Creating A Successful Digital Transformation Roadmap
Implementing a digital transformation is an all-encompassing, disruptive process for any organisation. Often, companies can face internal difficulties and burnout during the transformation process, which can lead to digitalisation being delayed or never achieving its full potential. In a recent survey, McKinsey reported that over 60% of respondents attributed their stalled digital transformations on resourcing issues, lack of clarity on the transformation strategy, and insufficient alignment or commitment across the organisation.
With decades of experience in providing innovative performance management solutions and transforming the finance function for our clients, the team at Bluetree know the value of a strategic roadmap to ensure success. In this post, we will address three of the most common issues which could result in a failed transformation, and how to overcome each one to reap the advantages digitalisation can bring to your organisation.
Overcoming internal resourcing and organisational issues
Often, companies begin the process of digitalisation without ensuring there is adequate budget, time, and talent invested beforehand. In the 2020 survey referenced above, those respondents who intervened in their stalled transformation by addressing resourcing issues had a higher success rate. 30% of respondents acted by hiring a new transformation leader, 29% by earmarking funding or people to be dedicated to the transformation, and 27% by undertaking a rigorous change-management program.
Establishing clear priorities for your digital transformation can help rectify resourcing issues, specifically priorities tied to measurable business outcomes. This not only clarifies the need for digitalisation, but also keeps your organisation focused on future benefits throughout the transformation process. Another method is to embrace the potential of organisational agility. Companies which reward creativity and drive technological innovation are more likely to stay resilient when faced with uncertain marketplaces.
Designing an effective digital transformation roadmap
One of the most crucial elements of a successful digital transformation is having an effective strategy or roadmap as a guide. For example, when it comes to implementing tailored performance management solutions, we make use of our comprehensive five-phase Bluetree methodology.
It is important to note that any transformation roadmap needs to incorporate existing business processes, timing, stakeholders, and available technologies, and should be deeply rooted in your organisation’s overall strategy and desired end-state. There will likely be multiple initiatives being developed across your organisation to achieve digitalisation, which should be ranked and prioritised according to your business needs. Each initiative may potentially involve multiple phases of development, so we also recommend creating a detailed timeline which considers your current dependencies, resources, technical architecture, and capabilities, ensuring that your company can continue functioning while the transformation takes place.
Ensuring ongoing commitment across your organisation
The importance of having a committed leadership team when it comes to digitalisation cannot be overstated. Executives are widely responsible for driving innovation in their organisations; CFOs in particular are emerging as champions of digital transformation. Overcoming cultural resistance towards digital adoption is challenging, especially for risk-adverse legacy companies, but any misalignment within the C-suite can lead to delayed implementation, unsuccessful initiatives, or complete failure.
The McKinsey survey reported that CEOs were responsible for initiating 47% of successful digital transformation interventions, followed by other C-level executives at 21% and the Board of Directors at 13%. Change is a top-down process, meaning that the leadership team has a responsibility to communicate with employees and stakeholders across your organisation about the benefits of digitalisation, and provide clarity about the transformation process itself. If every team member understands and has a strong commitment to your end goal, the odds of successfully transforming your company are much higher.
Considering digitalisation? Bluetree Solutions are a proud SAP Gold Partner and leading service provider specialising in planning and data analytics solutions. We believe that the latest advances in cloud computing, predictive analytics and in-memory technologies can significantly simplify and improve the way businesses operate, plan, analyse, and act. Contact us to discuss your requirements today.