Dilaver Demirel
Understanding Digital Transformation Correctly
Are You Ready for Digital Transformation?
“Digital Transformation” has recently become one of the most talked-about concepts—at least in the business world. For example, it is the most popular topic at business events. Digital transformation is sure to be one of the main or secondary themes at any conference, seminar, event, or trade show.
Large companies are establishing digital transformation departments within their organizations, or the job descriptions for many positions are being revised to include digital transformation. Organizations are providing their employees with training on digital transformation or directly hiring consulting services in this area.
The problem is that, as with almost any endeavor, a sense of panic can lead us to make mistakes on the journey toward digital transformation. And just as with almost any endeavor, digital transformation is a process that must begin by first thoroughly understanding and internalizing the subject, and then developing a proper plan.
Countries are establishing agencies whose sole purpose is to formulate policies and foster coordination regarding digital transformation. In our country, for example, the Presidential Office of Digital Transformation was established in 2019. In addition, most government agencies are spearheading this transformation. Universities are working to digitize their own processes while also striving to create master’s programs to train digital transformation leaders.
When a topic is discussed so extensively or dominates our agenda so intensely, it’s only natural that it brings with it a fear of being left behind. Naturally, many people are bringing digital transformation onto their agenda by asking, “Have we fallen behind?”—and with a touch of panic. Digital transformation is truly a matter of such importance that it justifies our panic—if we are indeed falling behind. Because it is inevitable, because it is necessary, and because if we fall behind, we will be taking significant risks regarding the future of our organization.
The problem is that, just as in almost any endeavor, the feeling of panic can lead to mistakes on the digital transformation journey. And just as in almost any endeavor, digital transformation is a process that must begin by thoroughly understanding the subject, internalizing it, and then creating a proper plan.
Here are a few steps to follow first when you put digital transformation on your agenda:
1- Make sure your motivation comes from within.
First and foremost, you shouldn’t embark on such a project simply because “digital transformation” is the latest trend. In other words, the reason for the need for digital transformation must be clearly defined. The answer to the question “Why do we need digital transformation?” must come from within the organization.
For example:
Wrong: Based on our observations and research, many of our competitors use MES software in their production processes. However, we do not have such software. We can start our digital transformation from here.
Correct: If we can print a serial number on each product in our production processes and track which serial number was produced during which shift and under what environmental conditions, we can have access to critical data to reduce post-sales returns.
2- What is your current level of digital maturity, and where will you be after the transformation?
For a successful digital transformation process, your current digital maturity must be analyzed accurately and objectively. Because even if you’re using the latest technology, a fundamental transformation may still be necessary.
Reviewing all ongoing processes within the business could be the first step at this stage.
While these processes are being carried out, to what extent and how effectively is technology being utilized?
Are inefficiencies caused by technological shortcomings, or are there other underlying reasons?
3- Create a detailed roadmap.
In this step, the processes to be transformed, the new technologies to be adopted, and the order in which they will be addressed must be clearly defined. Success criteria for each step must be established, and the entire process must remain flexible.
In fact, flexibility might even be the most critical step throughout the entire digital transformation journey. Strictly adhering to the initial plan is often the root cause of failure. Therefore, the plan must be reassessed at every stage; the next step must be re-evaluated to ensure that small gains can continue to grow, and if there is any hesitation, the plan should be revised.
4- Pay attention to the technologies you choose
Today, there is almost nothing left that hasn’t been affected by transformation. The transformation in software technologies, in particular, is immense. Managing a business process with more software support may seem like a sound decision. However, it is also crucial to consider how well-suited the software you choose is to the transformation. Be careful—you might end up adding a new piece of software to the list of things that need to be transformed.
5- Ensure that your organization fully understands digital transformation.
Never forget that digital transformation is a mental transformation process supported by technology. No single technology alone can deliver the transformation you envision. Transformation must ultimately contribute positively to a tangible business outcome. This positive contribution could be customer satisfaction or a reduction in costs.
Don’t be one of those companies that switch to e-signatures but still print the relevant document first, sign it on paper, then scan it, and finally send the scanned document with an e-signature. (Just writing that out is exhausting.)
6- Prepare Your Team
Employees are undoubtedly the most important key to success in digital transformation. It is crucial that the team not only possesses the skills to support the transformation but also serves as natural advocates who have internalized the necessity of change. Top-down transformation projects that do not involve employees are doomed to fail. Therefore, plan activities to prepare the team before the project begins.
It is critical for company leaders managing the transformation to be knowledgeable about new digital technologies such as cloud computing, data analytics, IoT, virtual reality, and blockchain, as this ensures the soundness of the strategy and decisions to be made.