Advances in digital technology are forcing companies to adapt and integrate at lightning speeds in order to keep up with demand and competition. Before adopting the latest technologies, however, evaluate your digital quotient (DQ)—the measurement that highlights how digital technology can either create value or increase risk within your business—especially since installing and implementing new technologies will inevitably disrupt your company's current operations. Developed by Digital McKinsey (mckinsey.com), DQ assesses the four primary areas found to drive digital performance:
>Organization (structure, support, and talent)
When considering a change, be sure to evaluate:
>the value of this change, such as its impact on improved or updated internal processes, consumer engagement, and decreased expenses
>the risks you face by not investing in new technology and practices, such as lost sales and decreased loyalty, or the potential effect of process disruption on performance and morale
Remember: investment in technology may feel risky, and even prohibitive, on the front-end. Yet by taking a longer-term view, you'll be able to better assess whether that outlay of time and resources will help you to become the company you desire to be.
Once you decide to move forward, invest in technology that aligns your business capabilities with the needs, wants, and behaviors of your customer base. Adapt too fast and you’ll outpace customers. Adapt too slowly and they’ll outpace you. But hit it right, and you'll build a loyal customer base that leads to increased sales and revenue.