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The term “digital transformation” has been a “buzzword” for as long as I can remember. The motivation to blend digital and physical processes with customer experience, business process re-engineering and workflow automation has never been more powerful. While improved efficiency, efficacy and profitability have been key drivers for all types of digital transformation projects, business continuity and organisational resiliency have become top priorities for organisations in charting their strategy for the future. 

Although the key objective of digital transformation is to apply technology and information tools to solve traditional problems, it is also about using technology to transform the way your organisation operates, positions itself in the market and delivers its output. Digital transformation requires rethinking of how an organisation works and delivers value. It’s not just about adding technology to existing processes. Rather, it requires a radical rethinking of how an enterprise leverages technology along with operations and people to optimise performance and take the company to the next level. 

A successful digital transformation strategy requires organisations to define and articulate their digital goals to create broad organisational alignment, a vision which is owned by management and employees. It needs to include “quick wins” and medium to longer term objectives which immediately make a difference in the organisation, hence creating positivity for change. It is also crucial to assess the organisation’s readiness for change (and technological transformation) to ensure that the critical capabilities, resources and competencies are available and ready. Most importantly, you need a good plan and a strong PMO to manage your transformation programme! 

It is pertinent to point out, that digital transformation doesn’t mean the same thing for all companies – therefore viewing it as a one-size-fits-all approach could take you in the wrong direction. There are     three main types of approaches which organisations could consider for their transformation strategy: 

1. Process transformation

Business process transformation is the comprehensive redesign and re-engineering of business processes to achieve improved operational efficiency and agility. The application of high-end technologies such as cloud solutions, AI, ML, data analytics and information management tools will enhance performance and results.   

2. Business Model Transformation

Business model transformation aims to fundamentally change the way an organisation operates and delivers value. Such business transformations are bold, seismic shifts which organisations make to accelerate change and growth beyond the typical incremental advancements. The scope would be broad and strategic, such as switching to new business or operating models. Applying modern technology and data governance techniques in the whole transformation process will unlock additional value to the organisation in terms of operational effectiveness, higher-quality customer lifecycle management and commercial/financial performance.  

3. Cultural/Organisational Transformation

Embracing a “digital-first” culture enables organisations to implement digital transformation strategies quicker with efficient workflows coupled with a bias towards testing and learning as part of the journey e.g. supporting decentralised decision-making. However, a successful transition to a digital-first culture requires a redefinition of mindsets and a cultural paradigm shift which incorporates new talent, skills and capabilities. A typical mindset change shifts from managing outputs to a relentless focus on customer service and innovation. It is not uncommon that the cultural shift occurs organically during the transformation programme itself as internal teams start implementing digital workflows and, in the process, recognise and appreciate the power of changing organisational change.

Guiding your organisation to a sustainable future requires pursuing at least one of these types of digital transformation efforts. Each transformation must focus on business outcomes, such as improved processes and new products and services that build a business case for delivering value and future-proof your business for the long term.