Fundamentals You Need To Worry About

The simple fact is digital transformation projects, for the most part, end in failure. Harsh as this may sound, it is true. The average digital transformation process, no matter how well planned, often fails because it lacks one or more of the fundamentals that are needed to make it successful. Success requires you to pull together the fundamentals into a single, unified process. They are technology, data, people, process and organisational change capabilities.

Technology

With technological advancements comes many solutions in the form of the Internet of Things, AI, blockchains and cloud computing. Though they all play an integral part in digital transformation, they are only one part of the equation. The other half is how you can integrate them into existing business processes, which is arguably far more complex than the tools themselves.

Most companies operate on older methodologies which have been in place so long, that changing them or suddenly introducing new technology into the mix could severely disrupt how the business operates. That is why it helps to have a plan for gradual technology integration in place before jumping in. Another thing that can help with that is a skilled IT department.

Data

It goes hand-in-hand with the technology aspect, yet it is one of the most neglected parts of the process. This is not to say that it is completely ignored – companies are very well-aware of the data they have access to and they know it may not be up to standard to achieve what is needed.

The issue lies in the mishandling of data, either because the company lacks the infrastructure to process it or skilled personnel to do it. You need to have a team that can decipher large pools of data in short periods of time, while also being able to differentiate and discard data that is not usable. Streamlining is the aim.

People

Speaking of hiring a team that can handle large amounts of data, you need to ensure that, even after you select and hire the most skilled individuals, you continue to refine and hone their skills. The more training, they receive on a regular basis, the more upskilling happens and the smoother the integration process will go.

Process

There is a need to change the operational process of the business in parallel to the digital transformation. The change that needs to happen comes in the form of rethinking ways in which the new digital approach can help deliver to the customer what they want. The challenge that comes with this move for change is that most businesses and management heads find it difficult to do so while clinging to traditional hierarchical structures. As a result, this aspect has been very neglected and turns the transformation process into a cautious approach. While these incremental steps are valuable, they are not really transformational.

The solution for this perhaps lies in moving away completely from such a mindset, in favour of something more modern. As much as you change the technology to suit the times, you must also change the nature of the business to suit the transformation.

Organisational Change Capability

This aspect has more to do with the managerial and leadership domains of the transformation process. Other than the usual – good communication skills, listening, work ethics and so on – the context here is a skill. Skill in the sense that whoever is leading the charge on the digital transformation of a business, has to be an expert on the subject.

If not, all the time and money invested in it will be pointless as the project will fail or not take hold as effectively. Outsourcing is the best way to find such skilled individuals who can lead the change in the ‘human’ side of things.