Researchers and analysts predict that any business will need to go through a major transformation within the next 3-5 years to reach its full potential. Considering recent technological progress, and the increase in quantities and speed of information exchanged, going digital seems to be unavoidable. But going digital may not be the solution if the enterprise context and value is not clear.
Business versus digital transformation
Business transformation (BT) and digital transformation (DT) are often confused as one and the same, but the differences are like night and day. Business transformation is nothing new and describes the natural adaption to shifting market requirements to maximise margin, which can be performed without any technology involved. Digital transformation describes a change by applying new technologies to mature the digital business, e.g., a digital signature to increase the level of automation. Digital transformation can be equal with BT in some cases, but how can you measure the value contributed by your transformation initiative?
Driving value with transformation
The majority of business units are operating autonomously within the enterprise, as strategic directions and superior goals are not clearly communicated or don’t even exist at all. Each business unit is measured by its own key performance indicators (KPI) e.g. revenue and have to prove themselves, not only against external competitors.
According to Kadir Özbayram, Senior Partner at ins·pi: “The biggest obstacle for enterprises to grow and be successful is that they still operate in silos and do not have superior management capabilities, where strategic planning, capability-based planning and operations are aligned across the organisation. Strategic direction of the business needs to be reviewed in an agile manner, and the core capabilities within the business model must be identified and measured over time. In the end, each assets value contribution to the overall enterprise needs to quantifiable.”
The basis for successful transformational change
Klaus Isenbecker, also a Senior Partner, highlights the foundation for this change: “You can only successfully change the things you can measure. We see a lot of enterprises navigating blindly through the fog without knowing where they are and where they want to go. Each team has its own perception of reality, its own language to describe their world and a direction which mostly does not align with the others. It’s not sufficient to give each team a GPS system to take their own journey. A superior navigation system is required to provide business units the target coordinates for the entire enterprise. Now the individual units can define their journey with multiple targets but always heading to the same destination. And as reality hits us, the ultimate target coordinates will change due to mergers, acquisitions and divestitures with shifting market requirements, which requires us to re-adjust the route.”
Establishing a basis for successful transformation requires a mind-shift for C-level executives and managers,too. It requires the establishment of an enterprise transformation management (ETM) capability, where traditional disciplines like business process management (BPM), project portfolio management (PPM), application portfolio management (APM), enterprise architecture management (EAM), IT service management (ITSM) etc. are unified on a single platform. This will ensure that planning and operational layers are in sync and a golden source of truth is established. Now, any transformational change can be executed and measured successfully in alignment with the enterprise goals.
GIGO – Garbage In, Garbage Out
“Go-Digital” and “Go-Data” creates overheads in organisations, as it ultimately yields to high complex integrations and high total cost of ownership (TCO) across different solutions. A single, unified platform increases data integrity and quality to comply with laws and policies and ensures quick time-to-market supporting decision-making for transformation initiatives.
Aligning people, process and technology
The secret ingredients of a successful transformation are the alignment of
people, process and technology:
- Train your people in the new way of enterprise transformation breaking up the silos.
- Measure targets and reward employee success.
- Clearly communicate enterprise goals, strategies, business model and any priority changes.
- Set organisational focus on strategic relevant processes and capabilities
- Enable emerging technologies to automate processes e.g. robotic process automation (RPA), artificial intelligence tied to superior goals.
- Establish ETM as a key enterprise discipline using the right tools.
Solutions for the next generation
A new generation of tools are needed to support ETM. These are tools that model and report all the complexity of today’s enterprise and the organisation within its greater ecosystem, which can’t be managed with traditional office tools anymore. ins·pi’s UPM·X solution – based on ServiceNow® – brings together the people, thinking and processes. Furthermore, it unifies the planning and operational levels by providing stakeholders their enterprise view in their specific language for sustainable decision making. UPM·X can be easily and affordably deployed across the whole organisation, offering visibility into organisation’s state at every management level and across all functions.
Transformation entails six key steps to cover the end-to-end process from strategic planning to operations optimisation. ins·pi’s native ServiceNow® designer application provides the necessary visual support to design, plan, simulate and execute any transformation step based on real-time data. It updates diagrams automatically to show the gaps and achievements on your way to achieving your transformation targets. ins·pi’s next generation of solutions will help you to steer your transformation successfully by breaking up the silos and providing you with an all-encompassing view to bring your enterprise up to the next level.