Member Article

3 Ways Organisations can Avoid the Pitfalls Associated with Digital Transformation

Digital transformation. Generating over 57 million results on Google, individuals and organisations alike are all well accustomed with the term.

And with good reason.

From the Government’s plans to overhaul NHS digital systems to the merging of the online and brick-and-mortar world of retail, digital transformation projects are being rolled out everywhere.

And with IDC reporting that, worldwide spending on digital transformation technologies are set to reach a staggering $1.3 trillion in 2018, a 17% increase on what was spent last year, the uptick of these technologies will only grow.

But, when it comes to digital transformation projects, the challenge today in the market is getting beyond the hype. Too many “digital” projects are deemed to be a gimmick rather than generating a genuine business benefit. It’s quite simple to distil it down to these common areas:

1. Process

Digital transformation requires processes to be effective, streamlined, and ‘outcome’ focused. This can be a challenge in its own right as its common for processes to evolve organically over-time, meaning they can become less efficient.

An ineffective or inefficient process, once digitised, will simply amplify inefficiency and allow you to fail faster.

2. People and Culture

People are the most complex and critical part of any digital transformation strategy. Because people personify the culture, failure to fully engage in a program of Change Management will result in unnecessary resistance, not to mention, avoidable drag on timelines and a high potential of failure.

To counteract this, you need to bring the whole organisation with you, not just those directly involved in the digital transformation project.

The other part of the people puzzle relates to experiences. Repeatability breeds success. Engaging in digital transformation without learning from the journeys of others means you re-invent the wheel and learn things the hard way…unnecessarily.

Take advantage of networks, engage partners or hire talent so you can benefit from their experience and upskill the existing team.

3. Technology

Finally, there is technology. Those businesses with large legacy infrastructures face an ongoing hurdle: overhauling these older IT systems quickly enough to keep up with evolving demands.

In fact, with our latest research of senior business leaders found that only half of respondents describing their organisation as ‘digital-first’. Clearly this is a problem for a huge number of organisations.

Despite the ubiquity of devices and the vast opportunity to collect specific insight into customer behaviours and preferences, too many organisations are slow to put a strategic plan in place for the capture, analysis and actioning of this data.

Take the Internet of Things (IoT) as a prime example.

Businesses still struggle to align the capture of data from IoT devices with various business functions. Despite the fact that understanding the data held for existing customer interactions enables organisations to unlock the subtle differentiators which will help them earn client loyalty and attract new customers, the message isn’t getting to the teams that will action it.

Looking broadly at the approach to data, the shift to being precise and secure in all aspects of data collection is uncomfortable for many. That said, businesses can’t afford to ignore the value data can hold if they’re to remain competitive, so it’s important they establish strategies and processes for it now.

What’s clear is that those who approach digital transformation projects with focus and purpose at every turn will see far greater returns on their investments, not to mention, enabling them to be properly equipped to remain digitally competitive.

This was posted in Bdaily's Members' News section by Lal Hussain .