The digital transformation of today’s businesses is more a matter of when it will occur, rather than if it's needed. Global marketing firm IDC reported in 2019 that 85 percent of enterprise leaders have started this process or plan to do so within the next two years. This accounts for massive investments in cloud resources, data center technologies, security, and training.
While there's a high level of commitment, in theory, getting it done successfully for the entire organization can be tricky.
Dell Technologies and Intel conducted a study about digital transformation that indicates there is a solid commitment to investing in digital transformation in these areas:
But there are challenges. In fact 91% of businesses in the Dell study reported consistent barriers to accomplishing their digital transformation process. Not surprisingly, Forbes reports that only three percent of enterprises successfully complete their digital change.
The most common reasons for failure include
Forward-thinking leaders recognize that digital change greatly affects a company's culture, processes and technology, which is never easy. But it can be done. The best approach is using a methodical process that builds upon itself for more and more digital transformation over time.
There are a few different ways you can assess what to do first. Consider:
One of the most common digital transformations is the automation of common business processes. You don’t want to change all the processes in a widely used platform all at once. For your initial stage of digital transformation, choose one area to focus on. It’s at this point that you need to identify your change management process. Without it, your initiative is likely to fail.
Change management for digital transformation use cases
When choosing a digital transformation activity, such as a process automation, it’s easy to identify what has to be done. Where it can become difficult is trying to get buy-in from all the people who are involved. Change is hard for some people and they’re going to resist unless you have a plan in place for explaining what and why you’re asking for change. What is your plan for addressing how the employees’ jobs will be changed before, during and after the process is complete? There should be people who specifically handle change management in any digital transformation.
Testing
The benefits of transforming manual processes to digital ones offers a great potential for savings. But the best laid plans can be sidetracked if you aren’t tracking the results to prove they’re worthwhile. Be sure you know how you’re going to measure success before going any further.
Once a digital automation is in place for a specific process and functioning regularly, you can consider it the middle stage.
At this time you can start to develop a playbook that can be used for future digital transformation implementations. To create something that is useful, try to do the following before recording your best recommendations for future projects:
A business has several use cases deployed by the time it reaches the growth stage of digital transformation, even if they aren’t specifically related to one another. This stage is a good time to identify which business processes can be removed from the organization because they’ve been automated.
You should also have a plan in this phase for how you’re going to improve the employees’ digital skills and increase comfort with the technology they need to use to do their jobs. As a part of improving digital skills you may want to identify power users who aren’t in the IT department (in other words: find those who aren’t overly tech savvy) to serve as champions for using the new processes. This can increase adoption among their peers and the organization can start to see the savings sooner. In the case of larger organizations, this step should be done before releasing the platform to end users or making a center of excellence (CoE).
The growth period may also include:
At this point a list of best practices for your digital transformations should be complete, including the integration playbook. There may be phase 2 activities that you’d like to implement, especially if doing the entire transformation at once was going to be too much for the users.
Thought leadership is also an important factor once an enterprise is ready to perform in new ways with respect to digital processes. By sharing what you learned, you’re able to help other companies with their processes and lead your industry.
The IT team is always on the lookout for digital transformations that can save time and money for your organization. Change can be scary, but when you have a plan in place and a trustworthy track record of helping your employees through it, you will reap the benefits of making these changes throughout your entire enterprise.