Digital transformations are even more difficult to achieve than traditional ones.
Nevertheless, according to a Forbes Insights survey, digitalization is at the top of companies’ strategic agenda and the next five years are crucial in this regard. Half of the respondents to the survey believe that their organization will be greatly transformed during this period.
Digital technologies are dramatically reshaping every industry, and companies are continuing their large-scale transformation to take advantage of these changes or simply to keep up with their competitors.
To have a better understanding of what a digital transformation is, we break it down into 5 main themes: leadership, training, employee empowerment, tool development, and communication.
The DNA of digital transformations
Organizations that are successful in their digital transformation are often deploying more technology than others. This may seem counter-intuitive, as a broader set of technologies could lead to a more complex transformation and, therefore, more potential for failure.
But organizations that experienced a successful transformation are often using more sophisticated technologies, such as artificial intelligence, the Internet of Things, and advanced “machine learning” techniques which are not only powerful digital tools, but also great to help with the transition.
Change occurs at all levels during a digital transformation, and the needs in staff and skills are greatly impacted. That’s why it is common for management teams to change during such transformation. Usually, members of the executive team are replaced by new ones that are more familiar with digital technologies. The addition of such leaders is one of the keys to a successful transformation.
Another important fact, less than one-third of organizations have worked with consulting firms or consultants to support their transformations. But those that did have been 1.6 times more likely than others to have a successful digital transformation. Proving that it is a big challenge where outside help and support can make a big difference.
Building skills of the workforce of the future
Training staff and developing skills within the organization is one of the most important factors to successfully transition into a digital era. First, the roles and responsibilities of individuals must be redefined to align with the news needs and goals of the business. This will help the company to clarify what position and needs are filled by their current employees and the ones for which they need to hire.
Individuals who take on integrator roles help their colleagues build new skills and retain talents within the company. Integrators are employees who help implement new digital methods and processes into the existing workflow. Because they have experience with how the company works and understand the potential of digital technologies, integrators are well equipped to connect the traditional and digital parts of the business. On the other side, technology and innovation managers use their specialized technical skills to lead the work on a company’s digital innovations.
Empowering people to work in new ways
The digital transformation requires changes in corporate culture and behaviors such as calculated risk-taking, increased collaboration, and a more customer-centric approach.
Encourage these new behaviors and new ways of working, such as continuous learning, or open work environments, and offer employees the opportunity to share their own ideas about where digital tech and tools could and should be adopted.
The new approach must also give employees more autonomy by ensuring that each member of the organization plays a role in the transition.
Giving everyday tools a digital update
For organizations to empower employees to work in new ways, digitization of tools and processes must be at the heart of the transformation and become standard in the organization.
The first key is the adoption of digital tools to make information more accessible across the organization. This alone can more than double the likelihood of a successful transformation.
The second is the addition of digital technologies made available to employees and business partners.
A third crucial point is the modification of standard operating procedures to include new technologies.
Beyond these factors, increased decision making using data and the use of interactive tools will also increase the success rate of a transformation.
Communicate continuously
Communication is one of the keys to a successful transformation project and must help employees understand where the organization is heading, why it is changing, and why the changes are important. In organizations that follow this practice, a transformation is 3x more likely to be successful.
A second key element is the need for senior managers to instill a sense of urgency to make the necessary changes for transformation in their teams. Research suggests that when a company communicates about the purpose of its change, companies who have a better, richer story behind them and their transformation are more likely to succeed.
Also, using remote communications methods to convey the vision of a transformation is a much better way to support a digital transition than traditional channels or face-to-face meetings.
The potential of Big Data
Everyone knows that we haven’t reached the peak of data analysis possibilities. While less than half of companies consider themselves advanced or leaders in managing and analyzing data, a large majority of them have already seen their revenues grow through the use of Big Data. But only one-third of companies see themselves as leaders in customer experience thanks to their digital transformation. That clearly shows a huge potential for other companies to grow.
Currently, most teams in companies are not sufficiently involved in the development or implementation of the Big Data strategy, with most of this work being carried out by the IS department, which is considered to be the team best prepared for the digital transformation, while the other departments are often lagging behind.
Companies need to learn how to best marry technology and human resources as well because they can both benefit each other. Human resources (defined as staff and skills within the organization) are often not playing the big role they should play in the success of a digital transformation.
Even if the new digital reality can shake up the organization, IS teams need to be at the center of that transformation and have to become system integration specialists. Their mission is to help their colleagues adopt new tools and techs and create scripts and automation so robots can do part of the work.
Perspectives for the future
While leaders argue that many digital transformations fail to improve performance and equip organizations to support change, lessons can be learned from those who have been successful in their transition.
- Reimagine the Workplace: Results show that success requires both digital-savvy leaders and a workforce capable of making the changes necessary for the digital transformation. The impact of digitalization and automation on the workforce is significant, and companies will need to invest in training their current employees and hire people with radically different skills for their future needs. Whether or not an organization has already embarked on a digital transformation, it is important to think critically about how digitalization might affect their business, both in the short and long term, and what skills they will need to stay relevant. A critical step is for organizations to develop clear strategies for their workforce to help them identify the digital skills and abilities they currently have and the ones they need to hire to achieve their future goals.
- Change your organization at its core: As digital technology requires new ways of working and changes in the corporate culture, employees must be empowered to work differently and keep up with the faster pace at which business is done. Implementing digital tools and upgrading processes, as well as developing a more flexible operating model will support these changes. Of course, leaders also have an important role to play in moving away from old practices (by giving up vertical supervision and continuous monitoring, for example).
- Change the way you communicate: Good communication has always been key to the success of any transformation. And it is just as important if not more important in a digital transformation. In a digital environment, companies need to be more creative in the channels they use to enable new ways of working faster and to accelerate the change of mindset and behavior that a digital transformation requires. One change that is needed is to move away from traditional channels and adopt more interactive platforms (such as internal social media) that enable open dialogues across the organization. Another key to better communication is to develop more concise, even personalized messages to the staff, rather than more conventional communications methods like meetings or presentations.
In short…
10 key factors for a successful digital transformation
- Implement digital sharing tools, to make information more accessible across the organization.
- Involve every part of the organization, to make every employee actor of the transformation.
- Update the organization’s processes, by including digital tools and taking into account the overall transformations happening across the board.
- Establish clear objectives regarding the transformation, and describe and explain these objectives in a transparent manner.
- Include one or more digital specialist(s) in the management team, to help adapt the corporate culture to the new challenges and bring another perspective to the company.
- Encourage teams to make proposals, to update existing processes with digital tech and tools.
- Redefine the role and scope of work of each person, to ensure that everyone’s missions are clear within the new digitalized organization.
- Organize workshops around new work methods, such as continuous education, working from home, role mobility, and more.
- Involve employees in the transformation, to build a bridge between the traditional and the new digital organization.
- Make digital solutions and tools available on self-service to employees, partners…
