What makes a true digital transformation?

The current state of play

The workplace of the future is continually being redefined by digital disruption across the globe. Technology is enabling businesses and their employees to be more productive than ever before, while gleaning valuable insights from enterprise data. Indeed, modern working environments demand a certain level of analytical output that can produce key insights into how the business functions. These days, enterprise data often resides in different applications used by sales, marketing, finance, HR and other departments. Organisations can generate deeper insights by connecting these systems via workflow engines, open APIs or analytical systems that can provide answers to enhancing growth and meeting business requirements in real-time.

Common obstacles to digital transformation 

Automation provides an important (and common) example of an obstacle businesses of all sizes will face during their digital transformation journeys. Automating parts of a business can help to reduce inefficiencies and improve employee productivity, which can make an organisation more agile. Customer support, operations, IT support, sales and marketing are all areas where automation can be applied with great success. As an example, bots can be used to automate and handle repetitive tasks, freeing up employees for more important work that can add strategic value to the business. Yet, automation as a concept is likely to induce anxiety among workers who fear being replaced entirely. Internal communication is crucial here; automation at its best will support the human element of the business, and not make it redundant. Communicating the intent behind changes, such as reduced manual data entry, is a crucial part in ensuring workers are on-board and willing to adapt to the changes as they take effect.

Just as important as achieving buy-in from teams is getting the C-suite or business leaders on-board from the outset of any digital transformation initiatives. A successful journey will require cooperation and input from all aspects of the organisation. This will ensure that digital transformation is achieved as a collective, and rather than by disparate departments or offices, with data then used to inform and enhance other areas of the business, introducing additional (and even unexpected) benefits for other teams. Take ‘people analytics’ as an example. Arguably the future of business management, people analytics takes into account a company’s wealth of existing employee data – such as salary history, tenure and performance information – found in different systems and connects that data with the organisation’s business goals to give meaningful, actionable insights.

Seamless integration is crucial here; it’s no use having innovative applications in place if they fail to talk to one another, or provide benefit beyond their immediate, primary use. This will also ensure that myriad apps don’t actually add complexity and negate the benefits of digital transformation in the process. Streamlining processes is only beneficial if extra red-tape is not introduced elsewhere as a consequence!

Advice for businesses navigating their digital transformation initiatives

Smaller and younger organisations often have an edge over their larger, more established counterparts when it comes to digital transformation as they are typically more agile and less dependent on legacy systems. Indeed, organisations with fewer than 100 employees are 2.7 times more likely to report a successful digital transformation than those from organisations with more than 50,000 employees, according to the latest McKinsey Global Survey on digital transformation. Smaller teams may also find it easier to communicate both benefits and challenges internally, and more limited resources often makes integration a prerequisite, rather than merely an ideal scenario. Yet in practice, the process can present challenges and obstacles for businesses of all sizes, from start-ups to SMEs to enterprises.

The following considerations hold the key to any successful digital transformation.

●        Setting end-goals at the outset: Organisations should resist the urge to dive straight in and begin by identifying the ultimate objectives they are looking to achieve with their digital transformation. Mapping this out at the start will help those with responsibility for ensuring the project remains on track keep an eye on the bigger picture and make adjustments or additions where necessary

●        Connected applications and teams: As explored above, integration really is an essential element in deriving maximum benefit from a digital transformation journey. Applications must work together, supporting different teams, offices and the organisation as a whole, by generating a complete picture. Not only will this streamline processes and reduce time spent on manual processes, but it should also allow for actionable insights to be drawn in real-time

●        Communication, communication, communication: Change can be unsettling for employees and even senior decision-makers. It is the role of those driving digital transformation initiatives to be fully open and transparent when it comes to the intent, the vision and the process as it is undertaken. Allaying any early fears, or debunking misconceptions, will reduce resistance to change and ensure that teams are on-board and welcoming of their new digital workplace. Here it is important to be as open and honest about any potential disruption in the transition period as the ultimate benefits on offer once this is completed

●        Embrace privacy by design: In some cases, the digital era’s many business benefits have come at the cost of data protection and privacy for users. In response, tighter data protection legislation, most notable including the General Data Protection Regulation (GDPR), have provided a welcome step in forcing companies to seek permission from users before they see advertisements, for instance. Added to which, some technology companies have effectively established the business model that if a user is not paying for the product, it is because they are the product, which has also led to governments stepping in to protect consumer privacy. Organisations must be acutely aware of these issues as they progress their digital transformation initiatives

Digital transformation will inevitably mean something slightly different to individual organisations, but at its core, a true transformation will deliver fundamental change through the integration of technology into all areas of the business. A potentially complex process involving many moving parts and introducing numerous challenges in the process, it will fundamentally change how a business operates and the experience of users and customers into the bargain. In my experience, a considered and joined-up approach, in which collaboration, communication and integration are at the forefront, can make all the difference, ensuring that digital transformation enhances and drives an organisation’s success while enabling it to overcome any obstacles, both now and in the future. 

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