Beyond technology: the importance of culture for digital transformation

The last eighteen months of pandemic have shown us all the importance of digital transformation. The urgent need to work from home and continue to communicate with colleagues and clients has driven rapid change in how we work. It has also driven a more pragmatic approach to digital and technology, focused on the most immediate needs. Eva Garcia San Luis is Head of KPMG Spain Lighthouse, which covers artificial intelligence, advanced analytics and emerging technologies. She has noticed that the main focus is process transformation, but in a rather different way than has previously been seen.

“Before what we did was automate tasks. Now, we are seeing changes to processes. There is a new term that is being used, automation, which is the sum of all the technologies that we used separately before. These include analytical, advanced, artificial intelligence, and machine learning, which we now use together to provide a solution to this process automation.”

A cultural challenge

However, she suggests that there will be challenges ahead, as organizations try to scale the digital gains from the pandemic.

“I think that we are at a crucial moment. In Spain, most of our clients have got involved with advanced analytics and process automation, but much of this work is still at the testing stage. The great challenge is how we scale this. In other words, how do we really put artificial intelligence or automatic decision making into our day-to-day life in our company, for everyone in the company? Some companies are beginning to do it but others still have a long road ahead.”

Some of these differences are the result of variation in resources or opportunities within particular enterprises. Some organizations also have more complex processes to transform. However, Eva notes a third issue.

“Successful digital transformation needs a culture change. The problem is not really technology. Technology is only the lever that helps you transform. In other words, digital transformation has to be something disruptive that changes the business model. I believe that this is the key. You have to be clear about the objective of change, and focus on that, using the technology to get there.”

Eva believes that it will be difficult to democratize advanced analytics and artificial intelligence, because of the challenge in helping everyone to reach a level of comfort with new technology and ways of working. She suggests that more fundamental changes are needed at societal level.

“Perhaps what we should also be talking about the education system. I think that current courses and teaching are not really preparing people adequately. I would like to see more focus on ethical engineering, philosophy and humanities, rather than logical subjects.”

A new approach to digital transformation

In other words, Eva suggests that cultural transformation needs to happen before digital transformation. She also believes that this cultural change would improve the issue of scalability.

“What most companies are doing is a series of pilots to gain scalability. What you need is the processes and the results, embedded into the organizational structure. Above all, you have to think about your strategy and your culture, and how to change those so that you can provide more or different value to your own business and your clients, all helped by technology.”

This means, therefore, that we need to stop talking about ‘digital transformation’, and start to discuss the process of transforming businesses through the use of digital technology. This seems like a simple change, but Eva suggests that it is crucial.

“It doesn’t really make sense to talk about artificial intelligence strategies. What makes sense is to talk about business, and how we can combine the technologies that are at our disposal to help us get where we need to be.”

Fortunately, Eva believes that cultural change is possible.

“I think that with proper training, people would be less reluctant to change. This will be even more so when new generations enter companies. The truth is that people really want to learn and they have a desire to investigate, to see what is coming next. In general, I see that people are delighted to be able to continue learning and do new things, as long as it makes it easier for them—and as long as you give them the time to learn these new things. The time is key, because if you have to spend all day just doing your job, it is very difficult to also make time for learning and change.”

This interview is part of a recent interview study by SAS on how the pandemic has accelerated digitalization: Catch more conclusions from the study on post pandemic transformation