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President Demirtaşoğlu made statements regarding digital technologies in the sector.

President Demirtaşoğlu made statements regarding digital technologies in the sector.

President Demirtaşoğlu presented the key to sustainability and profitability for mill machinery manufacturing firms within a competitive market economy as the increasing interest in digitalization. However, he emphasized the necessity of adopting a correct approach towards "digital," outlining his views on the matter.

The term "digital transformation," long spoken about, initially referred to the adoption of digital technology for digitizing non-digital products. Post-pandemic, this approach to digital transformation is now obsolete in the business world. Over the past three years, any international enterprise that has not undergone such digital transformation is either niche or, more likely, no longer relevant in the business landscape. Whether it's a website, a mobile application, or a social media platform, almost every business today has had to have some form of online presence. Therefore, the term "digital transformation" is an outdated concept, and instead, we should embrace a mindset of "digital evolution."

Digital evolution involves the continuous adoption and improvement of new and emerging technologies to increase business efficiency, reduce costs, outpace competitors, and achieve better results. With new technologies and services being developed and launched at lightning speed, providing better information, increasing automation, and pushing boundaries further, failing to keep up with the current pace of change jeopardizes success.

Harvard Business Review estimates that out of the annual $1.3 trillion spent on digital transformation pre-pandemic, $900 billion went to waste. Companies that went into full crisis mode during the Covid crisis, while increasing their spending to revolutionize their digital approaches, enrich their online assets, and survive, many are currently in serious trouble due to the lack of a solid and long-term strategy.

During the Covid crisis, many retailers who invested in their own website but had to enter e-commerce without fully understanding, evaluating, and implementing the end-to-end digital process due to lack of time, resources, or capacity are now in a situation where they must do so. Digital evolution, by understanding this process enough to increase efficiency and profitability and allowing for the gradual development of the right operations, will ensure productivity is enhanced, which is naturally more cost-effective than starting from scratch today by scrapping what is already in place. This approach often results in better utilization of employee time and capacity, allowing employees to focus on the next stage of innovation, which is crucial in this inflationary period where capital holders strive to "preserve their assets."

A recent report by multinational enterprise software company Sage reveals that 83% of HR leaders and 85% of business leaders are expected to increasingly focus on the employee experience. For any digital evolution program to be successful, it is clear that relevant stakeholders, including internal HR teams, must be involved in the process, and change plans must be supported by appropriate learning and development opportunities. At its core lies the necessity for HR professionals to gradually adapt to technologies such as people analytics, cloud HR, and employee self-service. This is not a one-time effort but a gradual and continuous improvement process. At this point, it is important to note that for any digital evolution program to be successful, relevant stakeholders must be involved in the process, including your own HR team, and change plans must be supported by a robust communication and engagement plan.

I reiterate my belief that digital evolution will yield beneficial results for our DESMÜD member firms and contribute to the success of our members' efforts in this regard.