Digital Transformation

What is it?

If you ask this question to different people or even the same at different time, you will get many different answers. You can look up a definition e.g. on Wikipedia (https://en.wikipedia.org/wiki/Digital_transformation) – you will still read a lot like “… it may ...” or “… some of these…” or “… using cloud technologies …” etc.

A brief description could be like: Improve the current status quo of a business by using new or complementary digital technologies to achieve current and future business goals more efficiently and sustainable. Efficiently can mean more than generation immediate revenue. The business takes the advantage of the fast developing technologies today and in the future.

What are good questions to answer at the beginning?

• Enhance the existing business digitally or create new digital business areas?
• Is my business focus still the same or is it becoming even a new IT business?
• Is my business getting obsolete soon or does it need a digital upgrade?
• Do I have the right resources to make the transformation happen?
• What would happen if I do not go for a transform?
• Etc.

How it works?

A transformation requires a holistic business and eco-system view to consider all dependencies between involved entities and stakeholder. The transformation is a technical and an organizational one with education, new roles, new skills, functions and communication paths etc. Fear and resistance are reduced by evolutionary changes. The buy-in and real backing from top-management and key stakeholder boosts the transformation speed. Initial pilots with focus on certain areas first reduces efforts and generates learnings for the next changes.

What are the major steps to take?

1. Allocate resources. Resources are needed for each step. They can be internal, new or external resources. Important is to have the right skills and knowledge to cope with the tasks.
2. Clarify the future needs and define business objectives to achieve.
3. Be clear on the current status quo of processes, the involved stakeholder, the flows and the used digital technologies enabling the business.
4. Use methodologies (Agile, Design thinking, change management, traditional project management, workshops etc.)  as tools to identify the needed flows and processes to achieve the next and future business goals
5. Identify how these processes can be supported or enhanced with digital technologies. Usually all identified objectives cannot be tackled at once or may be at all. Important is that the approach is clear and the (initial) expected result for each prioritized objective is named.
6. Achieve the set prioritized objectives with execution of tasks with the right initiative / program / project. Pick the methodology or the mix of methodologies, which fits best.
7. The organization is involved and transformed to live this for each ongoing or at least any new project. The initial transformation endpoint is the status quo before the next transformation.

Who needs it?

Any business from small to large business units should consider a digital transformation. Analysis of status quo and future objectives may indicate the scope of needed digital transformation.

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