Digital Transformation Strategy
Digital Transformation Strategy can be thought of as bridges to build. With companies across the globe that are either currently in the throes of, or considering the embrace of digitally transforming the structure and process of how they do business. Within in this embrace of the new frontier, they are challenged to improve business processes and develop new capabilities and business models. In this current and future economic reality where entire industries are disrupted, actionable intelligence is the new currency or pathway to profitability.
Platinum PMO is knowledgeable and flexible within varying methodologies that programs wish to employ. One proven methodology that PPMO subscribes is the acronym THRIVE created by Rob Llewellyn. THRIVE consists of six core principles of Transformation, Holistic, Response, Innovation, Value, and Enterprise.
Within this methodology or framework, the focus is centric on the needs of transforming the business to remain relevant and thrive in a highly competitive and evolving market, not just the technology that is being implemented within the transformation.
Your Transformation Roadmap
Developing and truly understanding the Digital Transformation Roadmap is paramount for a successful program. Remember that building your transformation strategy and plan is an ongoing process, not a one-time event. With this in mind, you take into account everything available at the time and create the plan accordingly. Not only will your strategy and portfolio need to be adjusted over time, but there will be lessons learned that will help you improve areas such as governance, transformation organization and change management, etc. And this will be ongoing, because no one ever gets it perfect.
Digital Business Transformation is organizational change through the use of digital technologies and business models to improve performance. Digital Disruption is the effect of digital technologies and business models on a company’s current value proposition, and the consequences of its position in the market. To begin, its best to create a “Transformation Launch Committee.” Aligning Leadership Mindsets in order for effective transformation to take place in key. At the end of the day, it is the role of the CEO who must ensure that all leaders adopt an aligned mindset.
It would be a wise early step to Analyze The Market and assess the state of your market so that you have the right data and insights to enable you to make well-informed strategic decisions. With reference to competitive intelligence, you need to harness competitor and market information into actionable knowledge about competitors’ capabilities, intentions, performance, and position. A honest comparative of how your organization is stacked within that landscape will help shape your roadmap for success. Along with assessing the actions of competitors, you also need to consider any political changes or new regulations that may impact your company and industry.
The next step is being clear about your transformation responses, and how they will support your overall strategy. What defensive and/or offensive approaches do you need to adopt in response to the market? Establishing Response Strategies is essential for program success. Only a transformation of your business model is likely to help realize true value in your digital transformation initiative. There are various core questions you must answer in making your roadmap a true guiding light to travel by though it all.
Shifting from strategy to execution is not always an easy road. Activating Transformation Readiness is assessing the organizations Culture, Governance, Innovation capabilities, Digital capabilities, Transformation management capabilities, Organizational structure, and any Transformation barriers that might compromise the transformation in any way. Then plotting the as-is and to-be state of all the transformation readiness factors within your matrix, and the agreed upon action plans to close the gaps, assigning owners and timeframes to those action plans in order to effectively have them implemented. This will call for a sense of urgency and some rapid responses, so as not to delay or impede the start of the transformation.
You must Innovate Strategically, in order to help realize your response strategies. Identifying the top objectives in each value creation area, innovating to identify potential solutions to support the achievement of each strategic objective, then agreeing on the best shortlist of solutions that will help achieve each objective. Then you can address the portfolio governance and process, which will allow for periodic repeats of assessing what needs to be a value creation area and subject to transformation, and what doesn’t. The approach is agile, not cast in stone. Again, flexibility within the roadmap is always needed.
A Digital Use Case is a way of capturing and communicating the high level details of a potential new initiative which would achieve a desired outcome. A Minimum Viable Digital Use Case would consist of a description, current situation, value proposition and benefits. Indicating whether a digital use case solves problems or overcomes constraints, or whether it’s an innovation that provides and exploits new opportunities or capabilities is important within this portion of the roadmap. The purpose of this exercise is to evaluate all of the digital use cases, agree their relative priorities and establish which deserve further attention in the way of business case.
How well your Business Cases are prepared and presented will determine the fate of digital use cases. Each section in a business case should not only present information, but they should each have a specific objectives. Use whatever ROI approach your stakeholders are familiar with in the organization will add value to your business case. The signature section of the business case should be used as a record of who approved the business case (for audit purposes, and any potential issues attached to a project be quickly resolved during the transformation process).
Adding Muscle to your Transformation
To be clear in your plan, you should establish the transformation portfolio, which also requires governance and portfolio management processes. A portfolio is not simply a group of initiatives. Effective Portfolio management will ensure the careful allocation of skilled resources, and the evaluation of new initiatives against strategic objectives, business value and current commitments. And it will ensure that demands on the operational business, from transformation initiatives are well managed. Only through effective processes and governance can an organization hope to see the transformation proceeding in a healthy manner and realizing the expected ROI. By Defining the Portfolio, Process and Governance aspects of the roadmap is a key factor of the overall execution of projects and successful competition of your program.
Strategy is often three times more difficult to deploy than develop. When scaling up, too many organizations underestimate the importance of good transformational management and eventually find themselves in an unclear path forward. Your transformation manager must consider what they need to achieve the transformation objectives, which goes well beyond delivering technical solutions. While your pilot initiative might go smoothly, and even another few projects might also go well, as your portfolio grows, so will the challenges, and a pre-requisite to successful execution will be highly mature transformation management capability. The ability to Plan, Execute and Manage will be the deciding factor of your programs success and or failures.
Platinum PMO works hard to provide organizations (executives, senior managers, and program leadership) with a framework that leverages a vast body of knowledge that can be utilized to envision, lead, manage, and audit their digital business transformation portfolios more effectively. Platinum PMO has also developed a platform that not only provides complete optics from top to bottom of an organization’s series of digital transformation portfolios, but also manages every single component one would need to deliver a program or project under a digital transformation portfolio. This capability integrates accountability as a core component in that leadership, consultants, system integrators and organization employees are all working on one platform, top to bottom- bottom to top, with one source of truth that will save hundreds of thousands to millions of dollars in realized cost savings and organizational benefit.