Digital Technology Adoption Strategy for Organizations

Introduction

Organizations operating in a digital environment are compelled to develop digital strategies in order to remain relevant and competitive in their respective industries. For this reason, digital technologies have become an integral part of business processes today. However, adopting digital technologies alone is not enough to ensure profitability and relevance relative to one's competition. Organizations need to put in place effective mechanisms for ensuring that the technologies they use respond to the specific needs of users and incorporate buy-in from all key stakeholders. This helps minimize the risk of resistance, gives stakeholders a sense of ownership, and increases their commitment to the strategy's success. In addition, organizations need effective frameworks for addressing the pitfalls that could arise from their use of digital technologies.

Digital technology has become an integral part of businesses and organizations today. Its pervasive effects have resulted in the restructuring of organizations and entire industries. It is not surprising, therefore, that managers are increasingly interested in understanding digital technology innovations and their effects on organizations. Research has demonstrated that digital technologies produce significant benefits for organizations and can be a crucial source of competitive advantage if implemented effectively (Nylen & Holmstrom, 2015). Success in a digital world, as Nylen and Holmstrom (2015) point out, depends on how well organizations are able to organize innovation work and change their product and service portfolios to align with the digital environment.

This text proposes a framework that organizations could use to support ongoing improvements in digital innovation management. It covers six core areas: needs identification, user experience, value proposition, digital evolution scanning, digital skills, and organizational culture.

Needs Identification

The success of a newly adopted digital technology is determined in part by how well it responds to the needs of users. In their study analyzing the factors that influence the effectiveness of an organization's technology strategy, Ghobakhloo and colleagues (2012) concluded that organizations need to assess available services and products "that are compatible with their need" (p. 56). This helps ensure that changes made are relevant and productive. The organization needs to identify the specific needs of both external and internal stakeholders, and then select digital technologies based on how well they respond to those needs.

Needs can be identified by assessing what stakeholders expect versus what the organization currently delivers. For instance, an organization could conduct surveys — online or in person — to obtain views from customers, employees, owners, and other stakeholders about what problems they face, what they would like the organization to do differently, or what technological tools the organization could adopt to improve their experience. Alternatively, needs can be identified by mapping business processes to determine the specific problems that stakeholders encounter.

A well-known example of needs-driven technology adoption is Uber Technologies Inc., an American taxi-dispatch company. The company observed the difficulty customers experienced in getting a ride — calling a taxi company, waiting to reach a dispatcher, waiting for a cab to be dispatched, and then keeping in contact with the driver. Uber addressed this need by developing its app, which links customers with drivers, allows customers to summon the nearest car, and lets them monitor its movement in real time on a map.

If, for instance, employees are making late deliveries because they must organize physical meetings and wait for supervisors to obtain clarifications, the organization could consider creating mobile apps or introducing mobile devices to facilitate virtual communication. Proper needs identification helps ensure that resources are invested in the most appropriate technologies, and that losses from counterproductive investments are avoided (Lim et al., 2013).

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