3 Key Steps to Starting Your Company-wide Digital Transformation
Stats show that 80% of companies identify “digital transformation” as their top strategic priority—but only 5% feel they’ve mastered it. Why the gap? Achieving a digital experience to a point of competitive differentiation requires organizational alignment. Digital transformation represents a crucial paradigm shift across the entire organization, yet research suggests only a fraction of companies currently implement an enterprise-wide digital strategy. To successfully digitize, all lines of business (LOB) must be aligned and move in concert towards digital innovation. This involves communication and collaboration among key stakeholders, especially senior executives, across every business unit—even ones you wouldn’t typically include.
Put simply, digital transformation is more than just digitizing your infrastructure before your competitors do. Yes, it’s about serving the growing number of digital consumers faster and better. But, more importantly, it requires a shift in organizational mindset and redefinition of business processes. The starting point for any digital transformation initiative should be a clear understanding among all business leaders (not just IT) about the nature, direction and projected outcomes of the transformation.
What does the discovery process look like? It can be summed up in three key steps:
- Situational Assessment: Executives across every LOB need to weigh in and agree on business drivers and expectations. Insights derived from this assessment should be used to map out short- and long-term business goals and key digital strategies to ensure organizational alignment.
- Opportunity Prioritization: Identify target applications and technology architectures, then determine how these new solutions will affect existing technologies and align with core needs (i.e., operational savings, CX improvements). In parallel, use this time to identify, analyze and prioritize gaps between existing and planned processes.
- Roadmap Creation: A detailed roadmap helps you finalize digitization plans before implementation. It should outline phasing strategy sequences, risk mitigation plans, and project feasibility reports that define the timeline, dependencies, costs (and return) and controls of each digital initiative. Consider this your digital transformation playbook.
Digital transformation is the foundation of how organizations will succeed or fail. Check out our eBook, Fundamentals of Digital Transformation, to learn more about this discovery process—the first of a five-step plan for creating a foolproof digital transformation strategy. Let me know what you think. We are here to help and happy to discuss.