Digital Transformation 2023, do’s, don’ts: Vijay Sethi, Chairman, MentorKart – ETCIO

By Vijay Sethi

We are at the door step of 2023. CIOs and IT leaders across organizations are busy thinking about their IT Budget, THIS Strategy, IT Roadmap plus the most common answer to the question as to what their key priority is (and no prize for guessing that) “ Digital Transformation ”

Is everyone really doing digital transformation?

Reality, because I see, is that many THIS leaders use the term Automation, IT Modernization and Digital Change interchangeably.

In simple terms,

• Automation is regarding taking the manual processes plus adding technology to them in order to reduce guide work – it could be implementing a workflow system, applying new or some modules of ERP or rolling that out to other functions, manufacturing locations etc. or even building / implementing software’s in areas where we have manual activities today.
• THIS Modernization will be about taking your current IT Landscape to the next level through upgrades or even entirely new technology. Moving from CRM version A to B or development platform from edition X in order to Y or even from technologies A to B are some of the particular examples of the same.
• Electronic transformation, on the other hand, is about using new set of technologies to fundamentally transform how a particular process is done or your business is carried out. For example, when banks started doing video based KYC , they fundamentally changed the KYC process or use of AI based Chatbots with regard to enhancing customer experience or even using VR technology regarding pain reduction therapies.

We need in order to keep in mind that THIS Modernization and Automation are not bad targets to set, in fact they can be great stepping stones for the Digital Transformation journey of an organization. Automation plus Modernization share some important benefits with digital change, such as streamlined processes, improved efficiencies and productivity, but they are never going to change your way of working fundamentally. Do all Electronic Transformation initatives really succeed?

We must remember that modification of any kind is hard, and digital transformations are usually harder. As per some statistics and surveys, a large number associated with digital alteration efforts either fizzle out or fail (some putting the numbers between 70% and 80% that fall short or fizzle out) plus only less than 20% Digital Transformation initiatives (and some consulting companies say figures could be as low as 10%) are considered successful. A simple definition of the particular success here is that initiatives were able to meet or surpass the objectives that were set up intended for them.

If success rate of electronic transformation initiatives is so low, why businesses still want to pursue?

The reason is very easy, for those who be successful, the benefits are immense and there are so many examples where companies possess altered their business models or began new revenue streams or significantly enhanced their products or client service or even time in order to market etc. because of digital transformation endeavours.

What can a CIO or IT leader do to ensure the chances of success of electronic transformation initiatives becomes high

Let me discuss 5 things that each CIO and IT innovator who is usually or wishes to be on a digital journey should do to make the endeavours successful must do:

• Develop a Digital Modification Roadmap

Without a Roadmap, it is like getting into a journey where you do not know exactly where you have to go, so , any road will take you. A digital transformation roadmap will provide the plan that will moves your organization from its current state (using your current digital processes) to the new condition (using brand new digital processes).

The map will give you and your colleagues a clarity as in order to:

• Why do we need to transform business digitally?
• What Digital technology interventions (and in what all areas and what time frame) does the company need in order to stay ahead of competitors in the particular future?
• Exactly what resources are required in the Digital Alteration journey?

It will also help you in

• Establishing vision, mission, and goals for Electronic Transformation
• Prioritizing the initiatives
• Quantifying the potential gains
• Getting various features and people at various levels on-board along with digital change for better plan plus establish accountability
• Allocating resources and budget
• And perhaps most importantly, bring everyone upon same page and avoid duplicate efforts across the organization

• Focus on Cybersecurity from Day 1: We have seen a huge surge in cyber-security crime during last few months – become it cases of phishing, malware; ransomware, spyware, Trojans, financial frauds, hacking, denial of services or other attacks. As the level of digitization increases in an organization, so do the particular potential risks. You should not create cyber security an afterthought. It should be planned upfront and made an integral part of Digital journey and not a ‘bolt on’.

• Focus on People: Any digital transformation effort will be since successful as the people who use would like to make it. There could end up being potential Resistance to Change to Digitization efforts plus globally it really is one associated with the crucial reasons to get failure of digital change projects. Electronic Transformation is definitely not just about getting or implementing best Technologies but it is regarding ensuring employees and other stakeholders use the technologies to meet company objectives. You need to consider people aspect and look in reasons why people may resist change and get appropriate measures. Measure can include providing necessary trainings and upgrade their skills, having appropriate channels associated with communication, changing the mindset of the business to one that realises the importance of digital plus of data and information analytics. A culture that is agile and supports experimentation would help digitization attempts succeed.

• Focus on Processes plus Policies: Digital Transformation initiatives if not accompanied by suitable changes within Processes and policies could either expose the process plus policy gaps in the corporation and create the entire effort suboptimal or could even derail the particular Digital Change for better journey. So , you need to review the processes and policies because as they say ‘ exactly what brought a person here may not take you there’ – meaning many of the current guidelines and procedures may actually become hindrance in your digital transformation trip.

• Measure Progress Regularly and Take Corrective Actions: Finally, as you progress on the journey, a person need in order to constantly figure out what is going right, what can be not going right, what changes can be brought – and these could be due to technology, people, processes or any external factors. Key the following is to be objective in your own evaluation, learn from issues and mistakes, and become agile in decision making and taking corrective measures.

The author is a Digital Transformation and Sustainability Evangelist , and Chairman at MentorKart.

D.E.

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