Many organizations have embarked on this over the last 5 to 10 years! The results have been bad to worst or vague. After 5 years of hard work organizations are still scrambling to decide if their investment has reaped fruit or not. When what they expect does not materialize they progress to cut costs by retrenchment , cutting projects which has a spiral effect on their bottom-line and profit.
So how to avoid this?
Establish a strong foundation before even starting digital transformation. A clear digital blueprint tied to Agile approach is needed. Meaning a 5 year plan is useless in this ever changing business environment . What is needed is an approach that can factor in changes or development in the business environment over the next 5 years . Meaning if VR or other technologies gain prominence your strategy must be able to integrate it . To win the war the organization must think like a START UP and operate in an agile manner. Also clear metrics and benefit trackers need to be setup during the formation of the project. This has to be owned by respective departments and heads so that there is accountability for the project. Finally proper risk management is put in place for these projects.
Once that is done the three areas of People, Process and Technology needs to be targeted for enhancement STRICTLY in that order. The common mistake Organizations make is that they change all their technologies and then they are STUCK! Because the base processes and people have not changed. Nothing will improve.
The People have to buy WHY are we doing this. WHAT is the benefit . AND MOST IMPORTANTLY HOW they will benefit. Reassurance must be given that their jobs will not be lost. This is very important
Once that is done PROCESSES have to be revamped . Lean Six Sigma with some or a lot of common-sense! CAN be used to improve the processes. A strong business champion is needed to drive this and that person must be different from the main sponsor for digital transformation. Meaning he has to be fully focused on Process improvement and it must be his KPI for the duration. As this is done new project management methods of SCRUM, AGILE, KANBAN as well as frameworks of COBIT, ITIL , TOGAF need to be implemented. This has to be adopted organization wide
Once the above are all completed then the organization can start to replace their technologies and tools with new ones and then use the metrics and measurements to see if they improved.
Now even with all this we will not improve UNLESS WE IMBIBE A CONTINUOUS IMPROVEMENT cycle. That is what separates the winners from the losers. The management and staff need to constantly feedback and improve their areas aligned to digital transformation.