If your business hasn't already adopted new technology, tools or processes to better serve customers and support employee productivity, you may already be falling behind. There’s no time like the present to put that right, but sure and steady wins the race.
But digital transformation is not just about the implementation of new technologies, it's what comes from the new innovation, be it a new digital business culture or new processes.
Amongst other things, your organisation could cut costs, streamline processes, and increase revenue. However, in a bid to achieve these benefits, you don't want to fall into one of the many traps that could cause your digital transformation project to fail.
Getting it right means getting everyone on the same page, having the right skills (and people), and having a collective understanding of what the benefits will be, and that starts from the top.
1. Effective and visible support from the top
"Leaders play a pivotal role in setting the vision and priorities for the transformation journey," explains Michael Fuller, Principal and Technology Transformation Global Practice Leader at The Hackett Group.
"A leader’s endorsement ensures alignment between digital initiatives and overarching business goals, guiding decision-making and resource allocation towards initiatives that drive meaningful impact."
It's vital that leaders put digital transformation right at the top of their priority list, for as long as the project takes. Barring unforeseen circumstances that cause massive business impact, digital transformation should be at the top of every C-Suite and senior manager meeting so that these key people are ‘across’ every aspect of it.
It goes deeper, though. Senior leaders need to be seen to be on top of things. Publicly making their support clear through communication across the organization, and being among the first to visibly adopt any incremental changes that are put in place. Buy-in and understanding from the top go hand in hand, and making these visible will help bring the whole organization along for the journey.
2. Build flexibility into every project
Getting your approach right from day one and keeping this on track is no easy task. As a project ebbs and flows, enthusiasm can wax and wane. Challenges can create despondency, financial issues can cause budget holders to have second thoughts, and delays can lead to burnout.
The key here is to ensure that you take a phased approach, where the process is clearly mapped out, with gates, milestones, and all the rest of the project management good practice firmly in place. It is vital to include adequate time for testing, evaluation, assessment, and the reworking of the schedule. Accommodate where possible for delays, as these are likely.
You’ll also need to be able to flex the phasing, to take account of unforeseen circumstances and learning that happens concurrently with the project. If for no other reason than that this will allow you to take advantage of interesting opportunities that make themselves apparent.
As Jo Watts, delivery director at Virgin Media O2 Business puts it: “The rollout plan must include time to iteratively collect feedback, to deliver product or process amends and to allow the company to adopt the new tool before expecting to see returns on tech investment.”
3. Lean on technology partners
Specialist support will help you design and implement your digital transformation process, keep budgets on track, test, rollout, iterate, and complete the project. It should not be considered an extra expense, but instead vital to the success of any project.
Frank Bignone, vice president & director of Digital Transformation Group at FPT Software, explains that any potential partner needs to be fully vetted.
"It is crucial to first collaborate on pilot projects or proof-of-concepts with shortlisted partners," he explains. "This will allow organizations to test compatibility, capabilities, and alignment with their culture and objectives before jumping into long-term partnerships."
Once on board, both sides need clarity on expectations, communication channels, and project management. "Establishing clear expectations and effective communication are also imperative," adds Bignone. "Setting clear roles, responsibilities, and deliverables, along with regular communication and collaboration sessions, will facilitate transparency, address any issues promptly, and drive mutual success in the partnership journey."
4. Ensure every stakeholder is on board
Ensuring everyone is on board throughout the project is a key task that requires commitment and resources – both of time and finance. This is arguably more important than working with technology delivery partners. After all, it's your people who ensure the organization functions optimally.
"Leaders should openly communicate challenges and successes, involve employees at all levels in decision-making, create regular check in points and invest the time and money for training," argues Watts.
Fuller offers four key techniques organizations can use: "Regular communications and two-way engagement with the stakeholders using robust feedback mechanisms; celebrating milestones and successes, while recognizing contributions; reiterating leadership support and commitment; and establishing metrics and KPIs to measure the realization of business goals and incentives in-line with the success of the program."
In the end, digital transformation is about more than technology. Of course, that has to be fit for purpose. But digital transformation is about people and process too – and all three need to align for the best outcomes to be achieved.
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