Why business -led digital transformations have a far greater chance of success
Service providers need to transform to stay relevant in a dynamic market place where competition for customer loyalty is intense and offer differentiation is increasingly challenging. They want to bring about a major transformation in every aspect of their business, including customer engagement, business models and how they operate.
The increased influence and focus on AI has added yet another level of complexity when it comes to digital transformation - use of this technology is important to stay competitive as it permits much deeper insight into identifying customer needs and in making suitable recommendations.
But, many digital transformation journeys lose focus and become optimization programs that miss the mark on truly transforming the business. They end up having little impact on results including increasing customer satisfaction, reducing complexity and increasing margins.
Ideally, digital transformations are business-led at every step of the journey. Leadership and those empowered to make decisions quickly need to drive the adoption of new technologies, streamline processes and introduce cultural change to achieve the identified business outcomes.
How to set up and run successful business-led digital transformation programs
When a digital transformation initiative is not business-led, the project inevitably runs into problems that will negatively impact results. By implementing the following initiatives at the start of the project and revisiting them at multiple points during the transformation journey, the project will have a far greater chance of being successful:
- The business leads the digital transformation initiative and works hand-in-hand with the IT organization. Technology
is an enabler to achieve transformation and should not be viewed as the only way to solve a problem.
- Near, medium and long term business goals and objectives need to be clearly defined and communicated to all stakeholders at the beginning of the journey.
- Implement a mobilization phase when planning the project. The mobilization phase brings business, IT, and operations stakeholders to the table to agree on objectives.
- Value streams, business capabilities and KPIs need to be discussed, documented and distributed at all levels and all organizations.
- Business Architects and Governance teams need to be engaged and empowered to drive transformational change based on goals and objectives. Implement an innovation scrum team to ensure all relevant technology can be evaluated.
- Focus on cultural change management to prevent the business from dragging old habits into the new transformation. Companies need to invest in and empower a business architect or team to manage cultural change to achieve the transformation goals.
Simple is a better strategy
For real strategies that can be implemented to help keep the program focused, refer to the “Better Simpler Strategy” by Harvard Business School professor Felix Oberholzer-Gee. His recommendations ensure that programs achieve true digital transformation instead of turning into optimization exercises.
Companies that implement a business-led approach from the onset of their digital transformation are more likely to reach their true digital transformation goals. In the process, they keep costs down, ensure adoption across the organization and achieve their business goals faster than enterprises that do not invest the time, project governance and resources.
IdeaHelix are global experts in implementing business-led digital transformations, focused on Salesforce Industries. Contact us to discover how we can ensure your digital transformation is a business-led success.
