Three Steps to a Digital Transformation

It’s no secret, a digital transformation must start with a vision. But what next? How do you take a high level vision and translate that into action? After reading this article you will know how to put programs in place to spark a digital transformation in this new landscape of emerging technologies, digital disruptors, and ever changing consumer expectations.

Step 1: Develop the Right skills

As the labor market gets more and more competitive, it's becoming increasingly difficult to recruit talent with the skills needed for digital transformation. According to PwC, 55% of employers feel the skill shortage is slowing innovation. Most companies are now focusing efforts on upskilling their current workforce instead of relying solely on recruitment to fill key roles. Building digital capabilities within the workforce increases the chances of a successful digital transformation according to research by McKinsey and Company.

How do you build capabilities for a digital transformation? With the vision and the industry as a guide, research emerging technologies and concepts to inform the skill sets needed. Some skills may be specific to your industry or business (like internally developed systems and processes) and many will be broad (i.e. digital analytics, machine learning, automation, blockchain). Incorporate both into a digital upskilling program. Find the experts at your company or in the industry and create learning opportunities for employees. Look outward for examples of companies leveraging digital to improve their business and create case studies for employees to review and learn from. Develop mobile enabled

• podcasts

• gamification

• immersive skill building

• multimedia content

• quizzes

Create social learning opportunities through

• discussion boards

• mentoring

• communities of practice

Get creative and be flexible. As new technologies come onto the scene, incorporate them into the curriculum.

On this end of the road to digital transformation, initiatives are focused on developing people while the “what to develop” (skills and knowledge) is informed by the industry.

Step 2: Build a Community

Build a community for sharing ideas, innovations, and business problems. Shift the focus of the workforce to the business. Encourage employees to challenge traditional approaches. Break down silos to give employees exposure to the full spectrum of the business. Provide cross-functional opportunities to share, compare successes and pain points. Encourage curiosity and crosspollination.

For a global company this step is vital. Not only are there functional silos to breakdown, there are also geographic ones. Leverage technology to collaborate virtually and, when possible, find ways to bring groups together in person.

This step is driven by people and the synergy of bringing groups together for collaboration. The focus shifts from people development to developing a network to share insights, successes, and problems across the entire organization.

Step 3: Rapid Application

The last step for complete adoption is rapid application. Once a tech-enabled workforce is established and has been exposed to challenges across the business, empower them to solve problems and innovate. Let employees determine where digitization should be adopted. When employees generate their own ideas about where digitization might support the business, the transformation is more likely to be successful according to research by McKinsey.

Encourage pilot projects and experimentation through internal funding programs. State a business problem and ask employees to submit potential solutions and plans for how to test them. Provide funding to secure resources and people support to pilot and collect outcome data. Encourage risk taking. Create an environment of autonomy, rapid deployment, and iterative design. Encourage employees to make decisions fail fast, and learn. Set up a stepped funding model that supports experimentation from small scale pilot testing to full scale implementation.

Create a culture where people drive digital transformation through rapid application of innovations that address the needs of the business.

In Closing

The biggest challenge facing the industry is availability of skilled, digital-minded talent. This approach establishes a framework to develop employees that are:

• prepared for disruption

• challenged with complex problems

• empowered to innovate

A well implemented digital transformation will serve as an incubator for ideas as well as talent.

How are you approaching digital transformation in your business? Have you established a program to develop digital talent and cross-functional innovation in your company? Reach out to share your story.

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