Diversity and Technology Have the Power to Boost Business Revenues
What's the connection between diversity and technology in maximizing profitability in business?
Although companies have adopted technology to automate roles, maximize productivity and add more intelligence to their work, we’re still missing a piece of the puzzle. Sprinkle diversity and inclusion on that, and the result is “diverse intelligence,” which fosters innovation and creativity and skyrockets the company’s profitability.
Did you know that the most diverse companies are now more likely than ever to outperform less diverse peers on profitability?
Diversity has been a hot topic over the last few years and has gathered favorable responses. The importance of diversity in business cannot be overestimated: About 70% of diverse companies are better positioned to capture new markets.
The reality is, a diverse environment is a breeding ground for creativity and innovation as diverse people from different cultures, backgrounds, orientations, digital views and creative spirits come together to make it work. Now, isn’t that a good recipe for maximum technological development?
It's time to rethink the way we do business and re-strategize.
Why diversity matters
We keep affirming that there is beauty in diversity. So, intuitively, we already know that diversity matters, especially in business. Diversity and inclusion in the workplace have gone beyond being politically correct and following the crowd. Over the years, it has become no longer just about age, gender and race, but also about hiring a vast range of talents to pump more value. Homogeneous environments cannot foster creativity, variety, innovation and empathy in ways that diverse ones do.
Diversity brings innovation and creates a more prosperous work environment. This explains why Singapore ranks highest in the world for digital readiness and is currently recognized as the world’s most technology-ready country. Singapore is a multicultural melting pot, and this diversity has served as an asset for the small island, adding massive value through innovation and disruptive technologies. Its well-integrated populace values meritocracy over race, gender and religion. Diversity is not just a concept: It's an asset for both businesses and their employees.
The case for technology in business
Money makes the world go round while technology makes businesses survive and outlive expectations. Imagine a company in this current generation without investment in technological infrastructures such as computers, automation tools and virtual-meeting platforms. What are the odds that such a business would survive?
The role of technology in business has become indispensable to modern-day companies. Multinational companies like Amazon and Apple and small companies worldwide increasingly rely on technology to drive innovation, strategy, growth and competitive advantage.
Technology in business boosts employees’ creativity and improves communication. Seamless communication platforms such as Slack and other customer-relationship platforms create personalized business experiences for your customers. For example, Salesforce can better connect with your customers, track their activity across your platform, automate some valuable messages via chatbots and market to them incredibly effectively.
An aspect of technology that’s currently transforming the face of digital marketing is artificial intelligence. With AI, you can automate learning customer behavior and generate insights that help you in targeted marketing and improve your ROI by 22%.
It seems technology alone has got all bases covered, which leaves us with the question: What’s the connection between diversity and technology in maximizing profitability in business?
How diversity and technology boost revenue and drive profits
The most recent trend in large companies is a little progress in adopting diversity and inclusion among the workforce. A study by McKinsey shows that companies with the most diverse workforce, including the executive teams, outperform their peers in profitability by 33%. The study also reports that these outperforming companies in the top-quartile gender-diverse companies have more women in line roles than staff roles, which has resulted in outright financial outperformance.
One of the biggest reasons diversity and tech result in higher profitability is that technology needs a firm foundation and organization. This means a great company culture that harnesses talent across the horizons to ensure varied ways of creating new ideas and developing unique solutions and products.
Diversity and team performance are closely linked. The idea behind the increased diversity and higher performing teams is that the more diverse the team, the more it reflects its target audience.
There have been cases of selectivity in some tech products, which has resulted in the products serving only a homogeneous audience. Having a diverse executive team would prevent this mistake as the team factors in all elements. As a result, the organization can become more empathetic, understanding and, ultimately, create a better user experience to foster loyalty that drives long-term profitability.
Diversity isn’t just about ticking the box. And effectively investing in technological infrastructures requires an excellent team for maximum innovation. Diversity and technology are both assets to society and businesses.
With a diverse team in place, companies can have the much-needed perspective to better understand customers’ evolving needs. Businesses are not just companies outside a society. Instead, they’re a part of the society they should mirror to cultivate innovation through diverse creative perspective.
Don’t miss out on emerging technology, and don’t forget that businesses need a healthy company culture for innovation to thrive.
Entrepreneur Leadership Network Contributor