Digital transformation has been a business goal for some
time now, so you'd be forgiven for thinking that most large organizations have
a solid strategy in place to achieve it. The reality is quite different.
According to a survey conducted by Wipro Digital in 2017, half of the 400
US-based top executives believe that their company is not successfully
implementing 50% of its digital strategies. One in five consider the digital
transformation of their business a waste of time1.
In order not to fall into these statistics, it is important
to create a strategic digital foundation based on reality. By developing a
carefully planned digital framework, organizations can critically examine their
ideas and take practical steps to achieve transformation goals. They will also
be better able to anticipate any problems that may come along the way.
Experts predict that digital transformation spending will
reach $2 trillion by 2022,2 and if the Wipro Digital survey proves true, much
of that money could be wasted. Therefore, companies need to think carefully
about what technologies they invest in and how they implement them to make sure
they really reap the benefits.
Here are the five key elements needed to create a
successful strategic digital framework:
Image from the GetSmarter blog
This combination of strategic and practical elements will
help you develop the structure and processes you need to successfully implement
your digital transformation.
clear goals
The strength of a strategic digital framework lies in its
purpose. Less digitally mature companies tend to focus on specific technologies
and use them to improve overall operations, while more mature organizations
develop digital strategies with the intention of transforming their entire
business3.
One method that lies on the edge between these approaches is
the McKinsey Digital Transformation Model. According to McKinsey, technology
adds value to businesses in four ways: product innovation, automation, improved
communication, and better decision making.
This digital framework looks at the impact of digital
technologies on your internal processes and how you can use them strategically
to become more competitive in your market.
Image from the GetSmarter blog
Source: Olanrewaju, T. and Willmott, P. (North Dakota).
"Find your digital sweet spot." Retrieved from McKinsey. Retrieved
May 3, 2019.
Whether you are completely transforming your business model,
or simply looking to improve overall operations, it is essential to have a
clear purpose in mind when developing your strategic framework.
To begin this journey, ask yourself the following questions:
Why are you investing in digital transformation?
What is your priority?
How will you measure success?
What is your starting point?5
A complex approach
Businesses work with a range of different technical systems,
so a holistic approach is needed when considering digital transformation.
Your customers interact with you not just once, but at
multiple touchpoints throughout the customer journey, each requiring its own
system and process. You can conduct marketing activities in one system, process
customer requests in another, and record your data in yet another system6.
Today, customers expect this process to go as smoothly as
possible. As a result, the more you can automate and improve every step in the
value chain, the better the experience for both your customers and your staff.
Leader acceptance
Too often, the lack of digital adoption is rooted in a lack
of leadership, especially leaders who have not formed the right mindset for
digital strategy.
According to research by Digital McKinsey, many executives
tend to be overly cautious when it comes to transformation, adding that
"In today's environment, making incremental change is like rearranging the
sun loungers on the Titanic." 7 Without a commitment to real change, there
is every chance your efforts will fail.
These kinds of changes require enterprise-wide adoption, and
leaders need to take the reins to bridge the gap between technology and
business. While you can think of digital strategy in terms of a top-down and
bottom-up approach, leadership support is critical at every stage. People at
the top have a better understanding of both the market they operate in and
their internal business needs, and more importantly, they have the power to
make changes.
Source: (S/f). Bottom-up approach vs. top-down approach
