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Technology

Why Culture, Not Code, Determines Digital Transformation Success

HRnews

October 14, 2025

Technology

Why Culture, Not Code, Determines Digital Transformation Success

HRnews

October 14, 2025

Photo by Markus Spiske on Unsplash

The Digital Readiness Misconception

Many organisations approach digital transformation as a technology project installing systems, automating processes, upgrading platforms. But the hard truth is that those investments often stall if people aren’t ready to use them differently.

Digital readiness is not the same as digital adoption. One is about beliefs and behaviours; the other is about infrastructure. And that distinction matters. Transformation only takes hold when people see technology as a way of working, not just a set of tools. Readiness, in that sense, is as much about mindset as it is about machinery and HR is uniquely placed to lead that shift.

When Technology Outpaces People

Imagine a company that rolls out a new HR system, only to discover six months later that adoption rates have barely reached 40 per cent. The technology works perfectly; the issue is cultural. People revert to familiar processes, avoid new interfaces, or quietly resist the change.

Research published in ScienceDirect found that non-technical factors such as motivation, leadership support and psychological safety have a greater impact on digital success than the technology itself. When culture lags, even the best system becomes expensive shelfware. The lesson is clear: readiness must start with people, not platforms.

Defining Digital Readiness

Harvard Business School describes a digital mindset as “a set of attitudes and behaviours that enable people and organisations to see how data, algorithms, and AI open up new possibilities.” But mindset alone isn’t enough. True readiness is a blend of mindset, culture and capability.

Mindset is about curiosity, adaptability and comfort with ambiguity. Culture is about openness, trust and collaboration across boundaries. Capability refers to digital literacy and confidence with data. Tools and training play their part, but readiness is ultimately a human state, one that shapes how technology is used, challenged and improved over time.

What Mindset Looks Like in HR

In HR, a digital mindset can be seen in how teams approach everyday challenges. Rather than designing a major overhaul once a year, digital-ready teams experiment with small pilots and iterate quickly. Leaders demonstrate curiosity and vulnerability by openly learning alongside their teams. Decision-making becomes data-informed, even when the data is incomplete.

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Read full article here

Digital readiness is not the same as digital adoption. One is about beliefs and behaviours; the other is about infrastructure.
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