The reality of digital transformation in Quebec: still a long way to go
Digital transformation is a key element in the development of organizations, given its impact on various operational spheres: data, recruitment, business intelligence, productivity... and yet :
Only 22% of companies
have a digital strategy[1].
Yet transformation is necessary, in terms of corporate culture, tools and mentalities, so that everyone is able to adapt to the changes that are already taking place, and thus ensure the long-term survival of the organization.
Postponing investment and digital change means condemning the organization to falling behind the competition... and disappearing.
The tangible benefits of digital transformation for businesses
These include
- Increasing productivity and reducing costs, notably through automation
- Improving data security and protection, and optimizing data collection
- Alleviate labor shortages by optimizing resource management
- Enhance and streamline the customer experience
- Reduce time-to-market while increasing product or service quality
- Develop an internal digital culture conducive to collaboration and efficiency
- Prepare the organization to continue evolving and avoid obsolescence (unlike Kodak, Blockbuster, Blackberry...)
- Make decisions based on data (complete, accurate and contextualized).
This list is not exhaustive, but it has at least one merit: any one of the points mentioned should be enough on its own to motivate an organization to begin or accelerate its digital transformation.
Industry 4.0[2] integrates
the entire value chain[3]
Horizontal integration: human and technical resources collaborate harmoniously, and on a wider scale, similar companies can connect to form a network.
Vertical integration: enables rapid response to unexpected changes (sudden rise in demand, stock shortage, mechanical breakdown, etc.).
This global integration gives the organization the means to adapt (or even anticipate) in real time.
Pitfalls to avoid for a successful digital transformation
As with any major change, there are pitfalls to be avoided.
The pitfall of bad timing
Just because it has to be done, doesn't mean it has to be done at any time. Transformation needs to understand existing business processes and context, and model the risks involved.
The mistake of choosing the wrong tools
Transformation is not about copying the competition; it's about adapting to your own business reality. Some models call for standardization of processes, others for technological plurality.
The gap between technology and objectives
It may seem surprising, but sometimes digital transformation is not aligned with business strategy. This kind of gap will have a negative impact on operations. One element of alignment is to identify the added value and associated performance indicators, to ensure objective and transparent monitoring. Another good idea is to involve partners, suppliers and customers... to take as global an approach as possible.
Insufficient skills and commitment
It's not seniority or hierarchical status that should determine who will be part of the team in charge of leading the transformation, but rather those who know the organization's processes on the one hand, and the technology (and its impacts) on the other. The right people will be able to anticipate the human and financial resources needed, and thus limit the risks of overruns. Not all the skills needed to drive the transformation may be available. Identifying what needs to be done will facilitate external sourcing or internal skills development.
Underestimating readiness: the risk of unplanned change
Resisting change is human, but transforming is changing. A good understanding of the stakeholders and the issues at stake enables us to draw up a transition plan to help them move forward and support the transformation. All the more so as the transformation comes on top (at least in part) of the current operations that must continue to be carried out.
Weak leadership: the absence of visionary direction
Transformation is part of a strategic vision. As such, it is imperative that the management team gets involved and contributes to the implementation of the transformation.
The mistake of unrealistic anticipation
Transformation requires agility and flexibility. Expecting a short-term return on investment can thwart the process, as resource requirements evolve. On the other hand, it is always possible to prioritize the initiatives that will deliver the quickest gains, while sparing the budget, and to avoid multiplying initiatives that will in turn dilute the budget and the results.
Too fast or too slow
Transformation must not be a never-ending process, as this can create bottlenecks, lead to a drop in team buy-in, leave you behind the competition and cause you to abandon the project altogether. A good approach to avoid such fatigue is to break down the transformation into sub-projects with their own milestones and moments of accomplishment.
Determining factors for a successful digital transformation
Success is never guaranteed, but certain factors can contribute to it.
- Develop a climate conducive to creativity, innovation and risk-taking, where failures are sources of learning rather than reprimand. This mindset facilitates buy-in and resilience. It also makes it easier to evolve the strategic plan (for example, by assessing the viability of a given product or service).
- Identify the stages required for transformation. Particularly those where the greatest risk lies.
- Implement real change management.
- Rethink the user journey, to put the user at the heart of decisions and processes.
Deciding on digital transformation: issues, challenges and opportunities
Digital transformation is not a trivial project: all departments will have to get involved in the process and live with its impacts. By identifying and prioritizing projects, the organization can put in place transformational changes that will further business objectives by increasing both customer satisfaction and the overall efficiency of the company... and its sustainability. To determine whether your transformation project is the right one, you need to answer the following questions: What challenge does it address? What are the consequences of not solving it? Are there alternatives? What are the expected results? If in doubt, get help from specialists.
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