Any digital transformation includes the following core ingredients:
- Strategy — aligning vision, customer experience, processes, and technology.
- Agility in Delivery — iterative and adaptable.
- Integration of Software, Platforms and Technology — choosing environments and products that harmonize, and have less silos systems
- Data, Analytics and Insights — constant feedback loop.
- Product Design Mindset in Execution — minimal viable product and fail-fast mentality.
Despite knowledge of the integral elements of a successful digital transformation, a recent statistic from Deloitte show that an astonishing 70% of projects fail. This digital transformation failure rate is naturally a concern for those considering making their own changes. But so many of these efforts fail due to a lack of change management.
Companies of all types and sizes are investing heavily in the digitization of their business models. Driven by the changing consumer expectations that B2C digital juggernauts like Uber, Netflix and Amazon have created, many companies are investing in reimagining their business.
When embarking on any digital transformation, organization is going to experience some significant impacts. There are some common patterns we see of how organizations are affected by digital transformation.
Lot of Change Fatigue
Too much change at first, change too quickly, business demands, business changes.
People have been affected by external factors, pandemic, increase in demand for product or services, there has been an effect on our culture.
Change fatigue even before we start transformation, where people’s heads are, stress levels they are going to assess the readiness of people is very important.
While we may feel that changes our unpredictable, we see most of the results are predictable in what we see in terms of pattern on the digital transformation.
Organization change impacts are a big thing in digital transformation, it is not only the operating model, but changing people, changing culture and change in the way we now operate.
Change Management should align our Strategy — aligning vision, customer experience, processes, and technology.
Common challenges in a change Management Journey
1.Culture of Organization
All things mentioned in subsequent points, boil down to culture, new business models, customer relationships, change in business processes, changes in roles responsibilities reporting relationships, and then culture affects these things as well. E.g., mid-size size organization which were used to do things in a entrepreneurial manner now needs to change and adapt to a corporate style of working. We need to take care of this very carefully as if we don’t do that, the other four things will be under the threat of failure as well!
2. New Business Model:
When doing digital transformation there may be situations when the business models will undergo changes, example if you are implementing self service module in HR, there will be new roles defined for few people, changes in CRM may change the way we deliver, and our customers experience us. These all are part of change management.
3.Customer Experience Different Customer Experience, how customers look at, how to make customers part of it, e commerce business model, focus on least disruption to customers.
4.Change in Business Processes: Business Process redesign is an important part of change management process. Efficient and effective changes how technology can enable, planning and other processes will be important part of our change implementation.
5.Roles Responsibilities: With every automation there is bound to be change in the roles and responsibilities, e.g. a mundane job can become more analytical, how to make employees adopt to this change is a critical aspect of the success of any transformation.
We at AVA focus on end-to-end process for business transformation right from helping organization’s select the right technology partner, decode your solutioning needs, be your functional guiding experts, project management, help with business process redesign and help with redefining the job roles end to end. Our endeavor is to make your journey smooth, efficient, and successful!