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Digital transformation has become the catch-all phrase for companies looking to innovate and disrupt market norms. However, for many organizations, digital transformation remains a goal rather than a strategy.
Why is that? Digitization is disrupting almost every aspect of our lives; why can’t it do the same for large corporations?
If you lead or work in a large enterprise, you might feel like your company is specially set back when it comes to digital transformation. But remember: these are not inherently bad things. They are just the natural consequences of being such a large organization.
In this blog post, we’ll explore why large enterprises struggle with digital transformation and how they can move forward in an increasingly digitized world.
What is digital transformation?
The term “digital transformation” is used to describe the process by which an organization becomes more like a digital company. It generally describes an organization’s transformation from a company that depends on old technologies or even no technology at all to one that leverages data and analytics to produce value.
Digital transformation is a process that can be applied to organizations of all sizes, although large enterprises are more likely to face challenges along the way.
Why is it so hard for large enterprises to digitally transform?
There are a number of reasons why large enterprises may struggle to digitally transform:
These enterprises may have numerous legacy systems that were built years ago, and it’s become difficult to implement new technologies into their existing architecture.
The workforce may be risk averse, and thus resistant to change. It’s also possible that the organization has become so large and so bureaucratic that it’s become difficult to make any kind of decision, let alone one that requires a significant investment of time and resources.
Who is Responsible for Digital Transformation?
Achieving digital transformation requires commitment from every level of the organization. While the C-suite is responsible for setting and prioritizing the transformation, the transformation is spread across HR, IT, marketing, and other areas of the business.
Successful transformation requires that the C-suite have a clear vision of the future state, along with the right tools and support capabilities. Surprisingly, too few C-level executives have a clear vision of what the digital future of their organization will look like. Instead, they tend to get bogged down in the details, which can slow down digital transformation or lead to poor decision-making.
Establishing a digital culture
To transform your organization digitally, you must first transform your culture. This includes creating a culture that is data-driven and open to experimentation. It also means understanding how your organization’s values fit into this new digital culture.
There are many activities that can help to establish a new digital culture within an organization – from restructuring the leadership team to creating a new onboarding process for new hires. You’ll want to be creative in your approach—the best way to establish a culture is to create an experience that is specific to your organization.
One way to begin is by defining what your current culture is (and what it isn’t). Next, create a vision for the type of culture you’d like to see within your organization. These are two separate but equally important parts of the process. Once you have a clear picture of what your digital culture should look like, it’s time to act.
Establishing digital capabilities
Achieving digital transformation requires a deep understanding of the capabilities required for your organization to become digital. This means that you must conduct a thorough assessment of your organization’s current capabilities, as well as its needs for the future. For example, if your organization is focused on transactional sales, you will likely require different capabilities than a company that is focused on brand marketing.
In order to assess your organization’s capabilities, you need to understand what your business is, who your customers are, and what you’re trying to achieve. Once you’ve done this, you can begin to understand where your organization’s capabilities lie and where they can be enhanced.
This will help you to understand if your current strategy is viable, or if you need to change your approach.
Conclusion
Digital transformation is an ongoing effort, one that will continue to evolve and change as your organization and its customers do. While it is important to define your goals and capabilities up front, it is even more important to be flexible as you move forward. That way, even if you don’t get everything right the first time around, you can make adjustments as you go.
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