Digital transformation is a rage, as enterprises embrace new technologies to stay relevant. But success requires much more than embracing new technology. Doing the same thing on a different platform makes little difference. Competitive advantage comes by using new technology to drive innovation or do things differently.
Most project managers driving transformation work under time pressure. Business managers seek to launch projects before competitors beat them to it, or the technology itself becomes passe. Yet innovation, which requires experimentation, needs time and is disruptive. Enterprises face the hard task of delivering custom applications matching the speed of ideas. CIOs face a tough challenge reconciling innovation and delivery.
Here are the ways CIOs achieve innovation and timely delivery during digital transformation.
1. Divide the Tasks
Classify enterprise IT portfolio tasks, and approach each digital task appropriately.
There is no fixed classification list. The best classification depends on the business and the way the enterprise functions. A good four-fold classification includes:
- Established service offerings, such as ERP and back-office systems
- Standard service offerings, such as purpose-built applications and associated operational services. These offerings support product engineering
- Emerging or new service offerings
- Rapid prototyping services to create and deploy new software.
Structure the IT team to sync with the adopted classification. Split the transformation workload work around these classifications. Match teams to the functions best suited to them. For instance, established service offerings are a natural fit in the CIO office. The emerging service and standard service offerings gel with product teams and the CTO office. Teams attuned to their tasks innovate faster and better. They experiment with control and implement rapid change.
Maintain and run active purpose-built applications and services side-by-side with the transformation initiatives. This includes the ERP suite, field management suite, CRM, and back-office systems. These services need day-to-day maintenance and regular updates, as before. Downtime of such essential functionality stalls day-to-day functioning. It may degrade the customer experience and ruin the business.
2. Run a Tight, yet Flexible Set-Up
Adopt a closed-loop process, with tight integrations across the enterprise. A closed-loop process ensures the process variable remains at the desired seat point or state and acts as a safety valve against uncontrolled innovation.
Adopt a modular approach to solve customer problems. Break down the customer requirement into specific sub-projects for each team. The different teams work on their deliverables, speeding up the workflow.
Successful digital transformation requires effective team organisation. Deploy robust and seamless communication channels to promote teamwork. Have formal protocols for progress meetings.
Institute a collaborative process throughout the product life-cycle. A collaborative approach from idea generation to solution promotes flexible and repeatable innovation. It allows innovation to move out of the confines of the R&D centre and integrate with the mainstream business processes.
Realign business models to match changing customer preferences. This requires enterprises to be on a “change mode” always. Integrate digital transformation as a regular operational routine.
3. Pay Attention to the Technology Stack
The choice of technology can make or break digital transformation delivery.
Embrace technology that promotes rapid user-centric design, field test, and instant deployment at scale.
Side-by-side, develop a standard technology stack. Build a set of tools, services, data, and processes as standard, readymade stock of key resources to develop new software. The benefits of such a standard stack offering include:
- Easy access to resources to iterate
- Speedy development, and
- Consistent code quality.
Host the technology tools in SaaS-based platforms. The cloud ensures instant scalability and anywhere availability, to boost productivity and efficiency.
4. Shift from Digitalisation to Digital Business Models
The benefits of digital transformation realise when enterprises leverage the new technology to make their products or services better, faster, or cheaper.
Review entrenched business practices and force a realignment of operations toward core values. Realign systems and procedures with a focus on customer convenience. For instance, Nike revamped its customer engagement strategies, by leveraging digital consumer data to open more concept stores and improve online customer experience.
Frame clear deliverables and objectives upfront. Clarity of objectives helps to measure progress, even as the development teams experiment and innovate.
Fix flaws in digital technology stacks. Streamline digital engagement channels. Such interventions improve customer support, product and service delivery, and stakeholder relationships manifold.
Re-explore supply chain relationships chain, to manage costs better, speed up time to market, and unlock potential. Aim for short delivery cycles and Minimum Viable Products (MVPs).
5. Pay Attention to the Cultural Shift
The best of systems and preparation falter without the right culture. Successful innovation and timely delivery depend on workforce readiness. Ignoring the line workers, who face the change, may lead to resistance and even sabotage of the innovation.
Promote an open communication culture, where team members may contact others at any time, and have instant access to resources.
Communicate the “why” of the transformational change. Convince employees of the benefits on offer. A company embarked on digital transformation to improve customer satisfaction. The communication from the COO, however, gave the impression it wanted to cut costs. This led to resistance from employees who feared job-losses, impacting delivery.
Enable cross-functional teamwork and cross-collaboration with external service providers to speed up the transformation. Outsource to innovative service providers, to access resources not available in the enterprise. A good partner works on the company’s vision and goals and furthers innovation.
Encourage brainstorming to boost innovation. Encourage value-oriented risk-taking and experimenting. Give people ownership of their ideas and initiatives, to promote commitment.
Many enterprises, carried away with the possibilities offered by new technology, change for the sake of it. Successful innovation requires keeping one’s head in the ground. A disciplined approach to innovation and change with minimal disruption yields the best results. Speed and flexibility without discipline lead to chaos.
