Digital business transformation – where to start
Digital Business transformation is driven by the permanent evolution of technologies – the impact on business landscapes and existing business models is visible. Companies need to adapt to the changing environments to ensure they can be successful in the future . The need for transformation does not start when companies face financial difficulties. Digital business transformation needs to be an integral part of a company´s strategy and a continuous topic even for champions.
There are prominent examples of companies – even champions with strong market domination – that oversaw the sign of the times and were exterminated or marginalized by new disruptors (Kodak, Nokia, Blackberry etc).
There is no debate about the if of digital business transformation, but about the how. Is there a digital business transformation model that fits all? I would disagree, as the digital business transformation approach needs to be tailored to the needs of a company to be successful. But there are some common rules for how to making a digital business transformation a success.
Here are the most important rules that apply independently of geographic, industrial or cultural differences.
1. Start with your client
Make Client Experience a key differentiator for a successful business transformation; Understand who your clients are – the existing and the new ones, put yourself in the clients´shoes. What are the want, needs concerns drivers of your client personas. What do you need to address with the transformation.
2. Be radical, brave and disruptive in your strategy
Digital business transformation needs to be a strategic, ongoing exercise. It requires change in your company´s management methods. Adopt new methods as agile or design thinking to meet the need for speed and transparency in your company. Be open and disruptive even when it comes to your own business
3. Mobilize your employees on all levels
A company´s employees are important for the success of any business transformation. They need to run with the transformation and be convinced, only then you will be able to transform on all layers of your company. Involve your employee´s knowledge, learn from their expertise and work in cross-functional agile teams.
4. Integrate your processes & systems
A successful digital business transformation requires insight on the key processes and systems as they are today and a strategy where they need to move tomorrow. In the times of big data, use your internal data to provide additional insight. Integrate your legacy systems, CRM systems, quote systems, financial systems. Ensure an adequate IT landscape to meet the future needs of your business. Focus on few but powerful and efficient integrated tools for your employees. Revisit your internal processes. Do they still fit to the business model that you want to transform to?
5. Ensure open communication & failure culture
The success of a digital business transformation is also dependent on communication in a company. Does the company allow open, sometimes critical or challenging discussions? How are failures handled – provided they do not go against the business conduct guidelines? Is failure accepted and tolerated? Are lessons learned openly discussed without creating a culture of fear? Does the company learn and adapt quickly on the insight gained from failure?
Key take aways:
- Don’t´t debate digital transformation –find the right approach for your company
- Digital Business Transformation is strategic and not a one time exercise
- Digital Business Transformation requires internal and external change
- Put your clients – existing and future – in the center of what you do!
- Ensure you have your employees´buy-in
- Be a brave, agile leader.