Digital transformation is not a one-size-fits-all exercise, but there are several considerations that can increase the chances of success. We highlight six.

 

By now, some of us feel ‘digital transformation-out’. For the last two years or so, it has been the buzzword of the day, and has been touted by both the public and private sectors. However, the fact of the matter is although the term ‘digital transformation’ might be relatively easy to define, “the process of using digital technologies to create new — or modify existing — business processes, culture, and customer experiences to meet changing business and market requirements” (Source: Salesforce), there is not just one approach to achieve it.

In conceptualising a digital transformation project, there are a number of factors that an organisation needs to consider, but the biggest one tends to be the state of readiness of the organisation to embark on the journey. If done comprehensively, the process is likely to affect all parts and all levels of the organisation. In other words, there should be no sacred cows.

All too often, digital transformation exercises are seen as a way of introducing technology into an organisation and into existing processes. Understandably and for some organisations, that can be a big step – to go from manual to digital modes of operations – but to some degree, the process involved might still be inefficient, but now digital hardware and software are now involved.

Below we highlight six tips that can increase the success of a digital transformation project.

 

1.  Clearly define the end vision

When embarking on a digital transformation project, it is advisable to work with the end in mind, and be able to answer the questions: “What do we hope to achieve?”, and “At the end of the process, what would we like to see or experience?”. To the extent possible, it is important to be specific, and even identify targets or goals that the organisation hope will be realised.

Ideally, there should be no reference to technology when establishing the vision for the exercise. If you start by focussing on the hardware and software aspects of the process, it Is easy to build the project around what the equipment and software can do, and not ensure that organisation’s requirements are understood, and the requisite systems are designed around them.

 

2.  Focus on optimising work flows and processes

A key focus of a digital transformation process should be on work flows and processes, which ought to be optimised. As noted previously, for some organisations, digital transformation is about introducing more digital systems into existing processes, but that can make these processes more clunky, but not necessarily better.

Instead, the starting point should be processes and work flows, and understanding exactly what they comprise. Depending on the organisation, there might be no documentation of processes and work flows, and exactly how they are executed depend on the individual. Further, if there is documentation, it may not necessarily be followed completely, and so, it might still be necessary to confirm in practice, what work flow and processes are being executed.

 

3.  Understand where the inefficiencies and deficiencies lie

This tip will require careful examination of the steps of existing processes, with the objective of determining where the inefficiencies and deficiencies in existing processes are. Depending on the organisation, the metrics used to conduct this assessment will differ. However, some questions that could be asked include the following:

  • Efficiency:  Could this process be completed faster?  Are all of the existing steps necessary?  Could some steps be merged or collapsed to result in fewer steps, without losing the integrity of what is to be achieved?
  • Effectiveness:  Is the process or work flow effective in achieving its objectives and its outputs?
  • Consistency:  How can we ensure that processes are consistently applied? What flags can we introduce to alert us when a process is not being followed?
  • Errors: How can we minimise errors throughout the process? What checks and balances do we need?
  • Seamlessness:  What information needs to flow between processes or across the organisation?  What checks and balances do we need for these process flows?
  • Verification and authorisation:  Where in a process might authorisations be needed? Where in a process might verifications be needed?
  • Automation:  To what degree can processes be automated?

The above are just some of the questions that could be asked, and it should be noted that some questions do in fact overlap. However, the point is to ensure that to the extent possible processes and work flows are comprehensively examined.

 

4.  Focus on the team

Typically, digital transformation affects all levels and functional areas within an organisation. As a result, team members should be included and engaged from the outset. When properly engaged, employees can help to clarify the actual processes that are being implemented, along with identifying bugbears, inefficiencies and deficiencies that might exist and would not otherwise be known or evident to others.

Additionally, it must be emphasised that an important part of the digital transformation process is the shift in organisational culture that needs to occur. Hence encouraging team members’ participation and buy-in to the process and the changes as they are occurring is strongly recommended.

 

5.  Understand client/customer needs

An important outcome of a digital transformation process should be to improve the customer or client experience. However, frequently, the process is focussed on technology, and not the people who will be interacting with the organisation. As a result, many organisations have not taken the time to try to understand what their clients’ or customers’ needs are, and consequently, the extent to which these needs are being satisfied, and what the experience is like when engaging the organisation.

Frequently, clients or customers hope that their interaction with an organisation are efficient, effective, consistent, fair and with avenues for redress, if needed. It is thus important to engage them to understand how the organisation might serve them better, which in turn can be incorporated into the digital transformation plan and process.

 

6.  Don’t try to eat the elephant all at once

Finally, it is important to emphasise that a digital transformation process can be a mammoth undertaking, and many organisation do not have the resources or wherewithal to implement it all at one go. It may thus be appropriate – and necessary – to adopt a phased approach to the process.

Ideally, and at the end of each phase, some tangible outcomes or successes ought to be realised. These success can help to spur continued implementation of the process, and help all parties see the light at the end of the tunnel.

 

 

Image credit: Gerd Altmann (Pixabay)