Taking disruptive, bold decisions that bring a transformation of a tremendous magnitude to an organization is the foundation of a digital transformation journey. People, technology, processes, goals- every aspect requires a transformation of the core. Without such an in-depth strategy, a digital transformation effort may bring benefits only in the short term. A digital reinvention goes hand in hand with tough decisions. This article will take a look at the key five decisions that matter in a digital transformation.
Choosing the business direction
Digital transformation is a complete reinvention. Therefore, defining the ambition of the business and deciding where the business needs to be headed is a significant aspect. And it is not an easy one. However, the decision makers can make use of data and analytics to make this process more valuable. Developing a digital transformation framework will help to build a clear layout of the decisions, goals, and journey.
A thorough review of the market and a dynamic study of the technologies related to the business domain can serve as a good starting point to enable the decision making on business structuring. Think through the various possibilities- what is it that you want to transform, the products, customer service, interaction, define it first.
Identifying the leaders
Many digital transformation efforts fail not because the technologies were incapable or the goals were not set right but because the leadership wasn't efficient enough. Therefore, a clear decision needs to be made on who will lead the transformation efforts.
Though it is important for CEOs and people of such high authority to be involved, to expect them to take complete ownership of leadership cannot always work out. The CEOs need a group of senior people who can support them and perform the day to day activities well. So, who all will be a part of this support team should be decided after significant thought. Ideally, they should have a good understanding of the business, technologies, should be inspiring and also capable of handling change management.
Communicating with stakeholders
Effective communication is at the heart of change management. Especially in the case of big changes like the digital transformation of a business, holding meaningful communication with stakeholders is key in making the transformation strategy successful. The leaders that were identified earlier should be at the head of this process.
They should plan with whom to communicate, when, and how. Winning the stakeholders is a must as it will be impossible to execute the plans without their consent. While talking to each stakeholder, the message should be tailored, should address the areas that concern them, and assure them of the benefits of digital transformation. By covering both the long-term as well as short-term targets and conveying them to the stakeholders, it is possible to create awareness in them and win their support.
Tracking the transformation
During a digital transformation, one thing you can definitely expect is unforeseen circumstances to pop up. How are you going to keep track of the digital transformation journey, and if any conflicting situation arises, how are you going to deal with it? If these aren't decided beforehand, it can halt the execution and cause adverse consequences. You need to decide on your check-in frequency- are you going to review weekly or fortnightly with the team? Ensure everyone is available at a pre-planned date for the discussion.
It would be good if you could have a dashboard designed to track the key aspects and their progress. It can be helpful in the long run. Since digital transformation is not a short-term process, relying on such tools to keep track of metrics is a good idea.
Deciding the budget related activities
Budget is a key aspect of digital transformation and one that requires a lot of approvals to be processed. Not only should the investments be strategically done, but they should also be dynamically tracked. Areas where investments are not reaping excellent benefits can be slowed down, and more funds can be allocated for projects that are successfully executing. Sometimes, cutting budgets may be required; other times, companies may have to exceed the budget limit- it all depends on their unique digital transformation strategies and how the process is ongoing in an organization.
Wrapping Up
Digital is a defining factor in today's business environment. However, taking a mere decision to go digital with your business is not enough. You need to carefully plan your digital journey and take measures to execute it efficiently. These five decisions concern five pillars of digital transformation, and coming to a clear conclusion about them can significantly help to make your organization's digital transformation smooth.
