Digital management: The role of leaders in achieving digital transformation and managing organizations

In light of the changes that the world is witnessing in the fields of technology and digital transformation, economic systems and the world of entrepreneurship, in general, had to be affected by this global transformation, which resulted in what is known today as digital management.

Entrepreneurs and leaders of economic activities have had to use modern technologies and change old systems of thinking that rely on old methods of thinking, analyzing data, and making decisions.

This article discusses the simplified and clear definition of this term, in addition to defining the importance of digital transformation in the business world and how to put plans and methods for this transformation into practice and implementation within companies and projects.

Digital management definition

Experts in the administrative and technical fields have adopted the following unanimously agreed definition of this term:

The process of integrating technical means and information technology with administrative work and analytical practices aimed at planning, developing strategies, setting goals, analyzing risks, and other tasks that administrators were accustomed to doing on their own in the past

Based on the previous definition, it is necessary to define the main terms contained in it, which are as follows:

1- Digital technologies

It is a set of technical tools that are used to facilitate people's work, which includes the following list:

1- Cloud Computing

2- artificial intelligence (AI)

3- Big data analytics

4- Internet of Things (IoT)

5- Social media

6- automation programs.

2- anagement practices

The process of digital administrative transformation does not stop at introducing digital technologies to work and using them to reduce efforts and save time, but rather this change is complete in the style of management and work within the company.

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What is the importance of digital management and its effects on working within companies?

According to reports issued by the McKinsey Global Institute, which specializes in the fields of entrepreneurship, digital transformation, and technology, companies that adopt the digital management approach can achieve continuous and sustainable profits and success by at least twenty percent.

which is a high percentage of competition between companies because this management method works to Improve the following aspects of companies’ work:

1- Efficiency and productivity

The process of administrative and operational automation can increase production efficiency in companies by more than 40 percent by increasing production speed, reducing dependence on human resources, raising the speed of administrative and organizational processes, and simplifying work to the maximum extent.

2- Customer experience in dealing with the company

The use of digital technology tools helps radically improve the customer’s experience with the company by participating in marketing tasks, responding to customers, offering them appropriate options, and helping them obtain an ideal experience by dealing with the company.

3- Innovation and flexibility

Technology opens the doors to innovation and introduces new ideas at work, to help product managers create new products, for example. It also plays the most important role in professional marketing operations and spreading awareness among customers about the product.

Applying Digital Management in Practice

Putting the concept of digital management into practice requires making a set of adjustments to the procedures and processes that take place to carry out the work.

1- Digital strategy development

Use modern digital means and tools to carry out as many tasks as possible instead of consuming human resources to do so.

2- Technology investment

Investing in digital tools and the right infrastructure is critical to successful implementation. This could include cloud computing platforms, customer relationship management (CRM) software, or cybersecurity solutions.

3- Training employees on the new system

The employees and workers within the project must be able to deal with the modern technological tools used at work, which is a prerequisite for ensuring the success of the digital transformation process in management.

This may include training programs on data analysis, social media marketing, or using new software.

4- Analyzing digital data for decision-making

One of the aspects in which technology can be relied upon most is the processes of displaying, organizing, analyzing data, and making decisions using artificial intelligence and similar technologies.

5- Spreading the culture of digital organization

Embracing a culture of innovation, collaboration, and openness to change is essential for digital transformation success. Leaders need to create an environment where employees feel able to share ideas and learn from failures.

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The Role of Leaders in Achieving Digital Transformation

Applying digital management standards requires a leader more than it needs a manager, and from here the role of the true leader in work is highlighted in his transition with his project to a fully technical management approach. Here are the details of the role of leadership in this topic.

1- Vision and Strategy

Leaders define the vision for digital transformation by articulating a clear understanding of how technology will impact the future of the company.

They translate this vision into a well-defined digital strategy that aligns with overall business goals. This vision should be effectively communicated to all employees, ensuring everyone understands the “why” behind digital transformation efforts.

2- Invest in employee training

Upskilling and reskilling your workforce is critical to the successful adoption of new technologies. Leaders must provide training programs to equip employees with the skills to effectively use digital tools.

3- Encourage open communication and feedback

Leaders should create an environment where employees feel comfortable voicing concerns and providing feedback about the digital transformation process. This can be facilitated through anonymous surveys, focus groups, or suggestion boxes.

4- Culture of Innovation

Leaders foster innovation by encouraging experimentation and risk-taking. This may include setting up innovation labs or allocating resources to employees to pursue new ideas. Leaders must also celebrate successes and learn from failures to create a safe space for experimentation.

Examples of Successful Digital Management

Numerous companies have successfully leveraged digital management for significant growth. Here are a couple of examples with additional details:

1- Amazon: A prime example is Amazon, whose success is deeply rooted in its innovative use of technology - from e-commerce platforms and cloud computing services (AWS) to automation and data analytics.

2- Netflix: Similarly, Netflix's data-driven approach to content creation and personalized recommendations has revolutionized the entertainment industry.

Conclusion

In conclusion, we have provided you in our article with all the main details related to the field of digital management, its importance, and the foundations that must be focused on to move to the smart management approach in our business and companies.

Frequently Asked Questions

Here are two of the most common questions that users ask on Google about the topic of our article

Is the process of transitioning to digital management expensive?

In the beginning, the transition to a smart work style is expensive and tiring due to the need to purchase special equipment and cooperate with people specialized in the technical field, in addition to the need for special training for workers and employees, but the positive effects of this transformation soon appear on the company’s resources.

Can any industry adopt digital management principles?

Any type of company or business that carries out administrative and operational work can adopt digital management systems for its business by requesting expert advice and choosing the appropriate solutions for it.

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