Saturday, December 17, 2016

Taking a Step-Wise Approach for Leading Digital Transformation

Walkthrough “look, listen, question, understand, plan, test and collaboration” stages for digital tuning.

At the high maturity level, organizations have to stretch out in every business dimension for driving innovations and the full-fledged digital transformation. Either being a disrupter or being disrupted, digitalization makes significant impacts on every aspect of the business from people, processes, to technology and capability both horizontally and vertically. And organizations have to take a step-wise approach, continue assessing, fine-tuning and adapting, ride above the learning curve and take the journey of digital transformation steadfastly.

Make an objective organizational assessment for digital transformation: Performing an organizational change impact assessment is very important to understand the 'current state' factors in digital transformation. Then determine what the impact, risks, and challenges of any proposed changes are. It’s very important for any high performing organization to get the best alignment and leverage the great human potential that exists or is needed to achieve great results and to tap into the passion of the people! It is also important to assess the stage in a life cycle the company is at or the type of tasks that need to be done. An organization or company may be in business for many years but has not matured its management practices or lack of well-defined sets of business principles. The bigger the 'change,' the more important to take these into account early rather than late.

Walkthrough “look, listen, question, understand, plan, test and collaboration” stages for digital tuning: Take advantage of the latest technology trend that provides the more effective way in cross-functional communication and cross-project collaboration. New generations of digital technologies such as social platform or other collaboration tools are enabling not only the structured processes of the past but also the unstructured processes of the social enterprise. It is the hybrid organizational structure well blends structured and unstructured processes to run at two speeds: industrial speed and digital speed. Functions that need the agility and customer intimacy can be decentralized and perhaps even embedded in business processes. Functions that are common to the enterprise or commodity services can be centralized to derive scale benefits. The key is to improve business agility and enhance cohesive business capabilities. Digital transformation is all about balancing the following main elements impacting change: People (the most important one), Process & Procedures and IT. And you have to maintain and fix any imbalance in those elements by managing them in a holistic way.

Maintaining the digital balance is a never-ending business life-cycle: The challenge for organizations is to manage its portfolio of relevant cross-border strategic synergies and organizational interdependence with the appropriate mix of enabling organizational elements, engaging digital talent and balancing effectiveness and efficiency. Moreover, a gap analysis, skills assessment, efficiency study, workflow analysis, and knowledge of trends and models that work best to meet the business goals are needed before new schemes and designs are created and agreed upon across the business and all shared services. Digital transformation is to create organizations where change is the norm and happens the whole time thereby delivering faster and increasing market share. Change cannot be just another thing that needs to be accomplished. It has to be woven into communication, process, and action of the organization.

Many organizations are at the inflection point of the digital transformation journey. The dynamic digital organizations need to get away from letting things fall through and start creating “integrated wholes.” Digital transformation to achieve organizational maturity is not just about technical excellence or process efficiency, but more about business effectiveness, agility, innovation, intelligence, and people-centricity.


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