LinkedIn Article
Digital Transformation: How to get started?
Introduction
In the last article, I defined what Digital Transformation is and explained the benefits it brings to an organization. I referenced that every journey of a thousand miles begins with a single step. In this article, I offer simple steps to begin the Digital Transformation journey.
To summarize, Digital Transformation is the process by which an organization aligns its technological investments to enhance, streamline, and optimize the organization’s processes to achieve the following business objectives:
- Improved operational efficiency
- Better decision-making
- Increased revenue generation
- Higher customer satisfaction and added value
Here are some simple steps that can help you get started:
Step 1: Who are we?
Before embarking on a Digital Transformation journey, it’s important for an organization to take full stock of its current situation. They should conduct a SWOT analysis and make an honest assessment of where they are regarding their processes, technology, and capabilities. In the process, they will identify those gaps and shortcomings. This will be crucial to assess the current state of your organization.
Deliverables for Step 1:
- SWOT Analysis: Documentation of an organization’s Strengths, Weaknesses, Opportunities, and Threats
- Project Charter: Identification of an organization’s objectives and expected outcomes for the Digital Transformation effort
Step 2: Who will we be?
Once an organization has a true understanding of who they are, it’s time to figure out who they hope to be in the future. In this process, an organization will need to clearly define objectives and strategy to help align the team for the Digital Transformation journey. Not only will this help the team follow the same plan, but it will also enable an organization to track progress.
Deliverables for Step 2:
- Problem Definition: Define the organization’s goals
- Use Cases: Collection of an organization’s requirements/use cases to support the organization’s goals
- Technology Readiness Matrix: Combines the organization’s goals, requirements, and technology into a document with an appropriate score to help prioritize each requirement
Step 3: Start from the Top!
One common trait that all of the successful Digital Transformation projects share is that they require support from the top. Digital Transformation requires a collaborative and innovative culture. It often involves employees from cross-functional teams collaborating. This will only happen if the executive team is bought into the project, as it will require resource allocation and lots of walls to be broken down.
Having executive buy-in will also help bring clear goals for the entire organization while ensuring everyone understands the importance and benefits to the company as a whole.
Deliverables for Step 3:
- Resource Allocation: Agreement from the management team on budget and resource allocation for the project
- Communication Plan: A plan for change management to ensure clear, concise, and transparent communication regarding the project
Step 4: Tiger Team
Assembling a cross-functional team, also known as a Tiger Team, that represents the key departments/disciplines is a crucial part of any Digital Transformation project. Ensuring a good mixture of individuals with expertise in technology, project management, business analysis, Business Unit Subject Matter Experts (SMEs), UI/UX, and — most often forgotten — change management is a great way to ensure the project covers all the bases.
During this process, it is understandable that you may not have all of the appropriate skills in your current workforce to staff the project. This is natural as you are about to change the way you work, and often, that creates “gaps” within your workforce. Most organizations would hire that expertise through recruiting or hiring a consulting firm like the Bayen Group. No matter the path, know that it is normal to identify a “gap” during the Tiger Team creation process.
Deliverables for Step 4:
- Tiger Team RACI Matrix: RACI matrix helps identify who is Responsible, Accountable, Consulted, and Informed for each task. This is used to communicate roles and responsibilities within the project team.
Step 5: Plot the Journey (Road Mapping)
Now that you have a team, it is time to start planning out the steps it will take to implement a Digital Transformation initiative and the order in which each initiative is implemented, or simply Road Mapping. During this process, it is important to map all Digital Transformation initiatives back to the organization’s goals to ensure continuous alignment. In addition, all road maps should include the appropriate milestones, resource allocation, and metrics to help measure progress and success.
Deliverables for Step 5:
- Digital Transformation Road Map: A plan that identifies all initiatives and phases to take the project from start to finish
- Metrics Definitions: Key Performance Metrics and milestones that will help the project team track progress and success
Conclusion
Starting a Digital Transformation project may seem like a large undertaking, but just like a new resolution of going to the gym, the hardest part is getting started. Hopefully, these 5 steps help you get motivated, and you are now ready to start your Digital Transformation journey and achieve lasting success for your organization. If you are still hesitant, feel free to reach out to our team, and we will be glad to partner with your organization in your Digital Transformation effort.
About the Author
My name is Huy H. Nguyễn, and I am a managing partner at Bayen Group. We specialize in partnering with organizations to plan and implement the Technology Enterprise Modernization Roadmap. If your organization is starting or in the process of its own Digital Transformation, don’t hesitate to reach out to us. We would love to be your guide through the Digital Transformation journey.
