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Digital Transformation: Step-by-step Implementation Guide

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Digital Transformation: Step-by-step Implementation Guide

This presentation is tailored for organizational leaders who are interested in using digital to gain competitive advantage. It provides a systematic approach for steering the course of your digital transformation journey--from assessing your starting point to framing your digital challenge, focusing investment, mobilizing the organization and finally sustaining the digital transition.

What this guide will focus is not technology implementation, but a company-wide approach to digital transformation. It includes a step-by-step practical guidance for leaders to digitally transform their organizations by showing where to invest in digital capabilities and how to lead the transformation.

The digital transformation framework presented consists of four key phases and twelve detailed steps as well as practical tips to fundamentally improve business performance.

LEARNING OBJECTIVES

1. Acquire knowledge and the key concepts of digital transformation
2. Describe the digital transformation framework, phases and step-by-step process
3. Conduct a self-assessment of your digital mastery

CONTENTS

1. Introduction and Key Concepts of Digital Transformation
2. Digital Transformation Framework, Phases and Step-by-step Process
3. Digital Mastery Self-Assessment

To download this complete presentation, visit:
https://www.oeconsulting.com.sg/ppt-digital-transformation-implementation-guide

This presentation is tailored for organizational leaders who are interested in using digital to gain competitive advantage. It provides a systematic approach for steering the course of your digital transformation journey--from assessing your starting point to framing your digital challenge, focusing investment, mobilizing the organization and finally sustaining the digital transition.

What this guide will focus is not technology implementation, but a company-wide approach to digital transformation. It includes a step-by-step practical guidance for leaders to digitally transform their organizations by showing where to invest in digital capabilities and how to lead the transformation.

The digital transformation framework presented consists of four key phases and twelve detailed steps as well as practical tips to fundamentally improve business performance.

LEARNING OBJECTIVES

1. Acquire knowledge and the key concepts of digital transformation
2. Describe the digital transformation framework, phases and step-by-step process
3. Conduct a self-assessment of your digital mastery

CONTENTS

1. Introduction and Key Concepts of Digital Transformation
2. Digital Transformation Framework, Phases and Step-by-step Process
3. Digital Mastery Self-Assessment

To download this complete presentation, visit:
https://www.oeconsulting.com.sg/ppt-digital-transformation-implementation-guide

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Digital Transformation: Step-by-step Implementation Guide

  1. 1. © Operational Excellence Consulting DIGITAL TRANSFORMATION Step-By-Step Implementation Guide © Operational Excellence Consulting. All rights reserved.
  2. 2. © Operational Excellence Consulting This presentation is specially targeted at organizational leaders who are interested in using digital to gain competitive advantage. What this guide will focus is not technology implementation, but a company-wide approach to digital transformation. This document provides step-by-step practical guidance for leaders of most industries to digitally transform their organizations by showing where to invest in digital capabilities and how to lead the transformation. The digital transformation framework presented consists of four key phases and twelve detailed steps and practical tips for leaders to fundamentally improve business performance. ABOUT THIS DOCUMENT 2 NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg
  3. 3. © Operational Excellence Consulting LEARNING OBJECTIVES 3 Acquire knowledge and the key concepts of digital transformation Conduct a self- assessment of your digital mastery Describe the digital transformation framework, phases and step-by-step process
  4. 4. © Operational Excellence Consulting 4 CONTENTS INTRODUCTION & KEY CONCEPTS OF DIGITAL TRANSFORMATION 01 DIGITAL TRANSFORMATION FRAMEWORK, PHASES & STEP-BY-STEP PROCESS 02 DITIAL MASTERY SELF-ASSESSMENT 03
  5. 5. © Operational Excellence Consulting THE ERA OF DIGITAL DARWINISM — WHERE TECHNOLOGY & SOCIETY ARE EVOLVING FASTER THAN BUSINESSES CAN NATURALLY ADAPT 5 Customers are increasingly in control of the relationship CUSTOMER RELATIONSHIP Digital devices change the ways customer transact and buy DIGITAL TECHNOLOGY Bring expectations of “the best” to all their customer experiences CUSTOMER EXPERIENCE Source: Adapted from Hinshaw & Kasanoff, 2012
  6. 6. © Operational Excellence Consulting Companies now are increasingly inclined toward altering their business models to accommodate the changing customer demands. DRIVEN BY TECHNOLOGY, DIGITAL IS THE NEW WAY OF THINKING AND DOING THINGS 6
  7. 7. © Operational Excellence Consulting “ To be clear, digital transformation is not a series of generational changes in information technology or simply the migration of a company’s processes, data and information onto a digital platform.” BRIAN SOLIS 7 Altimeter Group
  8. 8. © Operational Excellence Consulting WHAT STRATEGIES CAN ORGANIZATIONS APPLY TO PREPARE FOR THE LOOMING DIGITAL TSUNAMI? 8 DIGITAL TSUNAMI Traditional business Source: Adapted from Lewrick et al., 2018
  9. 9. © Operational Excellence Consulting DIGITAL TRANSFORMATION DEFINED 9 “Digital transformation marks a radical rethinking of how an organization uses technology, people and processes to fundamentally change business performance.” George Westerman MIT principal research scientist and author of Leading Digital: Turning Technology Into Business Transformation
  10. 10. © Operational Excellence Consulting COMPANIES THAT HAVE SUCCEEDED IN DIGITAL TRANSFORMATION 10 Before Digital Transformation: Lagging stock prices and increased competition. What Changed: Moved focus from traditional software to cloud-based system for personal and enterprise use. After Digital Transformation: Became 3rd company to achieve $1 trillion market cap in 2019. Before Digital Transformation: Sluggish and outdated-looking shoes and athletic clothing. What Changed: Direct selling to customers, partnership with Amazon and using consumer data to connect with customers. After Digital Transformation: Revenue increased by $5.6 billion from 2017 to 2019. Before Digital Transformation: Set up only as a hardware store. What Changed: Combined physical and online shopping to create seamless experience across channels and use of data to better understand customers. After Digital Transformation: Revenue grew from $93 billion to $110 billion within 2 years.
  11. 11. © Operational Excellence Consulting CHARTING THE PATH OF DIGITAL TRANSFORMATION STARTS WITH A SHARED VISION 11 Today’s Culture Tomorrow’s Culture Strategy Values
  12. 12. © Operational Excellence Consulting “ We go mission first, then focus on the pieces we need and go deep on them, and be committed to them.” MARK ZUCKERBERG 12
  13. 13. © Operational Excellence Consulting 13 To achieve this goal, organizational leaders require two key skills – digital capabilities and leadership capabilities. TRANSFORMING THE CUSTOMER EXPERIENCE IS THE HEART OF DIGITAL TRANSFORMATION
  14. 14. © Operational Excellence Consulting THE DNA OF DIGITAL MASTERS 14 DIGITAL CAPABILITIES LEADERSHIP CAPABILITIES + Digital Masters excel in two critical dimensions: the what of technology (digital capabilities) and the how of leading change (leadership capabilities).
  15. 15. © Operational Excellence Consulting WHAT IS YOUR LEVEL OF DIGITAL MASTERY? 15 Source: Adapted from Westerman et al. Digital Capability Beginners § Management skeptical of the business value of advanced digital technologies § May carry out some experimentation § Immature digital culture Leadership Capability Conservatives § Overarching digital vision exists, but may be underdeveloped § Few advanced digital features, though traditional digital capabilities may be mature § Strong digital governance across silos § Taking active steps to build digital skills and culture Fashionistas § Many advanced digital features (such as social, mobile) in silos § No overarching vision § Underdeveloped coordination § Digital culture may exist in silos Digital Masters § Strong overarching digital vision § Good governance § Many digital initiatives generating business value in measurable ways § Strong digital culture
  16. 16. © Operational Excellence Consulting SEAMLESSLY MESH YOUR DIGITAL & PHYSICAL EXPERIENCE IN NEW WAYS TO CREATE A COMPELLING CUSTOMER EXPEREINCE 16 Delivering these omni-channel experiences requires envisioning and implementing change across both front-end and operational processes. Call Center Social Retailer e-Commerce Web Portal Mobile Kiosk Web Chat OMNI- CHANNEL
  17. 17. © Operational Excellence Consulting OPERATIONAL PARADOXES OF THE PREDIGITAL AGE 17 Innovating Controlling Empowering Standardizing Unleashing Orchestrating Consider how each of the six levers may help you improve operations. If you can’t address both sides of a paradox at once, start with standardization or control. This may open up possibilities to address other levers.
  18. 18. © Operational Excellence Consulting REINVENTING BUSINESS MODELS 18 Monitor the symptoms that drive business model change in your industry Constantly challenge your business model with your top team Consider whether it is time to replace products and services with newer versions if your present offerings are under digital threats Consider how you might transform your industry before others do it Consider reconfiguring your delivery model by connecting your products, services, and data in innovative ways to create extra value Consider creating brand- new digital businesses using your core skills and assets Experiment and iterate your new business model ideas Consider reinforcing your presence in your current market by rethinking your value proposition to meet new needs
  19. 19. © Operational Excellence Consulting COMMITTED LEADERSHIP IS THE LEVER THAT TURNS TECHNOLOGY INTO TRANSFORMATION 19 Executives in every Digital Master steered the transformation through strong top-down leadership: setting direction, building momentum, and ensuring that the company follows through. Source: Adapted from Westerman et al.
  20. 20. © Operational Excellence Consulting CRAFTING YOUR DIGITAL VISION 20 Identify bottlenecks or headaches – in your company and in your customers – that resulted from the limits of old technologies Familiarize yourself with new digital practices that can be an opportunity or a threat to your industry and company Craft a compelling and transformative digital vision Consider which of your strategic assets will remain valuable in the digital era Make your digital vision specific enough to give employees a clear direction, while giving them the flexibility to build on it Ensure that the vision specifies both intent and outcome Constantly be looking to extend your vision using the capabilities you have created
  21. 21. © Operational Excellence Consulting Source: Adapted from Westerman et al., 2014 THE 4 KEY PHASES OF A DIGITAL TRANSFORMATION JOURNEY 21 FRAMING THE DIGITAL CHALLENGE SUSTAINING THE DIGITAL TRANSITION FOCUSING INVESTMENT MOBILIZING THE ORGANIZATION Build awareness of digital opportunities and threats. Know your starting point, and assess your digital maturity. Craft a vision, and ensure that your top team is aligned around it. Translate your vision into an actionable roadmap. Build cross- silo governance structures. Put in place the funding for your transformation. Build the necessary foundational skills. Align reward structures to overcome traditional organizational barriers. Monitor and measure the progress of the transformation, and iterate when necessary. Send unambiguous signals about your ambitions and the change needed now. Build momentum and engage the workforce. Set new behaviors and start evolving the organization toward a more innovative culture.
  22. 22. © Operational Excellence Consulting Source: Adapted from Westerman et al., 2014 THE 12 STEPS FOR STEERING THE COURSE OF A DIGITAL TRANSFORMATION JOURNEY 22 Mobilize Focus Sustain Frame Build awareness Know your starting point Craft a vision and align top team Translate your vision into action Build your governance Fund the transformation Signal your ambitions Earn the right to engage Set new behaviors and evolve culture Build foundation skills Align incentives and rewards Measure, monitor and iterate Mobilize Focus Sustain Frame
  23. 23. © Operational Excellence Consulting DIGITAL TRANSFORMATION PROCESS – PHASE 1 OVERVIEW 23 Phase 1: Framing the Digital Challenge 1 2 3 Build awareness Know your starting point Craft a vision and align top team 1.1 Put digital transformation at the top of your agenda now 1.2 Understand the scale and pace of the digital impact 1.3. Make the awareness process experiential 1.4. Build a coalition of believers 2.1 Assess your digital mastery 2.2 Chart your transformation journey 2.3 Assess your strategic assets 2.4. Challenge your business model 3.1 Craft your transformation vision 3.2 Align your top team
  24. 24. © Operational Excellence Consulting DIGITAL TRANSFORMATION PROCESS – PHASE 3 OVERVIEW 24 Phase 3: Mobilizing the Organization 7 8 9 Signal your ambitions Earn the right to engage Set new behaviors and evolve culture 7.1 Send signals 7.2 Explain benefits clearly 7.3 Use all available communication channels 8.1 Walk the talk 8.2 Co-create your transformation 8.3 Identify your digital champions 8.4 Identify quick wins 9.1. Make visible changes to work practices 9.2 Encourage adoption, not deployment 9.3 Learn to fail 9.4. Institutionalize new work practices
  25. 25. © Operational Excellence Consulting PHASE 1 – FRAMING THE DIGITAL CHALLENGE 25 Building awareness § Do top leaders in your organization understand the potential threats and opportunities from digital technologies and the need for transformation? Defining your starting point Creating a shared vision § How mature are your digital competencies, and which current strategic assets will help you to excel? § Have you digitally challenged your current business model? § Have you aligned your top leadership team around a vision of the company’s digital future?
  26. 26. © Operational Excellence Consulting “ Do not quench your inspiration and your imagination; do not become the slave of your model.” VINCENT VAN GOGH 26
  27. 27. © Operational Excellence Consulting 27 ● Engage senior leaders in the debate about the implications of digital technologies for your current and future business ● As the most senior leader in the organization, the CEO is responsible for ensuring that the framing phase is successful ● You need to ensure that other leaders in your organization visualize the profound change at hand and understand the business possibilities that technology can already enable today ● Look to practical examples of companies and industries that have been helped or hurt by digital change STEP 1 – BUILD AWARENESS Step 1.1 – Put digital transformation at the top of your agenda now
  28. 28. © Operational Excellence Consulting STEP 4 – TRANSLATE YOUR VISION INTO ACTION 28 ● Translate your digital vision into top-down strategic goals that point to what an achieved vision would look like ● Articulate top-level goals only; specific KPIs will come later, once you have a detailed program ● The goals that you are trying to achieve must be balanced – they should not just be about financials, but should also be expressed in terms of customer experience and operations as well as the organizational capabilities you need to build ● This strategic scorecard will provide a basic template for your entire digital transformation efforts, and will also provide a point of reference with which to navigate your digital transformation Step 4.1 – Define what good looks like
  29. 29. © Operational Excellence Consulting HOW WELL IS YOUR ORGANIZATION BUILDING LEADERSHIP CAPABILITIES? (1/2) 29 Answer each question, using a scale from 1 to 7, where 1 = strongly disagree; 4 = neutral; and 7 = strongly agree, and then total your digital capability score. Score 1 Senior executives have a transformative vision of the digital future of our company. 2 Senior executives and middle managers share a common vision of digital transformation. 3 There are possibilities for everyone in the company to take part in the conversation around digital transformation. 4 The company is promoting the necessary culture changes for digital transformation. 5 The company is investing in the necessary digital skills. (Continued on next slide)
  30. 30. © Operational Excellence Consulting Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg ABOUT OPERATIONAL EXCELLENCE CONSULTING 30

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