Digitial Transformation is a new, innovative business model that describes the rationale how your organization creates, delivers and captures value across the entire value chain by using the power of the internet.
Today I came across this story from memeburn.com that shares how digital transformation works.
Jonathan Houston says the real benefit is to focusing strategy transformation instead of digital transformation is that it highlights the fundamental role of leadership and organizational capabilities in capturing the real business value from technological innovations.
Traditionally every digital transformation project is IT led, which means it is incredibly IT centric.
The problem with this is that technology does not directly give value to a business.
The real value in digital transformation is in doing things differently.
The value of e-commerce is not the internet, it’s about buying, creating and selling products differently.
The digital transformation enables you to work differently across the entire value chain.
Read the article:
thumbnail courtesy of memeburn.com
Digital transformation is certainly the buzzword of the decade. It has made Buzzword Bingo winners the world over as it has punctuated every digital, tech, futurist, and marketing conference in recent memory. This article it not meant to question the viability of digital transformation, but rather challenge its focus. Traditionally every digital transformation project is IT led, which means that it is incredibly technology-centric. The problem with this is that technology does not directly give value to a business; nor has it ever (with the exception of technology in products). The value in technology and indeed with digital transformation, is in doing things differently. Digital transformation: we need better business strategies, not digital strategies
How to Quick Start Your Digital Transformation
To start your digital transformation project successfully, you’ll need to do these 3 tasks:
- Gaining Top Management Commitment
- Establishing a Program Management Organization
- Kick Starting Your Digital Transformation Program
1. Gaining Top Management Commitment
First, you’ll strive for gaining commitment of the entire management team.
The risk of failure is high, if your top management is not committed to the transformation process.
The best way is to invite an independent digital strategy consultant to moderate a strategy session.
You’ll discuss your current position, outline your goal, and the strategic steps to reach your goal.
Your goal is to transforming your organization to become the digital leader in your sector.
The result of the strategy session will be used to establish your program organization.
Your top management team will act as the steering group.
2. Establishing a Program Organization
It’s a matter of fact that your program leader must come from business.
If your program leader comes from IT , the team will focus on creating IT solutions rather than providing value to your clients by using IT to optimize the entire value chain
Your business manager has transformed existing businesses successfully and established new business ventures internationally.
The first task of your business manager is to establish his program organization.
The program organization consists of members from:
- Procurement
- Operations
- Sales
- IT
- Controlling
Next the steering group and the program organization will meet to kick off the program.
3. Kick Starting Your Digital Transformation Program
Finally, you’ll organize a kick off meeting to kick off the program and set targets.
This demonstrates the commitment of the entire top management team to the transformation program.
You’ll stress the importance of creating a business case that shows cash flow improvements.
You want to emphasize Quick Wins that create a positive cash flow within 90 days.
You’ll ask the program team to create a business case for the digital transformation program within 2 weeks.
You’ll ask the team to create quick wins rapidly and stakeholder value sustainably.
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