Inter-Generational Challenges and Opportunities in Digital Transformation

The question is, how do organisations respond to these expectations and changing behaviours?

There are two parts to this. The first is about digital interaction: younger demographics who have grown up with technology expect seamless online experiences where content flows smoothly, and interfaces operate flawlessly, and they have a very low tolerance when this is not the case. They demand to be able to find information quickly, expecting it to be concise and easily digestible. As digital natives, they consume material differently and hence learn differently, having always had access to whatever data they need at their fingertips. They are adept at quickly scanning, absorbing and discarding large quantities of information.

On the other hand, while older generations also expect information to be easily accessible, they value the assurance of direct contact. They are more comfortable seeking assistance through traditional phone calls and email. Finding this delicate balance requires companies to provide accessibility while ensuring robust functionality. It is often a costly combination that can be easier said than done. It offers clear, straightforward information, relevant webchat, and automated content targeted rather than overwhelming, as well as fast and efficient navigation, with human support available when required.

In the constantly evolving world of digital transformation, there are many challenges: the investment, organisational disruption, integration with legacy systems, and cybersecurity risk management to name but a few. However, one of organisations’ most significant challenges is understanding how different generations approach technology.

The second is about the difference in priorities. Gen Z and Millennials seek out opportunities for self-actualisation through personal growth and transformation, both as customers and employees. Baby Boomers and Gen X are choosing experiences over material goods, partly driven by shifting priorities later in life, an awareness of the impact of waste on the planet and no doubt compounded by economic factors as pressure on domestic finance continues.

Sustainablility

While Baby Boomers and Gen X are gradually moving in the same direction, Gen Z and Millennial generations seek companies that champion sustainability and social responsibility in ways beyond mere rhetoric. Authentic dedication to these values is vital for businesses aiming to capture the hearts of younger generations. This includes how companies are structured – the balance of diverse thinking on the board and in leadership positions; the level to which the board, leadership and employee base are representative of society in terms of equality, diversity, and inclusion; the treatment of employees, of society and the earth as a whole, including the partners and service providers within the company supply chain.

The success stories of companies that excel in both global conscience and user experience are striking. For instance, the outdoor clothing brand Patagonia’s sustainability practice reaches far beyond just using recycled material in its clothing; its aim is not only to reduce harm but also to generate positive impacts for the lives it affects through its business. Its’ self-imposed Earth tax, ‘1% for the Planet’, as an example, supports environmental nonprofits working to defend air, land, and water around the globe. Over the last decade, with this purpose-driven strategy, Patagonia has quadrupled its sales by $1 billion annually. Yet again pioneering the way for other companies, Patagonia announced in 2022 that ‘All profits, in perpetuity, will go to our mission to save our home planet. As of now, Earth is our only shareholder.’ (Martin Armstrong, Statista 2022, quoting Patagonia CEO Yvon Chouinard)

With a diminishing tolerance for organisations that overlook these principles, companies can find it challenging to attract top talent, ideal customers, and valued investors, and to achieve sustainable growth. Uber, on the other hand, is an example of how customer and public sentiment can affect the reputation and value of a global brand, with allegations of sexual harassment and discrimination within the company and ethical concerns about their business practices.

So, what is the solution?

It’s no longer a case of putting yourself into your customer’s shoes. To genuinely understand your customers’ needs, values, and priorities based on where they are in their lives means collaboratively designing your strategy with them. It is potently insightful and humbling when you invite your customers to come together with your employees to understand their experience and aspirations and collaboratively design future services, products, and experiences.

This is different from focus groups, which many organisations run, whereby you bring a product or concept to a group of customers and ask them for feedback. It is also quite distinct from customer personas and journey mapping, albeit these might be included as an additional step after the collaborative design process. Design Thinking is about leveraging your customers’ and employees’ combined wisdom, knowledge and experience to create a proposition that meets their needs. That attracts sales, increases revenue, and reduces costs by cutting out inefficient practices. Furthermore, the openness and authenticity of collaborative design is a fantastic catalyst for cultural change within an organisation.

Organisational Examples

Many organisations, particularly those with an online presence but on the back foot regarding a great digital experience, often need to be more open to collaborative design. Nonetheless, there are well-known examples across different sectors, including the introduction of airline lounges and beds in business by British Airways and the launch of Pepsi Max by Pepsi. For a new generation of women, Tampax introduced rounded applicators for tampons. Closer to home, Bank of Ireland’s bancassurance business, at the time the first of its kind in Europe, resulted from co-design with customers in which I participated as a team member, igniting my passion for customer experience and collaborative design.

Engaging Employees in Transformation

I’ve been leading business and technology transformations for over twenty years in Ireland, Australia and Asia. My experience, backed up by research, shows that engaging your employees in the transformation more than doubles the likelihood of success. Involving customers and employees in the design creates a step-change through the empathy and innovation that it evokes.

Examples include redesigning the end-to-end model of care for patients with catastrophic injuries and their families for a NSW government health organisation and migrating retail banking customers to digital, including removing cash and paper from four retail branch networks in a large Australian bank. Here, with Chartered Accountants Ireland, the migration from entirely face-to-face education and training to online for students and members is happening. These were also co-designed respectively by patients, customers, students, members, and employees. Our team works with organisations across the public and private sectors, from universities, medicine and pharmaceuticals to prisons and the defence forces.

Co-design

Co-design is obvious, really … and yet it tends to be a significant intellectual and psychological step for companies because it requires leaders to be open to hearing how customers feel about the products and services they provide and potentially being honest and open about the organisation’s dirty laundry, all of which can create vulnerability. This is why we spend time preparing employees for the collaborative design workshops. Our methodology and expert team provide a container that supports the best possible level of innovation. Everyone who participates – customers and employees, gain something special from the experience.

Design Thinking is about bringing people of older and younger generations together. It is the basis of our transformation methodology. However, the opportunity to understand the motivations and behaviours of each generation by collaboratively designing and delivering strategies with them is, in the Irish market, a relatively untapped source of competitive advantage in terms of transformation.

Our parents, grandparents or great-grandparents from The Silent Generation, were born after the war without technology. They lived by following the seasons, only eating the fruit and vegetables that were in season, wearing clothes until they fell apart, and making and repairing machinery and household equipment to last forever. With the continuous evolution of digital technology, the world is changing rapidly, new needs are emerging, and societal behaviours are evolving with each new generation and technological advancement. There has never been a time when continuous transformation was critical for companies to remain competitive with compelling products and services. This is why we at The Project Foundry believe co-designing your value proposition with customers/patients/service users, and employees is not just a good thing; it’s an essential part of strategic planning.

Get in touch

To speak to Shar or any of our team about how we can assist in your transformation initiatives, contact us or visit us on linkedin