Recent data analysis conducted by BCG suggests that an alarming 70% of companies fail to achieve their digital transformation goals. Interestingly, the same figure (80%) was recorded five years ago, indicating the pressing need for organisations to comprehend the obstacles they confront in accomplishing successful digital transformation. A cursory online investigation reveals that numerous businesses have struggled in this aspect.
It seems that digital transformation failures are pervasive across all industries. Whether it be the manufacturing sector or healthcare or even Java programming, digital acceleration initiatives that call for a rapid adoption of technology coupled with a fresh perspective on digitisation, are amplifying the likelihood of this outcome more than ever before.
Following the global pandemic, numerous companies have had to rapidly integrate new technologies, complicating the process of transformation. Nonetheless, this should not deter you from embarking on your very own digital transformation journey, since it has the potential to confer an unbeatable edge over industry rivals.
Certainly, you must be especially vigilant about a few crucial aspects throughout the process. This article outlines five of the most significant of these.
The Importance of Dedicated Leadership
It’s probable that the C-suite executives of your company are in favour of the idea of digital acceleration, owing to the plethora of evidence and research highlighting its advantages. However, obtaining approval alone isn’t sufficient to successfully launch a digital acceleration program.
For digital acceleration endeavors to be successful, it is imperative to have support from all echelons of management, ranging from senior executives to middle and lower management. Although it may seem like an obvious necessity, it is surprising how many individuals presume that a top-down methodology is adequate. While upper managers are the ones who decide whether to pursue digital acceleration or not, intermediate managers must endorse this endeavour to guarantee effective communication of the process.
Contemplating the potential difficulties of convincing middle managers to embrace change is crucial; yet, it is equally important not to underestimate the potential gains of digital acceleration. To guarantee the successful implementation of this strategy, it is necessary to furnish a thorough account of the benefits, while also detailing solutions on how to handle the team dynamic shifts that will undoubtedly arise as a result of the process.
To-Do List:
- Incorporate both upper and lower management in the process of developing a digital acceleration strategy.
- Generate new job openings for individuals who are being relocated or who require skill enhancement.
- Delineate your objectives and metrics for gauging success, while emphasising the advantages for each team.
A Holistic Approach
Having obtained the support of higher-ups, the next step is to establish a well-designed plan for the digital acceleration process. Given that creating a strategy is the first step on the road to success, it is essential to devote our complete attention to it by authoring a comprehensive plan that conveys a clear vision and objectives that everyone can endorse.
It is insufficient to merely articulate a desired future and specify objectives. A strategy that is destined to flounder would only encompass indistinct or general undertakings. To guarantee the realization of the vision, a well-structured plan that encompasses all facets of the organisation, from personnel to facilities, must be created.
When all members of the company’s senior management take part in the ideation process, achieving our desired outcome becomes considerably easier. Their proficiency and counsel can aid in concentrating our endeavours on areas where digital acceleration could deliver the most significant advantages.
To-Do List:
- Set a definite target for the process, so that individuals can come together to work towards it.
- Create a comprehensive plan with specific actions for every aspect.
- Specify how you intend to integrate the technology you aspire to use into your organisation.
Clear and Achievable Goals
Having well-established and quantifiable objectives is crucial for any meaningful endeavour. Regrettably, numerous businesses pursuing digital acceleration processes fail to articulate their objectives in an unambiguous and succinct manner. While digital acceleration can confer numerous benefits, such as heightened productivity, flexibility, and streamlined procedures, these rewards may not be entirely realized unless precise goals are established.
Creating a set of benchmarks to evaluate your progress is indispensable. These could range from the quantity of invoices handled by the accounts department to the number of deliveries overseen by the supply chain team, or any other metrics that align with the overall plan and are relevant to the task at hand.
After commencing the process, it is critical to decide which metrics to observe and how to do so. To ensure that the digital acceleration process is progressing as planned, and to pinpoint any requisite modifications, it is imperative to determine which data to gather and the appropriate methodology for doing so.
To-Do List:
- Create thorough benchmarks for every activity affected by the process.
- Decide on a methodology for ongoing measurement of these benchmarks.
- Establish a system for assigning responsibilities that designates who is accountable for achievements and setbacks.
Outstanding achievers
Given the breadth and intricacy of digital acceleration processes, it is highly unlikely for organisations to have every required skill and expertise in-house. These competencies encompass more than just technical elements but also “soft skills”, such as communication and leadership, since a process aiming to reshape the way organisations function necessitates not only the aptitude to incorporate technological tools, but also devising processes, training staff, and troubleshooting any unanticipated issues.
Merely teaming up with a software development company or consulting firm of repute, excelling in technical expertise is inadequate to guarantee success. The team must consist of individuals possessing the ability to think innovatively and critically in a digital milieu, also demonstrating perseverance and receptiveness to collaborative efforts. Considering these aspects, it is probable that the necessary proficiencies do not exist within the organisation (or, at minimum, there may not be sufficient professionals with the requisite skills to supervise the digital acceleration process).
The Digital Acceleration Team necessitates exceptional leaders who have the essential skills and business acumen to synchronize the process with the overarching strategy of the project. Locating a combination of these abilities in today’s market may pose a challenge, but it is not insurmountable.
To-Do List:
- Perform an internal evaluation to identify areas where expertise is deficient.
- Form steering committees consisting of digital specialists to lead the process.
- Seek external assistance if necessary to fill in gaps or fortify your team.
- Engage in the management of the digital acceleration team, reassigning responsibilities and replacing personnel as appropriate.
Technology platforms that are distinctive and scalable
It is accurate to assert that technology is imperative for digital acceleration; nevertheless, merely focusing on this element would disregard the need for bespoke and scalable solutions. This is particularly relevant in the current commercial landscape, where pliable and scalable solutions are crucial.
The objective of the transformation process must be to substitute current processes with technology that incorporates principles like modularity, flexibility, and scalability, customized to the company’s requirements. This will guarantee that the selected platforms are fitting for you, your team, and your industry, while having the capacity to acclimate to alterations.
Without striving for appropriate resolutions, your endeavors will prove fruitless, as implementing rigid or generic technology platforms will only yield short-term gains without addressing the underlying problem. Consequently, it is imperative to prioritize digital solutions that can adjust to your evolving needs and be created parallel to the digital transformation process.
Tasks to Complete:
- Incorporate standard development procedures to offer adjustable and distinctive solutions.
- It is crucial to fashion your software in a manner that facilitates speedy expansion of your physical infrastructure.
- Imbue your solutions with maximum flexibility.
- Technology solutions should be devised with the company’s requirements in mind, instead of the opposite approach.
To enhance one’s likelihood of success
Taking into account the five elements stated above and reacting suitably, could be the solution to accomplishing a successful digital acceleration. It is vital to give adequate consideration to each of these factors, to determine the particular measures necessary to resolve them.
It is presumed that refining the digital acceleration process will demand a substantial portion of both time and financial resources. Nevertheless, with the required dedication, it is viable to become a member of the 30% of organizations that are enjoying the advantages of digital acceleration.
