Digital Transformation: 7 Important Questions for Your Organization

Digital Transformation: 7 Important Questions for Your Organization

While digital investment is almost unquestionably the right course of action for most companies, organizations struggle to create the desired results. Estimates of digital transformation failures range from 66% to 84%.

 Such a high failure rate is not surprising, as leaders are trying to create entirely new competencies and force them into an organization with solid cultures and existing operating models. While most executives are change management professionals, digital transformation is more profound than the usual system or process update.

 Of course, digital technology can improve or augment existing ways of operating. 

 So, as you go through your digital transformation, we recommend starting with a few questions that go deeper than “what talent do you need” or “how much money will you spend” and delve into broader organizational readiness.


Is it a digital upgrade or a digital transformation?

Digital transformation for most companies ends with digital upgrades, where digital technology is used to enhance the efficiency or effectiveness of something that your company is already doing. 

For example, increasing your marketing spend for digital channels or upgrading your internal communication systems. On the other hand, a digital transformation occurs when you use digital technology to change how you do business, especially around customer interactions and value creation. 

 If you find that you are embarking on an upgrade rather than a transformation, ask yourself whether this will be enough to stay competitive. 


Do you and your team agree?

Digital technology and business models are on every executive’s radar, and there is an expectation that most companies need to change to stay current. However, one situation we’ve seen repeatedly is a leadership team trying to lead a digital transformation that they’re not particularly enthusiastic about.

 We all have core beliefs about what creates value in the world, and they shape the way we allocate our time, attention and capital. Most leaders have decades of experience focusing on factories, real estate, inventory and human capital. Abandoning these habitual priorities requires self-reflection, openness, and a concerted effort to develop new patterns in thought and action.


Are you ready to share value creation with your customers?

 The latest technology-enabled business model, network orchestration, is based on the fact that companies can allow customers and other networks to share the value creation process. Uber depends on a network of drivers; Airbnb relies on a network of homeowners; eBay depends on sellers. These networks are essential for organizations and, by accessing external assets, these companies can achieve exceptional profitability.

Sharing the workload seems like a winning proposition, but many leaders are hesitant to relinquish control and rely on a network outside their chain of command. Working with these outside groups requires new and co-creative leadership styles, allowing organizations to tap into vast sets of underutilized capabilities and resources.


Have you protected your digital team?

A digital upgrade requires a well-defined team with a limited scope. A digital transformation requires a team with a cross-functional mandate and solid support.

 This becomes an essential point because organizations often do not change their internal structure as part of the digital transformation. So the teams working on these transformations fit into the existing system.

 Where the team actually “is,” both physically and on the organizational chart, can affect its ability to influence member cross-functional groups for true digital transformation. 

We’ve seen many companies limit digital’s progress by basing their team on marketing or IT.


Do you know how to measure the value you intend to create?

You manage what you measure. Most organizations focus on physical capital (to make and sell products) or human capital (to provide services).

These companies monitor inventory, productivity, utilization, and other traditional key performance indicators (Key Performance Indicators, KPIs).

 Digital transformations don’t always affect the KPIs a company is already measuring. The ultimate goal of a transformation is to affect revenue, profitability, and investor value. Along the way, however, it is helpful to track intermediate indicators.

 For many digital networking companies, this includes feeling and engagement and value sharing and co-creating networks. For example, in judging the success of the Developer Network, Apple can measure the number of developers who build apps for its app store, the amount of money generated by those apps that Apple shares with its community, and customer satisfaction with the apps. 


Are you ready to judge your team?

There’s an old saying: “It’s easier to change people than it is to change people.” In other words, sometimes, a new vision requires new people to create it.

 For many, the digital people you need on your team and board do not reside in your organization at all or at least not in the right amount. Many of your current employees will be dedicated to doing what they have always done and created resistance and obstacles to change.

 To make room for your digital transformers, make judgments at the outset regarding your team and board. In our experience, nearly half of your staff and board will have to be replaced in the course of a successful digital

transformation. While painful, it’s a good thing for the organization: creating a balance between the old and the new.


Will you be ready to derive your digital business?

Sometimes, the new company within the organization becomes more extensive and more valuable than the parent company that gave rise to it – it either runs the risk of not attracting the right talent or faces disputes between digital and existing.

 (A great resource on this is The Second Curve by Ian Morrison.) Often, separation is required to enable both the parent and child to continue growth.

 Google specializes in creating new ventures and enabling them to grow; see its recent reorganization on Alphabet to allow each of its core businesses to pursue their potential (including Google and YouTube). In other organizations, the new digital company will absorb and improve its parent. 

 Transforming an organization is complex, and research proves it. But even so, it’s worth it.

 Final thoughts

 As a leader, you probably already know the basics of change management, but a digital transformation goes deeper and thus places different demands on you, your team, and your organization. On the other hand, however, you have the opportunity to invest in the most profitable and valuable business models the market has ever seen.


Best Digital Transformation Quotes to Lead Change and Drive Business Value

Best Digital Transformation Quotes to Lead Change and Drive Business Value

Digital Transformation has recently become the buzzword within Low Code No Code Sphere. Earlier there used to be a notion that digital transformation is just meant for business houses and companies. However, with time the notions and definitions both have changed significantly making it more of a “People business”.

As Mary Kate Loftus states,

“Digital used to be about coding and IT; now it’s becoming a people business.” Speaking of the definition:

Digital transformation is defined as the changes taking place within an industry or organization whereby the whole set of activities, models, processes, and marketing among other factors are being transformed by the adoption of digital technology with the aim of creating value for their customers, users, and citizens while at the same time expecting to out their competitors.

Digital leaders and renowned industry experts have been talking about digital transformation for years- On that note, here are some of the best digital transformation quotes and what they illustrate. Read them if you truly need to understand digital transformation and its value.

When digital transformation is done right, it’s like a caterpillar turning into a butterfly, but when done wrong, all you have is a really fast caterpillar.”

— George Westerman, MIT Sloan Initiative on the Digital Economy

Key Takeaway:  This quote subtly brings out the fact that digital transformation isn’t just a switch you turn on with the right amount of investment.  There is always a method to practice it correctly. If you have invested in digital infrastructure but don’t have the knowledge to best utilize the many tools it offers, then you haven’t transformed, rather just built a façade.

“90% of CEOs believe the digital economy will impact their industry, but less than 15% are executing on a digital strategy.”

—MIT Sloan and Capgemini

Key Takeaway: This is an interesting quote that brings out the worrying tendency for leaders (and perhaps humans in general) to understand something and yet not fully internalize what that something means. Too many leaders see the unstoppable wave that is digital transformation coming but choose not to act on that fact.

“You can’t delegate digital transformation for your company… You and your executives have to own it! Executives need to engage, embrace, and adopt new ways of working with the latest and emerging technologies.”

— Barry Ross, Ross & Ross International

Key Takeaway: This quote illustrates that digital transformation has to come from the top down to work well. Company leaders have to take charge. They cannot afford to take a hands-off approach. Not only will that lead to there being a disconnect in the digitization efforts, but they’ll also be making themselves less valuable to their company.

The biggest part of our digital transformation is changing the way we think.”

— Simeon Preston, Bupa

Key Takeaway: Another detrimental factor that goes into digital transformation is the mindset. Digital transformation is not just getting access to the technology of tomorrow, it’s about having a forward-thinking mindset and company culture. Digitization almost becomes ineffectual without the right outlook driving it.

We’ve moved from digital products and infrastructure to digital distribution and Web strategy to now into more holistic transformations that clearly are based on mobile, social media, digitization and the power of analytics and we think it’s really a new era requiring new strategies.”

Saul Berman, Chief Strategist, VP & Global Digital Business Strategy Practice Leader for IBM Global Business Services.

“The next 5 years will be more disruptive than the last 15. This is NOT business as usual. A lot of technology that came in three years ago doesn’t work anymore.”

— Saul Berman, IBM

Key Takeaway: Another statement on the exponential speed of technological innovation. Going digital simply means keeping your company afloat so that it has the infrastructure to continue growing technologically. It is a baseline.

There is no alternative to digital transformation. Visionary companies will carve out new strategic options for themselves — those that don’t adapt will fail.”

— Jeff Bezos, Amazon

Key Takeaway: And we come back around, full circle. Jeff Bezos himself unequivocally states that there is no other option to digital transformation for companies. It’s either to digitize or welcome failure.

…. Choose the transformation path that works for you

Each of these quotes draws on a very real element of the digital transformation reality. Why not use them to get you thinking about how to implement digital automation successfully in your own business?

Tigersheet is a uber-fast modern-day no-code platform that can help automate and streamline business processes in quick and easy steps. The intuitive drag and drop interface allows users with zero coding knowledge to create workflows and share them with your employees.

Using digital transformation quotes as a catalyst. Want to give it a try? Try a 30-day free trial of Tigersheet to witness the change in your organization today!