Under The Hood

Leading Continuous Digital Transformation

Digital Transformation, Under the Hood

Digital Transformation: What Changes are There When Going from Legacy to Digital?

Many leaders when leading their organization’s transformation wonder how they will know when their organization has gone through a digital transformation. Here are some different aspects of how to compare an organization’s starting point and end point.

Top management agenda

If we think about a traditional organization such as a DVD film rental store, what’s on top of the management agenda? It is the quantity of stores, the number of employees, future promotions and other topics affecting organizational optimization.

In digital organization, top of the management agenda is a focus on change. Top management engages itself with customer satisfaction survey results and understands the business.

Change management

In an organization which has gone through a digital transformation, change is coordinated by a named leader, such as chief digital officer CDO, chief technology officer or chief marketing officer.

Budgeting

In the traditional enterprise strategy budgets are written for both the spring and the autumn. Then, the following year, December organization is implemented based on what was seen as important 1.5 years ago. Organisation such as this is seen as obsolete as it takes too long in the digital era, when new apps take just a few months to implement.

Planning

Does your organization make decisions based on HIPPO, Highest Paid Person’s Opinion? Instead of relying on this, opinions and experience gained in 1980s companies should be gathered to create new and updated data of what works now.

Product and services

When companies operate with physical products, the product changes little over many years and rarely undergoes updates. In the digital world, products are created and modified easily. Easy to use functions are ensured by experimenting and working with customers.

Mindset

Instead of focusing on how the organization should be structured, in the digitally mature organization, focus is on customer experience.

Innovation

When developing digital products or services, it is very important to include customers in its development. Creating new services is so easy that having a poor customer experience is not an option.

Information sharing

Compared to traditional organizations, knowledge is more freely transferred in a digitally mature organization. If we expect people to make good decisions by themselves, they should be able to access enough information in order to do this. Some organizations even share their company’s board meeting minutes.

Decision making

People involved with the customer interface need to have the flexibility to make decisions that improve customer experience. If shop assistants need to ask their supervisor before giving a free plastic bag, the opportunity to provide excellent service has already been missed before it started.

 

2 Comments

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