Getting Started: Top 4 Pillars for a Digital Transformation

Lately, I hear the term digital transformation used interchangeably with business transformation. That is not correct. There are similarities but also key differences. As we look at the four pillars of a digital transformation approach, I will point out the differences. There are four key areas that you need to include in your approach for a successful digital transformation, which is fundamentally about how businesses function and interact with users. You will need to rethink the use of technology in conjunction with processes and people to positively impact business performance.

Technology is a driver.

In true digital transformations, technology is used to define a future state and plays a critical role in disrupting existing business processes. In a business transformation, technology is an enabler rather than a priority. We are experiencing a technology revolution where AI-based solutions will have a major impact on how we do business. According to IDC, 89% of organizations have adopted or plan to adopt a “digital-first” business strategy. Yet you cannot buy a digital transformation software product. Executives must be ready to use a range of technologies to identify which ones will deliver the results they need. A digital transformation project leverages technologies with a key understanding of how business and IT converge to create a solution that will meet the unique needs of the organization or enterprise.

Change will impact people and organizations.

In the search for the latest technology to transform your department or enterprise, don’t lose sight of the impact on people. Unfortunately, it is common to see this as a last step to consider, and can impact your entire project if you do not consider this as a key element of your digital transformation plan. Business transformations should identify this as a priority. It is easy to lose focus on the people and organizational impact, but you will risk a successful transformation if this is not considered and managed throughout the program. Processes impact people. You can’t transform one without the other.

Have a clear strategy.

Many well-known consultants pride themselves on securing multi-million-dollar projects to drive business transformations. They start with strategy and organizational change and later bring in the technology required to enable the transformation. Regardless of your company’s size or budget, this drives home an important lesson. With any type of transformation, be clear on strategy and desired impact from the beginning. Your leadership team should be empowered to articulate the strategy or pull in a valued business partner to help you work through this step. Make sure you are aligned with senior leadership and stakeholders upfront.

Results matter.

In many digital transformations, outdated technologies are being replaced and applications are integrated into a unified process. Ripping out or integrating legacy systems is expensive and time-consuming. A pitfall teams make is to focus on the technology project at hand and not the bigger objective. Do not lose sight of your goal. As part of your business strategy, you should have outlined the business impact and measurable results. If this is an IT-led project, make sure you are including not just transactional service level agreements, but elevating your metrics to business performance KPIs. How is your initiative demonstrating a reduced time-to-business value? Meaningful projects come with the expectation of positive business impact and must demonstrate the value, both short and long-term.

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