Haven’t read all previous 4 articles of this series, or could you use a quick refresh? Find a recap of the previous 4 elements in the excerpt below before diving into the fifth and final element of this series.
Excerpt – Recap of previous 4 elements
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Digital transformations can rely on two different perspectives. The first philosophy is based on business strategy: this approach branches out how digital resources can be used to realize a strategy. Questions involved would be, for instance: What data can be used for what purpose? Which business processes should be digitized? And can these processes be organized in a smarter way?
The second philosophy, on the other hand, starts from technical possibilities and a desire to experiment and innovate. This approach requires companies to create a team of experts who can come up with innovative ideas. This philosophy can be very successful for companies willing to think outside of the box. Rianne Langenberg, Managing Consultant at ORTEC, has seen that companies often struggle to transition from this ‘technical’ approach to a strategical approach, which will ultimately be needed in order to put innovative ideas into practice. “A transition from push to pull means that you have to integrate innovative experiments in an organization in which hierarchy and governance do play a role and where targets have to be met. It's not easy to make that work”, says Langenberg.
From experiment to integrated strategy
It is advised to collectively apply both of the above mentioned philosophies. A coherent, strategic roadmap can make clear where analytics can contribute to the realization of strategic goals. This will reveal which technologies can play a role and which competencies are needed. Meanwhile, a plan must be made for the required organizational change, says Langenberg, which would answer questions like: Why do we want this? Who should we involve? What should we do? And how should we do it? This approach unites two different processes: creating impact with analytics on the one hand, while consciously building organizational readiness on the other.
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“Even the best models are worthless if
the people using it don’t understand it.”
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Knowledge across the board
A data-driven approach requires analytics. The more advanced these analytics get, the easier it will be for a company to operate digitally and find smart uses for data. “You have to show what you can do with data, whilst tweaking the organization and encouraging it to grow along,” Langenberg explains. She points out that even the best models are worthless if the people using it don’t understand it. “People who know the organization are also in a better position to identify valuable opportunities for additional savings or revenue. Awareness in the organization and knowledge across the board are paramount if you want to make real impact.”
Practical approach
Hans Spaan, Member of the Supervisory Board and Director of Data Science at ORTEC, emphasizes that digital transformations are very similar to other major organizational changes, such as post-merger integration. In both cases, different methods, systems and cultures have to be woven together to form an effective, efficient unity. If you take the lessons learned during similar transformations to heart, you can save yourself a lot of misery. Moreover, it’s recommended to set up an action plan. “This plan should, at the very least, focus on people”, says Spaan, “not on workflows and the like.” He points out the following five elements that should be included in every effective action plan:
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“Digital change should always support the business.
It should add value, rather than being a goal on itself.”
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Last but not least, the most important tip that Spaan and Langenberg would like to share: “Remember that digital change should always support the business. It should add value, rather than being a goal on itself. In that respect, it might be more accurate to think in terms of a value-driven organization, rather than a data-driven one.”
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In this series of articles, we have so far examined four elements that are crucial for a successful holistic digital strategy: (1) innovation (2) data (3) talent development and (4) culture. All these elements must be considered when formulating a holistic digital strategy, but the question remains: how do you organize a digital transformation in practice? In this final article, we will zoom in on that essential 5th aspect related to Change Management: Getting it done.
This article is part of the series Five Components of a Holistic Digital Strategy. ‘Change Management’ is the fifth and final component.
An article powered by Rianne Langenberg, Managing Consultant and
Hans Spaan, Director.