We are all aware that the world has changed radically and rapidly in the last 30-40 years in terms of social structures, technology and company management methods.
The traditional style of company management, which was popular back in the 80s, is still quite common in many businesses to this day. There are even several of the largest companies where managers do not catch up with the latest trends. These companies will soon begin their downfall. Why? There is a simple reason for this.
Digitalization. There are measurable differences in terms of efficiency between the players who indulge in technological developments and those who do not. Yet many do not seize the opportunity and refrain from digitalization. Of course, this traditional way of thinking is completely understandable as it is difficult for many to comprehend the intangible and see the value that these digital products (e.g. software) represent.
That is why the following questions may arise: “What can possibly cost 10 million HUF in this?”, Or “but it is only two clicks!”. These remarks always signal understandable incompetence.
But the truth is, the larger an organization, the more complex it is. The more extensive a software, the more work it takes to develop and adjust it. Two clicks can easily turn into two thousand, twenty thousand, even one hundred thousand clicks.
The digitalization of processes is strongly related to the attitude of companies towards organizational development. In medium-sized companies we see company owners and board members constantly ignoring the decisions of senior executives and taking away their responsibilities, they will not achieve radical change in any area. In contrast, the near future will show that agile, young-minded, innovative companies are going to dominate the market. In fact, they have already begun to do so.
Whoever retains innovation despite the growing market for saving the momentary profit will fall into his own sword in the medium and long term. The apparent “need for change” in many firms is about introducing some “mandatory innovation,” but in reality everything stays the same.
But if we want everything to stay the same, why do we innovate in the first place?
These companies usually can hardly be convinced of the benefits of digitization. All we can do is to respect their own traditional vision, and they should be allowed to move on using their own ways.
This is not always easy, because in many cases, we are talking about companies with serious references and a turnover of billions of forints, therefore it can be tempting to become their supplier. However, if we recognize the risk — in the rare case that such a company has been persuaded of a partnership — that it will be the owner and the board who will sabotage the realization of digitalization, we can easily say goodbye.
Does this mean that we pick our own customers?
Surely we do! While such a customer will push us into decline, a committed customer will lift us up, as we lift them up with our products and services.