Digital Transformation Strategy for a New Decade
Digital Transformation Strategy for a New Decade
Setting out for digital transformation without a definite strategy is like a bird without wings. Not many companies have even the slightest idea of developing a robust roadmap for their digital transformation initiative.
As business transformation using digital technologies is a long haul, executing the program without any plan can be detrimental to business, as this involves people along with model and culture.
Even before setting out for a digital strategy for business transformation, it is a must for C-level executives to decide on 3 things:
- Why is digital transformation important?
- What needs to be transformed
- How to transform
As a business owner if you have the answers for the above questions, then you can get start with the strategy. Else, try to figure out the answers first before getting started. More than 56% of organizations that don’t have any place for the digital transformation approach have failed miserably.
In a nutshell, the success of digital transformation can be achieved by the formula below.
Digital Transformation (DX) Strategy (Success) = Why Digital Transformation (DX)(Vision) + What it takes (Plan) + How to perform (Action)
The sections below would help you understand the importance of developing a roadmap for digital transformation success.
Why is digital transformation important?
There are a few questions as a CEO you must ask yourself before getting started with a digital transformation program.
What needs to be done
Tell a compelling digital strategy story.
The biggest challenge every business faces is convincing their employees and customers as they resist change. Forcing your stakeholders with sudden changes will leave them in flames, leading to digital transformation failure. This is where bringing everyone into the discussion matters.
CEOs of top brands that have achieved success with the digital transformation program always involve CIOs, employees, and customers to the discussion to make everyone in the enterprise know why the program is initiated and what value it will offer to everyone in the company.
Align transformation with business goals
Another most important factor to align your business goals with digital transformation initiatives. If the program doesn’t have anything to improve your business, there is no point in investing in such an extensive option.
The transformation process involves people, business models, culture, technology, process changes and with no specific goals in mind, the entire program will fail miserably.
Top challenges to consider for successful digital transformation are:
How to plan
A common challenge most enterprises face today is lack of CEOs involvement or interest once the program takes off. This can completely derail the entire Digital transformation program. Having a specific plan for digital transformation initiatives is a must to perform a seamless digital transition across the enterprise.
Here are some interesting points that would help the enterprise CEOs to plan for digital transformation success.
- Analyzing the sense of need
- Starting slowly, getting consent from everyone involved in the process
- Defining leadership roles and responsibilities
- A high-level execution plan and roadmap
- Funding for pilots and initiatives
- Dedicated resources leading and participating in the initiatives
With a clear plan in place, achieving success with the digital transformation program becomes painless.
How to perform
As you have completed the first two steps, following up with action is the next step. Below are a few elements that are critical for executing the digital transformation program successfully.
- Take time to run pilot tests
This is extremely critical as digital transformation programs are long haul and could take years to complete. Without a pilot test, you might not know what exactly is working and what should change.
- Identify the skills mix you need in IT
Identifying the existing resources, IT support and skill set is critical. If your in-house team is short skills or technology expertise, the best way out will be to partner with a digital transformation expert. A vendor with strong digital transformation expertise and experts will help you steer the program in the right way leading to success.
- Make experimenting with digital technologies easy
As sudden changes in the business process and technology will impact the morale of employees and customers, it is recommended to explain the changes well in advance. Gamification is a great Idea that PwC’s CEO used to overcome the employee and stakeholder’s resistance and it ensured a grand success.
- Controlling risk management
Digital transformation execution is always associated with risks and managing them is critical for success. As the entire program doesn’t have a clear budget or specific time frame, it is a must to consider these 3 elements for controlling the risk management.
- Expand your view of risk
- Focus on infrastructure and culture
- Don’t fail to include virtual elements of risk
- Focus on context, implementation, and governance
I know it takes a lot of efforts, money and time to make the digital transformation of your business success. But, if you have the right partner that has proven expertise in devising strategy and implementation, achieving business transformation would be fruitful.
Planning to transform your enterprise to meet the changing customer needs and behavior with the right digital transformation approach? Let’s talk.