Balancing act between core business and digitization causes tension
Companies are still focusing much more on developing their core business than new business areas - despite the challenges of digital transformation. This is shown by a new study by Hays and PAC.
Despite the challenges of digital transformation, companies are focusing on expanding their core business. It is disproportionately more important to them to develop this core business further (52 %) than to tackle new business areas (26 %). Instead of promoting the self-organization of teams (17 %), companies therefore tend to optimize their existing processes (64 %). Increasing efficiency is also higher on the agenda as a result (62 %) than expanding agility (48 %).
Tensions despite integration
Nevertheless, more and more employees are involved in digital projects in addition to their operational tasks. This creates tensions: 86 percent of those surveyed noted conflicts in prioritization between project and line tasks, and 80 percent complained about unclear responsibilities in management. This is revealed by the current empirical study by Hays and PAC on the areas of tension in the digital transformation. In the view of the respondents, three points in particular are hindering digital transformation. First, managers find it difficult to change their leadership style (61 %). Second, core business still takes up too much time (60 %) and third, departments are still characterized by insular thinking (59 %).
Inflexible organizational structures
"Many companies have tackled digitization and established projects to this end. But the existing organizational structures are proving too inflexible to drive the new topics forward. This balancing act of dealing with innovative topics in conventional structures is a burden on companies. What is needed here is more courage to take new paths," says Klaus Breitschopf, CEO of Hays AG, commenting on the results of the study.
For the study "Between efficiency and agility. Under Tension: Business Units in Digitalization" by Hays and PAC, 226 executives from IT, Finance and Research & Development departments from companies of various sizes and from different industries were interviewed by telephone.
Source: www.hays.de
