Digital Transformation: #1 criteria for success – Establish Digital Organization

Yes there is a race, but often we do not know where to start!!! 

Company executives understands the opportunity digital transformation provides, but in most companies there is no clear vision established and communicated across. There are startups, who are trying to leverage all the current and futuristic technologies, and there are established companies who are very conservative in their approach. In both the extremes (and in between) , transformation from “caterpillar to butterfly” happens when there is a common vision established across the company. It all starts with leadership – digital leadership.

Most of you must have watched, Amazon Web Services (AWS) CTO Werner Vogels in AWS re:Invent 2017. If not you can watch it here:

You will realize, one thing that is driving the company to new heights - the continuous ask “What can I do next leveraging my core assets?!” The story is the same, if you look at similar success stories cutting across industries. You have to self-disrupt, innovate and transform experience, and it all starts with Leadership.

There are established organizations, where multiple functions works in silos, and works on point solutions to address a specific problem, like partnering with a specific cloud service provider for a specific application roll out. CIO organization is far removed from the decision making process happening in silos.

Instead of playing strategic adviser to business, CIO spends most of the times ensuring lights on, and there is a culture down to the last employee to focus on incidents and break fix. Even if there is an attempt made by CIO by bringing external use cases, they are not getting the attention it deserves, as IT is not being viewed as a business enabler.

Now, how do we transform the way we operate within ourselves, and engage with external entities?

Digital Transformation requires investing in digital technologies, throughout the enterprise with constant feedback loop from the field. It requires constant experimentation, open to course correct, taking risks and accepting failures. This requires cultural shift, and it starts with the leadership in enabling the environment for creativity and innovation. Digital awareness, skill development, partner engagement and change management are key focus areas of this journey to the future.I am trying to put together a high level framework, through some personal research, experience and knowledge gathered through publicly available articles. Your valuable suggestions are welcome to course correct. And always, there is no correct or wrong way, but the outcome determines success or failure!!!

Investing in technology, processes and people for transforming any company to the digital economy, requires cultivating digital mindset at the leadership level.

1. Core digital leadership team 

IT Leadership (CIO), Business & Operational Leadership should form this core team. In this structure, Chief Digital Officer will ensure organization’s vision towards digital transformation is well understood, the team is focusing on business outcomes.

2. Technology architecture group – Center of Excellence (COE)

This team should focus on business problem solving with technology architecture and process. It will help establish a blue print for the technology transformation across the enterprise. This team will have core technology experts – IoT, cloud, analytics, business operations, process leads, and external partners.

This core team will have periodic touch points with the core digital leadership team for alignment on business outcomes. This core team will present proposed technology architecture to the leadership. This team will also drive experimentation, and continuous delivery initiatives.

3. Organizational Change Management (OCM):

Any transformation is introducing a change and in case of digital it is end-to-end and a new way of life. OCM team should have operational leadership from the floor, IT leadership who drives the technological changes, and also business leads who are in the forefront of customers. It will ensure communication is consistent and timely to all the stakeholders that are impacted by the change.

4. Human Resources and Talent Development alignment:

HR team should need to be realigned from the ‘recruiting’ mindset to talent management. HR should establish feedback mechanism, and role development based on the future skills needed. It will help to identify potential bottleneck and resettle them in different business units for betterment for both the company and the individual. Talent management plays a key role in establishing the positive vibe towards transformation journey,

5. Hierarchical to Flat:

Last but not the least, the organization structure has to become flat to make the innovation in respective business units flourish. By establishing smaller cross functional project based teams, and integrating through the core teams, the workforce will feel empowered, and make the organization agile.

I wanted to leave you with my analysis of the much reported Williams Formula 1 turnaround story. It is slightly old but I felt very relevant.

Source: https://www.v3.co.uk/v3-uk/interview/2417870/cio-insight-williams-it-chief-on-digital-transformation-cloud-and-wearables-in-f1

As you can infer from the above article, leadership is always thinking about value creation leveraging the invested digital technology and assets. The CIO is outlining, how they intend to use wearables to further enhance the performance of the crew, shaving of few more seconds. The CIO, Hackland states,

"You're getting clothing that can regulate your body temperature automatically, so I think for the drivers that can be very useful”

Also thinking about, how they can potentially make use of Microsoft’s HoloLens in the mix. This establishes, digital leadership is not only about transforming existing business, but always thinking futuristic for better business outcome."

The transformation of the race performance at Williams was driven by continuous, integrated effort to drive end-to-end value and outcome. To make it happen, they had the vision of reducing seconds from race, clearly communicated that by actions to everyone in the company. By investing in right technology, processes, and engaging with outside experts, they were able to achieve the outcome.

What do you think?

This post first appeared in LinkedIn