Organizations have physical, financial, human, intellectual assets that help in navigating digital transformation. Different businesses have various business models and they have always maintained different percentages of these asset types. Capital investment is a key element of transformation game changer most companies focus on it to ensure organizational structure, company culture and technology are aligned towards provision of best service are delivered to customers.
Your digital transformation is like a series of projects the company plans on undertaking. Time and money are key components and need to be dedicated towards the whole digital transformation journey success. Allocating funds is such a great thing but there is need of a budget for each owner, discussion on the financial impact is important since it keeps everyone in track of their financial use Moreover, it is a process for communicating the different changes in allocated budgets and time resources to your team and external personnel who might be impacted by the project.
Analyzing business models used in the current market is one element that is useful in navigating through digital transformation it involves identifying the current business models that are used in the market. Overseeing the current competitors in the market and see what type of business models they use. Learn how the models work and how effective will they be in long term and short term. Understand what ways they use to hire employees, check what new Softwares are currently used in the digital world. Having clear look at your initial point will enable you identify strengths and weakness of the business which will help you seek digital transformation solutions that will help transform your business.
Secondly having accountability on the assets that you have, one can begin with easy things such as physical assets such as plant, property, and equipment. This will provide a better and a clear understanding of the tangible and intangible assets and skill well-known skills of your workforce. The use of Internet Protocol that exists within your organization, and networks of people and organizations that exist outside the boundaries of your firm. These assets are typically overlooked, undervalued, and under-managed. Check your networks with care to determine asset usage. Partnering with a valued efficient reliable network provider will be of great help.
Thirdly, identify business partners and support members who will be the new faces of the digital network who will help in creating both internal and external business networks. In addition to that Customers and suppliers are common choices, but there are many partners to consider, including distributors, government, investors, communities, and competitors. The objective is to identify a way that you and your network can create profit together, add value to the company using both your assets and their own.
Using a business model is very important you will also share in the value that your network creates. This is a very difficult step but consider the different types of assets as you brainstorm how you and your network can create value together. It is great to provide access to physical assets like Airbnb, Bolt Uber, generate new content like Yelp and TripAdvisor, provide services like Mastercard, or generate networks like LinkedIn. Also consider the digital platform that would enable collaboration such as Instagram.
Finding a balance between utilization of small amounts of capital including time, talent, and money to the new initiative. This will require building out a team, funding them, and giving them a lot of space to learn and change quickly. Moreover, creating company policies that support digital transformation to ensure that employee resistance to change is not encountered, formulation of company policies should be inclusive to employees, introduction of new culture, system changes, role changes, should be communicated, so that they employees beware of what is happening this will help motivate them embrace the digital innovation in a company.
Track progress of the different projects and initiatives you undertake. This will help in reporting the new cases that arises. Involve key performance indicators that are specific to the digital network model, which are new to your organization. Incorporate use of dashboards that have metrics such as number of interactions, number of customers on your digital platform, number of active network partners, profit generated, loses incurred, for both the firm and its partners, and the overall support system of the network regarding its collaboration. In addition to that the financial issues like revenue and profitability are important, but as with any new initiative, it will take time for this model to prove itself and begin creating impact and value for the organization.
Good Leadership Management is such a key element in organizational transformation and must begin with a leadership transformation. Make sure you are that you are the Chief Executive Officer, and the whole leadership team is fully supportive and ready to prioritize differently and change by adding value to the company. If not, your transformation is sure to fail. We have seen many transformations, not just of the digital selection, fail due to lack of determination and lack of commitment. Digital transformations face many risks because they require brand new skill sets and mindsets.
Digital initiatives should be enough so that we find them on the various digital platforms such as LinkedIn that focuses on jobs and they aim at creating good company advertisements. Legacy firms must prepare themselves, and hopefully get ahead of, the wave of digital transformation or risk being washed away like Kodak. Make sure people in your organization understand what digital transformation is and what it means for your brand and what big difference and impact it will bring. With the presence of research and development the enterprise the team will be able to stay up to date of demands in the market and provide innovative solutions. Creating integrative digital solutions that can be connected to the digital systems will be of great help it will reduce cost, it will ensure time efficiency, reduce system maintenance that needs to be carried out every time.