Director, Rockwell Automation India, says: “Finding highly skilled data scientists is still difficult in many remote industrial areas of the country. Additionally, it is difficult for someone who is not adequately trained in such sophisticated skills to handle the requirements of modern data sciences. However, thanks to new technologies, particularly in the manufacturing sector, many things can be easily set up and configured inside a modern control system by people who are familiar with OT (operations technology) or factory systems and don’t need to have specialised knowledge in data sciences. This is how a trained workforce can push efficiency across processes.”

Extending his argument, Sawhney opines that firms no longer need to learn anything new. One can now access advanced data modelling capabilities, process optimisation, and multivariable process control data sciences in an operational environment that someone is already familiar with. That is how digital transformation can empower SMEs to succeed in their businesses.Potential speed breakers and solutions
However, while putting the spotlight on workers while implementing their digital transformation strategy, one thing that experts suggest to small businesses is going beyond short-term fixes and making strategic investments in their workforce. By investing in workforce training and prioritising the development of employee skills, businesses can unlock the true potential of their digital transformation strategies.According to Nishant Nischal, Partner at Kearney, the digital transformation programme could be a short-lived fantasy if one doesn’t have the right people driving it and ensuring that it sustains. “The change that organisations desire to bring today is not just about embracing technology alone but using the deployed tools and technology to transform entire core business processes and, above all, revamp the organisational culture. Most organisations face an inertia to any change that top management wishes to bring about to achieve a certain vision,” he says, adding that successful organisations can break through this inertia and on-board their talented workforce for achieving the goals and building trust among all employees to embrace the change.

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The top leadership may create the vision for the next 30 years, but it is their ability to inspire and motivate the on-ground employees to work towards the vision that truly nurtures a healthy environment for large-scale transformations. However, breaking this inertia is easier said than done. Hence, a structured change management programme should be at the core of the larger digital agenda. A digital strategy implementation needs to be coupled with an equally large capacity development and change management programme.

“There are three broad areas of focus when we speak about enabling a digital-savvy workforce – increase the involvement of mid and higher management, enhance engagement across the organisation and boost awareness about the digital agenda,” says Nischal, adding that in order to increase involvement at the leadership level, firms need to get sponsorship for key initiatives from the top management while selecting the best and brightest to drive on-ground implementation.

In order to boost engagement, companies also need to set up a strong top-down focus on digital awareness and capability building to push the digital agenda. It is also critical that the on-ground work is disseminated throughout every nook and corner of the organisation to imbibe the spirit of digital and promote awareness. Firm-wide communications such as programme-specific updates via newsletters, weekly updates, town halls and knowledge sharing sessions, also add a rich flavour to the digital programme. Events such as hackathons and ideation sessions, and reverse mentoring programmes help employees jump on to the digital bandwagon, say experts.

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