The Route to Digital Transformation
Digital transformation is everywhere. You can see it emerging in marketing, sales, HR, supply chain and finance — as well as in domains such as plant operations and maintenance. Digital transformation is opening up new opportunities, challenging the traditional methods and changing the way we think and act.
In essence, digital transformation is a massive disruption, and for companies that want to become the new leaders, it offers a remarkable opportunity. Digital maturity equals 26% more profitability, 9% more growth and 9% higher market valuations according to Accenture and MIT. These are promising numbers, but according to recent article in Forbes , 84% of companies currently fail to achieve digital transformation.
Companies that are committed to helping process manufacturing companies leverage operational intelligence are key to this digital transformation. Software helps to inform continuous improvement, but we know that software alone is not enough. Companies also need an active support team to achieve next-generation productivity and to create a digitally enabled workforce.
Due to this core focus, it’s necessary to spend time talking to potential customers to understand their needs with relation to transformation and digitization. Those discussions frequently spark new ideas for further improvement of software, but they also reveal some recurring trends and challenges.
The best way to overcome these barriers to successful transformation is by using proven best practices. In this article, we will dive deeper into some of the most important and interesting concepts that are crucial to achieving a successful digital transformation, such as:
1. Executive support is critical, but not enough 2. Start small, celebrate quickly and scale fast 3. Big corporations need to embrace the concept of failing forward 4. Technology adoption is only going faster and faster 5. Management of change is critical for success
Some of these concepts may seem like counterintuitive or irrelevant considerations, but in practice, they are not. By understanding how these concepts affect your transformation initiatives, you can increase your chance of success more easily than you may imagine.
1. Executive Support is Critical, But Not Enough
There is no question that having buy-in from the top is a must, but in addition, the whole organization should be engaged in the journey.
To initiate a successful transformation, decision makers need to believe in the potential value of analytics and operational intelligence. However, a frequent challenge to this support is the tendency of leaders to demand a proven return on investment (ROI) before being willing to commit their budgets to a new and speculative program. Often the economic questions that leaders ask cannot be directly answered at the onset. When this approach of proof before investment is pursued, it can easily become a showstopper — killing the potential opportunity.
Visionary leaders can instead support the beginning groundwork by helping to tear down internal barriers and support the potential gains. By promoting transformation as a positive change for all, executives can attract bottom-up acceptance throughout the organization — this is the key to success. Transformation works best when all levels of the organization are engaged.
Instead of only pushing a vision down, top leaders will identify champions and advocates who can help them generate momentum through cross-functional teams. These teams can be established and with the visible support of the executive, can be given a clear mandate to get things done and sufficient resources to enable the program. Their responsibilities within the transformation program can form a part of their yearly key performance indicators (KPIs), formalizing their contributions in a transparent way.
From a strategy standpoint, starting small and celebrating fast with an eye toward scaling quickly is the best formula to implement change.
Posted on 7wData.be.