The most successful digital transformation strategies boil down to asking the right questions. Amid the pandemic, ask these about yours.
1. Is my digital transformation strategy still relevant?
The rate of innovation in technology and disruption of business models is greater than ever – which makes it next to impossible that a digital transformation strategy will remain relevant beyond a couple of years. “If you are in year two or three of your strategy, it is important to assess if the roadmap you laid out to enable your IT strategy is still relevant,” says Rahul Singh, managing director of IT and business services transformation advisory firm Pace Harmon. “Assess and course correct, so you do not keep investing in a strategy that has become obsolete due to disruption in technology or business model.”
2. Is our current or proposed digital transformation strategy holistic?
“We see a lot of organizations pursue what we refer to as ‘random acts of digital’: point solutions to address urgent problems or pet projects for specific leaders that don’t have a lot to do with one another or a compelling vision of where the organization wants to go and how technology will support that journey,” says Holly Lyke-Ho-Gland, leader of the process and performance management team at benchmarking, best practices, process and performance improvement, and knowledge management firm APQC. The best digital transformation strategies are comprehensive.
3. Is the digital transformation strategy aligned with business priorities?
“Often IT organizations focused on what I call ‘IT for the sake of IT’ do not ask the fundamental question of how their IT strategy is enabling the business to drive differentiation in products and services that they are providing to the end consumer,” says Singh. “Unless IT leaders are able to think strategically and answer the question as to how their IT strategy is enabling key business growth objectives, IT will be seen as a cost center and not a value center. In today’s digital world this is a lost opportunity for an IT organization.”
4. What might hold us back?
If your current approach isn’t delivering anticipated results, old-school thinking may be standing in the way of execution. “For example, we’ve interviewed several organizations where IT metrics needed to be adjusted to encourage rapid, fail-forward innovation, or the annual IT budgeting cycle couldn’t keep up with the speed with which digital projects need to be funded,” Lyke-Ho-Gland says.
5. How agile is our approach?
“When implementing an IT strategy it is important to ask the questions as to how nimble your strategy is and how will it be able to adapt to technology and business disruption,” says Pace Harmon’s Singh. “Building in stage gates and adaptability is key in today’s dynamic business environment.”
Elizabeth Ebert, IT advisory lead for North America at IT consultancy and service provider Avanade, advocates for planning sprints. “This structures planning and execution in a ‘learn fast’ motion so that different themes are addressed and refreshed as new technologies, programs, and processes are implemented,” Ebert says. “Planning horizons are also greatly reduced, rarely planning beyond two to three years.”
One way to do that is with emerging technology adoption sprints, she says, to create the capacity to address new technology opportunities that need to be considered as part of business innovation and transformation efforts.
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