We are seeing two issues with digital transformation:-
1. How do you measure it?
2. It's seems to be a black hole in which you throw money and get no return.
Since we started the business company some three years ago, we wanted to set about measuring digital transformation. In the last three years in transforming business we have been able to measure people based on digital competency. This also has enabled us to measure degrees of "digital". From not very digital to very digital. Or put it in business speak, we are able to track people from a low water mark to best practice.
With the recent announcement that the company Lush was pulling out of digital, we measured the management team and they all measured low on our digital scale which was probably why they decided to pull away from the modern customer.
The second area is that digital seems to be this black hole that companies throw money into. Often digital transformation is where a company sees this as system change, where the IT department get new shinny systems. Digital transformation isn't about new systems and tools, it's about people and process.
Our suggestion we be to transform the sales department to digital first. The the uplift in sales gained, this would then able you to transform following departments like marketing, human resources, customer services etc.
This, not only allows you to break the transformation down into manageable chunks, but the additional sales can be used to finance further changes. In affect your digital transformation becomes self financing.
Being able to measure a digital transformation and understand where you are, how each of your employees is on the journey and how you compare with the competition is critical for every company on it's digital transformation.
Also, being able to break a digital transformation down into chunks and be able to roll out digital, department be department, will give greater control on the disruption. Also, starting in sales, will mean that digital will be a net contributor to the business, rather than this sink hole of money.
Maybe it's time to pivot your digital transformation?
Why do digital transformation efforts sometimes fail to deliver? Applying seven “digital pivots” across the enterprise can help organizations reap the benefits of increasing digital maturity.