Digital transformation is a term that’s often thrown around in the business world, but it’s frequently misunderstood. It’s not just a one-time project, but rather a complete transformation of the organization and its offerings. It encompasses everything from the way things are done to the tools of the trade, company culture, and processes. To succeed, it requires translating your strategic direction into a range of business initiatives that leverage digital technology and include all relevant elements, from business models to organizational and cultural changes.
One effective way to establish a shared understanding of business activities is to use the Operating Model Canvas. This highly visual model provides a detailed view of the processes, information domains, and supporting services, as well as a graphical representation of the organization’s digital assets and deployed resources. No matter what your digital ambition is, every organization has digital and physical assets that can be combined or leveraged separately to support a better customer experience. Analyzing the internal and external environment is a core element of this process and provides inputs and outputs to the model.
However, don’t forget the importance of people in your transformation journey. Change is difficult, but it’s essential, and it’s the only constant in today’s fast-paced world. However, change can disrupt the current order and affect everyone in your organization, leading to loss of confidence, motivation, customer satisfaction, and ultimately, poorer financial results. Effective communication, skill development of existing staff, and engagement are all key to a successful transformation. You may also need to complement your existing staff with new, digitally experienced and skilled staff to support your transformation efforts.
Based on our experience with digital transformation initiatives, we’ve found that too much time and effort is often spent on the process and the fact-based definition of strategy and direction, with too little attention paid to people, who are ultimately core to your success. Don’t make this mistake. Ensure that you prioritize people and their needs throughout the transformation journey to achieve long-term success.