The digital revolution is here – it is essential for organisational survival, and is now a natural expectation of staff, customers, managers, boards and industry partners. Failure to embrace digital disruption will ultimately result in significant impacts to organisational efficiencies (at best), or will ultimately lead to organisational demise (at worst).
Organisations are using technologies like social media, mobile, analytics and embedded devices to change their customer engagement, internal operations and even their business models. Whilst there are many organisations that are realising real benefits, many organisations are left wondering how to start the journey, or how to successfully execute a digital transformation.
Based on various studies, research and personal experience, the following key practices are critical in enabling organisations to undertake successful digital transformation:
1. Develop a Vision
Senior leaders need to have a common vision of how to proceed, and weed out the activities that run counter to that vision. They also need to understand why to change, and how the future will be better than the current situation. Without a vision of change, employees tend to do what they have been doing for years, even if it is no longer useful in the digital world. The first step is to understand the threats and opportunities that digital represents to the organisation. Will existing ways of working continue to be effective in a digital world? Are there new opportunities available in customer experience, operational processes or business models? It is also important to assess the organisations digital maturity.
Organisations must change the approach from supporting the business with information technology, to identifying what is possible with digital – starting with mobility, cloud, situational context, and then consider how to get there from here using technology as the catalyst.
2. Invest in Digital
To realise the digital vision, organisations must invest in the right areas. This includes cutting back in unproductive areas while ramping up investment where it needs to occur. Organisations should choose to excel in a few areas based on existing capabilities such as customer experience, social media, mobile, customer analytics, process digitization or internal collaboration – but not in all.
Organisations will need to consider adapting their business model, which could include adding value to products and services, reaching new customers, linking operational and customer-facing processes in new ways, and even launching entirely new businesses. Strong governance mechanisms are also required to increase the level of coordination and sharing across silo-run digital initiatives.
3. Organisational Engagement
When employees are engaged in a shared vision they help to make the vision a reality. They offer less resistance to change and often identify new opportunities that were not previously envisioned. It is beneficial to use a wide array of digital channels, such as broadcast, web, video, and social networks to generate continuous two-way communication at scale. Equally important is to encourage employees to identify new practices and opportunities that will advance the vision.
4. Customer Focus
From a digital solution perspective, focus on user experience design by directly engaging with your customer base. Ask for feedback, challenge current processes, and validate effectiveness. Provision of products or services can be enhanced by engagement with the customer base to understand the demand, and include co-design, enabling greater take-up and the ability for self-service. Provide access to your products and services from anywhere, anytime and on any device, regardless of location.
5. Cloud First
Investment in cloud based platforms can accelerate the journey to digital, providing opportunities for simplified mobile platform interfaces, use of contextually aware services (utilising customer location, preferences, usage history, etc), context sensitive data integration and data exchange among mobile, big data analytics, social media, internet of things, etc. Develop capabilities to generate forward-looking predictive analytics and overlay with open data sources to truly innovate and provide value.
6. Sustain the Transformation
Successful digital transformation is built on a foundation of core skills and capabilities. Assess the skills on your teams to insure they fit the new platforms for digital business. Consider hiring some experienced executives who can make an impact quickly and coach existing employees. Redesign your training programs to develop skills your company needs. Where useful, partner with vendors to gain skills and cross-sector experience that complements your capabilities. Senior leaders must focus on building and sustaining momentum for change.
Quantify and monitor progress toward the digital ambition through KPIs or digital scorecards. Scorecards have power beyond just measuring the impact of major investments. They help to change the culture. A shared understanding between IT and business executives is also critical to success.
For a real-world case study (from independent research firm Gartner), please see the link below or contact me via email, linkedin, twitter or this post.
Ben Ward 