Omnichannel Digital Experience Is Required In The Digital Age

Stuart O’Neill

Customers don’t see a brand as a series of channels. They see it as a singular entity. So it’s not surprising that customers become confused when the experience they receive through one channel is inferior to or inconsistent with the one they receive through another.

And confused customers rapidly turn into unsatisfied customers.

Research shows that most consumer engagements now involve five or more interactions, usually across more than one channel. This outlines the critical importance for brands to develop an omnichannel capability.

Consumers expect to interact with brands from anywhere, at any time, and on any device. And while it might be true that nothing beats the human touch, that doesn’t mean an experience delivered through a digital channel should be a poor one.

A brand might choose not to staff its outlets and call centres 24 hours a day. But there is still plenty it can do to ensure that their digital experiences delight customers.

Omnichannel digital experience: Bridging the gap for customers

Australian brands have taken big steps when it comes to meeting the expectations of consumers for exceptional DX. On average across all industries, the percentage of unsatisfied respondents dropped to 35%, down from 40% in 2016. Better still, the percentage of delighted customers rose from 26% to 31%.

Despite the uplift, Australians still gave brands an overall DX score of -4%. This indicates there is still some way to go before Australian brands succeed in delighting their customers through digital channels.

Australian consumers clearly prefer to deal with brands through multiple channels, but only when those channels add value. Omnichannel DX had a greater positive business impact than single-channel engagements, as reflected by a DX score of -1% compared to -21% for single-channel.

Loyalty was also higher when consumers interacted through an omnichannel environment, at 43% compared to 38% for single channel, while advocacy results were also elevated.

However, consumers also rated the experience provided by brands as stronger in a single-channel environment. This suggests that brands which focus on a single channel alone might be able to provide exceptional service through that channel, but they could also be missing out on engaging with customers for whom that channel is not the most appropriate.

Ultimately, brands need to focus on providing a consistent experience across all of their channels to market, ensuring that all channels meet customer expectations.

Investing for omnichannel success

Additional research also shows physical stores have an important role to play in driving interaction across all channels – a finding reflected by online retailers such as Amazon and Alibaba opening stores in the U.S.

The popularity of click-and-collect services points to an additional benefit that brands accrue through using their physical outlets to give consumers the opportunity to both transact and fulfill as they wish, rather than being limited in either option. In this way brands are able to also drive consumers into their physical outlets, providing additional cross-sell opportunities.

Australian brands with physical stores must make the most of this existing advantage by integrating experiences across other channels, with the ultimate goal of providing a consistent experience across all channels. While every channel has its own nuances and advantages, there is much that technology can do to make the experience for customers more consistent, with the advantages of any one channel shared amongst others.

Bottom line: Digital experience is critical, no matter what channel you use

In a world where the customer is in control, brands will find it increasingly difficult to dictate how their customers interact with them. Ultimately there will be no clear winner in terms of which channel is best, with the best omnichannel strategies making the customer the winner.

All channels have their inherent strengths, and all customers have their preferences for how they choose to interact with brands. The key for omnichannel brands is to ensure that regardless of the channel of communication, the customer receives the best and most consistent experience possible.

To discover strategies to improve DX, download the SAP Australia DX Report for free here.

This article originally appeared on Future of Customer Engagement and Commerce. 

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How Banking Software Helps To Personalize Customer Experience

Melissa Burns

Lately, the banking industry has been hyping the personalized customer experience. Still, customers report significant gaps between their needs and banks’ ability to build a personal relationship with them. That is why it makes sense to clarify what customers expect from personalized banking and how banks can provide such experiences for their customers.

From the ideal image of personalized banking …

Let’s start with some examples to illustrate the concept of the personalized banking experience. Imagine Mary, a 30-year-old office manager in a small consulting firm in San Francisco, who mostly uses digital banking services. She spends around $20 each month on ATM fees because she withdraws money near her favorite lunchtime restaurant. What if her bank notifies her, before she makes a withdrawal, that there’s a free ATM located just a 10-minute walk from her office?

Taking that logic one step further, let’s say the bank’s AI software detects Mary has increased child-related spending. In this case, her bank could offer her a loan on a larger home or a 529 college savings account for her child. Imagine how Mary’s attitude about her financial institution might change after she received such relevant, personalized messages.

… to a harsh reality

While the digitization of banking services has opened numerous possibilities for personalized customer experience, it has complicated the task at the same time. As banks moved from branch-based banking to online and mobile banking software, they focused on making their products and services work for the digital environment. Unfortunately, not all banks understood how to replicate the “personal touch” of branch-based banking in their digital channels. As a result, banks lost the “human” part that has to do with the needs, sentiments, and preferences of individual customers.

The meaning of personalization in banking

Becoming a bank with a “personal touch” is not about the frequency or quantity of contacts with customers nor about the launch of a new banking app: it is about the quality and personal relevance of customer communications. Banks must put customers’ wants and needs at the heart of all banking activities rather than push what they believe their customers want. That is why banks need to shift their focus from simply selling products and services towards providing relevant and contextual financial advice. In other words, a bank should demonstrate a true interest in customers’ financial well-being.

Customers don’t want to be treated as “one of the crowd.” On the contrary, with digitization, they expect more personalization than ever before. Customer-oriented companies, such as Walmart, Amazon, and Google, set the bar for quality of personalized customer experience. It’s not surprising that customers expect the same level of service quality from a bank. And they may be disillusioned to find out that different banking systems don’t talk to each other, or that different channels don’t offer the same functionality, or that a bank still doesn’t offer online account opening.

Building personalized customer experience with technology

To personalize customer relationships, banks should build a customer-centric IT architecture model based on a single view of the customer. For this purpose, they should consolidate customer information from all banking software systems, including core banking, loan, and mortgage solutions, banking CRM, online and mobile banking software, etc. By applying predictive analytics to this summary, a bank can do the following customer-centric activities:

  1. Quickly identify an individual financial journey of each customer;
  1. Anticipate a customer’s needs that correspond to a particular stage of life;
  1. Proactively offer value-added financial products and services targeted to that stage.

Banks can communicate these offers using numerous channels, still focusing on those that seem the most convenient for a particular customer (such as tracking how frequently a customer uses each channel). This personalized banking communication can be further extended with channel integration to make the dialogue even more convenient for customers. For example, a bank can combine online banking with call centers or messengers with a mobile banking app. By linking these channels, banks can establish a long-lasting dialogue with customers, which helps gather customers’ sentiments about the quality of banking services, as well as understand how they can further personalize customer communication.

On a final note

Digitization offers great opportunities to personalize services for thousands of customers and offer them only relevant financial products. Using the right software solutions and tools, banks can uncover new ways to serve their customers.

Learn more about Influencing Customers Through Infinite Personalization.

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Melissa Burns

About Melissa Burns

Melissa Burns is an entrepreneur and independent journalist. She spends her time writing articles, overviews, and analyses about entrepreneurship, startups, business innovations, and technology. Follow her at @melissaaburns.

Your Customers Are Talking. Are You Listening?

Russell McLean

Consumer products companies are finally able to foster direct relationships with end users of their products. This means engaging them the right way, at the right time, and on the right channel in order to keep pace with the ever-changing demands of today’s digital-savvy consumers.

Engagement and marketing in the past provided no simple way for consumers to share feedback, ask questions, or really get to know the brands they supported. A company’s message was simply received by customers without a platform on which they could respond. Social media has altered that archaic method, and everything is changing.

Social platforms are increasing in popularity, resulting in more informed and engaged consumers.

Just look at the statistics:

  • There’s been a 35 percent increase across the U.S. in average time per week spent on social media
  • Roughly 25 percent of surveyed U.S. users (adults in the United States, 18+ years old) used social media to support their favorite brands

Today’s digital ecosystem presents new opportunities for engagement. Consumers expect brands to listen and react appropriately to what they learn. If a customer is going on vacation or just purchased a new home, companies with relevant products and services should respond accordingly.

Say goodbye to the traditional buying process

Digital-savvy consumers expect personalized shopping experiences, tailored choices, real-time responses, transparent interactions, and closer connections with the brands they support. Why? Because they want to feel empowered.

With plenty of online research, personal recommendations, price comparisons, and customer reviews available at their fingertips, consumers create an interconnected community and chart new paths to purchase. In fact, 78 percent of consumers say they will engage offers only if they have been personalized to their previous engagements with a brand.

No more missed connections

In a digital-first world, consumer products companies should be fast, granular, and connected with customers. It’s not enough to have great products – consumers want an overall brand experience.

I’ve come to discover that many consumer products companies struggle with their digital marketing efforts for three main reasons:

1.  Missed moments: Sending messages at the wrong time

2.  Inauthentic messaging: Sending the wrong message

3.  Failing to engage: Sending a message through the wrong channels

Companies may be able to overcome these issues with a platform that provides insights and direct customer engagement with a customizable experience for corporate-driven campaigns and locally initiated events. That’s where Deloitte Digital’s Consumer Direct solution can help. Sitting within Deloitte Digital’s broader DigitalMix platform, Consumer Direct brings together leading class technologies for multi-brand content management, consumer engagement, and e-commerce, helping to drive the personalized touchpoints companies seek and consumers demand.

Listen and respond to consumers

By taking the guess work out of social listening and providing the tools to respond with the right message, at the right time, the right platform can ultimately drive commerce. Through Deloitte Digital’s ecosystem approach, Consumer Direct is tailored to integrate with most current technology portfolios including:

  • Multi-brand web content management: Through website authoring, publishing, collaboration, and administration tools, users can create and manage content with ease. Depending on the chosen technology, users are able to efficiently organize, store and retrieve rich media assets, and manage digital rights and permissions.
  • Consumer engagement: Sprinklr’s social media management platform helps brands reach, engage, and listen to customers across more than 20 social channels. With offerings specific to marketing, advertising, research, commerce, and customer care, Sprinklr empowers companies to provide a brand experience that consumers crave.
  • E-commerce: The SAP Hybris e-commerce platform enables the electronic exchange of goods and services, online payments and verifications, product catalog, personalized product recommendations, ratings and reviews, and cart features for B2B, B2C, and B2B2C businesses.
  • Customer relationship management: We enlist service providers to enhance the customer relationship journey. Through a customer relationship management platform, we can store customer and prospect contact information, accounts, leads and sales opportunities.

Intrigued? If you’re looking for a way to connect with and deliver superior customer experiences, we should talk. You can also learn how to future-proof your digital business here.

This article originally appeared on The Future of Customer Engagement and Commerce.

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Why Strategic Plans Need Multiple Futures

By Dan Wellers, Kai Goerlich, and Stephanie Overby , Kai Goerlich and Stephanie Overby

When members of Lowe’s Innovation Labs first began talking with the home improvement retailer’s senior executives about how disruptive technologies would affect the future, the presentations were well received but nothing stuck.

“We’d give a really great presentation and everyone would say, ‘Great job,’ but nothing would really happen,” says Amanda Manna, head of narratives and partnerships for the lab.

The team realized that it needed to ditch the PowerPoints and try something radical. The team’s leader, Kyle Nel, is a behavioral scientist by training. He knows people are wired to receive new information best through stories. Sharing far-future concepts through narrative, he surmised, could unlock hidden potential to drive meaningful change.

So Nel hired science fiction writers to pen the future in comic book format, with characters and a narrative arc revealed pane by pane.

The first storyline, written several years before Oculus Rift became a household name, told the tale of a couple envisioning their kitchen renovation using virtual reality headsets. The comic might have been fun and fanciful, but its intent was deadly serious. It was a vision of a future in which Lowe’s might solve one of its long-standing struggles: the approximately US$70 billion left on the table when people are unable to start a home improvement project because they can’t envision what it will look like.

When the lab presented leaders with the first comic, “it was like a light bulb went on,” says Manna. “Not only did they immediately understand the value of the concept, they were convinced that if we didn’t build it, someone else would.”

Today, Lowe’s customers in select stores can use the HoloRoom How To virtual reality tool to learn basic DIY skills in an interactive and immersive environment.

Other comics followed and were greeted with similar enthusiasm—and investment, where possible. One tells the story of robots that help customers navigate stores. That comic spawned the LoweBot, which roamed the aisles of several Lowe’s stores during a pilot program in California and is being evaluated to determine next steps.

And the comic about tools that can be 3D-printed in space? Last year, Lowe’s partnered with Made in Space, which specializes in making 3D printers that can operate in zero gravity, to install the first commercial 3D printer in the International Space Station, where it was used to make tools and parts for astronauts.

The comics are the result of sending writers out on an open-ended assignment, armed with trends, market research, and other input, to envision what home improvement planning might look like in the future or what the experience of shopping will be in 10 years. The writers come back with several potential story ideas in a given area and work collaboratively with lab team members to refine it over time.

The process of working with writers and business partners to develop the comics helps the future strategy team at Lowe’s, working under chief development officer Richard D. Maltsbarger, to inhabit that future. They can imagine how it might play out, what obstacles might surface, and what steps the company would need to take to bring that future to life.

Once the final vision hits the page, the lab team can clearly envision how to work backward to enable the innovation. Importantly, the narrative is shared not only within the company but also out in the world. It serves as a kind of “bat signal” to potential technology partners with capabilities that might be required to make it happen, says Manna. “It’s all part of our strategy for staking a claim in the future.”

Planning must become completely oriented toward—and sourced from—the future.

Companies like Lowe’s are realizing that standard ways of planning for the future won’t get them where they need to go. The problem with traditional strategic planning is that the approach, which dates back to the 1950s and has remained largely unchanged since then, is based on the company’s existing mission, resources, core competencies, and competitors.

Yet the future rarely looks like the past. What’s more, digital technology is now driving change at exponential rates. Companies must be able to analyze and assess the potential impacts of the many variables at play, determine the possible futures they want to pursue, and develop the agility to pivot as conditions change along the way.

This is why planning must become completely oriented toward—and sourced from—the future, rather than from the past or the present. “Every winning strategy is based on a compelling insight, but most strategic planning originates in today’s marketplace, which means the resulting plans are constrained to incremental innovation,” says Bob Johansen, distinguished fellow at the Institute for the Future. “Most corporate strategists and CEOs are just inching their way to the future.” (Read more from Bob Johansen in the Thinkers story, “Fear Factor.”)

Inching forward won’t cut it anymore. Half of the S&P 500 organizations will be replaced over the next decade, according to research company Innosight. The reason? They can’t see the portfolio of possible futures, they can’t act on them, or both. Indeed, when SAP conducts future planning workshops with clients, we find that they usually struggle to look beyond current models and assumptions and lack clear ideas about how to work toward radically different futures.

Companies that want to increase their chances of long-term survival are incorporating three steps: envisioning, planning for, and executing on possible futures. And doing so all while the actual future is unfolding in expected and unexpected ways.

Those that pull it off are rewarded. A 2017 benchmarking report from the Strategic Foresight Research Network (SFRN) revealed that vigilant companies (those with the most mature processes for identifying, interpreting, and responding to factors that induce change) achieved 200% greater market capitalization growth and 33% higher profitability than the average, while the least mature companies experienced negative market-cap growth and had 44% lower profitability.

Looking Outside the Margins

“Most organizations lack sufficient capacity to detect, interpret, and act on the critically important but weak and ambiguous signals of fresh threats or new opportunities that emerge on the periphery of their usual business environment,” write George S. Day and Paul J. H. Schoemaker in their book Peripheral Vision.

But that’s exactly where effective future planning begins: examining what is happening outside the margins of day-to-day business as usual in order to peer into the future.

Business leaders who take this approach understand that despite the uncertainties of the future there are drivers of change that can be identified and studied and actions that can be taken to better prepare for—and influence—how events unfold.

That starts with developing foresight, typically a decade out. Ten years, most future planners agree, is the sweet spot. “It is far enough out that it gives you a bit more latitude to come up with a broader way to the future, allowing for disruption and innovation,” says Brian David Johnson, former chief futurist for Intel and current futurist in residence at Arizona State University’s Center for Science and the Imagination. “But you can still see the light from it.”

The process involves gathering information about the factors and forces—technological, business, sociological, and industry or ecosystem trends—that are effecting change to envision a range of potential impacts.

Seeing New Worlds

Intel, for example, looks beyond its own industry boundaries to envision possible future developments in adjacent businesses in the larger ecosystem it operates in. In 2008, the Intel Labs team, led by anthropologist Genevieve Bell, determined that the introduction of flexible glass displays would open up a whole new category of foldable consumer electronic devices.

To take advantage of that advance, Intel would need to be able to make silicon small enough to fit into some imagined device of the future. By the time glass manufacturer Corning unveiled its ultra-slim, flexible glass surface for mobile devices, laptops, televisions, and other displays of the future in 2012, Intel had already created design prototypes and kicked its development into higher gear. “Because we had done the future casting, we were already imagining how people might use flexible glass to create consumer devices,” says Johnson.

Because future planning relies so heavily on the quality of the input it receives, bringing in experts can elevate the practice. They can come from inside an organization, but the most influential insight may come from the outside and span a wide range of disciplines, says Steve Brown, a futurist, consultant, and CEO of BaldFuturist.com who worked for Intel Labs from 2007 to 2016.

Companies may look to sociologists or behaviorists who have insight into the needs and wants of people and how that influences their actions. Some organizations bring in an applied futurist, skilled at scanning many different forces and factors likely to coalesce in important ways (see Do You Need a Futurist?).

Do You Need a Futurist?

Most organizations need an outsider to help envision their future. Futurists are good at looking beyond the big picture to the biggest picture.

Business leaders who want to be better prepared for an uncertain and disruptive future will build future planning as a strategic capability into their organizations and create an organizational culture that embraces the approach. But working with credible futurists, at least in the beginning, can jump-start the process.

“The present can be so noisy and business leaders are so close to it that it’s helpful to provide a fresh outside-in point of view,” says veteran futurist Bob Johansen.

To put it simply, futurists like Johansen are good at connecting dots—lots of them. They look beyond the boundaries of a single company or even an industry, incorporating into their work social science, technical research, cultural movements, economic data, trends, and the input of other experts.

They can also factor in the cultural history of the specific company with whom they’re working, says Brian David Johnson, futurist in residence at Arizona State University’s Center for Science and the Imagination. “These large corporations have processes and procedures in place—typically for good reasons,” Johnson explains. “But all of those reasons have everything to do with the past and nothing to do with the future. Looking at that is important so you can understand the inertia that you need to overcome.”

One thing the best futurists will say they can’t do: predict the future. That’s not the point. “The future punishes certainty,” Johansen says, “but it rewards clarity.” The methods futurists employ are designed to trigger discussions and considerations of possibilities corporate leaders might not otherwise consider.

You don’t even necessarily have to buy into all the foresight that results, says Johansen. Many leaders don’t. “Every forecast is debatable,” Johansen says. “Foresight is a way to provoke insight, even if you don’t believe it. The value is in letting yourself be provoked.”

External expert input serves several purposes. It brings everyone up to a common level of knowledge. It can stimulate and shift the thinking of participants by introducing them to new information or ideas. And it can challenge the status quo by illustrating how people and organizations in different sectors are harnessing emerging trends.

The goal is not to come up with one definitive future but multiple possibilities—positive and negative—along with a list of the likely obstacles or accelerants that could surface on the road ahead. The result: increased clarity—rather than certainty—in the face of the unknown that enables business decision makers to execute and refine business plans and strategy over time.

Plotting the Steps Along the Way

Coming up with potential trends is an important first step in futuring, but even more critical is figuring out what steps need to be taken along the way: eight years from now, four years from now, two years from now, and now. Considerations include technologies to develop, infrastructure to deploy, talent to hire, partnerships to forge, and acquisitions to make. Without this vital step, says Brown, everybody goes back to their day jobs and the new thinking generated by future planning is wasted. To work, the future steps must be tangible, concrete, and actionable.

Organizations must build a roadmap for the desired future state that anticipates both developments and detours, complete with signals that will let them know if they’re headed in the right direction. Brown works with corporate leaders to set indicator flags to look out for on the way to the anticipated future. “If we see these flagged events occurring in the ecosystem, they help to confirm the strength of our hypothesis that a particular imagined future is likely to occur,” he explains.

For example, one of Brown’s clients envisioned two potential futures: one in which gestural interfaces took hold and another in which voice control dominated. The team set a flag to look out for early examples of the interfaces that emerged in areas such as home appliances and automobiles. “Once you saw not just Amazon Echo but also Google Home and other copycat speakers, it would increase your confidence that you were moving more towards a voice-first era rather than a gesture-first era,” Brown says. “It doesn’t mean that gesture won’t happen, but it’s less likely to be the predominant modality for communication.”

How to Keep Experiments from Being Stifled

Once organizations have a vision for the future, making it a reality requires testing ideas in the marketplace and then scaling them across the enterprise. “There’s a huge change piece involved,”
says Frank Diana, futurist and global consultant with Tata Consultancy Services, “and that’s the place where most
businesses will fall down.”

Many large firms have forgotten what it’s like to experiment in several new markets on a small scale to determine what will stick and what won’t, says René Rohrbeck, professor of strategy at the Aarhus School of Business and Social Sciences. Companies must be able to fail quickly, bring the lessons learned back in, adapt, and try again.

Lowe’s increases its chances of success by creating master narratives across a number of different areas at once, such as robotics, mixed-reality tools, on-demand manufacturing, sustainability, and startup acceleration. The lab maps components of each by expected timelines: short, medium, and long term. “From there, we’ll try to build as many of them as quickly as we can,” says Manna. “And we’re always looking for that next suite of things that we should be working on.” Along the way certain innovations, like the HoloRoom How-To, become developed enough to integrate into the larger business as part of the core strategy.

One way Lowe’s accelerates the process of deciding what is ready to scale is by being open about its nascent plans with the world. “In the past, Lowe’s would never talk about projects that weren’t at scale,” says Manna. Now the company is sharing its future plans with the media and, as a result, attracting partners that can jump-start their realization.

Seeing a Lowe’s comic about employee exoskeletons, for example, led Virginia Tech engineering professor Alan Asbeck to the retailer. He helped develop a prototype for a three-month pilot with stock employees at a Christiansburg, Virginia, store.

The high-tech suit makes it easier to move heavy objects. Employees trying out the suits are also fitted with an EEG headset that the lab incorporates into all its pilots to gauge unstated, subconscious reactions. That direct feedback on the user experience helps the company refine its innovations over time.

Make the Future Part of the Culture

Regardless of whether all the elements of its master narratives come to pass, Lowe’s has already accomplished something important: It has embedded future thinking into the culture of the company.

Companies like Lowe’s constantly scan the environment for meaningful economic, technology, and cultural changes that could impact its future assessments and plans. “They can regularly draw on future planning to answer challenges,” says Rohrbeck. “This intensive, ongoing, agile strategizing is only possible because they’ve done their homework up front and they keep it updated.”

It’s impossible to predict what’s going to happen in the future, but companies can help to shape it, says Manna of Lowe’s. “It’s really about painting a picture of a preferred future state that we can try to achieve while being flexible and capable of change as we learn things along the way.” D!


About the Authors

Dan Wellers is Global Lead, Digital Futures, at SAP.

Kai Goerlich is Chief Futurist at SAP’s Innovation Center Network.

Stephanie Overby is a Boston-based business and technology journalist.


Read more thought provoking articles in the latest issue of the Digitalist Magazine, Executive Quarterly.

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About Dan Wellers

Dan Wellers is founder and leader of Digital Futures at SAP, a strategic insights and thought leadership discipline that explores how digital technologies drive exponential change in business and society.

Kai Goerlich

About Kai Goerlich

Kai Goerlich is the Chief Futurist at SAP Innovation Center network His specialties include Competitive Intelligence, Market Intelligence, Corporate Foresight, Trends, Futuring and ideation. Share your thoughts with Kai on Twitter @KaiGoe.heif Futu

About Stephanie Overby

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Human Is The Next Big Thing

Traci Maddox

One of my favorite movies of 2016 was Hidden Figures. The main character, Katherine Johnson, and her team of colleagues had an interesting job title: Computer. Here’s what Katherine said about her job: “On any given day, I analyze the binomial levels of air displacement, friction, and velocity. And compute over 10 thousand calculations by cosine, square root, and lately analytic geometry. By hand.”

That was the 1960s. It was amazing work, but work that took hours to complete – and something an in-memory computer could do in a fraction of a second today.

Just as in-memory computing transformed calculating by hand (and made jobs like Katherine’s much easier), digital technologies are transforming the way we work today – and making our day-to-day activities more efficient.

What’s the real impact of technology in today’s workplace?

We are surrounded by technology, both at home and at work. Machine learning and robotics are making their way into everyday life and are affecting the way we expect to engage with technology at work. That has a big impact on organizations: If a machine can do a job safely and more efficiently, a company, nonprofit, or government – and its employees – will benefit. Digital technologies are becoming increasingly more feasible, affordable, and desirable. The challenge for organizations now is effectively merging human talent and digital business to harness new capabilities.

How will jobs change?

What does this mean for humans in the workplace? In a previous blog, Kerry Brown showed that as enterprises continue to learn, human/machine collaboration increases. People will direct technology and hand over work that can be done more efficiently by machine. Does that mean people will go away? No – but they will need to leverage different skills than they have today.

Although we don’t know exactly how jobs will change, one thing is for sure: Becoming more digitally proficient will help every employee stay relevant (and prepare them to move forward in their careers). Today’s workforce demographic complicates how people embrace technology – with up to five generations in the workforce, there is a wide variety in digital fluency (i.e., the ability to understand which technology is available and what tools will best achieve desired outcomes).

What is digital fluency and how can organizations embrace it?

Digital fluency is the combination of several capabilities related to technology:

  • Foundation skills: The ability to use technology tools that enhance your productivity and effectiveness
  • Information skills: The ability to research and develop your own perspective on topics using technology
  • Collaboration skills: The ability to share knowledge and collaborate with others using technology
  • Transformation skills: The ability to assess your own skills and take action toward building your digital fluency

No matter how proficient you are today, you can continue to build your digital IQ by building new habits and skills. This is something that both the organization and employee will have to own to be successful.

So, what skills are needed?

In a Technical University of Munich study released in July 2017, 64% of respondents said they do not have the skills necessary for digital transformation.

Today's workplace reality

These skills will be applied not only to the jobs of today, but also to the top jobs of the future, which haven’t been imagined yet! A recent article in Fast Company mentions a few, which include Digital Death Manager, Corporate Disorganizer, and 3D Printing Handyman.

And today’s skills will be used differently in 2025, as reported by another Fast Company article:

  • Tech skills, especially analytical skills, will increase in importance. Demand for software developers, market analysts, and computer analysts will increase significantly between now and 2025.
  • Retail and sales skills, or any job related to soft skills that are hard for computers to learn, will continue to grow. Customer service representatives, marketing specialists, and sales reps must continue to collaborate and understand how to use social media effectively to communicate worldwide.
  • Lifelong learning will be necessary to keep up with the changes in technology and adapt to our fast-moving lives. Teachers and trainers will continue to be hot jobs in the future, but the style of teaching will change to adapt to a “sound bite” world.
  • Contract workers who understand how businesses and projects work will thrive in the “gig economy.” Management analysts and auditors will continue to be in high demand.

What’s next?

How do companies address a shortage of digital skills and build digital fluency? Here are some steps you can take to increase your digital fluency – and that of your organization:

  • Assess where you are today. Either personally or organizationally, knowing what skills you have is the first step toward identifying where you need to go.
  • Identify one of each of the skill sets to focus on. What foundational skills do you or your organization need? How can you promote collaboration? What thought leadership can your team share – and how can they connect with the right information to stay relevant?
  • Start practicing! Choose just one thing – and use that technology every day for a month. Use it within your organization so others can practice too.

And up next for this blog series – a look at the workplace of the future!

The computer made its debut in Hidden Figures. Did it replace jobs? Yes, for some of the computer team. But members of that team did not leave quietly and continue manual calculations elsewhere. They learned how to use that new mainframe computer and became programmers. I believe humans will always be the next big thing.

If we want to retain humanity’s value in an increasingly automated world, we need to start recognizing and nurturing Human Skills for the Digital Future.

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Traci Maddox

About Traci Maddox

Traci Maddox is the Director of the North America Customer Transformation Office at SAP, where she is elevating customer success through innovation and digital transformation. Traci is also part of the Digital Workforce Taskforce, a team of SAP leaders whose mission is to help companies succeed by understanding and addressing workforce implications of digital technology.