No one escapes. It's just a matter of time before any company goes through this. And it stays there.
We are talking about digital transformation, a change in business processes to take advantage of new digital technologies. IDC predict that by 2018, two-thirds of global CEOs will put digital transformation at the heart of their strategy. The Internet, robots, artificial intelligence, data analytics, all become part of everyday business.
For now, we are talking about medium to large companies, where there are economies of scale and synergies that can decide the future of the business. But digitalization will reach small companies as well.
More and more people want to, but not all of them succeed. At least two thirds of digital transformation projects fail. That is, the money spent does not bring the expected profits, and even produces disruptive effects in the company's processes.
So, what should a CEO know before starting a digital transformation of the business he leads? Here are some ideas from Harvard Business Review.
- Is it an upgrade or a digital transformation? Ask yourself if you are just going to increase the share of digital processes in your business, or are you using technology to change the way you operate, especially in customer interactions.
- Are you convinced that you want this? Is your team convinced too? There are many situations where management is not passionate about the idea of digital transformation, they know they should do it, but they are reluctant.
- Have you given enough power to the digital team? A digital transformation requires a team with a broad mandate and strong support within the company. This team needs the symbolic power to influence and translate changes into the company's structure. Digital advancement can be limited by the team's silos in marketing or IT.
- Do you know how to measure the value you create? Digital transformation does not always impact the KPIs measured by the company, at least not immediately. To start, it is worth tracking intermediate indicators such as sentiment, engagement, customer network development, customer satisfaction.
- Are you ready to make the tough decisions regarding the team? There’s an old saying that „it’s easier to change people than to change people.” Harvard Business Review estimates that nearly half of the team and even the board should change during a successful digital transformation. This also creates a balance between new and old people.
It's not easy, but there's no other way. Forrester predict, perhaps a bit dramatically, that by 2020 every business will become either a digital predator or a digital victim. No one wants to wait until then to see if the prediction is confirmed.
