Digital transformation and its modern enablers such as mobile, big data, APIs and IoT is changing the way we manage business processes and the models that drive them. Safety, far from being exempt from this revolution, is in fact at the heart of it.
With many organisations still in the early stages of their digital transformation (67% of businesses according to analysts IDC), transforming safety is an achievable digital transformation project that is worth getting on your roadmap – because it can both shift important metrics which drive shareholder value, and protect your most important asset: your people.
Below we explore some of the key reasons why a safety transformation is a rewarding digital transformation project for any large enterprise. A full guide – Accelerating Digital Transformation with Safety – is available on our website and details the business case with research and real-world examples to help guide your safety transformation efforts.
4 Reasons Why Safety is an Important Digital Transformation Project:
1. Safety moves the needle on key business metrics
Safety is about keeping people safer: but the benefits this delivers to businesses are multi-faceted. In our new report we’ve detailed how safety drives increases in productivity; reductions in safety-related and safety incident-related costs; new business; and a stronger brand for attracting and retaining customers, employees, partners and investors.
As a teaser: France-based Schneider Electric invested in safety with the aim of identifying and eliminating hazards that could hurt someone. As a result, the company’s recordable injury rate dropped from 3.6 per 100 full-time workers to 0.5 … 900 fewer people injured than would have been a decade ago, while for the business it experienced more than $15 million in direct annual savings as a result of its investment.
2. Gain a competitive advantage
Safety’s influence is far-reaching: not just productivity and cost-savings, but also brand, reputation and new business. Because only 33% of organisations have implemented EHS (health and safety) software, this means transforming your safety to an advanced state now can give you an advantage against many of your competitors.
3. Safety is an achievable project
Safety issues are well-known and common to many businesses, and a multitude of tools are available to help drive success. Although adoption rates aren’t yet high, safety transformation is a road that has been traveled, and there are plenty of case studies and research highlighting the benefits.
A PwC report commissioned by the British Government summarizes this concisely:
“There is a wealth of evidence that suggests a positive link between the introduction of wellness programmes in the workplace and improved business key performance indicators. The available literature suggests that programme costs can quickly be translated into financial benefits, either through cost savings or additional revenue generation.”
Our executive guide Accelerating Digital Transformation with Safety provides practical advice on the types of safety processes that can be digitally transformed and how to get started.
4. Safety delivers for shareholders
British food producer Uniq Plc’s Board Chair stated that the company “recognised that both the Group’s corporate performance and its value to stakeholders are affected by its occupational health and safety performance.”
The company then embarked on a programme to invest in safety technology and engagement. Three years later the company was experiencing £100,000 annual savings thanks to a 36% reduction in the number of staff days lost due to accidents; a reduction of more than 45% in the cost of civil claims per member of staff, and an 8.5% reduction in employers’ liability insurance premiums. The Board, shareholders, the executive were happy and the Uniq brand value was strengthened. (Source)
Cases like Uniq’s demonstrate how a transformation of safety is an achievable project that can deliver strong results for staff, the business and shareholders, and add further impact to other digital transformation activities.
Adding greater weight to the shareholder value in safety is accident reduction. A recent iCheme study found that company valuation fell by between 5% and as much as 30% in the aftermath of major incidents at companies across multiple industries. The message is clear: safety affects shareholders pockets directly.
These are just four reasons of many more why safety is a vital component of the digital transformation of every business.
Download our new report Accelerating Digital Transformation with Safety for the full story.