Building a strong digital culture relies on investing in your people and your tech

With AI, hybrid work and rising customer expectations driving rapid industry changes, a stark gap is emerging between companies embracing digital technology (digital leaders) and those failing to improve their digital capabilities (digital followers). Companies investing in digital transformation and creating a strong digital culture are reaping the benefits, while others are being left behind.

Digital culture refers to the mindset and practices within an organization that enables technology to be integrated across every aspect of the organization. A successful digital culture considers how tech can have an impact on employees, customers and wider communities alike.

New research from Virgin Media O2 Business and the Centre for Economics and Business Research (Cebr) has revealed a gap in perception versus reality within many businesses.

88% of those we surveyed class themselves as digital leaders and believe they have a strong digital culture already. In reality, many of these organizations are simply not increasing or improving their use of digital technology fast enough.

The problem lies in seeing technology investment as the only solution. IT management needs to assess how their people interact with it and will make the most of it. Real digital transformation requires more than just investment in tools - it demands a people-first approach. Addressing this gap could unlock significant benefits, from enhanced employee engagement to greater productivity and economic growth.

The power of digital culture

A strong digital culture can unlock significant productivity and revenue growth, and with a significantly slower productivity growth in the UK than comparable nations, it has the potential to make a real difference. In fact, digital leaders experienced over twice the productivity growth of digital followers between 2021 and 2023.

That growth not only benefits employees by creating a more efficient workday but also boosts the entire economy through increased turnover and efficiencies. The impact is substantial - had all organizations enhanced their use of digital technology during this period, the UK’s economy could have increased by £111 billion.

To prevent future missed opportunities of this scale, IT decision makers often have internal tech barriers to overcome. They need to ensure they are making smart investment choices in technology that align with their specific needs.

Understanding tech ROI

There’s a lot of tech available on the market, and it can be difficult to know what the best investment might be for your specific business model. This is especially prominent for SMEs who do not always have the same benefits as larger businesses of an in-house tech team to advise on the best tech to adopt.

It’s key to assess which investments could make an actual difference to how your business operates. It might be a small step like starting to use AI to streamline notes or document management. Seeing in real time that it’s made you more efficient for 10 minutes a day and understanding that this, extrapolated across your business, is hours of efficiency gains by the end of the week.

Modernization is an entirely personal experience for every business and a transformation of every piece of tech in your business might not be necessary for you. Your organization may benefit from adding a cloud phone system to the devices you already have, for instance, to achieve more on the move. The first step is to understand where your legacy technology is slowing you down and how these areas can be improved in the best way for you and your business.

Collaboration with suppliers and tech experts can help to ensure that the tech you’re investing in is the most effective choice, and where there are gaps in your workforce’s knowledge. Suppliers can come in with an external view, see what tech you already have and how it can be optimized.

But investing in tech is only half the battle. Ensuring your people are ready to use it effectively is what turns investment into impact.

Overcoming tech barriers hinges on your people

UK organizations are still witnessing a cultural resistance to embracing new technology and two-fifths of digital followers have reported this as their biggest barrier. But building a strong digital culture hinges on your people and their attitude towards using new tech.

Improving the digital skills of your people through regular training will help them to get the most out of their technology. Enabling staff to focus on higher-value tasks by reducing time wasted or time-draining tasks increases productivity.

Empowering your staff with the skills to carry out their job to the best standard possible, and more efficiently, drives engagement within the workforce. Digital leaders report that their employee satisfaction is three times higher than that of digital followers.

Fortune favors digital leaders

The power of a strong digital culture is undeniable. It boosts revenue, productivity and employee engagement. Whilst the barriers can feel daunting, the returns on technology investment for digital leaders are worth it – just ensure you set yourself up for success by bringing your people with you on the journey.

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