The digital transformation hype is concerning today’s directors, senior executives, and CEOs. Not to mention that even with the big amount of investments in DX, many still fail and end up without real results.
In fact, in 2019, the digital transformation risk is of prime concern for most corporate leaders. But, why? Isn’t DX supposed to be a leverage of systems and company culture?
This is because many organizations invested in DX, yet 70% fail and without results. For instance, in 2019, almost $1.3 trillion was spent on DX. But up to $900 billion went to waste. Unsurprisingly, this causes many to believe that DX is only hype and perhaps not that necessary.
There is more than to the hype of digital transformation. Internal systems, organizational culture, and even the very mindset- all of these can contribute to either success or failure. In this post, we will be listing 4 important lessons in digital transformation.
4 Lessons: Cutting Through the Digital Transformation Hype
So here are 5 lessons that can lead you into more digital transformation successes.
1. Strategy First Before Investments
Probably one of the major downfall in undertaking DX is putting more focus than necessary on technology. How many times have you heard of this: “Digital transformation is not about technology.”?
Perhaps when leaders think of DX, a specific tool readily comes to mind. Although tools can help and they contribute a lot, DX works more than mere digital tools.
Successful digital transformations drive strategy first before investments in technology. Why? There is no single answer for the “best & innovative tool” in the market. In every organization, needs vary from one vision to another.
With a clear path of objectives, you are better likely to reach your destination. In the same manner, with clear business goals, you can better reach the results from your investments.
2. Strong Support From the Inside
Many who seek transformations usually gain help and support from outside sources.
However, among all others, the best support that you can get is from the inside. What’s inside should work further on the outside.
Insiders or existing employees know the organization way better than any outsource. This intimate knowledge and connection they have with the organization can be a reliable source for insights. Insights that can better lead investments.
Of course, outsourcing can help, but this should go hand-in-hand with insiders, for instance.
3. Be Customer-Centric
If the goal of the DX is to leverage customer experience, then from the start, planning should be customer-centric.
In this case, leaders should have more than just assumptions about their customers. In-depth research and customer input should precede the diagnostic phase, for instance.
4. Acknowledge Employee Resistance
One of the most common factors for slow DX growth is due to employee resistance. Perhaps they perceive that DX ought to replace them with their jobs. So this may lead them to either consciously or subconsciously resisting the change.
So what can you do?
Acknowledge their fears and educate them enough. So let your employees know what DX is for. Help them embrace the change with enough knowledge.
Digital transformation is more than just the hype. DX should be led by strategies and in-house support, more than mere technology.