Embracing Digital DNA for Business Transformation
As AI continues to dominate many industries and influence organizational strategies, enterprises must prepare to handle relevant emerging technologies. According to a report from Pew Research Center (pewresearch.org/social-trends/2025/02/25/workers-exposure-to-ai/st_2024- 2-24_ai-workers_1-03), 51% of U.S. workers said they had taken or received extra training for work in the past year. However, only 24% of those polled said that the training was AI-related.
Today, it’s important that organizations establish their digital DNA as AI applications continue to progress rapidly. Otherwise, they face being left behind.
The Challenges of Adopting or Enhancing Digital DNA
Digital DNA refers to the core qualities that enable an enterprise to thrive during times of innovation and change, indicating that a company’s transformational initiatives will be successful. Organizations that lack digital DNA often struggle with outdated technologies and inefficient decision-making and operational processes. For example, companies that aim to compete with digital disruptors, such as fintechs and ecommerce companies, but lack the right technology frameworks, skills, or modern approaches, will likely fall short.
An authentic digital DNA combines technology experience, industry expertise, and a digital-first outlook. These attributes enable companies to be agile and adapt quickly to market changes, streamline and scale their operations, and respond to evolving customer needs.
While many organizations attempt to develop their digital DNA by hiring experienced professionals, this approach often presents two significant challenges stemming from inadequate KM.
The first challenge is aligning company resources. As new employees join organizations, regardless of their skill level or function, substantial knowledge sharing is needed to help them assimilate into the organization. However, this can be difficult, as only 57% of professional knowledge is captured in documentation or shared with others for training, according to Starmind (starmind.ai/hubfs/Assets2022/FutureofWork ReportTheHighCostofInaccessibleKnowledge/Futurework_Researchreport.pdf). This may result in the excessive use of resources, including personnel, time, and money, which can cost businesses in the short term.
The second challenge enterprises face is the misalignment of company culture with digital transformation initiatives. Successful digital transformation efforts require enterprises to embrace innovation, collaboration, and risk-taking. When employees lack knowledge or understanding of the rationale behind these changes, it can cause misalignment. This can lead to frustration, hinder progress, or jeopardize digital transformation efforts.
Strong Digital DNA Is Imperative for Digital Transformation Success
Digitally native organizations are typically built on a technology-first approach. This means enterprises with rigid structures, limited digital expertise, and inadequate KM tend to struggle to keep up with the speed and innovation that digitally native disruptors provide.
For organizations that want to establish a strong digital DNA but lack the infrastructure to do so, collaboration with partners is an increasingly effective alternative. Leveraging a partner with digital and industry expertise can help organizations accelerate the development and deployment of new products, allowing them to meet customer demands quickly and effectively. Additionally, they can bring fresh perspectives on technology adoption and implementation through valuable knowledge flows, enabling the company to navigate changes smoothly.
Learning their partner’s technological know-how and customer-centric approaches enables businesses to build an effective foundation for their own customer and operational framework. These practices can then be refined over time to ensure operational efficiency at the highest standard, if and when the business wants to become self-sufficient.