How to Digitally Transform:
3 biggest misconception's about digital transformation
Misconception 1
Misconception 2
Misconception 3
Digital transformation needs a big budget before it can even start
The company can afford to do digital transformation, no matter it sector or it size.
Everyone knows what I'm talking about when I say "Digital Transformation"
Everyone has a different definition of digital transformation.
When the digital transformation is over, we can go back to business as usual.
It isn't about adapting to new technology, in reality it is about directing the company to be more adaptive to change itself.
What is Digital Transformation?
It's ability to react and successfully utilize new technologies and procedures.
With Digital Transformation you can create:
- More profitable business models.
- More efficient operating process.
- Greater access to markets.
- New sources of revenue.
- Enhanced offerings to users.
It will have an important impact in 3 main areas:
1) Business Model: How revenue is generated, and how customers re acquired and retained.
2) Customer Experience: Core product and services, and the process by which customers transact and engage with you.
3) Internal Process: Ways of working, operations, analysis and decision making.
Common digital challenges and their typical root causes
1) Fears from staff:
2) Resistance from management:
3) Loss of revenue from non-digital customer segments:
4) Decreases in business-as-usual productivity:
5) Inconsistencies in the quality of customer and staff experiences
Worries about being replaced by young digital natives or by machines and automation.
A threat to their autonomy and area of responsibility.
Potential loss of revenue or value from customers who rely on traditional channels.
The loss of tome and resource a business will incur.
Some areas of the business are lagging behind with the digital transformation.
Distilling success into 5 stages: BUILD
Why BUILD?
It symbolize the scale, permanence and impact of digital transformation.
The 5 steps spell something meaningful, also it's easy to remember.
The 5 stages of all successful transformations
1) Bridge:
Figuring out how much you need to change and how quickly.
2) Uncover:
Figuring out the best routes for making the changes needed to achieve the vision.
3) Iterate:
4) Leverage:
5) Disseminate:
After this stage the company will have the following:
After this stage the company will have the following:
Switching from insight gathering and consensus building to producing actual results.
After this stage the company will have the following:
Preparing to take each of the successful solutions from previous stage to scale by leveraging successes internally and externally.
After this stage the company will have the following:
Incrementally scaling digital transformation across every area of the business to achieve sustainable adaptability in changing and complex environment.
After this stage the company will have the following:
1) Tangible evidence of how digital technology and new ways of working are being used by peers and competitors to win market share, increase revenue and decrease costs.
2) Consumer and customer insights into the new offerings and experiences that are already winning a greater share of their time, spend, and loyalty.
3) Knowledge of technologies that could improve and add value to your existing business as well as insights into those that pose an immediate threat to your core business.
4) A vision that succinctly describes the kind of transformation needed to address these opportunities and threats, and that helps you win support from needed stakeholders. partners, and investors.
5) A leadership group willing to sponsor and guide transformation by providing oversight, evaluating progress, and mitigating barriers throughout the programme.
1) Revealed the internal barriers that could prevent your company from achieving its transformation vision.
2) Found assets you can leverage to get started sooner or with less funding.
3) Identified the business outcomes individual projects will need to achieve in order to achieve the overall vision.
4) Identified missing skills and resources, and begun the process of filling them.
5) Created the first cross-functional teams to begin iteratively working to achieve the project outcomes defined by the routes to transformation.
1) Cross-functional project teams that work colaboratively to iteratively create solutions that achieve goals aligned to the objectives.
2) Solutions that start as simple prototypes and get bigger and more complex incrementally as they're tested and improved with real users.
3) Results and evaluation processes that reveal which solutions carry the biggest business value and, therefore, should be scaled.
4) Benchmarks from testing that will inform each solutions' key performance indicators to make the case for why it should be scaled and what value it should bring.
5) New ways of working that have been trialled by the iterative teams, proving which are successful in the context of your organization.
1) Shared successes internally to win influence from previously resistant parties, and access greater resources and freedoms to expand.
2) Marketed successes externally to attract new partners, new hires, and new customers in preparation to scale.
3) Identified the best areas to scale based on the amount of influence, resources, assets, and support gained.
4) Won buy-in from staff and management to increase the instances of organic adoption as the programme grows into new areas of the business.
5) Anticipated and mitigated threats, such as retaliation from the competition, that often accompany an organization announcing transformation successes.
1) New innovations launched and localized in new markets by incrementally scaling the cross-functional team model and iterative project approach.
2) Established flexible systems for supporting scaling across the key digital disciplines: Customer Experience, Design, DevOps, and Insights.
3) Created universal goals for achieving your company's mission with a focus on customer experience and continuos improvement.
4) Established clear rewards and incentives for cooperating with others to produce original work as well as proceses for recognizing individual contributions.
5) Formalized supports for innovation, and made strategic investments in platforms, people, processes, and partnerships to enable future adaptability.