Maximizing Value from Digital Transformation Initiatives

Digital Transformation

Digital TransformationDigital transformation is the process of using digital technologies to create new or modify existing business processes, culture, and customer experiences to meet changing business and market requirements. It’s also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure. It is imperative for all businesses, from the small to the enterprise. digital transformation will look different for every company; it can be hard to pinpoint a definition that applies to all.

Digital transformation affects multiple business units, processes, and people, and hence, leadership alignment is of utmost importance for the success of such a program. It is about changing the fundamental business model of the company, and how it engages customers and delivers solutions. Traditional businesses argue that digital projects are a strategic imperative, a matter of survival against digital disruptors. All digital initiatives should still improve the business fundamentals like profitability, cash flow, customer churn, production capacity, etc. To maximize the value of complex digital transformation initiatives, organizations should focus on these things:

Customer experience as guiding: Transformation is about innovation and radical redesign, not automation of how you do things today. No matter if the organization is just getting started on its digital transformation journey, you should take a moment and determine if you’re on the right path. You need to have clearly defined services and end-to-end customer experiences. Your choice of platform technologies should complement what you seek in an innovative new business model that caters to your customers’ needs.

Business Model Change: Engaging diverse stakeholders: Engaging diverse stakeholders to understand the current digital maturity and define the future state helps in creating a holistic program scope. Continuous stakeholder engagement helps in tweaking organization strategy to include the changing environment, evaluating ongoing initiatives for current priorities, and aligning organization efforts towards revised goals.

Compelling Digital Future: Transformation programs represent change and changes create anxiety and uncertainty for employees, customers, and shareholders. Successful digital initiatives create a vision of a compelling future for all stakeholders. Employees will acquire marketable skills and have exciting new roles. Customers will find it easier to find the products and support they need. Shareholders will have a more predictable, efficient, and profitable business.

Evaluate: Digital transformation programs have diversified goals and quantifying all of them may not be always possible. The right measurement of KPIs is critical to justifying the investment in any transformation program. The transformation program progresses, risks, issues, and dependencies for the agreed KPIs will help the organization see the total value being delivered.

Digital Value Creation Going Forward: The introduction of new technologies does not change how businesses keep scores in their financial statements. Digital experience and efficiency allowed the emergence of new business models that can typically outperform traditional ones. Businesses that take advantage of these new efficiencies while inspiring their customers and employees to engage in the new digital way will outperform the rest.

Conclusion: A business may take on digital transformation for several reasons. But by far, the most likely reason is that they have to; it’s a survival issue. Although digital transformation will vary widely based on the organization’s specific challenges and demands and technology leaders should consider as they embark on digital transformation. Also, each organization has a different digital ambition, maturity, and risk appetite, and hence a ‘one-size-fits-all’ approach is not suitable for such digital transformation initiatives.