Digital Transformation

The term Digital Transformation is used, and occasionally abused, in very different contexts such as technological, cultural, organizational, social and managerial.

The “digital transformation” is not only about technology, but is the meeting between people, companies and technologies and is part of a much larger project. It can be said that this process achieves good success when organizations can effectively use data created by technology, or through technology, so as to allow a dynamic change of their business. The concept of digital transformation is quite new, it dates back to the nineties with the introduction of the Internet, but already today it affects every aspect of our lives, influencing the way we work, shop, govern… In short, to live!

But be careful, this does not mean to insert new technologies in the same work as always! Digital Transformation implies a redesign of processes, a profound modification of normal systems that lead to a real change. Only at this point, after having devised new paths, can therefore be inserted innovative technologies and give way to magic.

Like all great changes, digital transformation is made possible by the union of several factors, called to work together to ensure that the results are visible and positive for the system.

1. The people
People are at the center of the real change, without a group “on the piece” and projected in the same direction, it is very difficult for the project to succeed. Hiring talent is just the beginning. The organizational structure that is outlined within the company is extremely important to be able to start a process that can rely on solid foundations. We must therefore find figures who think of the project and the future with the mentality of the digital world. Profiles that know how to work and collaborate in teams and that report to a digital transformation management. Within the group it is now good that there is also a figure who plays the role of Chief Innovation Officer that is an integral part of the Digital Foundation. The CIO must build a complete and comprehensive business plan and build an IT modernization strategy from which to start all innovative processes.

2 The company
People are obviously inserted into a larger structure that is the company. This must be clear about the starting points, the instruments available and the current situation, and then define the short- and long-term objectives and the final destination. A right business strategy can drive the digitization of internal processes and the development of new business models. It is precisely within these realities that various obstacles to transformation can arise. Among the problems encountered are:

• Inadequate budgets (39.3%)
• Corporate culture (32.9%)
• Lack of managerial support (29.1%)
• Employee skills shortage (28.8%)
• Lack of technology partners (24.9%)
• Other (23.1%)
• Contrary leader/DM vision (17.8%)

3 The technologies
Of course they can not miss the technologies! Especially emerging ones like Artificial Intelligence, the Internet of Thing up to data management and analytics. The use of hi-tech solutions is what distinguishes a company projected towards digital transformation from one anchored to the old processes. We mean cloud-based services, big and small data, robotics, machine learning, virtual and augmented reality. Obviously these technologies need people who are experts in the field who know how to use them to the fullest and here we go back to the beginning of our journey: competent people, within structured companies.

The data emerged from the research of the Index conducted by Futurum Research on more than 1,000 companies with more than 50 employees are very relevant:

• 76.6% of the companies involved say they have started a process of technological innovation; while 23.4% admit to being late;
• IT, Customer Care and Marketing departments are generally those most prone to change, unlike the legal and manufacturing sectors;
• Only 24.4% perceive digital transformation as a “threat” to the survival of their organization;
• 75.2% said that Big Data will be the priority technological area of investment in the near future, followed by cloud (72.9%), mobile commerce (71.9%), Agile Collaboration (61.8%), Cognitive Computing (60.8%), iot (57.4%), robotics and automation (56.9%).

You are therefore wondering what are the concrete changes that can be made in a company to start on the right path, how to measure the steps taken and understand if the direction taken is correct or if it will meet with failure.
According to Greg Satell, author of the book “Cascades: How to Create a Movement that Drives Transformational Change” (McGraw-Hill, 2019), there are some tactics that can be used to have almost guaranteed success in digital transformation projects.
The first step is not technology itself, but understanding how it can improve people’s work and productivity by providing new tools. We need to ask ourselves how technology can help improve the customer experience. The second step is to set clear and precise goals and focus on those. The third is to identify the single change that can serve as a springboard and then involve the entire organization.
Finally, it is good to remember that Digital Transformation is a journey, not a point of arrival and that’s why it requires a new culture oriented to flexibility, dynamism and adaptation. The path to change never ends and is always evolving.