Here’s What You Need to Know About Digital Transformation
Digital transformation is a foundational change in how an organization delivers value to its customers.
40 percent of all technology spending will go toward digital transformations, with enterprises spending in excess of $2 trillion through 2019, according to IDC.
Digital transformation marks a radical rethinking of how an organization uses technology, people and processes to fundamentally change business performance. Digital transformation requires cross-departmental collaboration in pairing business- focused philosophies with rapid application development models.
Customer expectations are far exceeding what you can really do. That means a fundamental rethinking about what we do with technology in organizations.
Making accountability — who is responsible for what — clear is critically important upfront, but companies can follow several other steps to affect the kind of change they desire.
Ruthlessly focus on a clear set of objectives. Whether you’re transforming an existing model or starting from scratch, leaders must reach a consensus on the best path to pursue.
Be bold when setting the scope. Successful digital transformations are 1.5 times more likely than others to be enterprise-wide in scale. This will also help CIOs recognize the biggest bang from their tech investments.
If you're stuck on incremental changes, you may miss the big move you might have seen.
Embrace adaptive design. The days of upfront investment requirements and rigid KPIs are over. Adaptive design enables CIOs to pursue monthly or even weekly tweaks to the transformation strategy, including reallocating talent.
We see this adaptability ingrained in the design of successful transformations. Business leaders reporting success were more than three times more likely to facilitate monthly adjustments to strategy.
Adopt execution. Encourage risk taking, enabling even lower-level employees to make decisions, fail fast and learn.
It’s okay to disrupt yourself. Successful digital transformation requires preemptive changes rather than reacting to competitive pressures or disruptors.
The observation of biological systems teaches us that it is optimal for companies to begin searching well before they exhaust their current sources of profit, and that firms should use a mix of ‘big steps’ to move to uncharted terrain and ‘small steps’ to uncover adjacent options at low cost.
Regardless, having a strong bias toward change is critical. We hope these tips will help you create digital transformation within your organization.