Help! How do I get my CIOs digital-ready?

Digital success starts at the top, and so does digital failure. Almost half of C-suite executives polled in a recent survey¹ admitted to launching transformation initiatives without a clear strategy. They are investing in transformation initiatives because they think they should, and not because they have identified a specific problem. As a result, they are unclear about what they should focus on.

This lack of strategy and consistency is the main reason many organisations do not see the desired results after "going digital".

Done right, digital transformation (DX) can lead to improved operational efficiencies, enhanced customer satisfaction and better margins. But as the survey shows, C-suites may need some prepping, and the following are some areas they could look into to become digital-ready.

The first step in developing a DX strategy is to define the business objectives for transformation. Start by examining how the business is creating value. Understand and review the processes that contribute to this value to see where DX can come in to make a difference.

In the retail sector, for example, DX could impact front-end operations such as the customer interaction and experience, merchandising and promotions, and loyalty programmes. It could also impact backend processes related to the supply chain, logistics and warehousing, procurement and vendor management, and finance.

So how should a business prioritise, given that resources will always be limited? One approach² is to assess a DX proposal in terms of value and complexity. If an initiative has the potential to create the most revenue but is also the most complex to implement, business leaders may not want to put it at the top of their DX list.

But if a project has the potential to deliver high value and is not difficult to do, the business may want to get started on it right away. For example, a “quick win” DX project could be to start capturing good customer information and using it to learn more about the customer’s history, spending habits and preferences. Self-learning artificial intelligence systems can be used on the data to create more intuitive and personalised customer experiences.

Digital transformation is a strategic initiative that could revolutionise the way a business creates value. It is also a team effort. As such, it requires the collaboration of the entire C-suite to ensure that any changes that are introduced will percolate across the business.

Someone from within the C-suite will have to drive the organisation-wide effort. Some important skills³ or knowledge that the person should have would include a thorough understanding of the business and its customers, as well as next-generation technologies such as cloud, artificial intelligence, machine learning and data science. He or she will also need to know how to leverage the right talent and technologies to deliver the new business model and be able to align the DX ideas across the organisation. This calls for good people skills to convince board members to buy into the DX vision, and to drive the necessary cultural and mindset changes across the organisation.

Backing up the DX chief will be a core DX team with hands-on experience in different technologies that are relevant to the transformation, and the business domains where the transformation is taking place. They include roles such as senior business and technology managers, programme managers, solution architects and product managers who would have some specialised skillsets critical to the DX effort. 

The next step would be to build up the extended DX team by harvesting the necessary digital capabilities to drive the transformation. For example, if the cloud is playing a critical role in DX, the DX team will need to include cloud experts with knowledge of containers, microservices, cloud architectures and other relevant areas pertaining to cloud. Other examples of important DX capabilities include data specialists, user experience specialists and business domain experts.

Not all these capabilities will be available in-house, and so decisions will have to be made whether to get in-house resources up to speed through training and upskilling; acquire the skillsets through new hires; access them through partnerships, for example with technology providers; outsource the requirements to a third-party service provider; or get access to the relevant capabilities as a service.

The decision on how to harvest these capabilities will depend on factors⁴ such as the urgency of the project, the level of control that business wishes to have over it, and the unique advantage that the particular set of capabilities bestows on the business.

With DX becoming a matter of survival for many businesses today, the C-suite and the board need to be on top of what is going on – their current internal processes, the opportunities for value creation and how this could impact those processes, the next-generation technologies out there, and the capabilities that they will need to bring everything together for a successful transformation. When it comes to DX, it is important that the leadership is a source of competitive advantage, and not the Achilles heel of the business.

Speak to us to learn how to get your C-Suite on board.

¹ Almost Half of C-Suite Executives Admit to Launching Transformation Initiatives without a Clear Strategy

² Digital transformation overload: how to prioritize the right company initiatives

³ Building the right team for your Digital Transformation initiatives

⁴ If You Want Your Digital Transformation to Succeed, Align Your Operating Model to Your Strategy