Analysis of recent data from BCG reveals that a staggering 70% of businesses are currently failing to meet their digital transformation objectives. This figure is notably similar to the 80% that failed to do so five years ago, signifying a need for organizations to understand the challenges they face in achieving successful digital transformation. A quick online search reveals that many businesses have encountered difficulties in this area.
It appears that the high failure rate of digital transformation processes affects all sectors equally. From manufacturing to medicine and Java programming, digital acceleration processes, which involve an expedited adoption of technology with a new outlook on digitalization, are making this outcome more likely than ever before.
In the wake of the pandemic, many companies have had to swiftly adopt new technologies, making the process of change more complicated. Nevertheless, this should not prevent you from embarking on your own digital transformation journey, as it could provide you with an unassailable advantage over your competitors.
Of course, you’ll need to pay extra attention to a few details along the way for it to occur. Five of the most important are listed here.
Dedication of the Leadership
The C-suite of your firm is likely to be supportive of the concept of digital acceleration, as there is a wealth of data and research demonstrating its benefits. In order to successfully initiate a digital acceleration process, however, more than just obtaining approval is necessary.
It is essential for digital acceleration initiatives to have support from all levels of management, from upper to lower and intermediate. Whilst this may appear to be an obvious requirement, it is surprising how many people believe that a top-down approach is viable. Ultimately, it will be upper management who decide to pursue digital acceleration, however, intermediate managers must be supportive of this move to ensure that the process is communicated effectively.
It is important to consider the potential challenges of convincing middle managers to adopt change, however the potential benefits of digital acceleration should not be overlooked. To ensure successful adoption of the strategy, it is essential to provide a comprehensive explanation of the advantages, as well as outlining examples of how to manage the inevitable changes in team dynamics that will arise from the process.
Action Items:
- It’s important to include upper and lower management in the strategy development process for digital acceleration.
- Create fresh employment opportunities for those who may be relocated or who need to improve their skills.
- Clearly outline your objectives and the metrics you’ll use to assess success, making sure to highlight how each team will benefit.
Integrated Approach
Now that we have the support of senior management, it is time to create a strategic plan for the digital acceleration process. Developing a strategy is the initial step on the path to success, so we must give it our full focus and create a comprehensive plan that outlines a clear vision and objectives that everyone can support.
It is not enough to simply state a desired future and list objectives. A strategy that is doomed to fail would only include vague or general activities. To ensure that the vision is achieved, a plan must be put in place that covers all aspects of the organization, from staff to facilities.
It is much easier to achieve our desired outcome when all members of the company’s senior leadership are involved in the creative process. Their expertise and advice can help focus our efforts on areas where digital acceleration could be of greatest benefit.
Action Items:
- Set the process’s course with a clear goal in mind so that people may rally to its cause.
- Make a detailed plan with steps for every aspect.
- Get specific about how you’ll put the technology you’re looking to use into your company
Specified, attainable objectives
It is essential to have clearly defined and measurable objectives when undertaking any worthwhile endeavor. Unfortunately, many businesses who are embarking on digital acceleration processes do not set out their goals in a clear and concise manner. Although digital acceleration can bring many advantages, such as increased productivity, agility, and simplified procedures, these benefits may not be fully realized unless the goals are clearly stated.
It is essential to develop a set of indicators by which to measure your progress. These could include the number of invoices processed by the accounts department, the number of deliveries managed by the supply chain team, or any other metrics that are applicable to the task at hand and tie in with the overall plan.
Once the process is underway, it is important to determine which metrics will be monitored and how. To ensure the digital acceleration process is proceeding according to plan, and to identify any necessary course corrections, it is essential to ascertain which data to collect and how to do so.
Action Items:
- Develop detailed metrics for each process-affected activity.
- Determine how you will continuously measure these indicators.
- Develop a system of responsibility assignment that identifies who is responsible for what in terms of accomplishments and setbacks.
Prominent Performers
The scope and complexity of a digital acceleration process means that it is highly improbable for organizations to possess all the necessary skills and expertise in-house. These capabilities extend beyond technical aspects and into the area of “soft skills”, including communication and leadership, due to the fact that a process which seeks to transform the way organizations operate requires more than just the ability to integrate technological tools, but also the definition of processes, training of personnel, and resolution of any unforeseen issues.
Collaborating with a software development company or a consulting firm renowned for its technical expertise is not enough to ensure success. It is essential that the team is composed of individuals with the ability to think creatively and critically in a digital environment, as well as demonstrate resilience and a willingness to work collaboratively. When taking this into consideration, it is likely you will realize that the necessary expertise does not exist within the organization (or, at the very least, not an entire team of professionals with the required skills to oversee the digital acceleration process).
The Digital Acceleration Team must be headed by highly capable executives who possess the required skills and have the business insight to coordinate the process with the strategy of the whole project. Finding such a combination of qualities in today’s market may be challenging, but it is not impossible.
Action Items:
- Do an internal audit to see where you’re lacking in expertise.
- Establish steering committees comprised of digital experts to direct the process.
- Get some outside aid if you need to fill in the blanks or bolster your group.
- Involve yourself in the management of the digital acceleration team, switching out specialists and assigning new responsibilities as appropriate.
Tech platforms that are both unique and scalable
It is correct to say that digital acceleration requires the use of technology; however, to only consider this aspect would be to overlook the necessity of tailored, scalable solutions. This is particularly pertinent in the current business climate, where adaptable and scalable solutions are essential.
The aim of the transformation process should be to replace existing processes with technology that incorporates principles such as modularity, flexibility and scalability, tailored to the needs of the company. This will ensure that the platforms chosen are suitable for you, your team and your industry, as well as being capable of adapting to changes.
Without striving for suitable solutions, your efforts will be in vain as deploying inflexible or generic tech platforms will only bring short-term benefits without tackling the fundamental issue. It is therefore essential to prioritize digital solutions that can be adapted to your changing needs and developed in conjunction with the digital transformation process.
Action Items:
- Take into account standard development procedures to provide adaptable and unique answers.
- It’s important to design your software in a way that supports rapid expansion of your physical infrastructure.
- Incorporate as much flexibility as possible into your solutions.
- Technology solutions should be conceived with the company in mind, rather than the other way around.
To fine-tune one’s chances of success
Considering the five elements mentioned above and responding in an appropriate manner could be the key to successful digital acceleration. It is important to give due consideration to each of these factors in order to identify the specific actions required to address them.
It can be assumed that perfecting the digital acceleration process will require a considerable amount of both time and financial investment. However, if the necessary commitment is given, it is possible to join the 30% of organizations that are reaping the benefits of digital acceleration.
