It’s surprising how little is understood about digital transformation — and the profound organizational shifts it entails. In the interest of clarifying matters, we’ll review four important areas for analysis and share a handy checklist.
So, have you implemented Microsoft Teams in your organization yet? Are you using Zoom for video conferencing? Are you collecting statistics on leads and contacts via your CRM software? Are you receiving reports from your ERP system? Congratulations! You’ve concluded your digital transformation.
Or have you?
Many companies are boasting about how they’ve expanded their digital transformation last year. However, I believe they’re on the wrong track. Sure, their use of digital tools to accomplish everyday tasks has grown exponentially. But that’s not enough if they’re looking to complete a real digital transformation.
Organizations that are digitally mature tend to have road maps, leaderships, and budgets reserved for their digital initiatives. They have work teams that change across time and are in charge of implementing several digital projects simultaneously. And if these organizations have truly undergone a digital transformation, then they have likely adopted a “digital first” mindset. That means everything they do is, within the realm of possibility, digitally-oriented. Their very culture stands on digital pillars. In short: being digital defines them, it’s not just one alternative approach among many.
When starting out on the road to digital transformation, your first step should be to measure your digital maturity. There are four important areas you have to look at within your organization. Only after completing this analysis will you know where you stand along the transformation journey — and, therefore, what digital strategies you should implement.
Business: Review your organization’s vision, budget, and digital strategy. If high management is not aligned, your transformation journey will always be uphill. Some of your processes may go digital, but you will never complete a full transformation.
Products and services: This area will determine the success of your digital offerings. Ask yourself: What is your value proposition from the perspective of clients and customers? What is your relationship with them?
Organizational architecture: How do your teams operate? How are they structured? How are your processes being carried out? How is your infrastructure built — and is it supporting your day-to-day work?
Culture: This is one of the most overlooked areas. Which is a pity, because it should actually be at the center of your digitalization efforts. Why? Because it defines how you lead your organization towards a digital future. Ask yourself: Do you have a digitally-minded leadership style? Do you manage talent digitally? How is work being performed today?
Reorienting these four areas towards your digitalization goals will propel you towards a true digital transformation. Only then will you be able to rethink, not just part of your business model, but also how your organization does things — and how to take advantage of all available digital tools.
To facilitate the next step in your digital transformation, we’re sharing the following checklist, seven questions that will help set up your digital mindset:
How much does it matter to you that your colleagues be located in your same city, country, or time zone?
Has a budget been allocated for research and development of digital tools that can improve your business?
Are you projecting future scenarios to anticipate how technological change can positively or negatively impact your business?
Are you worried about the digital security and infrastructure of your organization?
Does your value proposition put digital at the center?
Do you understand the digital experience of the people who interact with your organization?
Is your organization operating in a flexible, collaborative way and under a leadership that supports digital initiatives?
Your answers to these questions will reveal how far along your organization is along the road to digital transformation. If most of your answers are “No” or “I don’t know,” then you have only been implementing digital tools — without truly moving towards an actual digital transformation.
By Marcelo Blechman, Partner at OLIVIA
