Framework 78 Digital Transformation (including social media)

Introduction

Society and technology are changing more rapidly than most organisations can adapt to:

"...from cloud computing to social media to real time omnichannel marketing, new tools, platforms, and channels are creating unprecedented opportunities to connect with customers and improve internal processes - but only for the companies and dull enough to transform and adapt to these new realities..."

Jamie Brighton 2016

Digital transformations, based on introducing new technologies, often fail owing to existing organisational culture (values, behaviours, beliefs, etc) and structure not being suitable for the new technology. For example, staff may not feel confident, or reluctant to change, or resists change; thus they will not champion the transformation, ie they are too comfortable in the traditional ways of working. They resist the idea of digital transformation insisting that their traditional expertise and reputation will keep their customer base loyal. However customers continue to migrate to disruptive competitors who provide more friendly, personalised, digital first, competitive services. Thus digital transformation is crucial for organisations to survive and there is no single road map that will fit all situations.

Like all transformation, it is about putting the right people in the right place as it is people who will ultimately change the business and drive the change.

Need to understand that in large organisations there are different subcultures that can exist simultaneously within an organisation. For example, the IT department could have a different culture from that of the Finance and HR department, branches to head office, etc.

The digital transformation must fit in with the needs of the business and customers.

Research has shown that 1/3 of companies are unprepared for digital transformation and just 7% successfully complete the process. On the other hand, around 50% of executives believe that immediate digital transformation will be critical.

Six component process

1. Business as Usual (firms operate on legacy principles, ie tentatively adopting new technology while seeking to remain relevant within their traditional paradigms; usually need a digital disruptor to move beyond this component)

2. Present and Active (pockets of experimentation begin to improve certain touch points and processes; "business as usual" is not good enough)

3. Formalised (success in the second component results in digital experimentation becoming directed and intentional with initiatives becoming bolder)

4. Strategic (digital innovators start collaborating which results in shared insights giving rise to large-scale strategic road-maps to new digital efforts)

5. Converged (a digital transformation team actively begins to shape an organisation-wide digital first infrastructure)

6. Innovate and Adaptive (ongoing proactive, organisation-wide, digital approach so that innovation becomes the standard mindset for all the organisation with dedicated teams of staff proactively identifying and acting upon emerging digital trends)

 

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