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Key elements of digital transformation

Key Elements of Digital Transformation

What every organization needs for successful digital transformation

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A need for clearer understanding

A Need for Clearer Understanding

Markets everywhere face constant disruption by emerging technologies. Building a digital transformation framework is the only way enterprises can equip themselves to handle such commotion. However, it can be problematic to embark on a digital transformation agenda without a clear understanding of the key elements involved in achieving set goals. 

These four key elements are what every organization needs to ensure a successful and sustainable digital transformation journey.

People

Whenever we talk about transforming processes, there are humans involved. Digital transformation begins with people. You’ll need different categories of people to achieve desired results in digital transformation. These include:
  • Agile leadership: Every digital transformation framework needs an agile team leader as the torch bearer. This can be your CEO, CTO, or CIO. Appropriate buy-in from top executives is also necessary to achieve digital transformation goals.
  • Tech-savvy employees: You’ll need tech proficiency and skills in the areas of coding, data science, design, and so on to implement a digital transformation initiative. You can either hire professionals or empower tech-savvy employees (citizen developers) to effectively drive your digital transformation plan.
  • Forward-thinking business professionals: Digital transformation isn’t all about technology or coders. You’ll need hands-on practitioners with critical thinking and experience in managing various business verticals including product managers, project managers, customer experience leaders, and so on. Effective collaboration with humans can boost the power of digital systems.

Culture

Culture is a critical component of any digital transformation plan. Transforming processes often cause massive changes in existing culture and all stakeholders involved have to adapt accordingly. Resistance to culture change is one of the leading causes of failure of digital transformation initiatives. To avoid this:
  • Communicate with employees about the potential impacts of digital transformation on company culture.
  • Conduct training to prepare them adequately before strategy implementation begins.
  • Show the necessity of digital transformation and the need for stakeholders to align accordingly to achieve the best results.

Technology

Identifying and Investing in the right technology is arguably the most important step in implementing digital transformation. Enterprises looking to achieve digital transformation need to consider technology in the following areas:
  • Cloud and distributed platforms: the modern business now lives in the cloud with businesses going beyond cloud storage to making use of distributed cloud services to run their operations.
  • Reporting and analytics tools: analyzing data and generating insightful reports is a critical ingredient for decision-making for the digitally transformed business. Reporting and analytics tools help to eliminate assumptions in day-to-day decision making.
  • Digital experience and digital reality: Organizations are customizing customer experiences and optimizing team performances using next-generation interfaces, IoT technologies, and similar digital reality tools.
  • Business process automation platforms: these are tools designed to streamline the day-to-day operations of a business and automate mundane tasks.
  • Collaboration: enterprises often have several individuals and multiple teams working on projects. Collaboration tools simplify how tasks are assigned and work is managed among the various people working together.

Strategy

Whether you’re changing your entire business model or you’re looking to improve specific aspects of your overall services, digital transformation has to be implemented with a clear strategy in mind. It isn’t merely about changing technologies here and there. You’ll have to create digital strategies with clear objectives to achieve long-lasting and impactful results. Here’s why you need a digital transformation strategy:
  • Goal setting: The effectiveness of your digital transformation framework is dependent on the aims or goals you have set out to achieve.
  • Thinking long term: Setting up long-term digital transformation strategies are essential to continually scale as your business starts to evolve.
  • Benchmarks: The KPIs you have set at the beginning will be necessary to identify if all your requirements have been met.

What is the best approach to achieve results with these elements?

Putting together the right strategy, technology, people, and an effective positive cultural change can motivate real and notable change across an enterprise. However, each of these elements has to be taken individually and as parts of a whole to achieve desired results.

Strategy-1
Strategy

Your digital transformation strategy must align with the goals and objectives of your company. This is why understanding your current systems and what needs to be transformed is important. Start by identifying the most pressing problems that cripple operations and picking out areas that require immediate attention and improvement.

People-1
People

Experience is important for the best results in digital transformation. You should form a digital transformation team drawn from your existing workforce or hire talent with the experience to navigate change. This allows you to work with people with ongoing knowledge of the problems you want to solve.

Culture
Culture

Companies that see the best results in digital transformation are typically those that understand the potential impact on company culture. Prepare for it by talking to your employees and stakeholders about your transformation strategy and its potential benefits for them.

Technology-1
Technology

Digital transformation may involve implementing completely new digital systems, modernizing applications, or updating legacy systems. Regardless of the approach, the goal should always be to find the most fitting technology based on your established goals, work philosophy, and existing expertise.

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