SUCCESSFUL DIGITAL TRANSFORMATION CALLS FOR NEW LEADERSHIP
Digital innovation is becoming increasingly important for organisations. According to Marc Beijen, managers cannot leave this to specialists or consultants, but must take a structural approach to it themselves. To begin with, there are eight important steps for successful digitisation.
Organisations in all sectors are facing enormous challenges. Radical changes are taking place everywhere. Consumer needs and behaviour are changing fundamentally. New organisations are appearing on the market with new business models, positioning themselves ahead of the original service provider in contact with the customer. They steal your customer contact and push you into a supplier role with marginal returns. At the same time, technological progress is accelerating at a dizzying pace for organisations.
More than ever, managers will have to think about and make choices about how digitisation can create value. Optimal use of information technology can make the difference between decisive competitive advantage, survival and defeat. Investments in digital technology now account for a significant portion of the budget. Digital innovation is no longer a priority; it is a necessity. It therefore requires structural attention and guidance from managers. You cannot leave this to specialists in your organisation or outsource it to a supplier or consultant.
Managers need to know and understand the world of robotics, IoT, big data, blockchain, machine learning and artificial intelligence. They need to make the right choices based on a keen eye for market developments, technological possibilities and business perspectives. And they need to have a clear picture of how to successfully organise and manage that transition.
It starts with formulating a sharp digital strategy. But that is only the beginning. You will need to have the entire change cycle in your organisation properly organised; focus on changes that create the most value; organise execution power to implement these changes quickly but also with the right quality. And your organisation will need to have a great capacity to learn in order to make short-cycle adjustments and learn from failures and successes.
When implementing the strategy, there are quite a few factors that influence its success or failure.
Digital transformation = business change
All too often, digital transformation is viewed as the responsibility of the IT department, with changes being approached from a technological perspective rather than a business perspective. This is not sustainable. IT projects do not actually exist. It is not about implementing IT systems, but about new business models, improving customer service, optimising processes and supporting employees and customers with good tools. Working methods will change; people need to be properly guided through this. These types of projects must be approached in a multidisciplinary manner from a business perspective.
C-level sponsorship
Digital technology permeates the entire organisation. Everyone is affected by it. To break down existing complexity (and prevent new complexity from arising), tough choices must be made. This requires broad ownership at C-level and the ability to make quick adjustments where necessary. It is essential that top management is actively involved, promotes the importance of the issue and immerses itself in the subject matter. The most important tasks are: spreading the vision, connecting people, giving top performers a platform and removing obstacles to enable rapid progress.
Change under architecture
Corporates – organisations from the established order – carry a significant legacy problem. The complexity of products, processes and IT landscapes threatens to block the realisation of business strategy. The best way to grow from the historically developed situation into the new world is to change under architecture. Architecture as the basis, the foundation for change. In the physical construction world, “renovated under architecture” means that the renovation has been designed and supervised by a qualified architect. This is also necessary in digital transformation. Only then can you achieve the sustainability and flexibility that give you a competitive edge.
Work incrementally on both business value and digital capabilities
Start small and practical: begin quickly, learn by doing, achieve tangible results in small steps. Evaluate and improve continuously. If successful, implement the results more broadly within the organisation. Seize the momentum to build core competencies among employees and professionalise them. In this way, the organisation's digital capabilities will grow.
A good start is half the battle
Many digital transformations fail at the start. It often happens that the process is started without a clear understanding of what needs to be delivered. Halfway through the process, people get a rude awakening, resulting in higher costs and significant delays. Before starting, the goals, results, scope, an initial rough business case and the consequences must be clear. No extensive studies, just a short and concise definition of the assignment.
Holistic thinking, autonomous action
You create speed by giving digital initiatives space, freedom and autonomy. But digital changes are not isolated from each other. There are substantive dependencies, we often call on the same experts, and the total change budget is limited. That is why it is good to steer the realisation of digital ambitions with change portfolio management, by developing a change calendar with milestones and dependencies, capacity planning, financial planning and overall risk management. Not as a straitjacket, but to gain and maintain insight into progress, learning points, success factors and obstacles (to be resolved).
Choose a situational approach
There is no one-size-fits-all approach to implementing digital changes. It depends on quite a few factors. Are the goals and desired results crystal clear? Is it possible to define the requirements and wishes for the solution in advance using SMART criteria? Do you expect there to be many changes to the assignment and scope? How quickly are workable (interim) results needed? Or do accuracy and correctness take precedence over speed? The answers to these questions determine the approach that best suits the situation. Sometimes an agile/scrum approach is best, other times a more traditional waterfall approach is better. Or a hybrid model.
It's also behavioural change!
Digital transformation is primarily about changing people's behaviour. Many employees in your organisation will find it difficult to change. To think in terms of opportunities rather than obstacles. To think and act from the outside in rather than from professional knowledge. And they will undoubtedly find it difficult to let go of the current situation. Corporate culture and risk aversion are important factors that can lead to procrastination and slow down or prevent innovation. Behavioural change is a difficult and important element of digital transformation. Make it clear what digital transformation can mean for the people in your organisation, what opportunities there are, but also what will change. Let them think for themselves about the consequences for their own role and function, for the organisation as a whole and for the customers they serve. Focus on increasing your organisation's willingness and ability to change, formulate actions and monitor the effects.
Preferably, do not set up a separate steering group or change board, but manage the transition from within the line organisation, with the full commitment and involvement of all C-level managers; if desired, with a chief digital officer who takes charge of the transition. Continuously check whether you are complying with the core principles for successful change. Monitor and evaluate continuously, adjust based on KPI measurements, feedback and new insights. ‘When you can’t change the direction of the wind, adjust your sails’ (H. Jackson Brown).
SUCCESSFUL DIGITAL TRANSFORMATION CALLS FOR NEW LEADERSHIP
Digital innovation is becoming increasingly important for organisations. According to Marc Beijen, managers cannot leave this to specialists or consultants, but must take a structural approach to it themselves. To begin with, there are eight important steps for successful digitisation.
Organisations in all sectors are facing enormous challenges. Radical changes are taking place everywhere. Consumer needs and behaviour are changing fundamentally. New organisations are appearing on the market with new business models, positioning themselves ahead of the original service provider in contact with the customer. They steal your customer contact and push you into a supplier role with marginal returns. At the same time, technological progress is accelerating at a dizzying pace for organisations.
More than ever, managers will have to think about and make choices about how digitisation can create value. Optimal use of information technology can make the difference between decisive competitive advantage, survival and defeat. Investments in digital technology now account for a significant portion of the budget. Digital innovation is no longer a priority; it is a necessity. It therefore requires structural attention and guidance from managers. You cannot leave this to specialists in your organisation or outsource it to a supplier or consultant.
Managers need to know and understand the world of robotics, IoT, big data, blockchain, machine learning and artificial intelligence. They need to make the right choices based on a keen eye for market developments, technological possibilities and business perspectives. And they need to have a clear picture of how to successfully organise and manage that transition.
It starts with formulating a sharp digital strategy. But that is only the beginning. You will need to have the entire change cycle in your organisation properly organised; focus on changes that create the most value; organise execution power to implement these changes quickly but also with the right quality. And your organisation will need to have a great capacity to learn in order to make short-cycle adjustments and learn from failures and successes. When implementing the strategy, there are quite a few factors that influence its success or failure.
Digital transformation = business change
All too often, digital transformation is viewed as the responsibility of the IT department, with changes being approached from a technological perspective rather than a business perspective. This is not sustainable. IT projects do not actually exist. It is not about implementing IT systems, but about new business models, improving customer service, optimising processes and supporting employees and customers with good tools. Working methods will change; people need to be properly guided through this. These types of projects must be approached in a multidisciplinary manner from a business perspective.
C-level sponsorship
Digital technology permeates the entire organisation. Everyone is affected by it. To break down existing complexity (and prevent new complexity from arising), tough choices must be made. This requires broad ownership at C-level and the ability to make quick adjustments where necessary. It is essential that top management is actively involved, promotes the importance of the issue and immerses itself in the subject matter. The most important tasks are: spreading the vision, connecting people, giving top performers a platform and removing obstacles to enable rapid progress.
Change under architecture
Corporates – organisations from the established order – carry a significant legacy problem. The complexity of products, processes and IT landscapes threatens to block the realisation of business strategy. The best way to grow from the historically developed situation into the new world is to change under architecture. Architecture as the basis, the foundation for change. In the physical construction world, “renovated under architecture” means that the renovation has been designed and supervised by a qualified architect. This is also necessary in digital transformation. Only then can you achieve the sustainability and flexibility that give you a competitive edge.
Work incrementally on both business value and digital capabilities
Start small and practical: begin quickly, learn by doing, achieve tangible results in small steps. Evaluate and improve continuously. If successful, implement the results more broadly within the organisation. Seize the momentum to build core competencies among employees and professionalise them. In this way, the organisation's digital capabilities will grow.
A good start is half the battle
Many digital transformations fail at the start. It often happens that the process is started without a clear understanding of what needs to be delivered. Halfway through the process, people get a rude awakening, resulting in higher costs and significant delays. Before starting, the goals, results, scope, an initial rough business case and the consequences must be clear. No extensive studies, just a short and concise definition of the assignment.
Holistic thinking, autonomous action
You create speed by giving digital initiatives space, freedom and autonomy. But digital changes are not isolated from each other. There are substantive dependencies, we often call on the same experts, and the total change budget is limited. That is why it is good to steer the realisation of digital ambitions with change portfolio management, by developing a change calendar with milestones and dependencies, capacity planning, financial planning and overall risk management. Not as a straitjacket, but to gain and maintain insight into progress, learning points, success factors and obstacles (to be resolved).
Choose a situational approach
There is no one-size-fits-all approach to implementing digital changes. It depends on quite a few factors. Are the goals and desired results crystal clear? Is it possible to define the requirements and wishes for the solution in advance using SMART criteria? Do you expect there to be many changes to the assignment and scope? How quickly are workable (interim) results needed? Or do accuracy and correctness take precedence over speed? The answers to these questions determine the approach that best suits the situation. Sometimes an agile/scrum approach is best, other times a more traditional waterfall approach is better. Or a hybrid model.
It's also behavioural change!
Digital transformation is primarily about changing people's behaviour. Many employees in your organisation will find it difficult to change. To think in terms of opportunities rather than obstacles. To think and act from the outside in rather than from professional knowledge. And they will undoubtedly find it difficult to let go of the current situation. Corporate culture and risk aversion are important factors that can lead to procrastination and slow down or prevent innovation. Behavioural change is a difficult and important element of digital transformation. Make it clear what digital transformation can mean for the people in your organisation, what opportunities there are, but also what will change. Let them think for themselves about the consequences for their own role and function, for the organisation as a whole and for the customers they serve. Focus on increasing your organisation's willingness and ability to change, formulate actions and monitor the effects.
Preferably, do not set up a separate steering group or change board, but manage the transition from within the line organisation, with the full commitment and involvement of all C-level managers; if desired, with a chief digital officer who takes charge of the transition. Continuously check whether you are complying with the core principles for successful change. Monitor and evaluate continuously, adjust based on KPI measurements, feedback and new insights. ‘When you can’t change the direction of the wind, adjust your sails’ (H. Jackson Brown).
SUCCESSFUL DIGITAL TRANSFORMATION CALLS FOR NEW LEADERSHIP
Digital innovation is becoming increasingly important for organisations. According to Marc Beijen, managers cannot leave this to specialists or consultants, but must take a structural approach to it themselves. To begin with, there are eight important steps for successful digitisation.
Organisations in all sectors are facing enormous challenges. Radical changes are taking place everywhere. Consumer needs and behaviour are changing fundamentally. New organisations are appearing on the market with new business models, positioning themselves ahead of the original service provider in contact with the customer. They steal your customer contact and push you into a supplier role with marginal returns. At the same time, technological progress is accelerating at a dizzying pace for organisations.
More than ever, managers will have to think about and make choices about how digitisation can create value. Optimal use of information technology can make the difference between decisive competitive advantage, survival and defeat. Investments in digital technology now account for a significant portion of the budget. Digital innovation is no longer a priority; it is a necessity. It therefore requires structural attention and guidance from managers. You cannot leave this to specialists in your organisation or outsource it to a supplier or consultant.
Managers need to know and understand the world of robotics, IoT, big data, blockchain, machine learning and artificial intelligence. They need to make the right choices based on a keen eye for market developments, technological possibilities and business perspectives. And they need to have a clear picture of how to successfully organise and manage that transition.
It starts with formulating a sharp digital strategy. But that is only the beginning. You will need to have the entire change cycle in your organisation properly organised; focus on changes that create the most value; organise execution power to implement these changes quickly but also with the right quality. And your organisation will need to have a great capacity to learn in order to make short-cycle adjustments and learn from failures and successes.
When implementing the strategy, there are quite a few factors that influence its success or failure.
Digital transformation = business change
All too often, digital transformation is viewed as the responsibility of the IT department, with changes being approached from a technological perspective rather than a business perspective. This is not sustainable. IT projects do not actually exist. It is not about implementing IT systems, but about new business models, improving customer service, optimising processes and supporting employees and customers with good tools. Working methods will change; people need to be properly guided through this. These types of projects must be approached in a multidisciplinary manner from a business perspective.
C-level sponsorship
Digital technology permeates the entire organisation. Everyone is affected by it. To break down existing complexity (and prevent new complexity from arising), tough choices must be made. This requires broad ownership at C-level and the ability to make quick adjustments where necessary. It is essential that top management is actively involved, promotes the importance of the issue and immerses itself in the subject matter. The most important tasks are: spreading the vision, connecting people, giving top performers a platform and removing obstacles to enable rapid progress.
Change under architecture
Corporates – organisations from the established order – carry a significant legacy problem. The complexity of products, processes and IT landscapes threatens to block the realisation of business strategy. The best way to grow from the historically developed situation into the new world is to change under architecture. Architecture as the basis, the foundation for change. In the physical construction world, “renovated under architecture” means that the renovation has been designed and supervised by a qualified architect. This is also necessary in digital transformation. Only then can you achieve the sustainability and flexibility that give you a competitive edge.
Work incrementally on both business value and digital capabilities
Start small and practical: begin quickly, learn by doing, achieve tangible results in small steps. Evaluate and improve continuously. If successful, implement the results more broadly within the organisation. Seize the momentum to build core competencies among employees and professionalise them. In this way, the organisation's digital capabilities will grow.
A good start is half the battle
Many digital transformations fail at the start. It often happens that the process is started without a clear understanding of what needs to be delivered. Halfway through the process, people get a rude awakening, resulting in higher costs and significant delays. Before starting, the goals, results, scope, an initial rough business case and the consequences must be clear. No extensive studies, just a short and concise definition of the assignment.
Holistic thinking, autonomous action
You create speed by giving digital initiatives space, freedom and autonomy. But digital changes are not isolated from each other. There are substantive dependencies, we often call on the same experts, and the total change budget is limited. That is why it is good to steer the realisation of digital ambitions with change portfolio management, by developing a change calendar with milestones and dependencies, capacity planning, financial planning and overall risk management. Not as a straitjacket, but to gain and maintain insight into progress, learning points, success factors and obstacles (to be resolved).
Choose a situational approach
There is no one-size-fits-all approach to implementing digital changes. It depends on quite a few factors. Are the goals and desired results crystal clear? Is it possible to define the requirements and wishes for the solution in advance using SMART criteria? Do you expect there to be many changes to the assignment and scope? How quickly are workable (interim) results needed? Or do accuracy and correctness take precedence over speed? The answers to these questions determine the approach that best suits the situation. Sometimes an agile/scrum approach is best, other times a more traditional waterfall approach is better. Or a hybrid model.
It's also behavioural change!
Digital transformation is primarily about changing people's behaviour. Many employees in your organisation will find it difficult to change. To think in terms of opportunities rather than obstacles. To think and act from the outside in rather than from professional knowledge. And they will undoubtedly find it difficult to let go of the current situation. Corporate culture and risk aversion are important factors that can lead to procrastination and slow down or prevent innovation. Behavioural change is a difficult and important element of digital transformation. Make it clear what digital transformation can mean for the people in your organisation, what opportunities there are, but also what will change. Let them think for themselves about the consequences for their own role and function, for the organisation as a whole and for the customers they serve. Focus on increasing your organisation's willingness and ability to change, formulate actions and monitor the effects.
Preferably, do not set up a separate steering group or change board, but manage the transition from within the line organisation, with the full commitment and involvement of all C-level managers; if desired, with a chief digital officer who takes charge of the transition. Continuously check whether you are complying with the core principles for successful change. Monitor and evaluate continuously, adjust based on KPI measurements, feedback and new insights. ‘When you can’t change the direction of the wind, adjust your sails’ (H. Jackson Brown).