Digital Transformation

Digital Transformation – Risk and Obstacles Ahead

So…you are strategizing, planning, or starting to roll out a Digital Transformation initiative?

Most people agree 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐓𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 is not only financially beneficial but also will be a necessity of survival. However, across the manufacturing industry, Less than half (𝟒𝟏%) of companies are in the “Rollout” phase of their Digital Transformation Journey according to PTC. That means 𝟓𝟗% are still figuring it out!

And if that isn’t surprising enough, according to Boston Consulting Group (BCG), roughly 𝟕𝟎% of digital transformation initiatives fall short of their objectives. That is crazy!!!

𝐖𝐡𝐚𝐭 𝐚𝐫𝐞 𝐭𝐡𝐞 𝐦𝐨𝐬𝐭 𝐜𝐨𝐦𝐦𝐨𝐧 𝐬𝐲𝐦𝐩𝐭𝐨𝐦𝐬 𝐨𝐟 𝐝𝐢𝐠𝐢𝐭𝐚𝐥 𝐭𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐟𝐚𝐢𝐥𝐮𝐫𝐞𝐬 𝐚𝐜𝐫𝐨𝐬𝐬 𝐭𝐡𝐞 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐲?

▪️ 𝐍𝐨𝐭 𝐢𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 𝐢𝐧 𝐭𝐡𝐞 𝐫𝐢𝐠𝐡𝐭 𝐜𝐮𝐥𝐭𝐮𝐫𝐞. Many processes and activities will change for most employees – Make sure as much effort is spent on the cultural change as the technological implementation.

▪️ 𝐍𝐨𝐭 𝐡𝐚𝐯𝐢𝐧𝐠 𝐜𝐥𝐞𝐚𝐫 𝐭𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐨𝐛𝐣𝐞𝐜𝐭𝐢𝐯𝐞𝐬. Before selecting a single technology or pilot application, be sure to have clear objectives that link back to desired business outcomes.

▪️ 𝐍𝐨𝐭 𝐡𝐢𝐫𝐢𝐧𝐠 𝐭𝐡𝐞 𝐫𝐢𝐠𝐡𝐭 𝐭𝐚𝐥𝐞𝐧𝐭. Don’t just hire technical wizards. Select the right change agents who know how to guide the implementers. If you don’t have the knowledge and skills in-house, consider hiring consultants who do this for a living.

▪️ 𝐍𝐨𝐭 𝐭𝐡𝐢𝐧𝐤𝐢𝐧𝐠 𝐛𝐞𝐲𝐨𝐧𝐝 𝐭𝐡𝐞 𝐢𝐦𝐩𝐥𝐞𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧. This is a company-wide transformation and therefore will most likely require changes and course corrections along the way. Let the goal guide you, not the technology.

▪️ 𝐍𝐨𝐭 𝐥𝐞𝐭𝐭𝐢𝐧𝐠 𝐠𝐨 𝐨𝐟 𝐭𝐡𝐞 𝐨𝐥𝐝 𝐰𝐚𝐲𝐬 (𝐭𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲 𝐚𝐧𝐝 𝐩𝐫𝐨𝐜𝐞𝐬𝐬𝐞𝐬).  If you try to digitally transform merely by adding new technologies on top of existing systems and processes, you are bound to create redundancies, inefficiencies, unnecessary complexity, and be arbitrarily constrained by old systems.

▪️ 𝐍𝐨𝐭 𝐠𝐫𝐚𝐬𝐩𝐢𝐧𝐠 𝐡𝐨𝐰 𝐭𝐨 𝐛𝐮𝐝𝐠𝐞𝐭 𝐟𝐨𝐫 𝐝𝐢𝐠𝐢𝐭𝐚𝐥 𝐭𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧. Have a long-term strategy in place that leverages a flexible budgeting model based on a continual stream of incremental initiatives, successes, and easily demonstratable ROI.

▪️ 𝐍𝐨𝐭 𝐩𝐮𝐭𝐭𝐢𝐧𝐠 𝐞𝐧𝐨𝐮𝐠𝐡 𝐞𝐦𝐩𝐡𝐚𝐬𝐢𝐬 𝐨𝐧 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐲. Don’t overestimate the importance and potential complexity of cybersecurity when digitally transforming. Net Solutions’ digital transformation report for 2020 states that a company’s successful digital transformation journey relies on its ability to secure its digital operations.