Embarking on a digital transformation journey is an exciting but major undertaking – one that many Australian organisations are due to begin. Nationally, we are seeing the Australian Department of Health work to provide better aged care through a more consolidated, standardised, automated and modernised system, as well as Australia Post’s publicised review of its business model in an ever-increasingly digital economy.
In 2023, we are witnessing three major drivers of digital transformation:
- Investment in automation: Companies can do more with less by automating tasks.
- Data-driven decision intelligence: Reducing costs associated with missed opportunities by making informed decisions based on data.
- Total experience (TX) strategies: Boosting customer loyalty and employee advocacy by investing in enhancing the overall experience of customers and employees.
9Yards team of expert digital transformation consultants can work with your organisation to uplift your technological capabilities, and outline your key considerations ahead of transformational work.
The role of culture in driving digital transformation
Prior to undertaking digital transformation, it’s crucial to consider your organisation’s existing culture. Traditional command-and-control cultures may prioritise compliance over innovation, potentially limiting the success of digital transformation initiatives.
Resistance is common when disrupting the status quo, and some employees may feel uneasy about the idea (founded or unfounded) of automation replacing their jobs. The level of resistance against digital transformation is likely to be higher in more traditional or unreceptive organisations.
However, those businesses already fostering a culture of innovation will be better equipped from a cultural standpoint to implement the bold changes necessary for digital transformation.
Developing an effective digital transformation strategy
Whether your organisation is actively pursuing a digital transformation, or simply considering the idea, it’s crucial to develop a strategy tailored to your needs and culture. A one-size-fits-all approach will not be suitable for every organisation, as each has its own unique goals and objectives.
When setting out on a digital transformation strategy, a digital transformation consultant will guide you to consider how these four factors will work within your organisation’s specific needs:
1. Alignment of strategy
Your leadership team must align strategically by addressing the “what” and “why” of the digital transformation initiative. This includes defining the scope of the project, identifying the purpose behind the transformation, and determining the necessary outcomes and potential risks. Once this alignment is achieved, the leadership team should communicate the strategy to the rest of the organisation and ensure everyone is on the same page.
2. Analysis and alignment of systems
To successfully undergo a digital transformation, your organisation should evaluate its current systems to determine which ones are suitable for the transformation and which ones need to be abandoned or replaced. Some legacy tools and systems may require modifications to be compatible with the new system. For example, the digitalisation of documentation.
3. Technology and process roadmap development
It is essential to create a technology and process roadmap that maps out operational processes and identifies which systems need to be updated or replaced. This roadmap is crucial because the initiative involves more than simply adding new technology to old processes – some outdated processes will need to be eliminated.
It is important to acknowledge that it is unlikely for every aspect of a large-scale transformation project to be perfect on the first attempt. Therefore, after the implementation of a digital transformation plan, data should be collected to determine what is working, what is not, and what requires further improvement. The plan should be refined and iterated until the optimal balance is achieved.
Measuring digital transformation success
Measuring the return on investment of digital transformation initiatives is a concern for many business leaders. However, due to the broad and cross-functional nature of transformations, measuring ROI can be challenging. Taking a more holistic view is likely to be a more effective way to measure ROI.
Focusing solely on individual projects or small initiatives can result in premature cancellation and a lack of commitment to digital transformation. Instead, business leaders should assess the entire state of operations by asking questions, such as:
- Are there improvements in customer and employee experience?
- Is there growth in revenue, improvements in LCV, or other financial enhancements?
- Are new efficiencies or capabilities being gained?
- Is there progress in the strength of business processes?
- Is the organisation better positioned to take advantage of new technologies, including those not yet developed?
Ultimately, the focus on measuring ROI may not always be appropriate as digital transformation is often an existential need for many businesses. Those that delay in making the move can be left behind, resulting in decline, or even exit from the market.
Start your digital transformation journey in 2023
Is your organisation ready to embrace digital transformation? Contact the team at 9Yards to harness their expertise and turn 2023 into a year of change.