3 Questions to Ask Before Starting a Digital Transformation

Intro

Implementing a digital transformation strategy is one of the most pressing challenges for business leaders today. Starting a digital transformation process fundamentally changes the way an organization operates, but if you make the attempt, it can pay off immensely for many years to come.

Digital transformation is much more than the implementation of new software throughout the organization, because technology is only a factor in this transformation.

Even bigger (and some argue a more important part of the process) is the cultural shift that the company is going through at every level — from team structures to a whole new way of thinking about how to use technology to streamline workflows.
Some projects may fail. This is especially common for companies with cultures resistant to change. After all, technology is only as good as the way it is implemented and used. That's why our teams work hard to help our customers avoid the most common pitfalls of digital transformation. Adopting new technologies and changing the way you think can be really challenging; however, these are the keys to a successful digital transformation with long-term value and impact. We are in constant contact with our clients as they create and go through their own digital transformation journey. Based on these conversations, we came up with three critical questions every business needs to ask before embarking on their digital transformation of their own.

1. Are your customers at the center of everything you do?

The main reason to undergo digital transformation is to effectively reorient the company around a holistic view of the customer: what they want, need and expect from your company. To do this, you need to throw out the rule from the pre-mobility days, when customers had less choice (and fewer opportunities to leave). Today's customers require commitment and service in a completely different way than in previous years. What does this mean for your business — and what makes your customers unique? Finally, what do your customers need from your company? This will help you develop a plan to improve your overall experience. Once this happens, you will need to join forces with different business units to begin executing this plan. In the beginning, it will probably be your IT team, but you also need to recruit key stakeholders and leaders from other parts of the organization — from the board to the youngest employees. Everyone needs to be equally involved in the digital transformation project in order to start working effectively.

2. What should you do to make employees accept changes on such a large scale?

Many companies fear that the implementation of digital transformation will result in internal paralysis rather than constant growth and success. Even if they recognize that short-term disruption can lead to long-term benefits, the potential shocks associated with the digital transformation agenda raise very serious concerns. Most people don't like change. Fortunately, digital transformation benefits both customers and employees, so it is important to communicate these benefits in the right way. If employees and leaders don't understand the benefits, they can quickly become an “army” fighting the battle for digital transformation. They need their vision of success that will flow down and be embraced by the wider team. A well-implemented digital transformation program can offer teams endless opportunities to upskill and take control of their career paths like never before. Leaders need to communicate the value of these changes, as well as their positive impact on personal and professional development.

3. How do you create a consistent vision of success?

Everyone in the organization needs to feel part of the digital transformation and the success it will create for the company. The vision must be communicated consistently and clearly — in a sense, it must become a guiding light for the entire organization, so that employees and customers understand the changes that are being made and why they are beneficial for everyone. Ensuring a steady flow of feedback is another great way to engage your entire organization in the process. Moreover, leaders must not only communicate from above, but also allow ideas and changes to this vision to be discussed by employees at all levels. This will increase engagement and a sense of shared success.

These are just three questions that come up in conversations with customers about digital transformation. Ensuring that businesses have what they need to succeed is crucial.

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