Defining digital transformation in a way that everyone can relate with is not that simple. It will be different for every company.
My best effort to portray digital transformation as written in 01. The First Steps Of Change, in a way that everyone can relate to is this:
” Digital Transformation is an in-depth integration of digital technology into every component of a business with the fundamental purpose of changing the way people work, modernising operations and delivery of optimal value to customers. Such a technology adoption requires a change in team culture & a shift in thinking that challenges the status quo, experiments with new ways of working & embraces failure as opportunities. A successful business transformation results in a better equipped workforce, streamlined operations, invaluable data and increased revenue which sustains and grows the business in an ever evolving digital landscape. “
What Drives The Decision?
Early conversations around Digital Transformation should start with a problem statement, a clear opportunity or an aspirational goal. The “WHY” of your organisation’s digital transformation might be around improving customer experience, reducing friction, increasing productivity, time-and-cost saving or elevating profitability, for example.
Personally, my favourite purpose is for Digital Transformation to be driven by an aspirational statement. An aspiration revolving around becoming the absolute best to do business with, utilising enabling digital technologies that were unavailable years ago, to set new standards in delivering client value. The right tools, when used effectively, differentiates an organisation among competitors & lives up to the expectations customers have become accustomed to in this digital era.
What Does Digital Transformation Mean In Practice
Business leaders need to think about what digital transformation will mean in practice to their companies and unpack its meaning. DIGITAL is a very loaded word that means many things to many people. Due to over-and-out-of-context use the term itself has also lost meaning. The discussion should be around automating operations, about people, new business models, exploring new revenue streams, data analytics and what better decisions can be made with the availability of certain data, technologies and software.
These are all enablers and not drivers. The drivers of digital transformation is leadership and culture. You could have all those things – the customer view, the products and services, data, and really cool technologies – but if leadership and culture aren’t at the heart of it all, it fails. Understanding what digital means to your company – whether you’re a financial, agricultural, pharmaceutical, legal or retail institution – is essential.
The Constant Themes
Although digital transformation will vary widely based on organisation’s specific challenges and demands, there are a few constants and common themes among existing case studies that all business and technology leaders should consider as they embark on digital transformation, such as:
Culture and leadership
Digital technology integration
Don’t let your reluctance to change be fuelled by lack of knowledge or information. Leave it to the transformation professionals.
Let’s have a coffee over a quick video call to chat about what transformation in your organisation looks like.