Digital Transformation is a heavily used phrase.
Simply put, it is a shift to utilizing technology in order to boost business performance. Seems like an easy concept right? Often, however, it is overlooked, or not given the attention it needs in order to be successful. Digital transformation requires a business to strive for innovation, not just checking off a box on a “Digital to-do list.” Take the first step toward digital transformation for your company’s safety, quality, and operational goals.
Digital transformation is more accessible than you may think, and it can yield significant ROI.
The Dual-Track Approach
What defines digital transformation to be successful? According to a study by Harvard Business Review, digital transformation is most successful when utilizing the dual-track approach: a combination of grand-scale digital transformation and rapid-cycle innovation.
Grand-scale digital transformation identifies and gradually implements new technology across the entire organization. It is an enterprise-wide emphasis with the goal of transforming the entire organizational culture and business workflows through digitalization. Often this process can leave gaps, though, as smaller departments are not receiving the particular focus they need to adopt these strategies.
Rapid-cycle innovation can take up the slack. It allows you to make incremental improvements and modernize the reporting processes that cross business workflows and workgroups. It is often called “innovation on the edge.” It is more agile and can be targeted for quick improvements in safety and performance.
When HBR conducted their study, they found…
of executives surveyed say successful digital transformation requires an approach that combines innovation at both the enterprise- and business process levels
“strongly agree” that this dual-track approach is essential
aren’t willing to rate their current digital transformation strategies as being “very effective”
haven’t implemented a dual-track strategy
Luckily, the dual-track approach is not as far-fetched as some businesses may consider. In fact, taking small steps at a time will promote the most successful digital transformation and ensure that the dual-track approach is implemented in the most effective way.
Why are Small Steps Essential?
For starters, a company that uses antiquated, paper-only methods and then shifts to adopting wide-scale advanced technology will likely overwhelm employees and lead to a greater investment in training. There’s also bound to be a bit of “rework” that you’ll have to do, that is revisit certain aspects of your digital transformation that were missed or that didn’t go well when you transitioned. On the other hand, a series of gradual improvements helps eliminate any gaps and ensures that workers aren’t left behind and scrambling to catch up with any new strategy.
According to McKinsey research, it’s estimated that less than 30 percent of those who digitize are successful at it. And only about 16 percent state that they’ve actually improved their performance after digitizing.
These businesses that were successful were able to implement digital transformation in ways that are already feasible for most companies.
About 85 percent integrated traditional web-based technologies.
About 80 percent used cloud-based services.
Nearly 70 percent used mobile solutions.
Mobile Solutions are the Easiest to Implement for Training and Ongoing Engagement
The above changes are not dramatic methods of digitization by any means. In fact, we often forget about the most important tools to assist with the first step toward digital transformation – the smartphones already in your employees’ pockets. Here’s a closer look at why smartphones are the best option when taking a first step toward digital transformation.
1. People don’t need to try to use a smartphone; it’s what is most familiar to us. We use them every minute of everyday in our own personal lives. In fact, it requires more effort on the part of the worker to train their brain to complete operations in a paper format – everything in our world is digitized, so why can’t work be digitized as well?
2. It’s affordable. As mentioned, the majority of Americans already own a smartphone. Anvl’s award-winning mobile solution can be instantly downloaded on iOS or Android phones/tablets (or devices), and the application takes only a matter of minutes to train and comprehend. And, even in a business that limits the use of personal devices onsite, there are many affordable options for the workforce, from corporate discounts to purchasing Wifi-only devices or refurbished devices.
3. Opportunity for limiting capability on the device. The fear may be that there will be a loss of control when taking on digital transformation with a mobile approach. For workers in environments where it is highly risky, the business can provide shared devices in kiosk mode and incorporate mobility management solutions that prevent and monitor usage while onsite. This allows for the device to be locked down with a single application to prevent distraction and get work done.
4. Increase safety at work. Often there is a stigma attached to smartphones. We see everyday horror stories in the news of accidents and injuries as a result of texting and driving. Some states are rolling out new laws that completely ban the use of phones while driving. We are conditioned to see mobile devices as a distraction, not a tool. Even though mobile devices are viewed as a distraction and pose potential safety issues to the worker, with controlled application access, worker safety and engagement is still at the forefront of every operation and adds value to daily work.
5. Your workers are still at the center of every operation. Mobile Solutions, like Anvl’s, offer real-time visibility and increased communication to frontline workers and supervisors. As long as people are involved, communication still needs to happen. The added benefit: Your workers can complete a digital Workflow once, rather than revisiting the same paper form multiple times a day. This leads to increased control, insight, and engagement from workers on the frontline. As a result, business operations become much more productive, effective, streamlined, and collaborative.
Digital Transformation and ROI:
So, by now it is convincing that digital transformation is beneficial for business performance, but what are the implications for return on investment (ROI)? Is it worth the expense? In short, digital transformation yields significant ROI from a safety, quality, and operations standpoint. Here’s how:
ROI for Safety
Many businesses find themselves cutting corners on safety because they think that safety is too expensive. They may not think that they can bid on jobs with safety in mind, because they are going to get outbid. The truth is: Safety is as expensive as it has to be. Safety isn’t optional. It’s a necessary expense.
Furthermore, safety has a higher ROI than many organizations may think. A single incident or accident could cause a company millions, not only in equipment fees and medical costs, but also in stopped work and damaged reputation. Over time, a reputation for safety improves all levels of an organization, ranging from client trust to employee satisfaction.
Businesses will gradually get better at improving safety. They will have better processes, technology, and equipment. But even at the beginning, safety pays for itself.
Here’s where investing in safety has major payoff:
Decrease lost time – A reduction in days away from work, injury related restricted work, or job transfer rates are important improvement goals.
However, be aware that other people in other departments, including the C-suite, may not fully understand how important these metrics can be to the bottom line. Be prepared to provide specific examples that demonstrate what these metrics should mean to the company.
Digital software solutions provide a better way than paper, and when implemented, companies may see up to 34% greater employee efficiency and two-times faster decision-making, according to VMware software company. When it comes to choosing the appropriate safety software for your company, it can be challenging when deciding on the features your business will actually need.
According to OSHA, the most effective safety programs actively engage workers. With active participation, workers share the responsibility of safety, and since the jobsite worker knows the most about potential hazards associated with their jobs, leveraging this knowledge can help companies not only save costs, but also gain productivity and worker engagement.
This is why Anvl’s solution engages workers on the frontline to put safety at the forefront of every operation. Anvl provides digital transformation technologies to empower business operations to make significant strides toward a safer work environment for all employees. Our software brings real-time visibility and communication tools that keep employees, supervisors and management connected and communications transparent, even when working from home.
ROI for Quality
Though all businesses strive to improve quality, learning new ways to effectively manage it is often overlooked or shrugged off as an additional, and perhaps even an unnecessary expense. Investing in digitizing your quality management procedures has significant improvements in ROI as well. Here’s how:
Reduce Cost of Defects
Good digital solutions focused on quality rely heavily on data, and data can help companies catch product defects sooner or even go as far as preventing defects from happening in the first place. By doing so, your company will be able to streamline its product development process and minimize the time and financial commitment that goes toward scrap, rework and product replacements. You’ll be able to capture data and learn from your mistakes so your overall operations will flow much better moving forward.
Does each and every product your company produces meet your standards? By implementing a good digital solution focused on quality, you’ll be able to better standardize procedures and give your workers more of an ability to make decisions in real-time. Quality-focused software also ensures that supervisors are better able to see progress and monitor potential issues on the shop floor and eliminate barriers to communication.
External Failure Costs
From warranty costs to lost business, quality issues have downstream costs that can be avoided with a well-managed quality solution. Quality-focused software aims to improve customer satisfaction and ensure that your business can continue to grow, prosper and stay competitive by eliminating these issues as much as possible. Making the investment now will have future payoff.
It’s estimated that the average company spends up to $7,500 per employee on paper when you factor in the cost of buying paper, copy and printing equipment, ink, and filing cabinets and other storage. Let that sink in for a moment. That brings us to another benefit about quality-focused software – it’s digital! By taking your company paperless or at least reducing the amount of paper it uses, you’re cutting down on overhead costs. You’re also signaling to the rest of your company how you’re willing to change for the better. Learn more about the significant ROI for going paperless here.
Driving Engagement through Transformation
Digital transformation offers a variety of benefits that boost business performance. Among all of these benefits, workers safety is at the core. Digital transformation allows for workers to feel engaged, empowered, and centered at every operation to ensure their safety and business success.
Understanding the Cost of a Disengaged Worker:
Help workers feel more empowered and engaged on the job
The Gallup organization has worked for years with companies around the globe to assess the impact of disengagement. They’ve built a database of 35 million employees to assess the scope of the problem, and found more than one in six (17.2 percent) employees are not engaged with their jobs. Those employees are absent from work 37 percent more often than engaged employees. They exhibit 18 percent lower productivity and 15 percent lower profitability.
From a dollars and cents perspective, each disengaged employee wastes about one-third (34 percent) of his or her salary through low productivity, absenteeism, negativity, and other behaviours. That’s $3,400 for every $10,000 in salary. Do the math using the headcount and median salary for your company. You’ll find that disengaged employees put a gigantic drag on both revenue and profitability that, for large corporations, can run into billions of dollars.
When implemented, digital software solutions drive up to 34 percent greater employee efficiency and a 2X gain in accelerating decision making. When it comes to choosing the appropriate safety software for your company, focus on identifying the features will benefit your business the most. Solutions that support active participation from workers can provide significant payback in a short time. These solutions help ensure frontline workers and frontline leaders share in the responsibility of safety.
A study by Glassdoor.com found “companies with engaged employees outperform those without by more than 200%, and companies that invested 10% more in employee engagement also increased company profits by $2,400 per employee per year.
How Employee Safety Behavior Impacts ROI
It is no secret that investing in safety drives high ROI and can sharply reduce the associated costs that come with a lost work day. However, it’s important to understand why this happens, which empowers safety leaders to make an informed decision on the best kind of safety programs or technology to invest in. It is not enough to purchase form builders so that safety inspections can be checked in a digital format. It’s best to look for ways that will keep workers engaged with safety, and condition them to consider safety outcomes and consequences with every step forward- this is exactly what Anvl is here to do.
Our software was designed to develop such systematic change within a company culture. It is more than providing a checklist for employees to complete each day. Often, we do not consider how risk evaluation is an automatic process. Software with safety elements conditions human behavior to consider safety in every aspect- which in turn leads to ROI and ensures compliance with safety processes. Without this investment or prioritization of safety, companies rely on their employees’ individual perceptions on safety, which may be misguided or not up to company standards.
Research has repeatedly demonstrated that every dollar invested in software like Anvl leads to a $4-$6 payback in costs. And, if that is not convincing enough, that is significant to consider in the context of the direct and indirect costs of any workplace injury, illness, or fatality. Safety culture is worth the investment.
Taking the first step toward digital transformation may seem daunting, but at Anvl, our team is ready to help your business transform your existing processes. Anvl’s easy-to-use digital Workflows can empower your workers on the frontline and drive engagement, productivity, and operational efficiency.
Data Points Gathered
Interventions and Stop Jobs