Digital transformation is not about technology, rather how organizations wield their digital tools.
Although we are deep in the age of digital, shift we know as digital transformation is far from over. Companies are completely reinventing themselves and constantly adapting to ensure that the next hot startup does not take over their business. However, many companies are buying technologies left and right and then figuring out how to use them just to keep up with the “digital age.” Let’s take a look at five steps you can take to ensure that the technology you are using is actionable.
Be strategic with your investments
Many companies begin their digital journey by making large investments. This approach is called a “boil the ocean,” implying a lack of connectivity to reality and logic. This should be avoided at all cost. When investing, whether in a startup or a partner company, ensure that they are aligned with needs of your company now, as well as your future needs. Test the technology, see if it fits your team needs, and only then make the investment.
Be business and data driven
The ultimate goal of any transformation is to drive business results right? The entire purpose of digital transformation has to be to increase the value of your company, either by driving increased revenue or becoming a more agile organization. Don’t pay for new data repositories when chances are you’ve already got a treasure trove of data waiting to be analyzed. Keep yourself focused on the end business goal, don’t be enticed by flashy tech that does not drive your bottom line.
Embrace the power of data and analytics
Data, data, data. This is ultimately what will help inform and drive every decision you make on your transformational journey. Data and analytics are both extremely powerful tools, but also very time-consuming. When you first implement analytics structures, you can find yourself staring at rows and rows of data that seem to make no sense. Stay focused, and find the actionable items in the data. Follow your analytics to determine the next step in your transformation. Let the data be your guide.
Ensure transformation is company-wide
We may have mentioned agile analytics once or twice on this blog, and there is a reason for that. No true digital transformation can take place without having a system that allows the entire company to become more effective. This is the core goal of agile analytics, to allow everyone access to the information that will let them do their job better. Let the data flow!
Find the balance between people and technology
It is important to recognize that while you may be bringing on new technologies, you are not eliminating your company’s most important asset: human capital. People are seen as the second biggest challenge to successful digital transformation, but are rarely considered a significant contributor to success.
Credit for success is generally attributed to the c-suite and not to the lower level employees. Those who stand in the way of your transformation can be replaced with new employees who view the new processes and flows as standard. It’s harsh, but it is the reality.
These are not steps to be followed in any particular order, but rather an outline of necessary milestones towards digital transformation. The effect these changes will have on the company and its bottom line will be significant, and will only increase from there. Keep these tips in mind, and while the transformation process will not be easy, it will ultimately be worth the journey.