A Road-map To Digital Transformation?
Although it is a hot topic online, much of the information you will find about digital strategy and digital transformation is just noise.
Although the term “digital transformation” has been around for some time, it still holds a prominent place among today’s buzzwords.
Let’s get to the bottom of the noise. What digital transformation means, Why You Need It, and – most importantly – the steps on How To Do It.
What’s Digital Transformation?
What is digital transformation? What is the difference between business transformation and digital transformation? Isn’t digital technology used in business transformation?
A transformation of a company (or an area) of a company is generally a broad or holistic change that changes the way the business operates. Transformation is more than a technological change or organizational structure. People, procedures, and physical regions are all affected.
- Culture, skills, structure, and capacity are all terms used by people.
- Process refers to workflows, tasks, and approaches.
- Geography, facilities, equipment, and technology are all considered physical.
The term “digital” is used for transformation when technology is used in solving business problems or fundamentally changing the way a business (or any other area) of business operates.
Because each organization is unique, there is a lot of confusion about the definition. Each organization faces unique challenges and digital transformation is not the same for everyone.
Five Key Indicators that Shape Road-Map To Digital Transformation
- Strategic direction
These are the strategic decisions that direct an organization in a certain direction.
- Budget and risk appetite
The balance between funding and the risk of unproven technologies/change.
- Technology enables
These are the technologies the organization can use to transform its business.
- The pace of change
The pace at which an organization is able or willing to change.
- Business agility
Organization’s ability to adapt and be flexible in the face of change.
Why pursue digital transformation?
We identify five common goals of digital strategy.
- Customer experience and engagement can be improved
- Efficiency increases
- Improve business decision-making
- Innovation is key
- Transform your business
Sixth: Given the certainty that digital is the future, some companies are seeking digital transformation to prevent increased competition from disruptive digital technologies.
Many companies have already established a vision and a goal for digital transformation. Some have even created a digital strategy. For example, take Caterpillar(r), Nike, or HSBC.
Our Digital Vision states that digital is the transformation of data and information into recommendations or ‘insights’ that enable customers to make better, more informed decisions. This allows customers to save time, money, and resources. It also gives them the opportunity to be more efficient and make more money with Caterpillar than with their competitors.
To meet the insatiable consumer demand to have new products, we are investing in digital from end to end. To help us achieve our goals faster, we are developing new capabilities and analytics that will deliver personalized products in real-time. We also engage with more partners company-wide.
We can improve our customer service by investing in technology and digital capabilities. This will allow us to reach more people and deliver industry-leading financial crimes standards.
Where can I start Digital Strategy?
A strategy that depicts the company’s digital vision is the starting point of digital transformation.
You likely have an idea of what your organization should look like in 20 years. To bridge the gap between visioning and actualizing a transformation plan, however, you must first create a digital strategy roadmap.
Strategy Road-map in Six Steps
The digital transformation strategy roadmap answers six questions. These questions are not exhaustive, but they can be taken once in a while. Each flows logically into another.
- Why is a digital transformation necessary?
- What are you required to do in order for your transformation to be successful?
- What are the changes required to transform?
- To complete the transformation, what packages of change do we need?
- How can we order the packages of transformation over a time horizon?
Why do you need a road map to digital transformation (Can’t you just start moving)?
You will spend your time wandering around your digital transformation efforts without a plan or a process. This can be costly and dangerous for your company’s future. You won’t be able to know where you’re going if you don’t have a plan.
Digital transformation is often a combination of technology projects, organizational modifications, and process adjustments. They all depend on each other for success.
You can’t change staffing levels in order to benefit from automation until all the technology pieces have been installed. Also, technology projects should be coordinated with business process changes. It is important to understand the sequence of events so that there are no surprises and smooth transitions. Once you do, you will find that you can make smooth transitions. Your company’s digital transformation efforts can be very exciting for you and your employees. Employees will be motivated to take initiative and make changes when they feel the enthusiasm and energy.
Aligning Activities with the Road-map To Digital Transformation
Digital transformation roadmap is not a set of mandates. It serves as a reference and guideline to help the organization move towards its goal. To help you make informed decisions when prioritizing projects/activities for your organization, here are three indicators to consider:
There’s a big difference between making improvements and making progress. Not the number of changes made should be the measure of your digital transformation. Instead, consider the impact of those changes on your organization. Companies often measure their digital transformation efforts by evaluating the impact of those changes on the organization, such as the number of support initiatives taken, the modernization of existing systems, or the list of business processes that have been changed.
Adapting to the environment
Your digital transformation plan will guide you. You may need to adapt your digital transformation roadmap as the business environment and technology change. This will allow you to capitalize on new opportunities, avoid risks, and align them with your company’s priorities (resources and budgets). Rarely can you map the course of the digital transformation with 100% accuracy from the beginning? A clearly defined digital transformation roadmap that your company aligns activities against can help you make course corrections in a coordinated manner. This will minimize disruption to your progress.
Best Practices to Establish a Digital Transformation Road-map
Companies must adapt to the changing business environment to remain competitive. They must provide customers with new products and services, and keep their internal operations up-to-date to make use of modern technology. These are five best practices to help you create your digital transformation plan.
- Define success for your company
- Divide the change into manageable pieces
- Instead of waiting for the end, harvest value as you go instead
- Concentrate on the impact on people (cultures, processes, skills, organizational changes)
- You can adjust your course if needed (the environment is constantly changing).
If You’re On The Path Of Digital Transformation, Let’s Plan The Road-map.
What we have learned in years is that it is not possible to find the right destination without a roadmap. You will be able to reach your destination quickly and efficiently by creating and implementing a roadmap to guide you. Keep in mind the reasons digital transformation fails.