Where is the playbook for Digital Transformation?

Since Unilever's investor relations report highlighted the pivotal role of their "Digital Transformation Programme" in enhancing the company's speed and agility (2018), Digital Transformation has become a focal point in boardrooms across many sectors and geographies.

COVID-19 pandemic accelerated changes in workplace dynamics and shopping behaviors, leading to a proliferation of corporate Digital Transformation departments in traditional organizations despite the lack of a common blueprint.

Confronted with the absence of a global playbook, CEOs sought assistance from consulting companies. These firms emphasized the implementation of new external technologies to unlock digital benefits. [Apparently, this approach would also bring more recurring revenue to those selling such solutions]. The acquisition of pertinent data and the establishment of a robust structure for its management are critical elements that foster trust in the analytical apparatus integral to the decision-making process. Clearing such primary barriers to digital transformation is indeed important. However, the essence of D.T. lies in mitigating the risk of business extinction through obsolescence.

The most significant risks to incumbents arise from the customer side, prompting traditional companies to lose ground to digital competitors. By the time traditional companies witness an exodus of customers to their digital counterparts, it is often too late to recalibrate.

 Therefore, the Digital Transformation Officer's role is to apply best practices of startups, while disrupting a traditional corporation. Innovating is not an easy task. In the absence of a roadmap, choosing the right methodology is key to success.

In his book “Unlocking the Customer Value Chain,” former Harvard Business School Professor, Thales Teixeira describes a recipe to implement digital innovation in the heart of incumbent companies before the threat of digital challengers becomes irreversible. His methodology also inspires insights on how to overcome resistance to change by implementing a hands-on test-and-learn organizational culture.

In my next article, I will discuss Prof. Teixeira’s “decoupling” methodology further. For a deeper dive into this transformative approach, interested readers can explore Professor Teixeira's book via this link: Link to Prof. Teixeira’s book.