Recent research among managers, CEOs and senior executives shows that the digital transformation of their organization is the main priority. Yet, 70% of all digital transformation goals are not achieved. This results in losses of millions of euros. This leads us to the question: why do so many organizations get stuck in their process of transformation and what can you learn from it?
The problem is that most companies are focused on the surface: they live Agile, work from a backlog and Henk from the IT department suddenly has a Black Belt. Meanwhile, adjustments of the primary process are disregarded.
What are the critical focus areas for the digital transformation of organizations? We have listed our top 4 of practical examples for you.
Lesson 1: Analyse the corporate strategy before investing in the digital strategy
Don’t focus exclusively on one specific tool. That one technical innovation enhancing everything does not exist. The success of each project depends on many factors of which the overall company strategy is paramount. In order to be able to formulate a clear vision and strategy, the focus should be on the inside: what are our strengths and perhaps more importantly, what are our weaknesses? If this is not clear, you can transform until eternity, but no structural improvements will happen within the organization.
Lesson 2: Be the change you want to see…
Powerful leaders dare to give the direction of a digital journey without a clear final goal. They know how to handle insecurity: they look beyond quarterly figures, they don’t avoid difficult discussions, they accept that not everything can be a closing business case in advance, and they take the long view.
In addition, they facilitate their teams in dealing with insecurities during the process of transition.
Lesson 3: Create the IT landscape of the future
Many companies have a heritage of the past. There are, for example, software packages being used that cause problems or a ‘technical debt’ has been accumulated as a result of failing to take any action.
Do you want your organization to make a lasting transformation? Create a new and future proof platform, an open environment in which you can implement all kinds of technologies including unproven or not yet existing technologies. A stage where everyone on the value chain can apply new applications so data can flow in and out freely to other parts of the ecosystem.
Lesson 4: Do not underestimate the power of the cultural dynamics
At Xeelas we say: “Culture eats strategy for breakfast”. The company culture may be the most determining element. We have seen many innovation projects getting stuck due to a closed organizational culture. That’s why our next blog is about the cultural aspect of the digital transformation.
The goal of this blog was to bring attention to the importance of putting the foundations of the organization under the microscope when you are in the process of innovation. Implementing new working procedures too quickly without a solid foundation does not lead to lasting transformation. As a result, the organization loses its right of existence in the future.
Before, and during the process of transformation, you need to have clear answers to the following two questions:
- What is the integral structure of my organization?
- What is an appropriate foundation for our future company?
If you think you can use our assistance in building a strong digital foundation after reading this blog, please contact us. Our experts will assist you in becoming part of the 30% of the companies that did achieve their goals.