You can’t skimp on any of them – especially number seven. The answer: by understanding all the components, technologies and others, we mentioned in this articles and building bridges on the essential levels where they aren’t constructed yet but where they should be in order to get that agile and holistic innovation and optimization capacity that stretches far beyond the hype of the day and is designed with a longer term strategy in mind. Another area is the building of bridges between the capabilities of existing and ’emerging’ technologies and the potential they offer for the most innovative, who will win in the end. 2. Effective change management is imperative to making the transformation from doing digital things to becoming digital (Deloitte, infographic below). Digital transformation strategy course overview. Experts point to a few critical pieces of the puzzle, such as changing the culture of IT, identifying and convincing stakeholders across the business, and connecting transformation to a meaningful vision for the company. Firms should also look to rapidly up-skill the digital expertise of their workers, and deploy agile ways of working. Much has been done since the 2012 Government Digital Strategy, which demonstrated the potential of public service transformation by rebuilding some of the most high volume services to make them ‘digital by default’. On the capabilities front, of course, our organization needs data scientists, full-stack developers, user experience experts, and so forth. Big data volumes, formats and sources keep growing exponentially. It has always been in our top 10 of business books and in the holistic reality which business is and which digital transformation also is and requires to succeed, it could inspire you as it inspired us. The scope of digital transformation strategy Source: Digital, Marketing, Strategy, Implementation and Practice, 7th edition, by Dave Chaffey and Fiona Ellis-Chadwick. The question for leading companies has become: how do we turn all this data into actionable intelligence in a meaningful, prioritized and profitable way, leading to new opportunities. Many have forgotten the names of various of these large players of the early days of the Internet and what used to be called ‘e-business’. However, in order to reap the benefits and potential, it’s not enough to understand what you can with these technologies. This uncertainty of missing building blocks or having the wrong ones is often what makes organizations uncertain as they fear failure in regards with the proper mapping of the needed building blocks (subprojects, people, processes, information sources, change management initiatives, built-in checks and so forth). However, as Barry Brunsman, principal with KPMG’s CIO Advisory recently told us, these very characteristics demand the diligent design of risk management and controls around the digital transformation effort. Identify market, evolutions, pain points. Leverage effective digital technologies that people really want . Once an organization buys into a transformation strategy and understands its economic impact and trade-offs, committing resources to the transformation effort becomes easier. You are responsible for ensuring that you have the necessary permission to reuse any work on this site. Most people realize that this end-to-end view matters to come up with innovative business approaches or novel ways to solve challenges of whatever nature. There always is one, you just don’t know how big it will be and which areas will be most affected. While these questions seem obvious, there are numerous reasons why they are often overlooked and we don’t bridge the what, why and how or the intent and achievement. But don’t rush into digital transformation without first laying a solid foundation for success. Between what you need to do now and what you will need to do next with the meaning, context, hyper-connectedness and purpose of it all in mind – certainly also on the longer term. Developing a roadmap for short- and long-term digital transformation, guided by business outcomes, not technology, is the essential … On this site we often refer to the core technologies as the third platform (a term coined by IDC) or SMAC and sometimes SMACIT. In exactly the same way and, depending on the scope and breadth/depth of the digital transformation strategy, chart the unknowns. That’s why it’s important to conduct VoC exercises and strategic sessions with various people. From digitizing and capturing paper-based information to enhancing processes, empowering knowledge workers, better serving customers and getting the right information and intelligence when, where and how they are needed requires several steps and integrations. Subscribe to get the latest thoughts, strategies, and insights from enterprising peers. We know the possibilities of digital technologies are enticing and that mounting competitive pressure creates urgency. Yet, that starts in the here and now and the basic operations, processes and models to improve and overhaul with an immediate business case, a medium term one and a bigger roadmap in mind. Increased mobility: Not only do consumers spend several hours a day on mobile devices, but employees are tied to smartphones, tablets, and laptops. “A major step is connecting digital transformation to meaning,” says Jeff Skipper, a certified change management professional and consultant whose client list includes AT&T, Goldman Sachs, and other high-profile enterprises. Digital transformation is about evolving and augmenting—not replacing—human capabilities. Privacy Statement | Terms of use | Contact, “Walk through a day in the life of a typical employee living with all the features of a digital work environment.”. You may be the best UX person around, but if you aren’t competent with your business acumen, you won’t be successful.”, [ Who should lead transformation? How do you get to that strategy? In an economic reality where entire industries are changing, actionable intelligence is the new currency. It’s the development of a capacity to act, react and ideally pro-act as societal changes and technological evolutions continue to take place, accelerate and evolve. ], “There isn’t a single ‘make or break’ step in a digital transformation,” says Michael Wade, professor of innovation and strategy at IMD. While many companies already struggle with several of the previously mentioned bridges, this is where the real value can be created in an enterprise-wide and longer term digital transformation strategy (digital transformation needs a longer term view and strategy). Departments have become better at sharing platforms and components, code, patterns and bes… What can you do to give your digital transformation the best chance of succeeding? Keep up with the latest thoughts, strategies, and insights from CIOs & IT leaders. They can’t respond to the increasingly end-to-end digital transformation strategy needs of companies as they miss the profound IT and information management skills. A solid strategy includes analysing current processes, identifying pain points and risks, and then working out which digital tools could improve this. ], “Digital transformation nearly always requires many internal stakeholders to do things in a different way,” says Martin Henley, SVP, technology services sector for Globality. The purpose of a digital transformation plan is to define how to compete more effectively with digital marketing. Get the digital transformation eBook:  Teaching an elephant to dance. One of many reasons is that often we are partially and in a sense by definition operating in relatively uncharted territory and aren’t sure if we have all the building blocks. Digital transformation is about moving fast, challenging the status quo, and developing and scaling new technologies and operational mindsets. The strength of ecosystems and communities of innovation, collaboration and also outsourcing partnerships, defines the strength of the businesses which are part of them in a culture of co-opetition and co-creation. Many leading ‘incumbents’ are increasingly setting up environments where they give room to innovation, experimentation and future-oriented sessions, in order to shape their digital transformation strategy. A digital transformation strategy starts with answering essential questions such as the what, why, how and who. Be sure to identify both obvious and non-obvious stakeholder groups. We need more and stronger bridges with customers in ways which require more depth and breadth (and personalization) than ever. Overlooking cultural change is the biggest mistake in a digital transformation.”, [ How can open source principles help with your transformation? The main question is: do you build all these bridges and define the goals, set out the strategy and journey, map the required building blocks and barriers, and look at your digital transformation strategy and roadmap in a smart way, regardless of all those frameworks out there and, rather, creating the right conditions to get you going? Lean transformation with an adaptive case management approach, a focus on the 3Ps and room for failure and iteration as in a continuous Bèta model (more here) offer ways to tackle these challenges. At its heart, this is a people challenge. Understand its capacity and the pace of change that it is willing to undertake. To avoid this, Fonstad said companies must set parameters around digital transformation that let them continually test hypotheses, gain actionable learnings, and either adapt or discard experiments along the way. What we often see in practice is that the mentioned challenge is not always a matter of uncertainty regarding outcomes but also a matter of uncertainty regarding the “how”: the uncertainty regarding what the outcome will look like (as we do speak about change and this something new) is then strengthened by uncertainties whether all the (right) building blocks are foreseen and/or in place to get there. More in the presentation, which we embedded below. ", "But if you were to push me on identifying a single critical piece of the puzzle – one that is often done poorly – then I would point to careful consideration of the cultural aspects of transformation," said Wade. Walk through a day in the life of a typical employee living with all the features of a digital work environment. However, you should never forget that it’s important to build bridges between your understanding and the goals you want to achieve on one hand and the bridges to build between all the technologies that fit in your individual business context. There are more bridges to build than just those between the ‘IT and information management side’ and ‘the business side’. It is the digitisation, the revolution of an industry looking to the personalised campaigns of the future Technology and a new way of thinking is taking standard marketing practice and revolutionising it. “CEOs and boards need to communicate that the move to digital is the right strategy, outline the right outcomes, and mitigate the fear of the ‘substitutional effect’ whereby former processes or products get replaced by new or digital ones. If you look at it this way, inevitably you need to ask why do I want to transform anything whatsoever, what is that whatsoever and how am I going to get there as mentioned. The truth in this stat depends on how you define failure: According to Korn Ferry’s Melissa Swift, it’s more likely the majority of those efforts are simply stuck versus completely doomed. ]. Still, it doesn’t inspire much confidence for those organizations just getting started. ]. “Success can only come through careful orchestration of organizational capabilities in the services of a clear transformation vision. Stage 3. Companies that do this well share three best practices: They link innovation to a big-picture vision, make experimenting easy for employees, and share responsibilities among everyone with a stake in the innovation. and Deloitte’s1 2015 global study of digital business found that maturing digital … In more than one sense you can compare this trend and the challenge of several pure digital transformation consultancies , too often operating as islands of limited expertise who start feeling that they need to broaden their scope, with the evolutions before the dot come bubble when huge ‘e-business’ specialists went bankrupt one after the other and only a small portion more or less survived. It’s not just the IT and information management people that struggle to speak the language of, let’s say, the CMO. “If the technology you’re deploying is new to your business, it is always more difficult to anticipate how things will work. It’s incredibly important to identify not just capabilities but competencies. Here's how to let remote team members know you appreciate their hard work and commitment throughout 2020's adversity. Unfortunately this is still rarely the case and many don’t have a clear goal and overview of building blocks, barriers and bridges to build yet. Last but not least, it’s why we need a roadmap, as informed as possible, and as mentioned, with the necessary space for failure and balanced risk. “Who are the people we need? Others are doing or will do equally amazing things in other areas. Here are two things you can already start doing as of right now: Some digital transformation strategy steps to take into account (and that can be put in the context of the previously mentioned three core capabilities, as well as the, also previously depicted vision, plan, action steps): Top image: Shutterstock – Copyright: Sergey Nivens – All other images are the property of their respective mentioned owners. Red Hat and the Red Hat logo are trademarks of Red Hat, Inc., registered in the United States and other countries. Meet the Chief Transformation Officer: 8 key tasks for this new role. “People toss around the term ‘cloud’ freely, but few employees really understand where the cloud is let alone how it works. Map current status with major evolutions and opportunities. look at where the leaks in your business are and where it’s clear that you’ll need to remove or bridge legacy and necessity, among others in the technologies that are crucial to scale and move faster and better once your strategy is in place. There are ample bridges to be built from a human perspective. Stay tuned as we’ll look deeper into digital transformation strategy and a framework/roadmap that guides your strategy by asking the right questions and connecting the right dots. And there will be more changes and evolutions, far more. What do you want to achieve, why do you want that, how do you get there, who do you need, is there a clear and calculated case that supports your intent and how are you going to gauge whether you achieved or not? Achieving end-to-end information management excellence, tailored to the individual goals and challenges of organizations, their customers, their ecosystems and their goals of optimization, innovation and, increasingly, digital transformation, is critical, if not the main pillar to succeed any digital transformation strategy. A digital transformation strategy is a plan of action to reposition a business in the digital economy. The Imperial Digital Transformation Strategy programme is one of the offerings in the Imperial Virtual Programme portfolio, characterised by live interactive sessions with faculty. A look at key questions to ask for your digital transformation strategy. We also help them zero in on the optimal location strategies and strike the right balance between insourcing and outsourcing. You may have heard that 70 percent of digital transformations fail. What skill sets do we need to develop? When you look at these various technologies, whether it’s from their individual traits and evolutions (books are written about each one as they cover many underlying realities and are all de facto umbrella terms) and when you look at how they are often covered, it’s easy to forget how they are really part of one single, more holistic, perspective, which is defined by the end goals why we ‘invented’ them and why we use them. We invite you to read the classic ‘Coopetition‘, essentially meaning ‘cooperation and competition’, which Adam M. Brandenburger and Barry J. Nalebuff already wrote in 1996. What benefits will it … The Enterprisers Project is an online publication and community focused on connecting CIOs and senior IT leaders with the "who, what, and how" of IT-driven business innovation. Most importantly, they need to be able to develop a digital transformation strategy and build bridges in several areas, which are related with information, data, processes, technologies, human aspects and much more. 4. All the mentioned bridges need to be built. Benefits of a successful digital transformation strategy. Design for innovation, optimization, agility and scale. Artificial Intelligence is the ability of a machine or software to develop human … We hear this time and time again, whether we speak with experts in a specific domain such as the Internet of Things, CIOs, CMOs, information managers, you name it: all too often there is a lack of attention for the essential questions that also apply in digital transformation or any technological or other project or process. You really need to know what the Internet of Things is and can do, beyond what you believe it is and how important it will be. The Enterprisers Project aspires to publish all content under a Creative Commons license but may not be able to do so in all cases. Thus, to implement a successful Digital Transformation strategy, an enterprise must-1. What most companies consider digital transformation is the equivalent of collecting fondue sets, Nils Fonstad, MIT CISR research scientist, said at the MIT Sloan CIO Symposium. Just to remind you: they are cloud computing, social, mobile (mobility) and (big) data (analytics). By harnessing digital to build and deliver services, the government can transform the relationship between citizen and state. 3. ], After James Swanson, CIO and head of digital transformation at Bayer Crop Science, developed a transformation strategy, it was time to evaluate the team, he said. If an IT leader hasn’t done so already, now is the time to step back … "Without addressing culture, transformation will probably fail. By bringing people together that don’t get lost in the noise of the day but are able to see and…to build bridges. A digital transformation plan is a strategic, long-term plan focusing on integrated digital media channels, implementation of new technologies, and smart, digital ways of working. A good marketer will always strike a balance between activities with more certain outcomes and proven results and activities with less certain or uncertain outcomes which could be unexpectedly high gains or, if it doesn’t work that well, losses that don’t affect the overall ROI too much. We do know that they are interconnected and strengthen each other, not for the sake of the technologies themselves but because in that Nexus of Forces they are inherently dependent of each other and simply overlap if you go deeper. Here are the top 21 digital transformation strategies recommended by businessmen and company executives who have successfully overcome the challenges of digital transformation and the pains associated with it. What can a digital transformation strategy achieve? The first step to creating a digital transformation strategy is changing your company’s … Their increasing maturity, as well as their increasing adoption, has led to what Gartner called the Nexus of Forces. A digital transformation strategy builds bridges between current state and desired long-term plan. Companies across the globe are digitally transforming as they are challenged to improve business processes and develop new capabilities and business models. CIOs who have mastered this aspect of disruptive change are more likely to be managing a successful transformation program, says Brunsman. Even if it does not seem so from the outset, they are very important to the success of your digital transformation initiative.”, “To get stakeholder buy-in, take the time to run proofs-of-concept and pilots before moving forward with any solid plan,” Henley suggests. Not many companies have even the slightest idea of developing a robust roadmap for their digital transformation initiative. The question that arises is where do you start? Get the ebook: Digital transformation, the open source way. Essential project management questions and forecasting methods are just a must, even if we tend to forget them and lose ourselves in the technological or organizational questions without the end in mind. Analyze/prioritize significant evolutions. Highlight both benefits and challenges and tie it to strategy and winning. At the same time, information management requires a holistic and integrated approach. Agile companies need mobile solutions that deliver the same experience people have in the office. Digital Transformation - Application. Digital transformation requires a digital transformation strategy that, as any strategy, looks at the goals, current situation and how to move forward on a transformational journey in a way that makes sense and connects the dots. Learn, measure, re-assess, scale, innovate. Will there be a new bubble? [ Culture change is the hardest part of digital transformation. A note on advertising: The Enterprisers Project does not sell advertising on the site or in any of its newsletters. It’s clear that collaboration and co-creation, on top of the different meanings they already have (think internal collaboration, for instance), in a digital transformation economy and digital transformation strategy context go beyond the enterprise and existing ecosystems and move towards building new networks and ecosystems where data and actionable intelligence are leveraged for future growth and entirely new business models. Digital marketing transformation: a revolution of strategy and execution Digital marketing transformation, what is it? In other words: for many of them it’s hard to build the bridges that are required in the holistic phenomenon that covers many realities and skillsets and is called digital transformation. The business-as-usual mindset. Tell a story. The opinions expressed on this website are those of each author, not of the author's employer or of Red Hat. This is obviously a journey that never ends. Published 9 … Judith Apshago, VP of IT for Amtrak Corporate and Operations Technologies, shares lessons on prioritizing in uncertain times. The comparison with that period is not a coincidence. Focus on core intangible assets: customers, data. Why people love to hate "digital transformation", Why digital transformations fail: 3 steps you can't skip, 5 underappreciated skills for leading digital transformation, Digital transformation, the open source way, 3 ways to show gratitude to your remote teams, Emotional intelligence during remote work: Leadership tips for 2021, How hard-hit industries can plan for the future: Lessons from Amtrak IT. As business transformation using digital technologies is a long haul, executing the program without any plan can be detrimental to business, as this involves people along … By building bridges. It’s equally critical to integrate information/content and processes, with the business and knowledge worker in mind as previously mentioned. In our experience, successful digital transformation must rest on a foundation of smart digital strategy. Point of view. It’s probably not that hard to imagine how much bridging of processes, people, information sources and existing silos and gaps that requires. Focus on long term with intermediate goals. Many digital transformation projects take mobility as a central theme. To accept risk and tolerate failure? With remote work likely to be the norm well into 2021, consider these tips to apply your emotional intelligence and build strong, supportive teams, Bringing services back stronger than ever will be one of the biggest challenges in Amtrak’s history. The other way around, many marketing executives, don’t speak the language of IT and/or are not used to think and work in terms of business process management, essential technological evolutions and concepts or methods of business process reengineering and/or business process optimization. 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