Embracing new technology can be a game-changer for businesses, yet convincing company leaders to invest can be challenging. Discover strategies to effectively communicate the value of technological advancements, and how they can propel your organization towards unprecedented success.
Summary
Human decision making is a complicated phenomenon. Many studies highlight the parameters defining our mental processes, even if they can’t fully explain them.
- Sometimes, when faced with a difficult decision, we need a catalyst to force us to make it.
- Commercial progress is determined by the choices that we make, either alone or as a group.
Avoiding Mind Traps and Other Decision-Making Flaws
There are several psychological factors – or mind traps – that business leaders fall into when making decisions about digital strategy.
- “Group think” is one such trap and has the potential to be damaging. It can take hold when a leadership team remains introspective, without seeking insight from elsewhere in the company.
- In larger companies, it’s also easier for staff to experience feelings of disposability, especially when change is afoot. This has negative connotations for businesses that need to pursue digital transformation.
Overcoming Your Company’s Psychological Barriers
Humans take time to change and so it takes a much longer-term approach to shift their mindset.
- By understanding the psychological barriers behind digital decision-making, industry stakeholders can and should encourage technology adoption in small and medium-sized businesses
- They will strengthen the backbone of the global economy.
Factors Driving Digital Apathy
While six out of 10 companies claimed to be confident when embracing new technology, there was also a clear sense of apathy, with only three out of ten considering themselves worse off if digital investment is postponed.
- This can be explained by psychological factors holding business leaders back.
Understanding Resistance to Change
Many businesses still grapple with the “hassle factor”
- This is a key behavioral barrier which sees them struggle to convince themselves that investment is worth the effort or potential risk
- 7 out of 10 SMEs remain focused on short-term survival
- However necessary during times of crisis, this mindset prevents them from investing in initiatives, like digital transformation, which will more than likely pay dividends in the long term
