SUMMARY
As organisations embrace the ubiquity of digital, they are completely reshaping the customer and employee experience
When you think of a digital transformation plan, the first thing that comes to mind is a detailed three-year plan complete with benchmarks and goals for where you need to be by a certain date
If the primary metric of digital transformation is value, you should always have something to demonstrate the positive impact of your work
Organisations are reshaping themselves, bringing in new talent and technologies, and searching for the next big break. As they embrace the ubiquity of digital, they are completely reshaping the customer and employee experience.
Most businesses, however, are still in the middle of the course, wondering if they took a wrong turn or why their metaphorical engine never seems to start up. There are a few victories, but there are many more tasks to complete and people waiting for things to change.
As digital leaders try to keep everyone motivated and moving forward, they must pause and reflect on what truly matters and what they can let go of.
It’s Not About The Money
According to IDC, global spending on digital transformation has now surpassed $1.8 Tn. The most shocking aspect of that figure is that no one believes it is excessive.
We are in the midst of the ‘whatever it takes’ era of digital transformation. The winners are already established and have a head start in the digital economy. Every other organisation is attempting to determine how to avoid missing the boat.
So, while CIOs don’t have a blank check to work on digital transformation, let’s just say it’s fading. If you make it across the finish line, you are unlikely to have many people asking to see your receipts.
It’s Not (All) About The Time
When you think of a digital transformation plan, the first thing that comes to mind is a detailed three-year plan complete with benchmarks and goals for where you need to be by a certain date.
Effective digital transformation requires careful planning. It doesn’t matter if you take a few detours along the way as long as you get there. Few boards will ask a successful CIO to go back and prove that they met their metrics exactly when they said they would.
It’s All About Value
The only metric that matters is value. As long as the rest of the C-suite sees that a digital transformation project is adding value, it will continue, and the digital leader will be recognised.
However, according to BCG, 70% of all digital transformation projects fail to demonstrate that value. Most digital leaders aren’t getting the results they need to justify their time, talent, and resources.
Three Categories Of Digital Transformation
To begin, consider three broad categories of digital transformation projects. The first is the creative work of developing new digital business models and generating new revenue from digital channels. The second step is to revamp the customer experience and strive to meet their ever-increasing expectations. The third step is to transform your internal operations by streamlining and automating processes and developing applications to improve the employee experience.
Discovering new digital business models is the most exciting of the three and will earn you fame both within and outside of your company. However, it also has the highest failure risk and the longest time to demonstrate value.
Focusing on the customer experience is critical and requires your best efforts. However, the failure risk remains moderate. What you put out into the world must function flawlessly and meet the expectations of your customers. Building an ecosystem that truly delights your customers also takes time.
That leaves internal operations to be transformed. It is generally the least interesting for most digital professionals because it does not generate the same amount of attention as the other categories. However, digitally transforming your internal operations is a low-risk and quick turnaround activity.
IT developers can collaborate with citizen developers on the right platform to create the solutions they require in a fraction of the time. These applications have an impact on everyone in the organisation at some point and expose people to what is going on.
Mitigating The Risk
If the primary metric of digital transformation is value, you should always have something to demonstrate the positive impact of your work. By focusing on internal operations, you can start with a lot of value right away and build momentum as you work on the other aspects of digital transformation.
Internal operations are also highly visible to the entire company and excite everyone about what is to come. Something as simple as an efficient expense reporting tool or a leave request application requires very little time to develop but provides a lot of positive and immediate value.
While boards and CEOs do not intend to stop investing in digital transformation, they may decide to stop investing in digital leaders who are unable to demonstrate value quickly enough. By focusing on modernising internal operations, CIOs and transformation leaders are reducing the risk of a failed digital transformation and building momentum for even more work.
