Digital transformation — how to get started
Today, many companies are at a crossroads: Should they invest more digitally — or continue as before? For some, it becomes a question of whether to be or not to be. But digital transformation is not done in a snap.
Is your company ready to take the plunge, but a little unsure about the course of action? In this article, we'll take a closer look at what digital transformation is — and how to get started.
The pace of change in business is higher than ever. Old monopolies are being torn down by new innovators. Virtually all industries are at risk of severe disruption over a period of 10—15 years. It may seem daunting, but there are also enormous opportunities.
We are talking about a new global competitive landscape. A macro shift that is digital and customer-driven. If you understand what this means for your own industry, you have a good chance of success,” says Bente Sollid Storehaug, CEO of Digital Hverdag and board member of Increo.
This is Digital Transformation
Digital transformation is about using technology to streamline processes, or to get more value out of the processes, tools and models that are already there. In some cases, it involves turning the entire business model around.
“One of the biggest megatrends, for example, is the digitization of products into services. What the innovators are doing, probably also in your industry, is involving customers in entirely new digital ecosystems. And what is certain is that if your product may If digitised, automated or robotised, it will happen,” says Sollid Storehaug.
When old business models are put to the test, results plunge rapidly if they are not changed in time.
“Now there are hardly any visits to bank branches, and yesterday's retail hardly survives without digital revenue streams. Who, moreover, would have thought 20 years ago that the media industry's strongest contenders would be startups from the West Coast of the United States? Today, monopolists are no longer well protected. No one is, and then you have to readjust.
Start with the culture. It has to be in place.
- Bente Sollid Storehaug
Start with the culture
It may seem like a torrid task. But it doesn't have to be that hard to get started. A good tip is to start with the corporate culture. The must Be in place, says Sollid Storehaug.
“If there's anything I've learned over the years I've been working with digital transformations, it's that this is so much about culture. You need an organization capable of understanding the changes technology brings. Who is fearless, realizes the facts, asks the right questions and communicates well.
It's not just getting there. But the organizations that succeed best have employees who are confident, who work well together, are curious and creative — and who tolerate failure.
Bente's 3 tips
Digital transformation is not just about technology. The culture is a prerequisite, so you have to ask yourself these questions. Are we willing to learn? Can we withstand the setbacks? Do we have the courage to think differently? If the answer is yes, you have a good starting point. If not, you have a place to start.
1. You guys need a guiding star
You won't get anywhere unless the leader gets ahead. Digital transformations must be rooted at the very top, which is why the business must be led by a CEO who is both visionary and digitally mature. He or she must understand that digitalisation affects all industries, and be able to motivate their employees to join the journey,” says Sollid Storehaug.
2. Prepare for the worst, too.
“In planning, you should work with very specific scenarios. But don't just dream away with those who are going well. Also work on at least one horror scenario. How will you be able to turn the boat around if you end up there?
3. Be brave
“Digital transformation is a complex balancing act where you have to take care of the good income long enough to finance the transformation. That may sound scary. And yes, like any other realignment, it also requires perseverance and faith in a new strong vision. But the upside of being able to offer modern customer experiences is
Everyone has to come
Digital transformation is, to a large extent, a culturally project, also believes Sebastian Krohn, head of Increo's Oslo office. He emphasizes that such a process must be rooted throughout the enterprise.
“You can't just say, 'Now we're going to digitize. ' Management must take the lead, clearly communicate, and mobilize the entire enterprise. In addition, it all needs to be rooted in business strategy.
Krohn emphasizes that such a transformation is not something you get done with in a summer. It is a continuous process, which is not always about more technology, but about the right technology in the right place.
It's easy to just buy a new system, but are you getting value for money? Do you get all the value extracted? It can require a lot of dedication in the form of internal skill building and long-term training. Maybe it wasn't even the right tool for your business.
Sebastian's 4 tips
There is no digitization phase, but there are some common features among those who succeed. After helping countless businesses that have outgrown their solutions, we can summarize with at least 4 pieces of advice.
1. Rig yourself for flexibility
No one has a crystal ball. Thus, our best option is to be prepared no matter what happens. It is possible if you rig yourself with flexible platforms and tools. Let's say you choose a headless approach to your web solution, with all data in one silo — accessible via one API. Then it's suddenly a much narrower matter to spin up both new apps and web pages as needed.
When technology changes, consumers change. And vice versa. The better rigged you are to throw yourself around, the better you will succeed.
“Rigging for flexibility and scalability means thinking long term, while recognizing that you can't predict the future. With everything changing as quickly as now, this is the smartest thing you can do,” Krohn says.
2. Think holistically
“The bird's eye view is important when you need to change your mind. View your business from above. Map out which processes, tools, and routines actually talk to each other, or should do so. If you want to automate, you should think holistically. Also, do not forget that such a change is good employer branding. Showing that you are far ahead attracts exactly the people who help you stay there.
3. Ask for help
“It's easy to grow stuck in your own processes, and it's hard to see your own flaws. The trickiest thing you can do when digitizing is to ask for help. It can be an external consultant, or a combined advisor-provider like us in Increo. The most important thing is that you find someone who is a good match. Who both understands you and fits your level of ambition.
4th. Divide and prioritize
If you think it all seems big and difficult, remember that you don't have to do everything at the same time. Make a holistic plan, yes, but don't take a bigger sip than you can chew. Identify the processes and tools that have the greatest potential for value creation. For example, you can start with marketing and sales. Choose a smaller, manageable portion and start there.
And facing those who fear the costs of such a realignment, Krohn is clear that the alternative is worse.
The cost of doing nothing is much greater.
“All of a sudden your competitors have run away from you, and it's far more expensive to try to get back in. We often find that people come to us too late, when the website is about to crash or the internal logistics sing on the last verse. Be rather lead var. If you've rigged a digital foundation, new changes are both easier and less expensive to implement,” he says, concluding:
“If your house is already tidy, it's much easier to keep it that way.
