Digital transformation strategy: A roadmap for change

Without strategy, digital transformation sounds great, but moving the needle in an impactful way isn’t likely.?

It’s like taking a road trip without a roadmap. An ambling journey down Route 66 is perfect for summer vacation. In some cases the journey is as important as the destination, but in tech––where the competition is fierce and the stakes are extraordinarily high––having the journey plotted out is vital. And any sightseeing must be intentional.

Strategy, at its core, is:?

1. Established: A well-documented, agreed-upon vision for navigating uncertainty, building consensus, and guiding change
2. Actionable: Methods to move your vision forward, with concrete steps and milestones along the way

Businesses must be proactive and prepared for ongoing transformation instead of being reactive and applying a short-term salve.

Established digital transformation strategy allows businesses to achieve "Parity Plus"

"Parity Plus" is equal to AND greater than the processes, workflows, and systems you already have in place. "Parity Plus" is about leveraging and building on what you have in place.

Take the Netflix example. Going from snail mail to a primarily digital platform is a leap. But throughout its transformation, Netflix never did away with its core mission "to entertain the world." They just created a better system for delivering that value to their customers.

For companies seeking digital transformation, a few upfront strategic considerations can add clarity about the implications of change.

• Consider the impact: With even a small change, what will the ripple effect be on larger organizational goals? Address concerns from the outset.
• Consider the cost: How expensive is change? Will adjustments to the technology cost more than you think?
• Consider the feasibility: Do you have the foundation in place to initiate change? To sustain a new approach? Do you have systems available to gather data and insights in real-time? How will you measure progress and ROI?

Sometimes businesses aren't ready to make wholesale organizational shifts––that's okay. But in our competitive global economy, the simple truth is that a proactive digital transformation strategy is crucial because change is inevitable.?

Digital transformation strategy is your game plan, blueprint, and tactics. With an established vision and actionable approach, your team can identify a practical path forward.

Plan for agility at a scale with innovation sprints

Strategy shouldn’t be static. Adjustments and pivots should be expected.

One way we approach this challenge at Fresh is through innovation sprints :

• Bring together stakeholders and team members to create a shared vision and direction

• Assess progress at a weekly interval instead of monthly or yearly

• Gather feedback from users and stakeholders to validate thinking

• Gain insights, ideas, and direction to move forward

As part of innovation sprints, you’ll generate new ideas, prototype solutions, and test them with users. The ability to be iterative is essential.

Understand the impact on customer experience (CX)

Understanding how change (even to an internal process or workflow) will affect CX is vital, and by incorporating the principles of human-centered design into your strategy, you can:

• Focus on people and design new products, services, and human-centric workflows

• Maintain perspective on the core challenges your customers are facing and address them

• Focus on simplicity and enact change in a measured way

An effective digital transformation strategy keeps customers at top of mind. Netflix maintained their focus on entertaining the world and created a better system to enable global entertainment at scale.

Approach innovation through integration with existing systems

Analyzing your current tech stack and organizational infrastructure is vital. A few starting points:

• Audit your existing tech stack, systems, and processes against industry standards and your competitors. What new systems, integrations, and APIs exist now that didn’t when you launched, and are the benefits worth it?
• Take the time to synthesize data from everyday operations, internal and external, and establish baselines

• If you’re not already using it, understand the implications that migrating to the cloud would have for your existing systems. (For more info, check out our podcast episode on the cloud )

• Assess your company’s level of automation. How many processes are automated for your teams and customers? Does the savings from automation justify additional implementation? One key place to start, automation with AI and no-code generative AI tools .

• Be honest about your current development approach and your capacity for change management. Do you have the right team in place? If in-house isn’t an option, which consultants and vendors can support you?

These are just a handful of the things to consider depending on your industry while leveraging what’s already working well.?

Change happens at light speed––all aboard

For many businesses, the biggest danger is complacency.

• What got you to today is great

• Your history is essential to remember

• The foundation you've built can remain intact

Digital transformation doesn’t mean changing everything about your company. It means becoming faster, more efficient, more cost-effective, more innovative, retaining top talent, and staying ahead of your customers’ needs.?

With a digital transformation strategy, you can achieve parity plus. But it requires a roadmap that is:

1. Established: A well-documented, agreed-upon vision for navigating uncertainty, building consensus, and guiding change
2. Actionable: Methods to move your vision forward, with concrete steps and milestones along the way

Set the stage with strategy. Then, start planning how your organization will transform—and continue transforming––in our rapidly changing world.