The Global Digital Business Transformation Center has released its “Digitization Piano”, which can help firms answer the question, “what should we transform?”
With an IDC report predicting that by 2018, 70% of siloed digital transformation initiatives will ultimately fail, this will become an expensive reality for organisations whose digital business transformations are driven by technology solutions. This is despite the availability of a growing number of well-researched and constructed transformation frameworks and methodologies that help organisations understand what and how they need to transform, along with a deeper understanding of why.
The Digitization Piano
By answering the following questions, the Digitization Piano can help draft a roadmap of transformation needs:
1. Business Model
- What are your routes to market?
- How relevant is digitally enabled commerce, i.e. e-commerce, m-commerce?
- Where does most of your revenue and profit come from?
- What are your main customer segments? Do these need to change?
- How are you differentiated from your competition?
- How relevant is this for the future?
- What type of organisational structure do you have?
- What is the balance between local and global decision making? Does this make sense for the future?
- Where do different aspects of ‘digital’ sit in your organisation? Are they effective?
- How digitally savvy are your employees across different parts of your organisation?
- How digitally savvy are your leaders?
- What new capabilities are required? How will you acquire them?
- To what extent are your processes automated and digitised?
- To what extent are your processes consistent across your organisation?
- To what extent are your processes adaptable to change?
5. IT Capability
- How effective is your IT infrastructure: core systems, networks, databases. Is it able to support your digital ambitions?
- How effective is your forward facing IT: websites, mobile sites, social media?
- How effective is your customer relationship management system?
- Do you have a clear IT strategy linked to your corporate strategy?
- Are your “dark assets” connected so you have all the data you need?
- Are you deriving value from your data?
- How digitally enabled are your products?
- How digitally enabled are your services?
7. Engagement Model
- How strong is your relationship with customers?
- How many customer touch-points do you have, i.e. web, mobile, mail, face to face? How often do you engage with them?
- How loyal are your customers?
From these questions, an as-is and to-be analysis can help assess the degree of transformation required in each space, enabling organisations to establish a view of the current state of readiness for digital business transformation, and the desired state. The gap between these two levels of maturity indicates the amount of transformation required.