The pandemic accelerated the pace of digital transformation initiatives, compelling many companies to embrace digitalization to maintain the delivery of quality services. In the post-pandemic era, CIOs and IT executives continue to face high expectations to expedite digital transformation projects. A Gartner report reveals that approximately 59% of CEOs believe digital initiatives progress too slowly, and 52% assert that deriving value from them takes too long. With digital transformation at the forefront of the evolving economic landscape, companies that intend to remain competitive should have an effective transformation roadmap that aids business growth.
In this article, we'll identify the top digital transformation strategy that can speed up the implementation of digital initiatives.
How To Accelerate Your Digital Transformation
Here are seven digital transformation strategies that are reshaping industries and propelling companies towards success.
Craft a Clear Vision & Roadmap
The first step is to identify a clear vision and develop a strategic roadmap. The vision should align with your digital transformation needs, focusing on the 'why,' 'how,' and 'what.' For the 'why,' highlight the primary reasons for this digital transformation, such as integrating artificial intelligence, cloud computing, and machine learning, to enhance customer experience. The 'why' should be in sync with your business goals. It should illustrate a clear pathway on how you intend to achieve a successful digital transformation by outlining the required steps, resources, and timelines.
For the 'how,' it's essential to detail the approach and methodologies your organization will employ to execute the digital transformation. It's about defining the operational changes, the technology stack upgrades, and the collaboration frameworks that will be put in place to improve this transformation.
Regarding the 'what,' this should specify the tangible outcomes and objectives you aim to achieve through digital transformation. This could involve launching new digital products or services, achieving higher operational efficiency, improving customer engagement through digital channels, or leveraging data analytics for better decision-making. The 'what' outlines the specific projects, technology implementations, and business model innovations that will be pursued to realize the vision laid out in your digital transformation strategy.
Eliminate the Legacy Mindset
It's essential to let go of the legacy systems and mindset for a faster digital transformation speed. Do away with the old and welcome the new. Pause the use of outdated technologies and systems and adopt more robust technology. Start small by working on smaller areas that will yield quicker returns rather than spending excessive time seeking bigger wins. Eliminating the legacy systems entails finding the right technology that might be short-lived but will fulfill the immediate purpose and meet the demand. By accepting new technologies, and making smaller investments, your business will experience an accelerated digital transformation pace.
Finding the Right Technology
A vital component of digital transformation is finding the right software applications for a smoother transition. This involves going beyond your existing applications and considering your digital transformation objectives. Whether you're collaborating with IT vendors or exploring new technologies, the focus should be on solutions that align with your strategic goals. The leadership team should assess each technology's effectiveness and potential impact before implementation, to understand how it can be integrated and utilized across different teams.
Adopt the agile methodology
Another strategy that can accelerate the speed of digital transformation is the method of work. The agile methodology has been proven to improve speed to market. About 71% of companies use Agile and have reported an average of 60% growth in revenue. Using the agile approach for business transformation enables speed by breaking down tasks into sprints and having iterations for each phase of the process. This iterative approach encourages open communication and feedback loops among stakeholders, enabling more responsive and adaptive strategies to emerge. By empowering teams to work in cross-functional units, the agile methodology promotes a holistic view of project goals, ensuring efforts are aligned with the overall objectives of the digital transformation initiative.
The agile methodology's emphasis on customer-centric development ensures that the end-user's needs and experiences are at the core of the digital transformation process. By continuously integrating user feedback into the development cycle, organizations can ensure that their digital solutions are highly relevant and user-friendly.
Agile digital transformation is focused on prioritizing the necessary changes as opposed to following a rigid plan. The agile methodology ensures that mistakes are caught earlier on and can be corrected before they become unredeemable.
Read more about the agile methodology here.
Prioritize User Feedback
Beyond integrating technology, digital transformation should focus on enhancing the customer experience. In the process of digital transformation, companies should consider how their customers can evolve with them. Regardless of the chosen technology, customer feedback and user experience are important for a successful digital transformation.
There should be a process in place to regularly collect user feedback and use these insights to improve the digital transformation process. User feedback is at the heart of a customer-focused digital transformation strategy.
Embrace the Culture of Change
There will always be emerging technologies, from artificial intelligence to cloud computing, big data, and machine learning. However, one of the key questions for tech leaders remains: How do I prepare my employees for change? Implementing digital transformation will introduce changes that employees need to adapt to.
Often, tech leaders struggle with creating an enabling environment for workers to embrace new cultures, technologies, and processes. To enhance digital agility, developing the right training materials and resources is important for employees to quickly adapt to the new normal. Here, the management team plays a pivotal role in effectively communicating the necessity of this transformation and its expected outcomes.
In some scenarios, an organization might lack the in-house expertise needed to expedite the digital transformation project. In such cases, they might consider software outsourcing or adopting a staff augmentation model. This involves either delegating the digital transformation project to an external software company or expanding the internal team with individuals who possess the required skill sets. Adopting these strategies can significantly enhance the pace of digital transformation.
Select the Right Digital Transformation Partner
Choosing the right digital transformation partner can significantly boost your business growth. Digital transformation is a challenging journey that many organizations fail to navigate successfully. McKinsey reports that about 70% of digital initiatives fail, indicating that companies often struggle to succeed in their digital transformation efforts. The path to digital transformation requires technical expertise, support, a clear direction, and the right technologies. A trusted partner can help align your vision with the practical realities of digital transformation, enabling a more strategic approach to innovation.