The digital transformation race is on! Everywhere I look organizations are working at double speed to find the most innovative ways to use technology to transform their organization. Digital transformation is not only changing the way business gets done, in some cases, it’s transforming entire industries! In short, digital transformation is a real game changer.
You don’t have to look far to find examples of large, well-known organizations heading down the digital transformation path. One of the best examples of a successful digital transformation I have seen would have to be Netflix who started off as a mail-order video service and successfully transformed themselves (and their competitors) into an entire video streaming industry.
McDonald’s recent acquisition of Dynamic Yield is yet another example of an industry’s quest to digitize their processes (think kiosk ordering and personalized fast food menu options.) All the while, Nordstrom is leading the way in the retail industry, by working around the clock to come up with ways to automate the high-end retail experience.
The Not So Great News
This all sounds great, exciting even! But while transformations like these may make strategic sense for an organization, they can undoubtedly be time consuming and complex. Many don’t turn out quite the way the organization expects.
In their recent article, Plenty Of Digital Transformation, But Not Enough Strategy, Forbes Magazine cited a survey of 450 executives by Celonis that found 70% of the organizations surveyed intend to invest in digital transformation. Yet, almost 80% admitted they did not review their internal processes before setting their transformational goals. In fact, 45% of the executives surveyed said they really have no idea where to even begin and 44% of C-suite executives admitted in the end their efforts were a complete waste of time.
Let’s Get on the Same Page
Digital transformation is just that…a transformation. And if it is not treated as such, it is destined to fail. Before talking about how to survive a transformation, let’s make sure we are all on the same page. There are three size classifications of change:
Digital transformation is 2nd Order, frame-breaking change where people, processes and technology will all be impacted. In fact, an entire new mindset is going to be needed, which inherently means digital transformation is equivalent to a culture change.
How to Survive
So, what does it take for an organization to survive a transformational, culture change like this? Once your organization has decided to go down the digital transformation path, here are a few best practices from the AIM Change Management methodology to help your organization survive it:
Digital transformation is certainly exciting. I love the idea of ordering dinner from an App and having it delivered by drone while I binge watch my favorite TV show. But, to be successful in a digital transformation journey, organizations need to properly prepare for culture change. Are you planning to enter the digital transformation race? What is your plan to survive?