One of the first things to understand about digital transformation is that it is NOT just digitisation. It’s not just applying technology or robotics or responding to the Internet of Things. That’s digitisation or automation.
Using Artificial Intelligence (AI) for speed and scale, or the cloud for storage to access your data anywhere, anyhow, anytime, is absolutely important. Or using Machine Learning to learn from your current data and increase the efficiency and effectiveness of your internal processes going forward matters.
In essence digitisation means you really are improving things. But fundamentally you are still supporting existing processes. You are still measuring the same performance metrics on the existing business model and current operating model.
As a global leader of Digital Transformation defines it: ‘The difference between digitisation and digital transformation, is the difference between building a faster caterpillar and creating a butterfly.’
Digital transformation is about being able to meet the needs of the uncertainty ahead. It’s about looking to the future.
As described in Grey Rhinos and Black Swans we now know that is what we must do if we are to create resilient ‘future-fit’ organisations. We have no option but to be prepared for the ‘unexpected’. To seize the opportunity and be ready to meet exceptional demands and take a ‘holistic’ approach to change.
The business model and the operating model
To transform an organisation, you need to lead with the business model. You must clearly identify your purpose and which customers or clients you serve. You need to better anticipate and understand their needs.
Once you have determined this, it becomes clearer as to what activities you need to do well. And importantly what activities and structures you no longer need to spend energy and funds on. This informs you to better understand the skills you need to bring the necessary value to your customers and clients.
Next you need to design the structure you require to deliver it. This part is the target operating model.
Transformational change is essentially about service. Being able to deliver personalised service to meet individual client and customer expectations. And to do so effectively, efficiently, responsively, and consistently.
To respond to the shifts in the environment with incremental improvement won’t do it. Holistic transformation is essential. And now is the right time to undertake it.
Find out more about how to undertake transformation with our BeHOLISTIC™ Framework
Holistic Transformation
In Government or business, whether triggered by the need to do more, increasing regulation, policy change, public spending pressure, providing seamless service to customers, accelerating digitisation, or meeting the increasing need to sustain public trust, you require a holistic framework.
A Holistic Transformation Framework
DISCOVER
Imagining: In the case of Government this involves reviewing and discovering what others are doing both inside and outside the public sector.
Purpose: The case for change requires either redefining or clearly restating your organisational purpose. This involves clarifying the clients and customers you serve and identifying the changing dynamics of their needs, both now and into the future.
Areas for improvement: To help determine what you need to do to transform, you have to understand and baseline your current performance. You need to highlight and visualise the areas of concern – the threats and weaknesses - as well as agree on your areas of strengths and opportunities.
Alignment: By constantly challenging the current and having the courage to ask: ‘What if?’ and ‘So What?’, you give yourself and your leaders permission to re-imagine, visualise and energise the organisation. In this way you can achieve alignment.
Funding. This is not as hard as it might appear in these constrained times. It is possible to fund the transformation journey and build momentum through organisation simplicity, capital efficiency and cost reduction. But more on that later…
DESIGN
Having defined, measured and analysed your current state you have laid the groundwork to understanding the gaps in the organisation.
But bear in mind that transforming is not continuous improvement. To digitally transform you need to rethink the whole operating model and build the Target.
The elements required for your Target Operating Model can be broken down into three key pillars:
· Organisation: Human Capital (roles, skills, performance measures), Organisation Design (functional accountabilities, structure)
· Infrastructure: Locations (assets, offshore and near shore), Information (customer intelligence), Technology (AI, IOT, Blockchain etc.)
· Governance: Indicators (target setting, portfolio management, performance management), Stakeholders and Partners
The gap analysis between how you work today and what will change in the future will help you identify the workstreams or initiatives you need to undertake to get from A to B in the short, medium and longer term.
SUSTAIN
Your efforts will be wasted if you forget about the people needed to sustain the change. A strong focus on culture, leadership and change management from the beginning and throughout the journey is critical to the success of all types of transformation.
So, with the Target Operating Model and Roadmap laid out. You are ready to implement.
