How Agile Transformation is distinct from Digital Transformation

Digital transformation and agile transformation are related concepts, but they serve distinct meanings and purposes.

Toys 'R' Us, which has been in business for 70 years, closed its doors permanently in 2018 in USA. Children were starting to play internet games, and the buying experience had shifted online. Toys 'R' Us, lacking the agility to transition to the digital world, formed an alliance with a company called Amazon, resulting in the toy store's demise.

Legacy organizations require technical capabilities to make the leap, funding to purchase new technology, qualified servant leadership to reform themselves, a staff that combines skills and technological expertise, and the know-how to overcome reluctance to change. Most importantly, they must implement the appropriate framework to facilitate this shift.

In such a scenario, does the digital transformation project address the company's business objectives (rather than IT objectives) and priorities? The problem is that most of them are completely detached from business objectives.

Digital transformation:

Definition: Digital transformation (DT) is the process by which firms adapt their operations and business models to meet the technological advances of today's digital environment.

Objective: DT intends to use digital opportunities and tools to improve all aspects of the business, including marketing, financial management, manufacturing, and innovation.

Technological Change: DT necessitates considerable technological advancements.

Holistic Approach: This entails not only deploying new technologies but also fundamentally changing the way a firm operates.

Benefits: Increased productivity, higher analytical capability, geographic expansion without physical presence, and a significant boost in quality and speed.

Digital transformation includes things like cloud-based solutions, data analytics, and process automation.

The success of Toys "R" Us' digital transformation strategy became even more important when the Covid-19 outbreak struck, as the firm had to react rapidly to accommodate loyal consumers who were stuck at home owing to government social-distancing orders. Toys "R" Us partnered with Salesforce to implement a cloud-based solution and develop a centralized system for all of its Asian markets.

Agile Transformation:

Definition: Agile transformation aims to improve procedures and empower individuals to collaborate more effectively.

It strives to foster an innovative and agile culture by embracing digital technology to support corporate growth and fulfill changing client expectations.

Key Aspects:

Agile is a project management tool that is commonly employed. It has many methodologies and framework such as Scrum, Kanban, Lean etc.

Iterative and incremental: Agile teams operate in short iterations with specific goals, allowing for rapid validation and modification.

Agile technique can be applied to a variety of corporate functions other than software development (for example, marketing, finance, and human resources).

Advantages: Increased flexibility, improved responsiveness to unexpected developments.

Life at Amazon, like all other examples of genuine Agile management, is defined by an ever-present customer-obsessed ethos. Customer obsession isn't limited to top management, sales, or marketing. Everyone is supposed to be fascinated with understanding and improving the impact of what they do for their customers. CEO Jeff Bezos stated this in his 1997 letter to shareholders, and Amazon has ruthlessly held to it ever since.

Headquartered in Hong Kong, the company operates over 470 stores with more than 10,000 team members across Asia, including Brunei, Mainland China, Hong Kong, Japan, Malaysia, Singapore, Taiwan and Thailand – and licenses more than 85 stores in the Philippines and Macau. Toys"R"Us and Babies"R"Us offer a carefully selected range of quality local and international brands, innovative and exclusive products, engaging loyalty programs and an interactive in-store experience that fuel a child's imagination and inspire learning at every stage of a child's development. Now that's customer centric.

Agile is a test-and-learn process in which the system is broken into sprints, or stages, that last one to three weeks and each have their own goal. The entire team shares responsibility for the project and decides together when to move on to the next phase.

Agile digital transformation simply means that legacy firms use the Agile approach to successfully improve the capacities for delivering innovation.

The most difficult aspects of digital transformation include coping with complicated software and technology, learning new tools and processes, managing security concerns, dealing with budget constraints, overcoming resistance to change, and adapting technology to changing client needs. Most importantly, there is a requirement for a basic yet effective change management plan.

Most importantly, the agile approach is the ideal risk-free solution since it divides digital transformation into short, manageable phases in which the team learns from their outcomes before moving on. Less money is invested since mistakes are reduced, and initiatives typically give value to users.

Customers see your brand as a whole, not individual channels. However, systems and processes within these channels are highly siloéd, which is why many retailers struggle to provide a seamless cross-channel experience.

Vincent built up himself in a number of industries, including engineering and fintech, in contrast to many of his peers who only seem to carve out a niche in one. He is a Classified Framework Agnostic. He has experience in coaching some of the world's most well-known businesses.