PoV: The 7P6i Framework for Digital Transformation and Change Management

Digital Transformation (DT) has become a vital process for organizations to stay competitive in an increasingly digital world. However, transforming an organization’s processes, technology, and culture is not straightforward. It requires a comprehensive and structured approach to manage changes effectively. This is where my 7P6i Framework comes into play—a holistic approach to Digital Transformation and Change Management (DTCM). I have created this framework based on my experiences in a number of large digital transformations that I was part of or that I led such transformations. I was originally trained in a few such change management frameworks like PROSCI, ICT, etc. However, I always thought since the projects that I have always been involved were technology driven digital transformations projects, I always thought of combining Digital Transformations and Change Management and wanted to come up with a framework. As such, I created this framework when I became the Managing Director of the Dhaka Stock Exchange, though it was known as 5Ps of Digital Transformation (at that time), which I also used during my tenure as the MD at DSE. I eventually added the Change Management bit on top of it and created this 7P6i of Digital Transformation and Change Management or DTCM.

While I am still working on it, but the following are the brief Point of Views of my 7P6i of DTCM.

Understanding Digital Transformation

To understand the essence of the 7P6i Framework, it is essential to differentiate between three core concepts: Digitization, Digitalization, and Digital Transformation.

1. Digitization: Refers to the conversion of physical or analog data into digital formats. This step is foundational, as it involves making data available in a format that can be processed electronically.
2. Digitalization: Involves leveraging digitized data to enhance and automate business processes. It is about embedding digital technologies into business operations, which enables organizations to increase efficiency and effectiveness.
3. Digital Transformation: This is the highest stage, where organizations integrate digital technologies into all aspects of the business, fundamentally changing how they operate and deliver value to customers. For a successful digital transformation, digitized data and digitalized processes must be in place.

?The 7P6i Framework Explained

The 7P6i Framework is a structured methodology that focuses on seven key pillars (7Ps) of digital transformation and six stages (6is) of change management to guide organizations through their digital transformation journey.

The 7 Ps of Digital Transformation:

1. People: The most critical component of any transformation. Successful digital transformations are people-centric, focusing on changing mindsets, developing digital skills, and fostering a culture of innovation and agility. In a way, I also sometime refer to this framework as People à 6Pi of DTCM, as all the other 6Ps and the 6is are about People, for the People and by the People. People is the most important “P” of any organization.
2. Products: Transformation should address how products and services are developed, delivered, and consumed. Digitalization can enhance product quality, customization, and time-to-market, leading to better customer satisfaction.
3. Platforms: Modern platforms enable seamless integration, data sharing, and collaboration across business units. They provide the infrastructure needed to support digital processes and innovation.
4. Processes: Streamlining and automating business processes are essential for operational efficiency. Processes should be re-engineered to leverage digital capabilities, ensuring that they are optimized for speed, accuracy, and scalability.
5. Policies: Policies provide the governance framework for digital transformation. They ensure compliance, security, and ethical considerations are maintained during the transformation.
6. Partners: This newly added pillar emphasizes the importance of involving stakeholders throughout the transformation process. Partners, including suppliers, customers, and regulatory bodies, play a crucial role in ensuring a cohesive transformation effort.
7. Planet: The latest addition to the framework, Planet, highlights the importance of sustainability. Organizations must ensure that their digital transformation initiatives are environmentally responsible and contribute to sustainable development goals (SDGs).

The 6is of Change Management

1. Interest: The first stage involves generating interest and enthusiasm among employees and stakeholders about the transformation. This includes communicating the vision and benefits of the transformation.
2. Internalize: After generating interest, it is crucial to help individuals internalize the change. This involves continuous communication and the creation of new roles and responsibilities aligned with the transformation objectives.
3. ICT Assessment (Impact, Communicate, Train): This step is about assessing the impact of changes, communicating these changes to the people and the partners (stakeholders), and providing necessary training. It ensures that everyone is prepared and capable of adapting to the new digital environment. Impact: Evaluate the impact of the transformation on products, platforms, processes, policies, and partners. Assess how these changes will affect people within the organization. Communicate: Develop a clear communication plan to inform everyone about the changes. Effective communication minimizes resistance and fosters a sense of involvement. Train: Provide targeted training to ensure all employees have the skills and knowledge to thrive in the transformed environment.
4. Implement: This is where the planned changes are put into action. It involves going live with new systems, processes, and structures, ensuring a smooth transition.
5. Iterate-Reiterate: Change is an ongoing process. After implementation, it is essential to review the outcomes, iterate, and make necessary adjustments. This cyclical process of continuous improvement ensures that the transformation remains aligned with business goals and responds effectively to emerging challenges.
6. Integrate: The final stage is about integrating the transformation into the organization’s culture and operations, making it a seamless part of the business as usual (BAU). This ensures long-term sustainability and ongoing innovation.

Why the 7P6i Framework?

The 7P6i Framework stands out because of its holistic approach to digital transformation. It recognizes that transformation is not just about technology but involves people, processes, and an organization’s ecosystem. By focusing on sustainability and stakeholder engagement, the framework ensures that transformations are not only successful but also responsible and inclusive.

Implementing the 7P6i Framework

To implement the 7P6i Framework effectively, organizations should follow these steps:

1. Assess Readiness: Conduct a thorough assessment to understand the organization’s current digital maturity and readiness for transformation.
2. Define Vision and Strategy: Clearly define the transformation vision and strategy, aligning it with business objectives and stakeholder expectations.
3. Engage Stakeholders: Engage all stakeholders, including employees, partners, and customers, in the transformation process.
4. Develop a Roadmap: Create a detailed roadmap outlining the steps for each of the 7 Ps and 6 Is, ensuring a structured approach to implementation.
5. Execute and Monitor: Implement the transformation in phases, closely monitoring progress and adjusting as needed.
6. Evaluate and Iterate: Continuously evaluate the impact of the transformation and iterate based on feedback and changing business needs.

Conclusion

The 7P6i Framework provides a comprehensive approach to managing digital transformation and change. By focusing on people, products, platforms, processes, policies, partners, and the planet, along with a structured change management process, it ensures that transformations are effective, sustainable, and aligned with business objectives. As organizations navigate the complexities of digital transformation, the 7P6i Framework serves as a robust guide to achieving long-term success.

This comprehensive perspective on the 7P6i Framework not only offers a structured path to digital transformation but also emphasizes the importance of balancing technological innovation with human and environmental considerations, making it a valuable tool for any organization embarking on its digital journey.