As previously discussed, the essence of digital transformation is utilizing technology to change business models. Therefore, a specific approach must be followed to achieve success in developing organizations. This approach must be well thought out and have clear steps to avoid failure. Many studies have shown that less than a third of digital transformation efforts are successful, and more than two-thirds of projects and transformations end in failure. Does success have its elements, or is it just a matter of luck? Are there specific strategies that must be followed to ensure success?
Leadership is the most important element of digital transformation, as it serves as the source of information, the hub of ideas, and the main motivator for digital transformation within an organization. In addition, it provides a broad vision to chart the course towards the desired goal.
The strength of leadership lies in two important factors for influencing the digital transformation process: the ability to implement the transformation and speed of performance. Therefore, the CEO, the Chief Digital Officer, and all those in senior management must adopt a unified perspective towards digital transformation. They should be mentally and administratively enthusiastic about managing and ensuring the success of the transformation with all the available tools, taking deliberate steps towards that transformation within a clear timeframe with specific goals. Among these steps is conducting awareness sessions about the goals and impact of digital transformation on the organization, providing training and leveling up all members of senior management, and involving them in leading the transformation process. Several studies have shown that digital transformation success rates exceed 70% in organizations where senior employees and management actively participate in the digital transformation process, along with the availability of appropriate programs and tools to support that transformation.
Another important element in the transformation process is effective communication. There should be a comprehensive and clear vision from senior management regarding the details of the digital transformation process. This vision should be conveyed to employees at all levels, along with the placement of suitable programs and tools for transformation and explaining the working mechanism during the digital transformation journey. It is crucial to convince employees that they are partners in success and that the matter is not just about structural changes to dismiss some employees. Rather, it is about clarifying that their jobs are secure with modifications to tasks and responsibilities, as well as explaining what employees need to do to enhance their skills and understanding of the necessary modern technologies to engage in new tasks that will emerge after completing the digital transformation process.
Therefore, creating a clear roadmap is essential, outlining the timeline, expected outcomes, and responsibilities at each level of employees. A schedule of necessary courses for developing employees according to their responsibilities should be created. It is important to tailor these courses to align with their new responsibilities to prevent draining the financial capabilities of the organization if not directed correctly to the right people. Changing traditional thinking among employees poses a significant challenge in achieving long-term success in digital transformation. Without believing in the positivity, reality, and inevitability of digital transformation, ideation alone will not yield results. The organization will remain stagnant, with ideas in turmoil, incapable of progress, and moving towards failure.
Another crucial aspect of the transformation process is the use of suitable digital tools. These appropriate digital tools play a vital role in the digital transformation process. It is worth mentioning that digital tools should not be used just for the sake of it but according to the nature of the organization’s needs. Sometimes an organization might need an Enterprise Resource Planning (ERP) system to manage its employees, supply chains, and customer orders, as seen in the success story of the Indian paint company, Asian Paints, where digital transformation helped it become the number one company in India, the third in Asia, and the ninth globally, contributing to a 100% revenue increase over 8 years after completing the digital transformation process. Other times, an organization might require an integrated interactive platform solely to handle transactions with customers, as some government institutions do. And sometimes, an organization may need various tools, such as cloud applications, artificial intelligence applications, and robots, as seen in massive corporations like Amazon and Tesla.
Therefore, in order to achieve digital transformation correctly, it is necessary to choose the right leadership because they will shape, implement, and lead the transformation process correctly. Their responsibilities include communicating with employees, breaking barriers, and also the leadership must choose the appropriate tools, coordinate, seek expertise in the field, and leverage similar experiences to support the transformation for it to succeed truly.
By Engineer: Belal Khaled Al-Hafnawi
Specialist in the telecommunications and information technology sector and digital transformation
How to keep pace with digital transformation Part Two
