Digital transformation is a growing subject in boardrooms across the world. In this insight article, our digital transformation expert Spencer Wyer shares his insights on what it takes to lead and deliver a digital transformation programme, using change management principles to mobilise your team for a successful project delivery.
The convergence of the cloud and internet of things (IoT) has led to a ‘digital explosion’. Consumers now have 24/7/365 online access, anytime, anywhere, and across many devices and platforms.
The International Data Corporation (IDC), estimates that by 2025, 175 trillion gigabytes of data will be created
Therefore, for enterprises to adequately compete in today’s digital economy, and simultaneously future-proof their success, they must effectively leverage and manage data more effectively. One of the best ways of making data more effective is by eliminating paper-based processes. Companies that have already done so, are helping information and content to be easily searched, retrieved, and assembled. Thus, making their entire process more straightforward, more cost efficient, and beneficial for employee productivity and customer experience alike.
The first thing to consider is what your ‘digital agenda’ is when it comes to digital transformation.
Digital Transformation can mean many things and cover a vast array of functions and purposes. In a nutshell, it’s the process of utilising digital tools and technology to improve or renovate your existing processes. Ultimately, it’s not just about ‘disruption’ and technology’, but rather how your business aims to benefit from going through this process of change. In the context of this article, we are focusing on digital transformation in freeing organisations from the burden of paper. Paper processes touch every single department within an organisation. Therefore, by going paper free and digitising paper-based processes, organisations can instead focus on:
Whilst it may not be feasible to fully eliminate paper in every business, even a small reduction may yield cost savings and increased efficiency. Whether your company is a start-up, SME or large enterprise with well-established policies and procedures, reducing paper usage is always advantageous in both the short and longer term.
For many companies, digital transformation means simplicity. The ability to bring about real efficiencies in terms of processes and administration can be profound, particularly in terms of speed and cut through. More significantly, one of the most significant benefits is the market information and client insights that businesses can map.
Indeed, many businesses that undergo a true digital transformation programme and seek to put data and information at the heart of their technology focused business models are shocked to see just how much information they had but were not utilising properly. That is perhaps one of the core benefits: be able to simply utilise what a business already had but didn’t know it.
We’ve written countless articles on the benefits of going paperless, but in summary, here are the key benefits that all businesses can relate to:
“This gap between aspiration and reality may help explain why a surprising number of leadership teams remain tentative about investing in digital technologies and capabilities.” [Source: Bain & Company]
The payoff from digital transformation can be impressively high, but the success rate is unfortunately very low, too. It is frequently cited that 70%-85% of digital transformation projects fail, so it’s understandable that the idea of embarking on a project of this nature, would be met with initial skepticism from business leaders.
I’ve previously written about how digital transformation is business transformation. I strongly believe this to be true, as it emcompasses change management strategy which can be defined as “any shift, realignment or fundamental change in business operations”.
When it comes to change management, there certainly is no shortage of educational materials and resources. For instance, a quick search on Amazon showed me that there are nearly 80,000 book titles on the site which cover the subject of “change management.”
Whilst these traditional change management methods have been successfully deployed for decades for various types of organisational changes, more often than not, these traditional change management methodologies follow a step-by-step approach that has a beginning and an end. They are ‘linear’ in nature.
“You will find it hard to manage change alone. And there will be people embedded throughout your organisation who have the energy, skills and passion to help push through that change of mindset, thinking and learning.
Identify these change agents, train them and provide them with messaging. Keep change messages focused on the customers’ benefits and not the organisation’s directly. It’s all about the endgame, not an end in itself” [Source: Cognifide]
Yet we’re now living in a digital world, and the nature of ‘digital business transformation’ is markedly different. The reason for this is because it combines higher levels of scale compared to traditional approaches; and has a stronger focus on agility and dynamism with the need to make fundamental changes to an entire organisation - usually in the service of a new strategic direction.
Due to this fact, it’s clear that digital business transformation involves making big changes across multiple aspects of the business. For instance, ‘going paperless’ is not so simple a feat; and traditional change management is not fit for purpose in facilitating major changes - especially in larger, more complex organisational structures. With this in mind, ‘mobilising’ your team and organisation is crucial, as you’ll need to enable different resources company-wide, to reach your transformation goals.
Below, I have outlined several steps to follow, in order to maximise the success of your paperless ambition, offering key tips and questions you must consider at each step of your journey.
Before you begin though, I want to emphasise the importance of assessing your current situation before developing any goals and plans. You should examine and audit where you are now in terms of your digital transformation journey and analyse any gaps - which will later become the areas of focus and priority.
Knowing what you want and why is a critical first step that must happen before you even consider approaching stakeholders for buy-in.
Once you have outlined your objectives, the next step is to articulate how you plan on achieving those goals.
This is arguably the most crucial step - helping you to align your strategy and goals to the delivery of the project, and getting buy-in and engagement from the wider team. Making the transition to paper-free a reality, needs sufficient time, and resources - human and financial. Moreover, it means your employees having to learn to do things in new ways, which can generate resistance.
This is where you articulate your digital transformation ambition into an executable plan for coordinating and driving the change to paper free thought in the organisation. As the old adage goes “If you fail to plan, you plan to fail”.
Without a clear plan, you are metaphorically wandering aimlessly without direction, which presents huge risks and expense. With a roadmap in place, you’re helping to fully mobilise teams on different parts of the programme and keeping them aligned.
It’s clear that digital transformation is not a passing fad. Sooner or later, all businesses will need to adopt it. Indeed, research indicates that 85% of enterprise decision makers believe that if they don’t make serious progress on digitally transforming their businesses in the next 24 months, they’ll fall behind the competition and take a hit on their bottom line.
In the end, the main reason for most companies to go paperless is to improve efficiency, so that you’re able to take on more business with the same number of employees. Doing before and after comparisons of your essential business processes should give you a good understanding of everything you’ve achieved by going paperless.
By following the four steps in this article, you’ll be closer to delivering on your paperless digital transformation goals. Establishing a sound paperless digital transformation plan will help your organisation find new opportunities, be more agile, increase profit and benefit your customers’ experience.
Want to prepare your company for digitalisation? To implement digital transformation successfully, speak to one of our Digital Transformation experts. Request a free call back.
Spencer Wyer is the Group Chief Technology Officer at EDM Group. Spencer joined EDM Group 10 years ago through the acquisition of his BPM consultancy company, bringing his expert team with him and adding Process Automation to EDM’s capability. Spencer has been pivotal in transforming EDM Group into a hybrid technology and business services organisation, bringing the Digital Mailroom to market in 2007 and evolving EDM’s technology capability over the last 10 years. As well as introducing leading edge platforms in the Mortgage and Automotive sectors, Spencer helps our largest Government and Commercial customers deliver their Digital Transformation programmes.
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