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What are the Five Critical Factors of a Successful Digital Transformation?

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Following these steps can help you go through your digital transformation:

  1. You need to understand your mission.

Where to start? First, you need to think about your Digital Transformation as a whole. What are you trying to achieve? What is that final brand promise? You need to align your mission, which drives the experience and outcomes you want to deliver, with your brand promise. If they are not aligned, you may need to adjust either your brand or your mission.

  1. You need to build a culture of digital.

To do so, you need to spend more time talking about technology and business models, and understanding how to humanize digital. The first step is to build a “digital DNA” and a “culture of digital” inside your organization. One good way to start is to have “digital artisans.” It is a question of balance! Offer your left-brained and right-brained people the same vision— and balance science, technology, engineering, and math combined with storytellers, UX designers, and people who understand ethnography and anthropology. Only then will you be able to start building a culture of digital.

  1. You need to remember — “Form follows function.”

Once you get those business models right (2 first steps), you will have half of the work done. The second half is when you can think about the cool disruptive technologies. You already know about the basic  ones: social, mobile, cloud, big data, and unified comms. And now you can focus on the other cool  stuff that’s happening, like IoT, cognitive, AI, robotics, or AR and VR. So, remember, technologies will only count for half of the work, you also need a business model that can change with innovation, so you can move from products to services and, ultimately, experiences to outcomes.

  1. You need to Move from gut-driven decisions to data-driven decisions.

You need to start using your Data! You can’t function without data—data is the heart of digital businesses. But gathering data is not enough; it’s about getting into insights and taking advantage of these insights that help you grow through differentiation. As the marketing analytics paradigm is changing, you will need to move from predictive analytics to machine learning and machine learning to neural networks to get them from data to decisions.

  1. You need to Encourage co-innovation and co-creation.

Don’t isolate yourself and deny others’ contribution to your success. You want to take advantage of P2P models that are already in place. You need to utilize network economies and build a platform that even your competitors will build on top of. Especially if you don’t mean to invest heavily into your Digital Transformation, co-innovation will become more important to succeed in digital transformation. The transformation is easier with the right type of partners.

Source: Transcribe of R “Ray” Wang, Principal Analyst, Founder, and Chairman of Constellation Research and author of the best-selling book Disrupting Digital Business.

See how Microsoft Dynamics 365  can support your journey toward digital transformation. Contact us to learn more about Dynamics 365.

 

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