Tag Archives: Dx Capabilities

Digital Transformation Questions To Ask First

Digital transformation (DT) is now a necessity for all businesses. These digital transformation questions to ask will set you on the right track. 

Many businesses acknowledge the need for digital transformation. However, they still struggle to achieve the desired results. Around 66 to 84% of DT initiatives fail. However, such a high failure rate isn’t surprising. Why? Because many leaders attempt to install new digital technologies without getting rid of legacy cultures and operating models. 

Keep in mind that DT isn’t just a system update – it is a top-down cultural change that affects how a business operates. As mentioned, DT is now a necessity. Yet, it comes with tons of benefits such as streamlined operations and better customer service. 

There are digital transformation questions to ask before embarking on the journey. These digital transformation questions to ask aren’t just “what talent do you need” or “how much is your budget”. The key here is to probe deeper. 

Is this a digital upgrade or a digital transformation? 

Most companies aim for digital transformation but end up with digital upgrades. These two terms are entirely different. A digital upgrade is the use of digital technologies to increase the efficiency of an existing process. For instance, upgrading internal communication systems or increasing your marketing spend. 

DT also uses digital technologies. However, it changes the way you operate and how you provide value to your customers. Identify what you are really in. If you discover that you’re on an upgrade instead of a transformation, ask yourself if that will suffice. However, business models based on digital networks create market valuations four times higher than the rest.

Are you really bought in, and is your team?

Most DT leadership teams are not really passionate about the process. They change just for the sake of changing and keeping up. However, everyone must be passionate about DT for it to succeed. 

Are you prepared to share value creation with your customers?

The latest technology-enabled business models give customers and other networks a share in value creation. For instance, Uber relies on a network of drivers; eBay relies on a network of sellers. Accessing external assets will enable you to achieve outstanding profitability. 

However, many leaders hesitate to give up a part of their control and rely on external networks. Indeed, you’ll need new, co-creative styles for this one. Yet, it allows your organization to discover and use enormous sets of capabilities and under-utilized resources. 

Do you know how to measure the value you intend to create?

It is up to you what you want to measure. Most organizations focus on physical capital by tracking inventory, productivity, and other traditional KPIs. Yet, it is also useful to track intermediate indicators such as sentiment and engagement as well as network co-creation and value sharing.

Are you ready to make the tough calls about your team?

Sometimes you’ll need a new set of people to create your vision. Many organizations decide to outsource to have their current staff dedicated to doing what they have always done. 

Hence, you must make the tough calls early on regarding your team and board. Moreover, if you need to turn over some team and board members, don’t feel bad. It’s really a good thing for the organization—creating a balance between the old and new.

Digital Transformation Capabilities to Have

Before doing the journey, there are some digital transformation capabilities you need to have. This will help you succeed.

What are these? Read on to know more.

Digital Transformation Capabilities to Have

Technology

Technology is a key driver in doing digital transformation (Dx). Especially now that new techs are always rising. We now have:

Over time, these techs become easier to use. But that is not to say that you will not need some time to understand how they work. Everyone needs to have in-depth knowledge of how your techs work.

Aside from that, you will need your new techs to work with your old system. But that will be harder to do if you still keep legacy systems. So, you need to get rid of them.

How? You will need to have strong tech capabilities. Make sure you have the right talents. These people will be the ones to help you align your new techs with your business value.

Data

Next up, data. Today, we are making and using data more than ever. Thus, making king when it comes to Dx. But not every company keeps up with the basic standards when it comes to data.

But to ensure success, you will need to use both data and analytics with great quality. Aside from that, you will need to:

  • learn about new types of data
  • collect more data than usual
  • make full use of proprietary data
  • bring everything together
  • find and get rid of unuseful data

Knowing the value of data is not enough. You will also need to assign the right person to take care of all your data. So that this person can help you leverage all the data you have. This capability is crucial.

Process

Before you can call your Dx a success, there are many areas you need to consider. Some of them are:

  • finding ways how to meet your customers’ needs
  • making seamless work activities
  • managing silos to move forward

To achieve this, you will need to have the right process. But that can be hard to do if you still keep the old ways of thinking.

So, you will need to have a talent that is a forward-thinker when it comes to process. This person should be able to manage silos by:

  • meeting customer needs
  • enhancing existing processes
  • making new processes

Organizational Change

The capability to do an organizational change is also crucial. So, you will need someone that has strong:

Having a person with all these skills is vital for success. Why? So that you will not only focus on tech, data, and process.

Oftentimes, companies forget about the human side in doing Dx. But you should avoid that as it will lead to failure.

Acquire These Digital Transformation Capabilities

What do you think? Do you already have all these four capabilities? As said, in-depth knowledge of tech is crucial.

In short, you need a high digital adoption rate. How? You can get the help of WalkMe for that.