July 29, 2016
Digital transformation is a journey to an unknown destination. So, how can you be better prepared for the journey when the destination is unknown?
July 29, 2016
Digital transformation is a journey to an unknown destination. So, how can you be better prepared for the journey when the destination is unknown?
True digital transformation is a journey few can accomplish. Over the years, my observation is that those who succeed are better equipped. While some companies are well prepared and see success over longer periods of time, others have a mixture of successes and failures. Though there is no guarantee that all projects will succeed, there are some inherent qualities of effective companies.
Digital transformation is a journey to an unknown destination. So, how can you be better prepared for the journey when the destination is unknown? Like a checklist you'd prepare for your travel, here is a checklist for your digital transformation journey – checking off these list items could be the key to mapping out your digital transformation!
One of the primary pre-requisites for your digital transformation is strong leadership with an equally strong vision. Your digital transformation's drivers are top-down, while ideas and implementations are bottom-up. Strong leadership will go a long way. Leadership and vision are inseparable– so, frame a vision statement that has an inherent digital dimension. A vision statement is a strong vehicle that is inclusive of the entire organization. It can be a good motivator at all levels while embarking a long and demanding journey like digital transformation. So, develop something that your CxO level folks can believe in and vouch for.
Whether yours is a complex structured organization or not, I would recommend drafting a team constituted of digital experts. This team (either full time or virtual) should be made up of champions from different functions of your organization and should be the driving force of your digital transformation. For a larger organization, I would suggest a full-time body committed to your digital goals. Even if it is temporarily made up of either CxO-1 or CxO-2 level folks, these guys should form the governance of all digital transformation projects and initiatives. Weak digital transformation governance could potentially derail all your growth– so having this team is a must from my perspective. The nitty-gritties of the team structure and functioning should be formulated keeping the company culture and vision statement in mind. Build your 'Digital Driver' team with motivated individuals who not only act as a governing body but will also guide you into your digital future.
For me, this is the most critical aspect in the digital transformation journey. If I have to break culture down to smaller elements, it would go as follows: General way of working, accepted practices, collective beliefs, prevailing mood of people and team dynamics. Here are some aspects of your culture you need to sort out if you are serious about the succeeding in the digital transformation process:
The last (but not by any means least) important aspect is capability. I have seen some companies that have executed brilliant projects with very little in-house capabilities, while some with full in-house capabilities have failed. I would suggest when it comes to capability do bit of both – have good partners and a lean, in-house team (unless you are completely tech driven company) with complementing capabilities and. You cannot expect your in-house guys to have a wide experience while you cannot expect your partners to understand your company as well as your employees. Hence my recommendation: Have a good mix. Also, empower the digital driver team to build new capabilities– after all, they have the breadth and depth of knowledge on all your digital initiatives.