How organisations can navigate digital transformation successfully
The business world is swirling with change, driven by the force of digital transformation. Companies are navigating a landscape shaped by tech advancements, customer expectations, and market shifts.
Every business, no matter its size or industry, is attempting to use technology to revamp operations, improve customer experiences, and set new industry standards.
In this article, our Director of Design and Innovation, Dave Brown MBA GAICD sheds some light on our observations of organisations that have undergone digital transformation. He also discusses lessons that organisations considering this path can learn from those who have gone through it.
Digitisation and digital transformation, while related, have varying implications for business efficiency, cost-effectiveness, staff and customer experience.
In our minds, digitisation is the practice of injecting technology into existing processes, like converting paper records to digital files or incorporating digital tools into traditionally manual tasks. While it modernises certain aspects of operations, it doesn't inherently reevaluate or optimise the underlying processes.
Digital transformation goes much further, and emphasises technology is just one part of the evolution. Digital transformation encompasses a more rounded - people, process, and technology - review of business operations and how value is delivered. In our experience, the technology component of digital transformation could include changes to the application stack, changes to the types of devices used by staff or customers, and changes to underlying services such as digital identity, connectivity, and infrastructure.
When organisations choose to go digital, they might end up with less efficient operations than before. They might also not achieve the expected cost reductions they thought would come from this investment. Simply overlaying technology onto existing processes without a thorough reassessment can introduce inefficiencies and complexities, negating the potential benefits of the implemented technology.
In contrast, we have noted that organisations who truly and wholly embrace digital transformation, with its strategic and comprehensive approach, realise greater operational efficiency gains and more thoroughly improve their overall staff and customer experience. Digital transformation means adopting and integrating digital tech across a business and can change everything from internal processes to how businesses compete and create value.
When conducting a consulting engagement focused on IT strategic planning, which often encompasses digital transformation, we make a point of engaging with a wide range of stakeholders across the organisation. This inclusive approach ensures that the transformation strategy is comprehensive, practical, and aligned with the needs and insights of the entire business.
Engaging Diverse Stakeholders
In addition to involving management, it is equally important to include 'boots on the ground' employees in the consultation process. These individuals often have firsthand experience with the daily operational challenges and can provide valuable insights into the practicalities and potential impacts of proposed changes. Their involvement ensures that the digital transformation strategy is grounded in the reality of the business's day-to-day operations and is more likely to be embraced by the wider team.
Aligning Technology with Strategic Goals
As technologists, there is a responsibility to recommend technology solutions not just for their innovative qualities but for their alignment with the organisation's strategic goals. Each technology should have a clear purpose and directly contribute to achieving specific business objectives. This approach ensures that the digital transformation is relevant, targeted, and offers real value to the business, avoiding the pitfalls of adopting technology for its own sake.
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Comparative Impact
When compared to digitisation, digital transformation is more likely to produce significant advancements. Digitisation may result in only incremental improvements or step changes, whereas a well-planned and executed digital transformation can revolutionise aspects of the business, leading to far greater gains in efficiency and customer satisfaction.
When talking with clients about their digital transformation journey we recognise the need for a comprehensive approach that requires more than just technical expertise. We know how crucial it is to define requirements, choose the right apps, manage changes, and ensure information security. For these specialised skills, we turn to our network of alliance partners. They bring their expertise to the table, helping us create a strong and effective transformation strategy.
This enables us to focus on what we are best at:
Consulting and Decision-Making Support:
Our Specialised Technical Expertise:
Delivery of Platform:
As businesses embark on their journey of digital transformation, it's essential for them to critically evaluate their strategy: Are they genuinely pursuing a transformative path, or merely digitising existing processes? This introspection is key to ensuring that the digital strategy is not just an implementation of technology, but a comprehensive shift that thoroughly addresses people, processes, and technology.
Once a business clearly defines its digital transformation goals, aligning with strategic objectives and effectively engaging all relevant stakeholders, it sets the stage for a successful transformation. This strategic clarity enables the organisation to put all the pieces in place, leveraging both in-house expertise and alliance partners, to ensure maximum benefit from the digital transformation endeavour, leading to significant enhancements in operational efficiency and customer engagement.