Wednesday, May 22, 2019

Taking Three Dedicated Efforts to Accelerate Digital Transformation

Digital transformation isn’t just an extension of continuous improvement of the current business but a quantum leap with radical change on a grand level.

Digital disruptions are frequent and unstructured, businesses leaders just have to get used to the new normal, learn how to deal with them smoothly, The digital organization is a dynamic system which needs to continue evolving and adapting, be able to identify the critical spot to scale up, take a systematic approach to develop business strengths and adapt to the “VUCA” characteristics of the dynamic business world. Here are three dedicated effort to improve organizational maturity and accelerate digital transformation.

Building core competencies: First of all, organizations need to survive, transactional or operational capabilities help them “keep the lights on” and improve business efficiency. But to thrive and move up the business maturity, transformational capability can often make the radical change in the organizational structure, culture, and management, etc, to evoke fundamental evolutions of business systems. To differentiate and accelerate, every competitive organization needs to have a unique set of core competencies to achieve business goals. Competency is a combination of capabilities with a focus, and core competency is a harmonization of multiple capabilities to differentiate the business from its competitors, gain market shares and improve business profitability, stand out, build up the long-term business advantage and a strong business brand. A set of capabilities can also be combined in a different fashion to yield multiple competencies. The competitive business usually has a unique set of core competencies to achieve its business goals, highly responsive to changes, become design-driven and deliver quality products and services to delight customers. Their multiple core competencies could be all working at the same time, as something they can monetize, develop a strong brand and accelerate the speed of changes.

Fostering innovation: Digital organizations arise when the scale of the interrelations, interactions, or interrelational interactions enables them to connect wider dots for spurring creative ideas, brings the new cycle of business growth and reaches the next level of organizational maturity. Different companies perhaps have their own focal point to do innovations: Are you focusing on incremental innovation by adding new features or capabilities to existing products or services? Or are you focusing on radical innovation by planning to create something entirely new, a brand new category? Insightful digital leaders with their finger on the pulse of technological advancement or information insight can provide many ideas on how to create fresh new opportunities, renovate business model for upcoming business expansion. Being innovative is a state of mind. It’s about establishing and nurturing a unique way of thinking in which innovation is in every aspect of the business. To build a highly innovative organization, it’s important to take a disciplined approach with structural processes to discover and build opportunities in creating new meaningful sources of value to target users. The organization needs innovation silver lining from specific tools rising to an overall creative problem-solving business environment, and take dedicated efforts to develop their innovation competency. Therefore, the best point of view is to perceive innovation as a system which is capable of building a balanced innovation portfolio for optimizing resource, delivering organizational-wide capabilities, and enhancing the link between strategic management and digital transformation.

Strengthing the people link: People are always the most invaluable asset but the weakest link in organizations. Thus, strengthening the people link is a crucial step of accelerating the speed of change and achieving a digital breakthrough. In fact, the part of the digital transformation journey is to prepare people for shaping the digital mindset and adapting to the new structures. However, in many digital lagging organizations with the traditional business setting, companies still treat their people as cost, headcount or resource only. Old line leaders expect command-control, digital workforces demand engagement. Organizational development and people management need to manage the conflict between the classic style and the digital style of the management to make a seamless paradigm shift by applying the new methodologies and practices and making a smooth alignment of people, process, and technology. The digital management needs to orient their thinking to understand and recognize that everyone plays a "piece of the pie," encourage teamwork, focus on the employee experience in the work, keep the employees satisfied and engaged in order to strengthen the people link, unleash the collective human potential and build long-term business competency.

The future of the digital organization needs to be solid enough to give some sort of form/meaning and open enough to its environment to allow movement of people, ideas, and information in and out. Digital transformation isn’t just an extension of continuous improvement of the current business but a quantum leap with radical change on a grand level. The organizational management needs to take some dedicated efforts for building differentiated business competency, fostering innovation, and strengthening people link, The purpose of such radical digitalization is to make a significant difference in the overall levels of customer delight, achieve high performing business result and build a people-centric organization.


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