ao link
Business Reporter
Business Reporter
Business Reporter
Search Business Report
My Account
Remember Login
My Account
Remember Login

Digital transformation does not start with technology

Sponsored by Partners in Performance
Linked InTwitterFacebook

A staggering percentage of digital transformations provide meagre returns for their organisations. Where does the blame lie and what can be done to ensure the best chances of success?

 

Perhaps you are reading this and thinking, “I know exactly how to embed digital across my business” or you have just embarked on a transformation and are extremely confident of success.

 

Sadly, the cold reality is that the vast majority of organisations fail to realise the benefit from digital transformation.

 

To flip the odds, organisations must understand that no technology offers a ‘one-size-fits-all’ solution – a crucial reality often overlooked in favour of speed or assumed convenience. Simply automating a bad process does not fix its underlying issues.

 

The first step is to understand where value can be generated – this will help identify the right technologies for the organisation to deliver and sustain excellent outcomes, whether that is increased production, improved revenues or growth in new markets.

 

Our firm defines digital value transformation as the process of leveraging the right digital technologies to achieve high performance that delivers and sustains excellent outcomes (revenue, growth or operational results).

 

Finding the value

 

Perceptions of value vary greatly and there is an industry-wide misconception around why organisations need technology.

 

Not every business will require the same solution, and none should leap into action until they have fully defined their needs. This is easier said than done for organisations bombarded by vendor promises of the ‘perfect solution’ and media pronouncements of new advancements that will cure all ills.

 

To make your organisation a success story, do less and do it really, really well. Simplify technology by first clearly defining the tangible benefits to the organisation. Begin with a focus on understanding the root causes of operational inefficiencies and key cost drivers and how to better serve consumers to generate higher margins and capture greater market share. Only then can you determine the right technology that is fit for purpose to optimise across cost levers while improving processes and customer experience.

 

To get a clearer picture, engage the frontline – those who are doing the doing, every day – to understand their pain points and end-user needs. This critical first step is key to thoroughly evaluating how, and if, vendor promises will deliver to both organisational and customer needs.

 

Further, it lays the foundation towards building the organisational alignment needed to drive change as understanding needs and selecting value-focused technology is only the first phase of the transformation journey. The next phase, integrating new solutions effectively into established operations, is often the greatest challenge.

 

Talent and culture, not technology

 

If an organisation would rather take the path of least resistance, it may feel that the latest technology is a silver bullet – that it can somehow implement a digital process without the necessary initial pangs of change.

 

It cannot. Undertaking a digital transformation is about talent and culture, not just technology.

All too often, technology is implemented before procedures and processes are fully aligned to realise maximum value, if altered at all. For example, a sophisticated AI-enabled reporting tool is implemented, but the information output follows the legacy process of exporting to an Excel worksheet and manually emailing to a manager; or an advanced customer management tool with chatbots is rolled out but the information gleaned from interactions with customers is not fed back to operational teams to drive improvements.

 

Successfully embedding your new technology requires processes to be adapted and behaviours changed. Typically, this requires new procedures and adjusted targets, as well as intensive team training to ensure they can adopt and sustain the new technology to its full extent.

 

In our experience, the most successful digital transformations have begun with thorough introspection to gain understanding. To the outside world, their success may look easy. In reality, their ‘seamless’ transformation required a layered and comprehensive approach, ensuring the right steps were taken, at the right time, toward the right application of technology.

 

Today, industries that best weather disruption in terms of short-term liquidity, and that maintain a largely positive outlook on future profitability, are the ones that have the largest means to successfully digitise their organisations.

 

While prospects for success can seem daunting, organisations that successfully transform, and then continuously improve, will be built on technology solutions that generate value, are fit for purpose and are powered by forward-thinking leadership and an inspired frontline.


Partners in Performance is currently enhancing its research on the importance of digital transformations to organisations. To receive industry-wide results, including emerging challenges, insights and best practices, take part in our Digital Value Transformation Survey

 


By Ali-Reza Moschtaghi (London) and Juan Ferrara (New York), Partners in Performance

Sponsored by Partners in Performance
Linked InTwitterFacebook
Business Reporter

23-29 Hendon Lane, London, N3 1RT

23-29 Hendon Lane, London, N3 1RT

020 8349 4363

© 2023, Lyonsdown Limited. Business Reporter® is a registered trademark of Lyonsdown Ltd. VAT registration number: 830519543