The Myth of Digital Transformation

In my line of work, I often get asked about the "how & how".  As in, how do you approach a digital transformation journey, and how do you measure success?  Before answering these questions, one critical decision needs to be considered first. What kind of digital transformation is best suited for YOUR organisation? Because not all digital transformations are created equal.

At the highest level, I think there are 3 types of digitalisation approaches:

1. Simple Digitisation - this is about rationalising existing processes without re-engineering, focusing primarily on converting paper to digital.  This approach is suited for companies looking for gradual adoption of digital technologies, without disrupting current business models. Many may think this is not enough of a "transformation", but in reality this is where many companies can realistically do.  
2. Digital Transformation - this is about creating new digital workflows based on industry best practices, and upscaling (or creating new) business models.  The focus here is ultimately about reshaping customer experience with a digital mindset. This approach is suited for companies looking to take a BIG step forward but not leaving their core competencies entirely behind.  
3. Digital Disruption - this is about uprooting existing processes and cutting out excess participants within the ecosystem as they serve minimal value within the new digital business. This is a drastic approach as new corporate competencies need to be built and employees need to be enabled in order for success to take hold. This is a GIANT step forward that involves considerable risks but the potential reward is tremendous. Not for the faint hearted especially those used to traditional one or two year returns expectations.

Ultimately, this is all about balancing risks and rewards in today's fast moving but increasingly unpredictable world. While going "Digital" is now a foregone conclusion in corporate strategies, with uncertainties scattered across all corners of the globe and across all industry sectors, it is best to take a step back and decide, which approach is best suited for my company based on where we are and where we want to go? Don't go down one particular path because someone else is. Go there only because it is best suited for YOU.