This uncertainty of missing building blocks or having the wrong ones is often what makes organizations uncertain as they fear failure in regards with the proper mapping of the needed building blocks (subprojects, people, processes, information sources, change management initiatives, built-in checks and so forth). Stay tuned as we’ll look deeper into digital transformation strategy and a framework/roadmap that guides your strategy by asking the right questions and connecting the right dots. In many industries, the digital winners’ circle is still up for grabs. A digital transformation strategy builds bridges between current state and desired long-term plan. Since the … Tell a story. The scope of digital transformation strategy Source: Digital, Marketing, Strategy, Implementation and Practice, 7th edition, by Dave Chaffey and Fiona Ellis-Chadwick. If an IT leader hasn’t done so already, now is the time to step back … Be realistic up-front and build many stakeholder checkpoints into the plan to ensure transparent progress is being made. Yet, that starts in the here and now and the basic operations, processes and models to improve and overhaul with an immediate business case, a medium term one and a bigger roadmap in mind. Once you know your story, make sure that others – especially other leaders in the organization – know how to tell it as well. The Enterprisers Project aspires to publish all content under a Creative Commons license but may not be able to do so in all cases. Building a business that can leverage emerging technology and ride new opportunities with speed skill and determination, often requires a transformed way of working. Give them a target they can identify with and aim towards.”. Find your “why” What is the value of digital transformation for your company? At the same time we’re also forced to understand them individually. Digital Transformation - Application. To embrace new ways of doing things, like new ways of working or new technologies? Co-opetition might be less known but in fact it’s an idea and practice that exists since several decades. At the same time, information management requires a holistic and integrated approach. The critical piece: Prepare for culture change. 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 … Does your change management plan cut it in the digital age? Developing a roadmap for short- and long-term digital transformation, guided by business outcomes, not technology, is the essential … Understand its capacity and the pace of change that it is willing to undertake. Data and information have become core business assets, sources of revenue and critical enablers in the information age. A look at key questions to ask for your digital transformation strategy. Firms should also look to rapidly up-skill the digital expertise of their workers, and deploy agile ways of working. ], After James Swanson, CIO and head of digital transformation at Bayer Crop Science, developed a transformation strategy, it was time to evaluate the team, he said. Companies that do this well share three best practices: They link innovation to a big-picture vision, make experimenting easy for employees, and share responsibilities among everyone with a stake in the innovation. 3. ]. “There isn’t a single ‘make or break’ step in a digital … It has always been in our top 10 of business books and in the holistic reality which business is and which digital transformation also is and requires to succeed, it could inspire you as it inspired us. If you look at it this way, inevitably you need to ask why do I want to transform anything whatsoever, what is that whatsoever and how am I going to get there as mentioned. This is obviously a journey that never ends. Essential project management questions and forecasting methods are just a must, even if we tend to forget them and lose ourselves in the technological or organizational questions without the end in mind. Many leading ‘incumbents’ are increasingly setting up environments where they give room to innovation, experimentation and future-oriented sessions, in order to shape their digital transformation strategy. Why people love to hate "digital transformation", Why digital transformations fail: 3 steps you can't skip, 5 underappreciated skills for leading digital transformation, Digital transformation, the open source way, 3 ways to show gratitude to your remote teams, Emotional intelligence during remote work: Leadership tips for 2021, How hard-hit industries can plan for the future: Lessons from Amtrak IT. [ Culture change is the hardest part of digital transformation. Much has been done since the 2012 Government Digital Strategy, which demonstrated the potential of public service transformation by rebuilding some of the most high volume services to make them ‘digital by default’. Judith Apshago, VP of IT for Amtrak Corporate and Operations Technologies, shares lessons on prioritizing in uncertain times. A digital transformation strategy starts with answering essential questions such as the what, why, how and who. It’s one of the reasons why IT firms are building or acquiring ‘digital transformation consultancies’ with roots in marketing/business or even agencies, which can help them in properly understanding and addressing the needs of these a-typical audiences. Because here is a reality: some forward-thinking companies have done amazing things using the Industrial Internet of Things and data analysis. Get the ebook: Digital transformation, the open source way. Overlooking cultural change is the biggest mistake in a digital transformation.”, [ How can open source principles help with your transformation? A digital transformation strategy is working out where exactly you could apply such technology and what the returns and benefits of this could be. Carla Rudder is a writer and editor for The Enterprisers Project. Design for innovation, optimization, agility and scale. A typical example of that is happening in Fintech. What will digital transformation do for your company? Privacy Statement | Terms of use | Contact, “Walk through a day in the life of a typical employee living with all the features of a digital work environment.”. What can a digital transformation strategy achieve? Focus on long term with intermediate goals. With remote work likely to be the norm well into 2021, consider these tips to apply your emotional intelligence and build strong, supportive teams, Bringing services back stronger than ever will be one of the biggest challenges in Amtrak’s history. A digital transformation strategy is a plan of action to reposition a business in the digital economy. Last but not least, it’s why we need a roadmap, as informed as possible, and as mentioned, with the necessary space for failure and balanced risk. The reason we mention it is because co-opetition is also de facto what we see happening in several markets where so-called incumbents and so-called disruptive companies understand that it’s better to collaborate in competing for specific markets than to go in from purely competitive approaches. Stage 3. Digital strategies in the most mature organizations are developed with an eye on transforming the business. “Success can only come through careful orchestration of organizational capabilities in the services of a clear transformation vision. Even if it does not seem so from the outset, they are very important to the success of your digital transformation initiative.”, “To get stakeholder buy-in, take the time to run proofs-of-concept and pilots before moving forward with any solid plan,” Henley suggests. We do know that they are interconnected and strengthen each other, not for the sake of the technologies themselves but because in that Nexus of Forces they are inherently dependent of each other and simply overlap if you go deeper. And smart digital strategy, like traditional business strategy, is about making wise investment choices to maximize competitive advantage, growth, profit, and value—and then implementing with discipline. Increased mobility: Not only do consumers spend several hours a day on mobile devices, but employees are tied to smartphones, tablets, and laptops. When you look at these various technologies, whether it’s from their individual traits and evolutions (books are written about each one as they cover many underlying realities and are all de facto umbrella terms) and when you look at how they are often covered, it’s easy to forget how they are really part of one single, more holistic, perspective, which is defined by the end goals why we ‘invented’ them and why we use them. So, that is what we try to achieve. In order to reap the benefits of new technologies, the next stage in that information age and the digital transformation economy, organizations need to be ready for accelerating evolutions, higher business agility and the increasing role of all forms of data and information. There are ample bridges to be built from a human perspective. It’s at least as important to understand how, in the end, they all matter in a context of your digital transformation strategy, actionable intelligence and opportunities. It’s equally critical to integrate information/content and processes, with the business and knowledge worker in mind as previously mentioned. Many have forgotten the names of various of these large players of the early days of the Internet and what used to be called ‘e-business’. We invite you to read the classic ‘Coopetition‘, essentially meaning ‘cooperation and competition’, which Adam M. Brandenburger and Barry J. Nalebuff already wrote in 1996. Have clarity on its strategic vision. The truth in this stat depends on how you define failure: According to Korn Ferry’s Melissa Swift, it’s more likely the majority of those efforts are simply stuck versus completely doomed. Transformation cannot be driven out of IT only; rather it must be fully aligned with the organization’s overall path, goals, mission, heritage, and planned future.”, [ Digital transformation requires true partnerships. 2. With SMACIT we also include the Internet of Things. A digital transformation strategy is a detailed plan for how your business will address key challenges created by the convergence of the physical, digital, and human worlds. None of these ‘technologies’ are really new and often have their roots in other technologies we mention less or have forgotten about. “Who are the people we need? look at where the leaks in your business are and where it’s clear that you’ll need to remove or bridge legacy and necessity, among others in the technologies that are crucial to scale and move faster and better once your strategy is in place. Another area is the building of bridges between the capabilities of existing and ’emerging’ technologies and the potential they offer for the most innovative, who will win in the end. It’s also the reason why some consultancy-oriented firms, who have been very vocal in the digital transformation scope, encounter challenges of growth. But don’t rush into digital transformation without first laying a solid foundation for success. “A major step is connecting digital transformation to meaning,” says Jeff Skipper, a certified change management professional and consultant whose client list includes AT&T, Goldman Sachs, and other high-profile enterprises. However, you should never forget that it’s important to build bridges between your understanding and the goals you want to achieve on one hand and the bridges to build between all the technologies that fit in your individual business context. The challenge for many executives is to know where they want to head, what they need to get there and how to be sure they successfully did get there with the necessary (intermediate) controls in place. They invite start-ups, newcomers, the often younger generations of technologists who master emerging technologies and/or their existing IT partners (who are also challenged) to showcase, collaboratively think, find talent and potential future scenarios, etc. The customer in the broadest sense (external and internal such as employees, don’t forget change management) is the driver behind many bridges to build and instrumental in effectively building them. “That likely includes changing or breaking processes that have been in place and have worked well at some point, changing how stakeholders interact with their clients, even changing their roles. On this site we often refer to the core technologies as the third platform (a term coined by IDC) or SMAC and sometimes SMACIT. Still, it doesn’t inspire much confidence for those organizations just getting started. They are chasing digital products and offerings that don’t add business value at the end of the day – not unlike that fancy fondue set collecting dust on top of your fridge. It’s clear that collaboration and co-creation, on top of the different meanings they already have (think internal collaboration, for instance), in a digital transformation economy and digital transformation strategy context go beyond the enterprise and existing ecosystems and move towards building new networks and ecosystems where data and actionable intelligence are leveraged for future growth and entirely new business models. In practice, it requires building many bridges to remove gaps and chasms that are still prevalent. 1. On the other hand we see that digital transformation is often approached as an ongoing journey that is more about a continuous business transformation strategy in the scope of technological and societal change. In exactly the same way and, depending on the scope and breadth/depth of the digital transformation strategy, chart the unknowns. You may have heard that 70 percent of digital transformations fail. The opinions expressed on this website are those of each author, not of the author's employer or of Red Hat. The strength of ecosystems and communities of innovation, collaboration and also outsourcing partnerships, defines the strength of the businesses which are part of them in a culture of co-opetition and co-creation. Clear targets, management buy-in, and targeting easy wins early are just some of the key aspects of a successful digital transformation, according to experts from McKinsey & Company. The Imperial Digital Transformation Strategy programme is one of the offerings in the Imperial Virtual Programme portfolio, characterised by live interactive sessions with faculty. Walk through a day in the life of a typical employee living with all the features of a digital work environment. The latter view explains why it’s so important to have a reactive (or agile), informed and highly ‘change-aware’ capacity. 11 May 2020 Consultancy.uk. To accept risk and tolerate failure? The first step to creating a digital transformation strategy is changing your company’s … One of many reasons is that often we are partially and in a sense by definition operating in relatively uncharted territory and aren’t sure if we have all the building blocks. A digital transformation strategy starts with answering essential questions such as the what, why, how and who. A good marketer will always strike a balance between activities with more certain outcomes and proven results and activities with less certain or uncertain outcomes which could be unexpectedly high gains or, if it doesn’t work that well, losses that don’t affect the overall ROI too much. And that’s one of the areas where actionable intelligence (what data should become), speed/agility (what the cloud offers), hyper-connectivity and along with it more data (what the Internet of Things, mobility and so on offer), and the intersection of people, purpose, innovation, optimization, information, processes, value and business models come into play. McKinsey's framework for digital transformation strategy. By harnessing digital to build and deliver services, the government can transform the relationship between citizen and state. Learn, measure, re-assess, scale, innovate. Agile companies need mobile solutions that deliver the same experience people have in the office. A digital transformation strategy also requires bridges between leaders and ‘their people’, among others those who are closest to the customers and often feel forgotten and unheard, bridges between various functions and, increasingly, between business execs and leaders from several companies who are building the ecosystems of value which are needed in an economy where new business models and revenue streams de facto increasingly dictate both the business and technology agenda. You can’t skimp on any of them – especially number seven. Executive Summary. Gap bridges with customers and stakeholders. Experts point to a few critical pieces of the puzzle, such as changing the culture of IT, identifying and convincing stakeholders across the business, and connecting transformation to a meaningful vision for the company. What can you do to give your digital transformation the best chance of succeeding? Do you have the right culture to adopt change? The Internet of Things is just one example here as, in all honesty, we are still at the start. Departments have become better at sharing platforms and components, code, patterns and bes… It will help you come up with creative solutions to level up your business in this digital age. “We retooled the IT department to move away from some of the commodity skills.”. Highlight both benefits and challenges and tie it to strategy and winning. Not many companies have even the slightest idea of developing a robust roadmap for their digital transformation initiative. What do you want to achieve, why do you want that, how do you get there, who do you need, is there a clear and calculated case that supports your intent and how are you going to gauge whether you achieved or not? They can’t respond to the increasingly end-to-end digital transformation strategy needs of companies as they miss the profound IT and information management skills. Leverage the existing and emergent technologies to transform the business. Keep up with the latest thoughts, strategies, and insights from CIOs & IT leaders. In other words: for many of them it’s hard to build the bridges that are required in the holistic phenomenon that covers many realities and skillsets and is called digital transformation. Their increasing maturity, as well as their increasing adoption, has led to what Gartner called the Nexus of Forces. However, in order to reap the benefits and potential, it’s not enough to understand what you can with these technologies. That’s why it’s important to conduct VoC exercises and strategic sessions with various people. Data allows us to find new opportunities much more easily. Figuring out how to answer that question and make it meaningful for everyone involved is the first major step in your digital transformation journey. Here are seven important steps to consider as you construct your digital strategy. Digital transformation strategy course overview. We live in an age where over the past decades new technologies have emerged (some more recently) and gradually became core components of the ways we do business and the ways we live. Artificial Intelligence is the ability of a machine or software to develop human … In a business reality where ‘the business’, with a leading (yet, non-exclusive) role for marketing and the CMO, increasingly takes decisions on technology budgets, we see that it’s often hard for IT and information management professionals, who are essential in digital transformation, to speak the language of the CMO or other business executives, which traditionally didn’t belong to their ‘target audience’. As with any transformation, employees must understand what it is they need to support before you can drive buy-in and adoption. Effective change management is imperative to making the transformation from doing digital things to becoming digital (Deloitte, infographic below). ], “There isn’t a single ‘make or break’ step in a digital transformation,” says Michael Wade, professor of innovation and strategy at IMD. This will help ensure your stakeholders are actually ready for the journey, while your organization, team, and partners are learning how to implement effectively and successfully.”, [ Read also: What is a digital platform? Here are two things you can already start doing as of right now: Some digital transformation strategy steps to take into account (and that can be put in the context of the previously mentioned three core capabilities, as well as the, also previously depicted vision, plan, action steps): Top image: Shutterstock – Copyright: Sergey Nivens – All other images are the property of their respective mentioned owners. A digital transformation strategy builds bridges between current state and desired long-term plan. 5. ", "We retooled the IT department to move away from some of the commodity skills to more forward-looking capabilities that align with our strategy. Read also: Meet the Chief Transformation Officer: 8 key tasks for this new role. Customer-centricity, customer-facing processes and the end-to-end customer experience are key in digital transformation strategies. "Without addressing culture, transformation will probably fail. You may be the best UX person around, but if you aren’t competent with your business acumen, you won’t be successful.”, [ Who should lead transformation? ", "But if you were to push me on identifying a single critical piece of the puzzle – one that is often done poorly – then I would point to careful consideration of the cultural aspects of transformation," said Wade. Government Transformation Strategy 2017 to 2020 This strategy sets out how the government will use digital to transform the relationship between the citizen and state. This dimension will increase even more with the interconnection of everything and more actionable intelligence opportunities, what the Internet of Things or IoT is really about. It’s probably not that hard to imagine how much bridging of processes, people, information sources and existing silos and gaps that requires. Previously, Carla worked at a PR agency with clients across the digital marketing and technology industry. The Enterprisers Project is an online publication and community focused on connecting CIOs and senior IT leaders with the "who, what, and how" of IT-driven business innovation. ]. Setting out for digital transformation without a definite strategy is like a bird without wings. We know the possibilities of digital technologies are enticing and that mounting competitive pressure creates urgency. To do so, you need to grasp what role they play in the bigger picture of digital transformation, while identifying the glue that connects them and that in the end enables you to make a solid difference with your strategy. It’s also why it’s important to continue to learn, have a culture of evolution awareness and prioritize. You really need to know what the Internet of Things is and can do, beyond what you believe it is and how important it will be. Point of view. Stay on top of the latest thoughts, strategies and insights from enterprising peers. “Alignment is the most important step to a successful transformation, and it needs to be supported from the top down,” says Bernie Gracy, chief digital officer of Agero. Red Hat and the Red Hat logo are trademarks of Red Hat, Inc., registered in the United States and other countries. Information is ubiquitous and at the center of digital transformation. However, those that in the end will make the difference, will not be the technology innovators. It’s the development of a capacity to act, react and ideally pro-act as societal changes and technological evolutions continue to take place, accelerate and evolve. Lead from the Front. Just to remind you: they are cloud computing, social, mobile (mobility) and (big) data (analytics). The other way around, many marketing executives, don’t speak the language of IT and/or are not used to think and work in terms of business process management, essential technological evolutions and concepts or methods of business process reengineering and/or business process optimization. We need more and stronger bridges with customers in ways which require more depth and breadth (and personalization) than ever. Here are the top 21 digital transformation strategies recommended by businessmen and company executives who have successfully overcome the challenges of digital transformation and the pains associated with it. We hear this time and time again, whether we speak with experts in a specific domain such as the Internet of Things, CIOs, CMOs, information managers, you name it: all too often there is a lack of attention for the essential questions that also apply in digital transformation or any technological or other project or process. However, as Barry Brunsman, principal with KPMG’s CIO Advisory recently told us, these very characteristics demand the diligent design of risk management and controls around the digital transformation effort. All the mentioned bridges need to be built. It’s not because you have digitally transformed in the now, that there won’t be new occasions, challenges and chances, brought upon us by new technologies. Compare the latter with marketing ROI. Analyze/prioritize significant evolutions. We also help them zero in on the optimal location strategies and strike the right balance between insourcing and outsourcing. Benefits of a successful digital transformation strategy. Further, digital transformation cuts across every function and every budget, and all functional teams need to be on board. Published 9 … What we often see in practice is that the mentioned challenge is not always a matter of uncertainty regarding outcomes but also a matter of uncertainty regarding the “how”: the uncertainty regarding what the outcome will look like (as we do speak about change and this something new) is then strengthened by uncertainties whether all the (right) building blocks are foreseen and/or in place to get there. Once an organization buys into a transformation strategy and understands its economic impact and trade-offs, committing resources to the transformation effort becomes easier. Achieving end-to-end information management excellence, tailored to the individual goals and challenges of organizations, their customers, their ecosystems and their goals of optimization, innovation and, increasingly, digital transformation, is critical, if not the main pillar to succeed any digital transformation strategy. It is the digitisation, the revolution of an industry looking to the personalised campaigns of the future Technology and a new way of thinking is taking standard marketing practice and revolutionising it. Here's how to let remote team members know you appreciate their hard work and commitment throughout 2020's adversity. Of course, there are many different elements to this – from balancing incremental and radical transformation objectives to ensuring your transition from the start-up phase to the scale-up phase. We’ve covered this necessity previously from the perspective of information as a bridge builder in the next stage of the information age, whereby information bridges need to exist between back end and front office, content and processes (integration), human and machine and machine to machine (the Internet of Things), raw data and actionable intelligence, etc. ]. “CEOs and boards need to communicate that the move to digital is the right strategy, outline the right outcomes, and mitigate the fear of the ‘substitutional effect’ whereby former processes or products get replaced by new or digital ones. The purpose of a digital transformation plan is to define how to compete more effectively with digital marketing. “If the technology you’re deploying is new to your business, it is always more difficult to anticipate how things will work. What benefits will it … Subscribe to get the latest thoughts, strategies, and insights from enterprising peers. 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