Digital transformation (DX) has become a norm in 2020, considering many benefits it offers. It includes significant changes in the business model, practices, and processes to meet customer expectations thus creating a benchmark. The impact of a business depends on management, employees, and its transformational plans, along with the readiness of the organization to grasp changes. Although it is a complex process, there are few things that can direct the transformation with minimum disruptions, by providing a 360˚ view of process challenges and flaws.
Let’s take a look at how successful Digital Transformation planning and execution can be achieved in 2020:
A Dedicated Team:
One of the most critical factors is to have a dedicated team to assess digital capabilities and initiate the required change systematically. In this way, opportunities and threats can be analyzed at a better frequency and with objectivity. The effort will be more organized, rather than having to assign tasks temporarily. The roles and responsibilities of each team member should be well-defined so that their focus is steady. This increases the effectiveness of the change and ensures timely completion of tasks.
An ideal team set-up should be as follows:
1. Executive leader: Someone who has an overall understanding of the business, clients, and technical expertise, complete with knowledge of Machine Learning, Artificial Intelligence, Cloud, and Data Science. Essential responsibilities would include team management, client relations, and implementing the DX strategy.
2. Basic level DX Team: Program Managers, Technical members, Solution Architects, and Product Managers, with a basic knowledge of DX tools and techniques, such as Serverless Architecture and Microservices.
3. Advanced Level DX Team: Data Scientists, Business Analysts, Designers, and Developers who are proficient in designing, coding, data mining, and analysis, apart from being able to accommodate core digital transformation business functions.
Measure Employee Performance:
It is crucial that one tracks employee performance as the success of the Digital Transformation initiative. Once you have identified the objectives of the move, set achievable targets for teams and map progress levels, and evaluate any delays in adhering to the timelines. Employees should be clear about whom to approach in case of queries. Clear lines of communication and proper management structure will help.
Set up a collaborative environment so that opportunities, challenges, and risk factors can be discussed openly. Through this, faster and more adaptable solutions will be derived for success. It is also essential to support innovative ideas and allow talent to flourish, increasing their technical capabilities and confidence.
Assess Training Needs:
DX needs to be a success, rather than just an effort, so training needs must be assessed beforehand. New technologies will be dealt with, and you need to be sure that employees are aware of the core concepts and design functions. The timely evaluation will save cost and time, apart from being a real value-add to the DX process.
Once the 360 digital transformation strategy has been finalized, list out tasks, timelines, and technologies that you are planning to use, along with the number of personnel required for successful completion at each stage. If needed, hire training personnel on a contractual basis or avail digital transformation services to assess requirements accurately.
Collaboration between IT and Business:
Whenever a new technology is being implemented, the process is more streamlined when business and IT teams collaborate. It eliminates doubts in terms of budgeting constraints, actual and proposed technical capabilities, and enhances the problem-solving approach to a great extent. Additionally, it encourages trust among teams and improves work efficiency.
Since the business team focuses on revenue generation and cost-effectiveness, while IT on system integration and data security, optimum results are achieved through systematic planning and collective strategies, involving insights and solution sets from both teams. Business goals, too, can be developed gradually, by projecting improved standards and transparency throughout the process.
The importance of improving digital capabilities cannot be stressed enough to keep pace with technological developments. Timely structural changes to the digital framework will contribute to the success of Digital Transformation, apart from benefiting business processes and client relationships. A supportive digital culture includes provision for systematic information gathering, innovation, and research functions.
It is also useful to enhance individual digital capabilities by setting up systematic learning and development models. As new technologies and programming techniques immerge in the market, organizing training and seminars prevent knowledge gaps and ensure faster adaptation to internal technology changes. Supportive digital communication methods and participation in digital activities keep the workforce prepared at all times.
Assessing Business Models
Throughout Digital Transformation, keep communication lines clear. Inform employees about the important goals for the change and reassure them of positive implications on productivity and standards. Address any concerns immediately so that unnecessary assumptions are avoided.
Make sure you communicate details of the schedule to involved personnel for adequate preparation stress on time management, optimum coordination, and communication between teams. Workload should ideally be divided equally based on skills, experience, and expertise.
It is crucial to follow the systematic steps of the decision-making process to ensure success through and after digital transformation. Have a discussion with teams and get insights from experienced personnel for multiple perspectives on digital prospects. Conduct extensive research on short-term and long-term functionality of digital tools, measuring applicability and suitability to the business.
It is essential to consider cost and time implications, as well. Look for alternative solutions in the market in case of a restricted budget, without compromising on quality and productivity. Be objective weighing the pros and cons of digital applications and features, without overlooking risks such as Cybersecurity and data theft.
Business Process Management (BPM)
Many complexities in the business environment need to be recognized, and tapping the full potential of BPM is vital for the success of Digital Transformation. It provides context and aids in developing practical solutions. Moreover, you can count on improved flexibility through enhanced communication and supply chain models.
Another important benefit of BPM includes improved customer experience by addressing process inefficiencies on time. Automation helps with optimization and inclusion of more personalized services that are cost-effective. IT developments have persuaded organizations to modernize their BPM and have a more client-focused approach.
Key Performance Indicators (KPI)
Measure your DX performance using KPIs for robust IT estimation. Organizations have developed advanced formulae for ROI calculations, which are different from traditional methods. Since KPIs influence everything from decision making to generating revenue, due importance should be provided.
In today’s data-driven world, conventional KPI measures do not allow us to assess cross-functional effects for Digital Transformation. Advanced metrics should be able to track operations done on new software and conduct a frequent analysis of revenue generated from digital investments.
In 2020, Digital Transformation wouldn’t be completed without considering environment-friendly solutions as well. Incorporating eco-friendly digitized solutions enhances the workspace, providing sustainability, and improves company image. The overall success of the DX process will depend on how companies address environmental issues.
Especially for industries that are known to cause pollution, this will be seen as a step in the right direction. For instance, Logistics and Transportation can capture the potential of DX to reduce their carbon footprint. Digitization facilitates the use of automation, robotics, Big Data, and IOT to reduce fuel consumption and encourage efficient use of available resources.
Companies such as Netflix and Domino’s have understood the value of Digital Transformation in 2020, subsequently increasing their market share and global reach. Catering to customer demands and recognizing underlying trends regularly has worked in their favor.
Digital Transformation has paved the way for efficiency in product development, acquiring new clientele, and generating revenue. In the year 2020, organizations will continue to benefit from strategic changes based on their business objectives and reimagining workplace dynamics. It is time to recognize opportunities and promote growth with a strong DX strategy.