How to make sure that your digital transformation is one of the 30% successful projects?
Ahmed Elsawy
Talks about #IoT #Automation #Digital_Transformation #Immerssive_Technologies #LowCodeNoCode
Change is the only consistent, not just in business, but in all situations, whether personal or professional. I have learned this through my experiences helping different companies during important periods of change. Now, as we are entering the digital age, it's more important than ever for businesses to adapt to new ways of working. I have been lucky to lead some of these changes. For example, I helped Franke move from being a local company to being managed by a larger Swiss company. At Amer Group, I played a key role as the company transitioned from being privately owned to going public through an Initial Public Offering (IPO). At MCS Holding, we shifted our focus from home automation to Enterprise Automation and Control/Crisis Rooms, changing the company’s main area of work to meet the demands of the digital age.
All these changes were different, but they all needed good change management. Change management is a very important skill for modern leaders, especially when moving towards digital transformation. Digital transformation can be complex, but at its core, it's about planning and managing changes in technology, processes, and how people work.
In the next sections, we will go through a step-by-step guide to understand digital transformation better. With examples from my own experiences, I hope to highlight key parts of this journey, showing the importance of good change management and a strong, visionary team. In each change, I was part of, a team of forward-thinking people was crucial for success. As we go through this guide, the lessons learned will help those who are leading their companies into the digital future.
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What are the pillars of a successful digital transformation project?
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1.?????? Mindset
The mindset of a digital transformation project owner is crucial as it significantly impacts the direction, execution, and eventual success of the transformation initiative, as mentioned in the title only 30% of digital transformation projects achieve the full objectives of the initiative, this being said, the ability to visualize the Future state, as well as identifying the current state to be able to identify a clear gap which will determine on the action plan for the whole organization.
It’s important to make people involved and aware so they can collaborate and put their input from their day-to-day experiences within the organization. However, from my experience, I understand that some people will act upon the fear of change which must be contained by assuring them of the benefits and the project's implications on their tasks. ??
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2.?????? Set Clear Targets
Setting goals for a digital transformation project is important and should cover different areas of the business. First, for Internal Operations, goals can be to make work processes simpler and faster. For example, using tools that help automate repetitive tasks. Second, to improve Customer Experience, goals can be to respond to customers quicker and make interactions with them more personalized. For example, using a website or app to give customers the information they need. Lastly, to create New Revenue Sources, goals can be to introduce new digital products or services that can make more money for the business. For example, opening an online store. By having clear goals in these three areas, businesses can better plan and carry out their digital transformation project, making sure it benefits the company in different ways.
Summarizing these into points will be like this.
o?? Make work processes simpler and faster.
o?? Use tools to automate repetitive tasks.
o?? Respond to customers quickly.
o?? Make interactions with customers more personalized.
o?? Use a digital means to provide information to customers.
o?? Introduce new digital products or services.
o?? Open an online store to generate more sales and revenue.
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3.?????? Awareness and Planning
Starting a digital transformation project requires a good understanding of how the company operates now and its core values. To do this, a detailed check or assessment is needed. This check should look at the current processes, technologies, and the way things are done in the company. It's important to understand what works well and what doesn’t. This assessment should also understand the company’s culture, which is like its personality or DNA. Knowing the company's DNA helps to make sure that the digital changes will fit well with the company’s values and ways of working.
After understanding the current situation, it's important to identify the gap between where the company is now and where it wants to be after the digital transformation. This gap shows what needs to change. With this information, a plan or roadmap for the digital transformation project can be created. This roadmap should have clear steps, targets, and timelines to guide the project. It should also have ways to measure success to know if the project is moving in the right direction. This planning helps in organizing the project well, making sure everyone knows what to do, and ensuring the company reaches its digital transformation goals.
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4.?????? Data aggregation, cleansing, and manipulation
Starting a digital transformation project often involves working with a lot of data. It's crucial to gather or aggregate all the necessary data from different sources in the company. Once the data is collected, it needs to be cleaned. Cleaning data means fixing or removing any errors or inaccuracies to ensure it's of high quality. The saying "clean in, clean out" is often used to explain that only when clean, accurate data is used, will the results of a clean and accurate output. After cleaning, the data may need to be changed or manipulated to fit the needs of the project. This could include organizing the data in a certain way or breaking it down into smaller parts to better understand it. These steps ensure that the data is ready and useful for the digital transformation project, helping the company make informed decisions and achieve its goals.
Data management is a vast topic, and we will dive into it in detail in a separate article.
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5.?????? Technology selection
Technology plays a big role in digital transformation projects. It helps businesses change the way they work and deliver better services to their customers. However, the choice of technology can depend on the size and nature of the organization.
For larger organizations or sensitive sectors like cities or government bodies, using cloud technology might not always be the best choice due to security or privacy concerns. In such cases, building their data centers might be a more suitable option. This way, they can have more control over their data and its security.
On the other hand, for smaller organizations, cloud technology can be a great choice. It can help reduce costs and provide needed technological resources quickly and efficiently. The cloud can also make it easier for small organizations to manage and analyze their data, which is key for making good business decisions.
Another important technology in digital transformation is the Internet of Things (IoT). IoT platforms can help businesses collect data from many different sources, like sensors on machines or smart devices. This data can provide valuable insights that help businesses improve their operations, save costs, and offer better services to their customers.
Artificial Intelligence (AI) is also a crucial technology for digital transformation. AI can help businesses automate routine tasks, analyze large amounts of data quickly, and improve customer interactions. For example, AI chatbots can handle common customer questions, freeing up human staff to handle more complex issues.
The choice of technology is a crucial step in a digital transformation project. Organizations need to consider their size, nature, and specific needs when choosing the right technologies for their digital transformation journey. This way, they can make sure they are investing in technologies that will help them achieve their goals and improve their operations.
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6.?????? Defending your infrastructure
Cybersecurity is a critical component in the journey of digital transformation. As organizations adopt new technologies and move their operations online, they become more exposed to cyber threats and attacks. Protecting sensitive data and ensuring the privacy and security of both customer and organizational information is paramount. Cybersecurity measures need to be integrated from the onset of digital transformation projects, not as an afterthought. This encompasses adopting robust security protocols, employing encryption technologies, and ensuring compliance with regulatory and international security standards. Moreover, as digital landscapes evolve, so does the sophistication of cyber threats. Thus, a proactive approach to cybersecurity, which includes regular updates and monitoring, is vital to safeguard an organization's digital assets and to build trust with customers and stakeholders. The essence of cybersecurity in digital transformation is not just about preventing unauthorized access but fostering a secure environment in which digital operations can thrive without compromising integrity and confidentiality.
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7.?????? Governance structuring and risk management
In a digital transformation project, having two separate teams is very important. One is the governance team, and the other is the implementation team. The governance team oversees the project, makes big decisions, and ensures the project follows the right standards. The implementation team carries out the plans and puts the new technology in place.
These two teams must be different. This way, the governance team can keep a clear view of how the project is going and make unbiased decisions.
Regular reports and discussions between these two teams are crucial. This helps everyone know the progress, spot any problems early, and keep the project on track. The governance team can provide feedback and help the implementation team when needed, ensuring the project moves forward smoothly toward its goals.
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A good plan shows who makes decisions at different stages of the project. This helps avoid confusion and makes sure decisions are made by the right people.
All projects have risks like data loss or going over budget. Managing risks means identifying these problems early and finding ways to prevent or deal with them. This keeps the project on the right track.
There are laws and standards that the project must follow. A good plan ensures the project meets these requirements to avoid any legal problems.
Resources like time, money, and people are important for the project. A good plan helps manage these resources well to ensure the project's success.
Good communication is important in any project. A good plan helps to make sure everyone involved knows what’s happening and what needs to be done.
Checking the progress of the project is important. A good plan provides ways to check if the project is on track and if any changes are needed to meet the goals.
Being open about decisions and progress builds trust. A good plan helps make the project's progress clear to everyone involved.
Everyone should know their roles and responsibilities in the project. A good plan defines these roles and makes sure people do their tasks.
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Now let us explore the new trends in digital transformation.
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1.?????? Embedding AI in enterprise systems
Embedding Artificial Intelligence (AI) into enterprise systems is stepping into a realm of endless possibilities. One of the AI marvels, the Large Language Model (LLM), exemplifies the fusion of AI with enterprise functionalities. For employees, LLM can be a reservoir of information, swiftly answering queries and assisting in decision-making with data-driven insights. Customers too can benefit immensely as LLM can power intuitive chatbots providing instant support, product recommendations, and personalized interactions. By integrating AI, particularly tools like LLM, enterprises can significantly enhance operational efficiency and customer engagement, marking a substantial stride in their digital transformation journey.
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2.?????? Low-code/no-code development
Low-code and No-code development are ways to create software applications easily without needing deep programming knowledge. In enterprises, these methods are becoming popular because they save time and allow more people to contribute to app development. With Low-code, you only need to do a little programming, and with No-code, you don’t need to program at all. Instead, you use simple tools and drag-and-drop features to build apps. This way, employees can create or adjust applications to meet their needs quickly without waiting for a specialist programmer. It makes it easier for companies to innovate and solve problems, speeding up the process of digital transformation.
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3.?????? Digital twining
Digital Twin technology allows us to create a digital copy of physical things like machines, buildings, or even whole factories. In my view, the big goal is to turn physical things into digital versions. This way, we can see and manage all assets, data, and workforce in real-time on a computer.
By using Digital Twin, companies can see how their operations are doing at any moment. This helps in understanding what's working well and what's not, making it easier to make decisions and fix problems quickly.
We're only touching the surface of what Digital Twin technology can do. There's a lot more to explore and understand about how it can help businesses. We will create a specific article to discuss more about this exciting subject soon.
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4.?????? Hyper-automation
Hyper-automation is like giving a smart helper to a business. It uses Artificial Intelligence (AI) and Machine Learning (ML) to learn how a company works and helps in doing tasks automatically. AI and ML are smart because they can learn from the data and the way people work in the company. Over time, they understand the company’s operations and find ways to do repetitive tasks quickly and correctly without needing a person to do them. This way, hyper-automation can take over routine jobs, making things faster and letting people focus on more important tasks. It's like having a smart friend who learns about your work and helps you do it in a better and faster way.
It is a very interesting trend and would result in full automation for some specific organizations in the near future.
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Learning Together: Every Sunday, A New Chapter
There is a lot more to talk about digital transformation. I see this as a journey that we are taking together. Every Sunday, I will write new articles to look at different parts of this interesting topic. Digital transformation keeps changing, and we can learn more about it as we go along.
I sometimes joke about wanting a way to make my articles write themselves every Sunday, but the truth is, the human touch is important. My articles come from my real experiences and my heart, sharing what I know with the world. And just as I share my knowledge, I also love learning from all of you. I look forward to reading your thoughts in the comments. This way, we keep learning from each other, making our Sunday discussions something to look forward to. See you next Sunday with more to share and learn together!