How to make a success of digital transformation in your organisation

The digital landscape we are living in is fast-paced and ever changing. Responding effectively to these changes can be a challenge for many organisations. Whilst it may be clear that digital change needs to happen within your organisation in order to stay ahead of the curve and remain competitive, turning that goal into a reality, and making a success of the digital transformation, is easier said than done. But, what exactly is digital transformation?

Dominik Mahr, Professor in Digital Innovation and Marketing at UM and Scientific Director of UMIO’s Service Science Factory (SSF), identifies digital transformation as a way for business, markets and society to meet the changing demands of new business processes, models and organisational culture through the use of digital tech and data. Or in other words, making digitalisation happen in your organisation.

Understanding the reasons certain digital transformations succeed, while at the same time, so many fail, can provide a critical piece of the digital transformation puzzle. Dominik shares his insight on how to pave the way for a smooth digital transformation.

All organisations, big and small, have to deal with digital transformation, but the way in which this takes place needs to be done at the right speed for the organisation. There is unfortunately, not a one-size-fits-all, off-the-peg solution. There will be different priorities depending on the level of disruption needed. Recognising what is right for the organisation and seeing the change as an opportunity, is an important mindset to adopt.

In order to gain a better understanding of what is needed in this area, Dominik advises asking some critical questions about the biggest changes which are taking place in the organisation.

• What are the most relevant technologies for your organisation?
• What are the biggest changes that affect your customers?
• What are the biggest data opportunities for your organisation?
• What technologies can help the work of your employees?
• What are the biggest changes currently taking place in your industry?

Identifying these areas will serve to clarify where the key areas of focus need to be.

One of the biggest challenges organisations face is managing conflicting sets of priorities and scenarios.  On the one hand, it is important to simultaneously innovate products and culture with creativity and experimentation, but, this needs to be done in conjunction with keeping the business running in an efficient way. These are two totally different mindsets which need to be brought under one roof. Finding a way to allow both mindsets the space to co-exist and flourish can provide the right environment for digital transformations to succeed.

How can you move towards a goal if you don’t know what that goal looks like?

Dominik identifies 5 key components for a successful digital transformation:

1. Create digital transformation urgency and a fitting strategy
2. Leaders who are tech savvy and support experimentation
3. Awareness of digital business models and persistence to implementation
4. Upskilling workforce/employees and provision of digital tools
5. Transfer experience and get inspiration from outside partners

As the saying goes, “the technology is only as good as its user”. Research shows that developing the right skillset in the employees and creating purpose, reaps rewards and can be the reason a digital change within an organisation leads to success.

Dominik outlines these steps which can lead to successful digital adoption by the employees:

• Provide a direction/purpose/vision for the transformation and development
• Offer opportunities for employees to learn: individually from digital platforms and socially through practice communities
• Provide participation in work-related innovation projects with structured creativity
• Reward team and individual efforts, not necessarily success through public recognition