How to tell a compelling digital transformation story that boosts your share price
Digital startup companies achieve extraordinary valuations in part by knowing how to tell a compelling story, crafting an exciting vision of their future that sends investors and analysts scrambling to jump on board. Established companies embarked on their own electronic journeys can capture some of that same magic by learning how to tell their transformation stories in more powerful ways.
Step 1 : Establish the shared language for digital change
A major key to success is having a shared, common language for thinking plus talking about electronic transformation. Such a language can help people across your enterprise view digital transformation in a more strategic and comprehensive way, instead of fixating on individual technologies plus tactical implementation issues. Also, a shared language may help people in different roles and silos collaborate more effectively when planning plus executing your digital modification effort.
We recommend a digital transformation vocabulary built around five important imperatives:
- Experiences . Using digital technology to create better experiences for customers, employees, and other crucial stakeholders.
- Insights . Using electronic technology to generate new, actionable insights and activities that produce business value and improve competitiveness, whether customer data that enhances user encounters, business intelligence that allows for more actionable decision-making, or automation.
- Platforms . Establishing digital platforms that enable information in order to flow more efficiently and effectively across the organization and throughout the entire ecosystem. Improved platforms enhance experiences, information, and connectivity by optimizing how information is stored, processed, plus shared.
- Connectivity . Using the latest communications technologies to better network, enable, and improve the flow of information throughout people, systems, and ecosystems.
- Integrity . Building trust plus integrity through improved information security/privacy, operational resilience, corporate responsibility, and ethics.
These five imperatives provide a common vocabulary plus framework that can help your company tell its digital tale in a more compelling way, highlighting the business worth that is being created and how all the various business and technologies elements fit together to form a cohesive strategy. (Figure 1). The resulting story will make it easier for investors and analysts to envision what your own business will look like in the particular future (post-transformation)—and value it accordingly.
Figure 1: Business strategy and technology elements often associated with each imperative
Deloitte
Step 2: Take a holistic, integrated view associated with business technique, technology, plus operations
Drilling deeper into the five imperatives, there are three key questions to consider whenever developing your digital strategy and tale:
- What strategic company goals are you trying to achieve?
- Exactly what technologies are required to support those business goals?
- How will your operations and workforce be affected?
Imagine you’ve been tasked along with developing an integrated business and technologies strategy with regard to a smart factory. Start by assessing your overall business objectives and strategic company goals. For example, are you trying to move from traditional mass production in order to flexible, small-batch manufacturing that will enables flexibility and personalization without sacrificing efficiency? Next, consider exactly how each of the 5 imperatives aligns to those business goals. What customer experience are you trying to deliver? What insights will be needed? Exactly what platforms plus connectivity will certainly be required? And how will you ensure the requisite trust and integrity? Finally, think about the two-way impacts on your procedures and workforce—not only just how digital alteration will affect your organization, but also how your organization’s existing capabilities will help or hinder the particular transformation process, and what actions you can take to boost the chances of success.
This is very different through the standard approach to technology implementation, which tends in order to focus narrowly on a single technologies and the detailed challenges of getting it up and running while paying less attention to broader company and labor force issues plus strategic integration.
Step 3: Use the language associated with digital change for better to inform your own digital story
The particular five-imperatives framework is very useful for a company just getting started with its digital strategy and story. However , it is equally helpful for a business already set out on the digital journey. Wherever your organization is on the electronic transformation continuum, the five imperatives framework can help you refine your technique and craft a more persuasive digital tale. For example , this can assist:
- Optimize one essential across multiple domains (business, technology, plus workforce/operations).
- Integrate multiple imperatives into a cohesive strategy for one domain
- Integrate several imperatives across multiple domains
Each of these scenarios presents unique challenges; however, they can all be analyzed and discussed better within the context of the particular five imperatives.
Stage 4: Measure the full value of digital transformation
Ultimately, a persuasive digital change story is about value creation. You need to understand the full value your current digital portfolio will be delivering throughout the organization (thinking beyond traditional worth measures). You can then use that broader understanding of value to estimate potential returns on your future electronic investments.
Of course , given all of the variables at play, calculating the full associated with the digital portfolio is anything but simple. Your organization might already be capable of evaluating tangible factors such as reliability, scalability, flexibility, extensibility, and security. But what about intangibles such because increased employee engagement, improved collaboration between divisions, or even enhanced customer perceptions?
There will never be a simple formula showing that will X dollars invested in digital will yield Y returns. Nevertheless , Deloitte is currently examining the relationship among digital ambitions, digital bets, and electronic returns. Our goal is usually to create invisible digital value more visible, arming business leaders with the insights they need in order to make bolder digital investments that produce exponential rewards.
A convincing digital modification story that shows exactly how digital opportunities will impact nearly all aspects of your business can get people thinking more holistically about the impact of electronic technology across the enterprise. It can also boost confidence that will major purchases in digital transformation may deliver major returns in the future.
Getting your company the particular valuation it deserves
Start-up companies generate enviable market caps based substantially on their own future vision and story (often with only a hint of real-world results to back up their particular claims). As the leader of an established organization with real revenue and earnings—and a proven track record of success—shouldn’t you be able to craft a story at least as compelling as theirs?
Using a digital transformation language based on the 5 imperatives may help your company get the valuation this deserves—potentially increasing your discuss price even before your electronic transformation efforts start having a quantifiable impact on your day-to-day results.
