Somehow, many people may not understand why I relate Gig Economy to Digital Transformation. Well, this is what I do and focus on. I even brand my consulting and coaching services as DXGIG which represents digital transformation and the gig economy.
But do you know that moving to the gig economy landscape is also a step toward digital transformation? The Gig economy indeed will transform the future of work and according to SHRM, the future of the work ecosystem revolves around the work, workers, and workplace.
I have been speaking to lots of people and organizations about digitally transform their business but many of them may not comprehend what exactly I meant. Digital transformation is not only about technology adoption alone. In fact some assume it as upgrading and automating their technology and systems. But the reality is digital transformation is about business outcomes when organizations undertake to transform their business model. To do that, they leverage digital technologies, tools, and strategies to achieve the outcomes and goals they want to achieve. Therefore, technology became the enabler, and to transform, it’s the organizations and employees who are the driving force that harness and utilize technology to transform the organization and business.
I like reading the book, “Think Like Amazon” written by John Rossman. In one of the chapters, he wrote that Jeff Bezos specifically wanted people who are dissatisfied by lots of the current ways of working to fit into the digital transformation team. That little thing will fundamentally change how the organization operates which will deliver value to customers, employees, and their stakeholders. While technology serves as the enabler that makes the transformation possible, the reality is the people within the organization who does the initiation, leading, and guiding of the process for the organization to transform and thus achieve its business outcome.
To do that, organizations will initiate many strategies based on their main challenges as the first initiative in their digital transformation journey. Those challenges may be from meeting customers’ demands and expectations, improving the business operations, or even undergo to enhance employee experiences.
Late last year, I helped one small business to initiate its digital transformation initiative. As I sat down with the business owners, we went through their business pain, and we managed to outline their key challenges they wanted to overcome. These are the few that help them to transform.
- Staying Competitive
Both owners felt the need to transform as the business has been running for almost two decades. It’s always been business as usual, and their growth is limited due to infrastructure constraints as expansion will need to align with their infrastructure. Their labor cost can be as high as 60% to 70% of their total business costs. They further notice more competitors in the market hence, they want to transform but unable to find ways to be cost-effective in their business operations. Their business niche is all about human touch as they are in a services business.
- Employees Retention
In addition to the operations challenges, the business owners were also challenged with employees retention. They continue to their typical recruitment practices and processes. However, nowadays the recruitment process is taking longer than usual, furthermore candidates are more mature with employment mode thus having more new demands. Employees started to outline their terms, as they are aware of their rights thus quiet quitting was on the rise. Quiet quitting refers to a situation where employees are disengaged from their job or responsibilities without formally resigning or openly expressing their dissatisfaction. Therefore, they are challenged as it decreases their productivity. Furthermore, these workers do not show enthusiasm, and affect the operations.
- Customers Demand
They have expanded over the last two decades in business. While they celebrate their expansion, however, they felt customers becoming more advanced and needed new engagement. They are aware that technology is disruptive nowadays. Well, at least for good reasons as this disruption bring more positive vibes to the workplace. In their business model, they now need more technology to empower their workers to innovate and create new engagement with their customers and users. But the day-to-day operations remain the same, hence they need more strategic solutions to their customers. They know what their customers wanted value-added services but they have limited resources to expand.
I sat down with the owners and drew a plan for them along with long-range strategies by leveraging the gig economy landscape. They accepted my ideas and started using their expanded infrastructure to broadcast their new innovative ideas to the customers. They were surprised by the positive responses from their customers. Some of their customers even offer their independent services to them. While they are still in the initial stage of their digital transformation journey, but we all know that this solution will eliminate some of the key challenges faced by the business owners, their employees, and customers. They know, this business model will differentiate them from their competitors.
But do note that digital transformation is a long-haul journey, hence, the success of the journey takes a lot of effort. Therefore, it is imperative to get the right digital driver to lead and implement the digital initiative with support from the top and having acceptance from the organization as well.
Before I end this article, I just want to set the pace that this solution creates new work and jobs for the business. This solution embedded with gig platform created an opportunity for their internal employees, external retired professionals, home-based parenting parents who can offer and extend their niche skills to earn side hustle income.
Are you ready to transform? If you have this in mind, take the leap but do speak to an experience consultant who is willing to sit and share ideas with you to initiative your transformation journey.