09 Dec Basics of digital transformation
The three elements companies need to be mindful of while undertaking any digital transformation program, are customer experience, how to empower employee experience , and how to optimise operational excellence.
In this era of digitalisation, traditional IT models have been struggling with fulfilling the increasing diversity and pace of business demands.
As digital technologies dramatically transform industries, quite a few companies pursue massive change programs to reap the benefits of these trends or simply to keep up with competitors. Hence, it is now of primary importance for the companies to gain clarity on an enterprise digital strategy to quickly enable sustainable value creation. They need to manage digital transformation as a strategic portfolio over time for both short-term performance improvements and long-term strategic advantages and need to identify opportunities for value creation along the way.
Leveraging digital solutions and assets to provide a responsive and more customer-centric experience is one of the primary objectives of such a transformation program. Digitalising processes across customer touch points to enhance the overall experience will improve brand loyalty and potentially open up additional revenue streams.
But the challenge companies currently face is how to build a seamless and comprehensive customer experience with necessary digital and human interactions, which makes the experience more immersive, enjoyable, and useful.
A clear digital workforce strategy which helps in determining what current digital skills and capabilities a company has and what it needs to meet future goals, is one of the formative steps of a transformation journey. Companies need to empower people to work in new ways by leveraging technology-aware managers, who can potentially bridge the gaps between the traditional and digital parts of the business. Integrating new digital methods into existing ways of working can enable people with the necessary skills and competencies to make this transformation journey successful.
But how does an organisation rework its development programs to focus more on digital competencies, and flex its workforce accordingly based on business needs?
To maximise efficiency, companies need to modify their conventional procedures by adopting new technologies such as advanced analytics, and robotic process automation. Typically, companiess have multiple independent initiatives housed within separate business units underway to improve performance. Though there might be incremental gains within these individual units, the overall impact is generally underwhelming and unsustainable in the long run. Thus, it becomes imperative to launch an integrated operational-improvement program rather than running standalone efforts within silos.
However, the biggest impediment companies face these days is how to continuously recalibrate processes to develop intelligent workflows and free up resources to undertake higher-value actions.
Digital as a strategic portfolio
In a constantly evolving digital economy, static transformation roadmaps that do not balance strategic and competitive risks with speedy implementation will not serve any purpose. To succeed, it is imperative for the senior executives to turn their ambitions and strategy into a balanced strategic portfolio of digital initiatives, with both short and longer-term outcomes. They also need to make sure that they have a clear change story, which helps employees understand the vision of the organisation, making this transition smoother.