Digital transformation is about enabling businesses to respond to rapidly changing circumstances and customer demands. As a result, a true digital transformation needs to be an ongoing process.
Have you ever wondered what digital transformation means in practice? Is it about adopting new technologies or tools, or is it about changing the way organisations operate, deliver, and create value in the digital age?
The truth is that while technology does matter, true digital transformation is about more than that. Indeed, digital transformation is not a destination but a journey that requires constant adaptation and evolution.
Beneath the Waterfall
Despite this, many organisations today still approach digital transformation as a one-time project, following a linear and rigid process of planning, designing, building, testing, and launching new products and services. In other words: waterfall development – and this is a problem.
For a start, waterfall development is not suited to digital transformation as it assumes that development requirements and specifications are fixed and clear from the start. As a result, it typically fails to respond to changes, uncertainties or opportunities that become apparent as development moves forward.
This rarely meets today’s needs due to customer expectations, market conditions, and technological innovations now being in a constant state of flux. Waterfall development also delays feedback and validation until the end of the project, resulting in wasted time and resources if the final product does not meet the needs or expectations of the users or stakeholders.
Continuous Improvement
Therefore, organisations need to adopt a different approach to digital transformation, one that is more flexible, iterative, and collaborative. This is where agile or lean methodologies come in, adopting the principles of delivering value quickly and frequently, responding to change and feedback, and empowering teams to work autonomously and creatively.
Moving to an agile methodology allows organisations to test their assumptions, learn from their failures, and improve their products or services continuously. And by doing this, they will find they have embraced digital transformation as a journey rather than a project, which is absolutely key.
But what are the benefits of embracing digital transformation as a journey?
First of all, digital transformation can lead to innovation and differentiation. By experimenting with new ideas, technologies and even business models, organisations can discover new opportunities, solve problems, and create value for their customers and stakeholders. Digital transformation can also enhance customer experiences and satisfaction by delivering products or services that are tailored, convenient, and engaging. Furthermore, digital transformation can give organisations a competitive edge by enabling them to adapt faster and better to changing customer needs, market trends, and technological disruptions.
However, embracing digital transformation as a journey also comes with some challenges and opportunities. One of the main challenges is resistance to change within the organisation. Many people may feel threatened or uncomfortable by the changes brought by digital transformation, such as new roles, processes, or systems. To overcome this challenge, organisations need to involve their employees and stakeholders in the digital transformation journey, communicate the vision and benefits of digital transformation clearly and frequently, and provide training and support to help them adjust and thrive in the new environment. Engage early and often, as they say.
Embracing the digital transformation journey creates opportunities for learning and growth. By embracing digital transformation as a journey, organisations can foster a culture of openness, agility, and continuous learning within their teams as well as learn from customers, partners, competitors and industry experts, engaging with them regularly and collaboratively. Done well, this will lead to improved performance, quality and efficiency, as well as customer satisfaction. Another opportunity is creating impact and value in the digital world.
Taking the first step
This is what the evidence of experience tells us: by embracing digital transformation as a journey, organisations can work in a way that will align their goals with their customers’ needs and expectations and deliver products or services that make a difference in their lives. As a result, they can create value for stakeholders, be they employees, investors, suppliers or society at large, by increasing revenue, reducing costs and increasing productivity.
Acknowledging the dynamic nature of digital transformation and recognising it as a process that requires openness, agility, and learning, any business or organisation can foster a mindset of innovation, customer-centricity, readying itself for long-term success in the ever-evolving digital landscape.
There are challenges, of course, such as resistance to change and fear of uncertainty or complexity. However, by embracing the journey, businesses can unlock the full potential of digital transformation and achieve the business goals set out in their vision.
