A Train to DX Destination

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THE INDUSTRY FOUR® | theindustryfour.org

Industry 4.0 Digital Transformation

7 Steps of DX Strategy to reach the DX Destination

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7 Steps of Digital Transformation Strategy

■ The Industry Four Digital Transformation Strategy is one of the simplified approaches to initiate a digital transformation program in the current day's complex enterprises environment.

■ This strategy is focused on high-level steps, which are further elaborated in "ti4 Map of Digital Transformation" in the form of 10 Stages and 40 Steps process workflow.

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Digital Transformation Strategy

In a step-by-step, 7 steps process.

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𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆

■ ti4 Digital Transformation Strategy is one of the simplified approaches to initiate a digital transformation program in the current day's complex enterprises environment. 

■ This strategy is focused on high-level steps which are further elaborated in "ti4 Map of Digital Transformation" in the form of 10 Stage and 40 Steps process workflow.

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𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝗣𝗿𝗼𝗴𝗿𝗲𝘀𝘀𝗶𝗼𝗻 𝗣𝗮𝘁𝗵

■ To implement a Digital Transformation program, it is very essential to 1st understand the concept of the Digital Transformation Progression Path.

■ Here are the 3 steps of the Digital Transformation Progression Path:-

■ Conversion | Digitization - Analog to Digital 

■ Evolution | Digitalization - Implement the Digital 

■ Revolution | Digital Transformation - Transform with Digital

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𝗗𝗫 𝗶𝗻 𝗮 𝗦𝘁𝗲𝗽 𝗯𝘆 𝗦𝘁𝗲𝗽 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵

■ Again we can understand Digital Transformation in a step-by-step approach.

■ Here are the three steps of a Digital Transformation Journey. 

■ From Digitization - Start of Journey

■ Through Digitalization - Part of Journey

■ To Digital Transformation - Start of New Journey

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𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝘁𝗼 𝗶𝗻𝗶𝘁𝗶𝗮𝘁𝗲 𝗮 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻

■ While initiating any Digital Transformation Program, we have to face the following two questions.

■ How to step in? - Approach and Options are available to initiate a digital transformation program.

■ This part is highly focused on the strategic plans.

■ How to drive? - Mechanism to successfully drive and execute a digital transformation program.

■ This part is highly focused on strategy execution.

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𝗦𝗲𝘃𝗲𝗻 𝗦𝘁𝗲𝗽𝘀 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝗳𝗼𝗿 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝗣𝗿𝗼𝗴𝗿𝗮𝗺.

■ Here we have defined a simple, systematic, and straightforward seven-step strategy to initiate and execute a digital transformation program.

■ Again we have to remember that, these seven steps are the high-level representation of digital transformation strategy.

■ To explore the more elaborated strategy, explore the "ti4 Map of Digital Transformation".

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Step - 1 | 𝗔𝗹𝗶𝗴𝗻

𝗔𝗹𝗶𝗴𝗻 𝗼𝗻 𝘁𝗵𝗲 𝘄𝗮𝘆

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■ Define the business value of digital transformation.

■ This is the 1st step of digital transformation strategy which identifies and defines the vision, mission, and motive behind a digital transformation program.

■ This is the step, where we take initiative to build a business use case and get approval from the identified program sponsor, based on the business value justification of our digital transformation program.

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Step - 2 | 𝗣𝗿𝗲𝗽𝗮𝗿𝗲

𝗣𝗿𝗲𝗽𝗮𝗿𝗲 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗰𝘂𝗹𝘁𝘂𝗿𝗲 𝗰𝗵𝗮𝗻𝗴𝗲

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■ Put humans at the heart of digital transformation.

■ As digital transformation is just not limited to technology and machines.

■ Digital transformation is about a holistic transformation covering all the aspects of an enterprise, including, People, Processes, Tool, and Culture.

■ As people are at the center of this change, cultural aspects get automatically integrated with any digital transformation program.

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Step - 3 | 𝗦𝘁𝗮𝗿𝘁

𝗦𝘁𝗮𝗿𝘁 𝘀𝗺𝗮𝗹𝗹 𝗯𝘂𝘁 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰

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■ Choose tech solutions that scale with your long-term strategy.

■ Digital Transformation is a broader concept that includes up-gradation of existing and implementation of new technology platforms.

■ While deciding for any up-gradation and choosing for new implementation we have to visualize future technology roadmap evaluation, aligned with our business growth projections and long-term strategy. 

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Step - 4 | 𝗠𝗮𝗽

𝗠𝗮𝗽 𝗼𝘂𝘁 𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆

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■ Start with an impactful and measurable initiative.

■ Calculate ROI - Return on Investment based on the defined business use case, value propositions, and expected outcomes.

■ Define performance matrices aligned with critical success factors of digital transformation program and measure it at regular time intervals and project/program milestones by establishing a firm governance structure.

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Step - 5 | 𝗦𝗲𝗲𝗸

𝗦𝗲𝗲𝗸 𝗼𝘂𝘁 𝗽𝗮𝗿𝘁𝗻𝗲𝗿𝘀 𝗮𝗻𝗱 𝗲𝘅𝗽𝗲𝗿𝘁𝗶𝘀𝗲

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■ Do more and do it faster with partners that share in your vision.

■ Digital transformation programs can not be executed in silo zones.

■ We have to establish a strong ecosystem of partners who constitutes expertise in diversified areas of business and technology.

■ It requires a new operations excellence model with a shared vision and mission along with precisely defined responsibilities and accountabilities of partners.  

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Step - 6 | 𝗚𝗮𝘁𝗵𝗲𝗿

𝗚𝗮𝘁𝗵𝗲𝗿 𝗳𝗲𝗲𝗱𝗯𝗮𝗰𝗸 𝗮𝗻𝗱 𝗿𝗲𝗳𝗶𝗻𝗲

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■ Be flexible to learn from experience and adjust accordingly.

■ Considering the volatile nature of the business environment and fast-changing technology landscape, we have to be flexible by learning from our experience.

■ We gain this experience from our established governance structure, by involving all the important and impacting program stakeholders and gathering and utilizing their feedback to take any decision and execute corrective action accordingly.

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Step - 7 | 𝗦𝗰𝗮𝗹𝗲

𝗦𝗰𝗮𝗹𝗲 𝗮𝗻𝗱 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺

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■ New ways to improve will emerge - embrace them!

■ Continuous improvement is the essential element of any digital transformation program, where we have to take decisions, based on our performance metrics and feedback from diversified stakeholders and sources.

■ As highlighted earlier that the completion of any digital transformation program, invites the initiation of another digital transformation program based on changing business environment.

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Let's do a quick review of the Digital Transformation Strategy.

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KULDEEP KAUSHIK

THE INDUSTRY FOUR ▌www.theindustryfour.org

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THE INDUSTRY FOUR

𝗳𝗼𝘂𝗿𝘁𝗵 𝘁𝗼 𝗳𝗼𝗿𝘁𝗵𝗰𝗼𝗺𝗶𝗻𝗴

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▌ theindustryfour.org

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A knowledge artifact by - KULDEEP KAUSHIK

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