Digital Transformation, Food for thought

Digital transformation frameworks are what separate successful transformation efforts from the unsuccessful. Because despite increasing talk and attention around the benefits of digital transformation, many companies don't adopt a common business-focused digital transformation framework. IT can be found to be doing things one way, while the business does things another way and organizations suffer severely as a consequence. This has been observed daily unfortunately.

Organizations are required to operate with a clear vision of where the business is going, what it needs to achieve and how it intends to get there. A Business model, operating model and transformation roadmap are vital for all companies, along with the ability to solve problems, defend against threats and exploit opportunities through the innovative integration of digital technologies. A common digital transformation framework helps them do this.

The framework is made up of six digital transformation guiding principles, which organization needs to consider.

· Transformation,

· Holistic,

· Response,

· Innovation,

· Value,

· Enterprise.

This is not related to any one technology or industry. It is a way of thinking of, and approaching transformation from a business perspective.

Serving as a holistic guide to maturing internal capabilities and mindsets, responding strategically and innovatively to market threats and opportunities, delivering new value to the market and satisfying the expectations of internal stakeholders through successful execution.

These steps help chart a clear transformation roadmap, along which business and technology leaders can collaborate to mature transformation capabilities, culture and objectives, in order that the company can thrive in the digital economy.

TRANSFORMATION

Take advantage of the opportunities and protect against threats that new digitally enabled business models present, leaders need to commit to being bold and transformational, digitising at two speeds, ahead of those that remain safely within their comfort zones and traditional slow ways of working.

HOLISTIC

Focus on producing outputs, digital business transformation requires an integrated and holistic approach.

Take a holistic and integrated perspective of their enterprise and its complexity. From digital business models, capabilities and roadmap design, through to culture, portfolio governance and transformation execution, leaders need to consider the big picture and not limit their focus to only some of the key enablers of transformation.

RESPONSE

Internally this could involve responding to the evolutionary needs of the organisation’s culture, maturing the capabilities required to achieve transformation excellence, and the establishment of new governance that facilitates innovative transformation while minimising bureaucracy.

Externally it could involve defensive and offensive responses to the changing dynamics of the market, caused by disruption, or seizing the opportunities that digital technologies and new business models can be used to take advantage of. A rapid response is vital to implement quick wins and avoid the delays caused by traditional lengthy implementations.

INNOVATION

Cloud, mobile, the Internet of Things and Robotics, etc. will bring about the most rewarding business transformation when used strategically. Only through the innovative convergence of digital technologies can companies transform through new business models and ways of working. This only achieves change, while business transformation should be the goal.

VALUE

External value represents the benefits transformation creates for its customers, while internal value represents the benefits delivered into the business as a result of transformation investment.

ENTERPRISE

Transformation must encourage, embrace and educate people from across the enterprise and build a collaborative culture of new capabilities and mindsets.

Organizations need to foster a transformation mindset among their teams, which is aligned with the strategic aims of the company. This mindset then needs to shape the company’s culture at every level, to create an environment within which innovation and digital business transformation can thrive.

ROADMAP

While every organisation presents a unique scenario, there are steps and considerations that no organisation can afford to avoid, if their transformation is to be a success.

Short, medium and long-term milestones and includes elements such as:

·        Establishing digital business transformation governance and portfolio;

·        Developing response strategies to market opportunities and threats;

·        Evolving leadership mindsets and organisational culture;

·        Designing and prioritising digital business cases;

·        Prioritising and partitioning initiatives;

·        Executing transformation and realising internal and external value;