Digital transformation is the integration of digital technology into your business, changing the very way you operate and deliver value to customers. Digital transformation companies today promise a new aged avatar of your existing business, making it leaner and efficient in accordance with the VUCA (Volatile, Uncertain, Complex and Ambiguous) world. Right from changing the very way your business interacts with the customers, to data based super-specific relationship management, digital has made it all possible.
While the significance of digital transformation of your business may seem foremost, more than 90% of the businesses doing so, fail to get it right. The lower success rate is often attributed to the acceptance of change within the stakeholders in the organization. As such, it is important for business leaders to have a knack of knowing what the business needs and wants. Also, the very approach to institutionalize the new age technology while upgrading the people to a newer platform is indispensable.
Also noteworthy here is the fact that Digital transformation is not the answer to all your business problems. Issues or redundancies addressed towards improvement of an existing business value chain can probably be dealt with better technology, but a very lag in planning or execution may require much more. A majority of companies that underwent digital overhaul of their business in the last 2 years, viewed it as a technical change while acutely underestimating the impact on people and the inertia to change. A lot of them believe engaging with some IT outsourcing companies for specific tertiary functions could have worked better.
Below is a checklist that may help business managers better identify and define the problem and then look for possibly fitting solutions.
Identifying the right technical fit for your business:
Defining the problem statement: What exactly is the problem that made you think of a possible patch in the technology department? Is it the information flow or ubiquity, the time taken to complete a transaction cycle, too many stakeholders slowing down the process flow etc. Or the issue lies with a particular business vertical impacting the entire chain?
Try to create mind maps and case scenarios of this problem identification wherein you try different patches and check which one works best.
Identifying the solution: Upon defining the problem statement, comes the process to look for fitting solutions. This is when you segregate what your business needs and what it wants. If you find a majority of your processes due an update to deliver the desired results, you might need to define them well and understand the scope of digital transformation your business needs. Otherwise, a particular business function (often non core) is the bone of contention, which if identified, can be easily outsourced to experts, without impacting the core functions of the organization much.
Testing the solution with a small business function: the next step in identifying the right change strategy for your business is to test the possible patches in a small and controlled environment. Techahead, with 13+ years of expertise in full stack digital transformation, helps you create, record and analyze the impact of the changes introduced helping you take the final call.
Vision for future: This is the phase where you decide the scope of the patch you plan to administer to your business ailments. Do you want a temporary solution to assist you in the meantime while you plan for that bigger transformation, or would this be the new normal for the foreseeable future.
Create a pathway: Having clear understanding of the problem, best fit solution and the future trajectory of the business, next comes the most important part of planning to enact and embibe that change into the very work culture. Detailing the standard operating procedures, simulations to absorb the change and a proper debugging system to support the migration. A feedback system to gauge the performance helps keep the business goals and resources in conjugation.
So how can companies understand and drive their digital transformation journey? The answer lies in drafting a vision for the future and slowly building the technical and human capabilities that let you achieve it. Try to understand the bottlenecks plaguing your business and define the problem, its possible solutions and the very process, in detail.