Will your digital road map cope with rapid change in 2021?
Jon Wilton
3 steps to help your digital transformation success in 2021
4 min read
Step 1: Define what Digital Transformation means for your business
Digital transformation is a concept hindered by the fact it is often whispered about in mythic proportions. This is because it represents totemic change: a change not just in structures across an organisation but, for it to succeed, a change in concepts, processes and mindsets.
Definition: a vertical- and horizontal-slice strategy using digital technologies to create or modify existing business processes, culture, and customer experiences to meet rapid changes in customer and market requirements.
Digital Transformation will be a different journey for every business. Once begun, the precepts must become deeply embedded in both thinking and doing, and it must continue to evolve.
We tend to discuss digital transformation in the context of medium to large companies spending sizeable budgets on enterprise-wide technology solutions. However, in the wake of the pandemic, it is hard to imagine any company that did not implement some kind of digital transformation in 2020—no business can exist apart from the digital tools reshaping how we live.
“At least 40% of all businesses will die in the next 10 years… if they don’t figure out how to change their entire company to accommodate new technologies.” —John Chambers, Cisco
Step 2: Concentrate on people not just processes
It is easy for digital transformation to go wrong. It is often wrongfully assumed that implementing digital systems (either automating a process or upgrading technology) will automatically bring greater efficiency. Push too hard for fast results and the whole operation can fail dramatically.
First of all, systemic change must be driven by the customer or market¬¬ from a change in expectations or behaviour. This can include a shift towards a digital product or the way a product is delivered, e.g. streaming music rather than buying physical media. In the past few years, many companies have been forced into rapid transformation journeys to keep up with markets disrupted by startups redefining products, services and business models; the rise of app-only banks such as Monzo and Starling being a prime example.
Once a requirement for new technologies and/or automated processes is identified, then a comprehensive strategy must be aligned with clear business objectives.
What is often overlooked in a plan is the human factor. Leaders must follow a people focused, not a process focused approach. Here are some points to consider:
• Is the task being digitalised for workers meaningful? Sometimes new technologies come with a steep learning curve and initial glitches and problems which take time to iron out. Are employees invested in and incentivised in these new systems?
• Have you accounted for the extra time and skills required to learn and become comfortable with new technologies and processes? If not, employees become anxious and demotivated. Make sure adequate training and supervision are provided during the rollout.
• Have you accounted fully for the impact on staff? What are they set to gain? If a new system is only beneficial to the company then it is natural that employees will resist changes. You may need to use some PR resources to ensure positive uptake and to prevent misinformation.
• Change fatigue - the saturation of change in an organisation, especially over long periods—also disruption and problems—will cause stress, burnout, negativity and resistance.
Recently, emphasis has been placed on the importance of aligning your IT capability with your business objectives in order for digital transformation to succeed. Let us take a look at why this is so important.
Step 3: Align IT with your business strategy
The main aim of aligning IT with business objectives is to prevent the kind of silos that CEOs have been complaining about for years. Strategic IT-business alignment achieves:
• Faster time-to-market
• More purposeful productivity
• Increased agile responsiveness of teams
• Improved collaboration across the organisation
• Co-creation of processes with other departments, leading to better understanding of the end-product/process and involvement of end-users
• Reduced costs
It is imperative that businesses in 2021 realise and articulate their digital roadmap, aligning objectives across the organisation and integrating IT goals with company-wide goals. IT leadership must be involved in C-level strategic planning.
IT should not be a support function to other teams; instead, IT must be incorporated into the processes and there must be transparency and inclusion at all levels. This can be achieved as part of a wider approach to create more collaboration and cross-functional teams in your business:
• Create new platforms or encourage use of video calls for different teams to collaborate. Try to create a single language across your organisation and avoid jargon that is isolated to one department.
• Rotate staff and make new connections between teams. Introduce a mentoring scheme. Organise meetings between teams with coffee and lunch provided.
• Link up goals and KPIs for teams and departments to the company vision and digital roadmap.
• Ensure transparency for decisions made at senior and C-suite levels. If an employee doesn’t know why a key decision was taken at management level, there has been a failure in communication.
• Create a vibrant and inclusive company culture – get first-hand feedback and learn about your company. Make it easy for employees to make suggestions.
Follow in Amazon’s footsteps and make the customer/client the end goal in every business decision. This can help align everyone behind a single vision that sweeps through the company vertically, creating cohesion between different layers. Enact your vision with purpose, and ensure all teams are clear on their goals and how these goals link up with KPIs and the digital roadmap.
“There is no alternative to digital transformation. Visionary companies will carve out new strategic options for themselves — those that don’t adapt, will fail.” —Jeff Bezos
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