Digital Transformation ≠ Paperless
Digital Transformation is more than just going paperless or implementing new technology.
It means doing things differently in an increasingly connected world — using new mindsets, skillsets, technologies and data to benefit people, society and the economy.
We look into the importance of strategy for successful integration, look at how age can be a barrier, and explore a well known business who went bust not because they didn’t explore digital, but because they didn’t evolve the way their business operated.
Some assembly required
Digital transformation is not just about buying a new piece of technology, turning it on and hoping for the best as that ignores two key details:
1. Technology is not an outcome. It is simply a tool which enables an outcome. Despite what it promises on the package, no system will transform your business overnight. It has even less chance of doing so if a solution is purchased without any understanding as to why it is needed.
When it comes to digital transformation it can be difficult to determine what are the right tools for your business. This could result in a purchase that will not meet your requirements.
A solution should only be chosen as part of a sustainable strategy that clearly defines the business outcomes and problems which need to be solved. A digital Transformation strategy needs to look at a range of factors, including:
- Process – what processes will support digital transformation and how might they need to change
- Policy – do you need to evolve or implement new company policies
- People – what roles will be required to deliver and support the strategy and its outcomes
- Data – are you currently capturing the right information to support a transformation. If you need to capture different information, what might this mean for your regulatory obligations
- Business Models – especially those relating to revenue and cost. In our case study we explore how a business failed to understand the impact of revenue on its baseline
Unless you address all of these, any strategy is incomplete
2. There’s often a legacy environment you need to deal with
Most organisations use legacy applications and systems that continue to serve critical business needs. Digital transformation requires balancing keeping the legacy environments running with delivering newer, more efficient systems that makes use of current and emerging technologies.
It’s not always possible to integrate the legacy environment into the new model presented by digital transformation – and it gets harder the older a system gets. This can lead to rising costs as various constraints are uncovered through the process.
In addition to the strategy above, any transformation exercise needs to include a review of the existing technology to understand what constraints may exist and how to overcome them. Failure to do this cloud the overall picture and could end up with you continuing to operate in the old world far longer than you planned.
Failing to plan is a recipe for disaster
Digital transformation is a multi-layered approach. Planning is a significant step in the journey as you will ensure that your outcomes will be achieved.
Target State is a Digital Transformation specialist and can assist your business to better understand the digital world. Contact the team today.