The Secrets to Decoding Digital Transformation
Digital Transformation Is Here!
Just when you thought they couldn’t come up with a new buzz word, now there is Digital Transformation! For those who want a deep dive, check out the new book, Leading Digital. For those interested in jumping to what needs to be done … read on.
Digitization is here and the pace of change just got notched up … again. Digital technologies are (not will be) transforming how businesses operate, redefining what they do, and enabling delivery of innovative and differentiated customer and employee experiences. Digital possibilities are transforming the business models that organizations were built on, requiring leaders to think and act differently and to mobilize people to do the same. Digital transformation is not an option. It is a reality that businesses in every industry must grapple with … now.
Companies who master the digital space are 26% more profitable than their competition.
There is a clear case for change, but it will be difficult.
- 95% of leaders expect their jobs to change due to digitization and struggle with what is next
- All industries will be transformed (“Uber-ized” and “Airbnb-ed”) by emerging digital possibilities
- 88% of companies “do not have the right technology in place to execute a digital strategy
- With the pace of rapid and disruptive change, thinking of IT as overhead instead of a core business driver is deadly
- IT Dominance – there continues to be a reliance on IT to lead all things technology, including the digitization transformation of your business. Very few technology projects are done on time, meet budget, or deliver the promised business capabilities. Imagine what your customers would say if you were consistently late, charged more than agreed to, and the product under performed? Trusting IT alone to deliver in an increasingly complex digital space is asking for more disappointment. Success requires your business leaders to own and drive business and organizational change (of course IT is part of the team!).
- Is IT considered overhead or is it a key business driver?
- Are you ahead of or falling behind the digital curve? Do you even know?
- Is leadership overwhelmed by what to do in the digital space and over relying on IT?
- Business Implications – implementing digital solutions and platforms can have a profound impact on the business model of your organization. How you account for costs and measure revenue and changes in the role and overall customer experience will affect the foundation of your business model. For digital transformation to be successful (and sustained) the implications need to be understood and addressed.
- Are you clear on how your business model needs to shift?
- Do your competitors have a digital edge? What does it look like? Is it working?
- Has your customer experience been transformed by artificial intelligence and new technology?
- Managing Transitions – how you organize, manage, and run your organization will change. Everything from how you are structured, the skills and talent needed in your people, how you measure performance, business metrics, and even the employee experience will shift. Helping employees manage the transition is vital.
- Do seasoned employees struggle to leverage technology?
- Are you prepared for radical changes in skill set and experience needs to manage and run your new digitized organization?
- Have you created an employee centric digital experience that attracts, optimizes and retains great talent?
How To Move Forward
We have learned that the most effective solution is to imbed the digital transformation discussion at the leadership team level. It is important to include all stakeholders from business leadership and create alignment around which investments are needed to drive strategic objectives, which create market differentiation and then agree on a timeline to which everyone will be held accountable.
Successful digital transformation begins with building and aligning around a vision and strategy for digital transformation. This is the first (and often most daunting) step- aligning around your DIGITAL FUTURE STATE. Creating leadership and organizational alignment around how digital transformation will impact your customer experience, employee experience, and business operations establishes a foundation and guidelines for how priority trade-offs and investment decisions will be made. With a clear future state vision articulated, the organization must then understand and assess the business and IT CAPABILITIES NEEDED TO DELIVER. This allows you to prioritize investments based on their impact on strategy and how you need to CLOSE GAPS. This shared agenda replaces persona agendas and eliminates investment gambles that don’t drive strategy.
Execute On Shared Agenda
To execute a digital transformation, you will need adaptive STRUCTURES & THE RIGHT TALENT to implement solutions and transform the organization. Mobilizing employees to understand the changes and their role in the future state is critical to establishing momentum and mitigating fear, resistance, and uncertainty. ROADMAP & METRICS clearly define a timeline and plan for investments, resources, and projects required, and are critical to enable change and sustain transformation. Finally, EQUIPPING LEADERS TO EXECUTE ensures that all managers of people have the skills to mobilize employees to solve adaptive challenges required today and the future.
At LeaderShift Insights™ we work with your leadership teams to define, align, and implement a more effective approach to digital transformation while driving profitable organic and inorganic growth. We have created and implemented growth agendas, gained better strategic synergies, and enabled leaders to achieve their strategic objectives. Over the past 10 years, we have worked with organizations such as the Mayo Clinic, BCBS Illinois, Johnson & Johnson, Home Depot, J.M Huber, Ingredion, and many others to achieve their goals and beyond. Contact us. It’s what we do!