4 Must-haves for a successful digital transformation

The more digitisation takes place, the more often we think technology is the solution. As a result, the role of humans seems to become increasingly blurred. From automation and artificial intelligence to data analytics and cloud computing, the potential benefits of a digital transformation are indispensable. The goal of a digital transformation is to integrate tech into all aspects of an organisation. However, the speed and scale of digital transformations only seems to be increasing.  This changes not only the way organisations work, but also their identity and culture. It is therefore crucial not to overlook the human element underlying every facet of business operations when digitising. After all, organisations operate with people to deliver value for other people.

Why do digital transformations fail?

Digital technology is changing the world in general and the way we work together in particular. But this digital world needs to be designed from a human perspective. And strangely, this open door is all too often forgotten. From repositioning organisations and revising IT architectures, to innovating, developing and managing applications, people are and will remain at the heart of digitalisation. However, these processes are not as simple as they sound. According to various studies, from the likes of McKinsey and IDC, around 70% of digital transformations fail, depending on the industry, the size of the organisation, the definition of success and other factors.

While technology is a crucial factor in digital transformation, a lack of focus on people, processes and culture in technology adoption increases the likelihood of failure and disappointment.

Yuma puts people at the heart of digital transformation processes because: there is no digital transformation without human transformation. Experience shows that there are four explicit must-haves in the digital transformation process that ensure people are not forgotten and increase the chances of success.

1. Design business and IT from a holistic perspective

It is common for organisations to embark on a digital transformation without a clear goal. Whether it is a long-term strategy or a short-term plan, a clearly articulated goal prevents hasty decisions. An organisation's IT landscape is sometimes similar to a living creature: it grows with developments and needs. Organisations need to know how technology aligns with their business strategy as well as where they want to go for a successful digital transformation.

To align business and IT, and develop a lived strategy, different stakeholders need to be consulted. From employees to customers and investors, organisations need to harness their knowledge and insights. Successful digital transformation relies on harnessing the collective intelligence of stakeholders to identify new opportunities, drive innovation and set the direction. After all, the people operating in or benefiting from the organisation know best how things really work.

In addition to consulting these stakeholders, there is also a need to clearly communicate the plans and goals the digital transformation is aimed at. It is essential to strike a good balance between planning and execution. Ensuring two-way communication, from stakeholder to management and visa versa, creates a transparency that benefits the course of a digital transformation. Employees, customers and investors are indispensable in the process of aligning business and IT.

2. Embrace and acknowledge change

A digital transformation can create a lot of resistance. Employees, (middle) management and other stakeholders are used to traditional ways of working. Moreover, transformation processes can raise uncertainties around job security and business continuity. An organisational culture that resists change can impede progress and create barriers to successful transformation.

The importance of getting and keeping the organisation's employees on board should not be underestimated. Digital transformations often involve significant changes in organisational structure, processes and customer relationships. Involving stakeholders, including employees and customers, in strategy development, as mentioned above, can make a big difference in this.

Exclusion from the process can lead to feelings of distrust and scepticism. A consequence may be that they question the motives behind the changes and lose confidence in the organisation's leadership. Ultimately, it is the organisation's employees who have to work with the new technologies and processes. So their role and view on this is of great importance.

Besides involving employees in the process, it is also important to show empathy for the uncertainty that a transformation brings. By putting yourself in the shoes of the people in the organisation, staying abreast of what they are experiencing, and acting accordingly, you will make a big difference in resistance to change.

 3. Take responsibility in leadership and governance

For a change affecting all levels of an organisation to succeed, strong leadership is needed. Indeed, leadership must drive the transformation and provide guidance, support and resources where needed. Insufficient leadership and poor governance create unclear roles and responsibilities, and competing priorities that derail transformation efforts.

Digital transformations require strong leadership support at all levels of the organisation. Without buy-in from the entire management, initiatives can lack direction and resources. Besides financial resources, time must also be invested in, for example, testing and trialling new processes. After all, a digital transformation is tailor-made.

It also requires investment in training people to ensure they are equipped with the right knowledge and tools to work with the updated processes and products. To understand exactly what is needed in the organisation, employee input must be taken seriously. Without their input, training programmes may miss crucial aspects of their workflows or skill levels.

Digital transformations are an ongoing journey, not short-lived projects. This should be visible in the leadership and governance of the organisation. This goes hand-in-hand with expressing and taking responsibility, even when things are not going as expected. Failure to continuously support and trust the process, adapt and improve will lead to stagnation and perhaps failure.

4. Prioritise customer experience and value creation

Digital transformations often focus on improving the customer experience and creating value for customers. When a customer's needs and preferences, now and in the future, are not clear and this is not understood by the organisation, it can lead to failed initiatives. The perspective of customers is crucial to understanding the real needs and pain points within the organisation. Without their input, transformation initiatives may not address the real issues or may even create new ones.

A successful digital transformation must revolve around customer needs and expectations. Prioritising customer experience means putting the customer at the centre of every decision, whether designing new products, improving services or optimising digital touchpoints. This requires collecting and analysing data from various sources, including customer feedback and market research. Failure to prioritise customer needs and feedback leads to solutions that do not address real problems or deliver meaningful results. As a result, the customer experience or user experience deteriorates.

By being genuinely curious about what the customer needs, and what can be improved in the current course of events, customer feedback can be maximised. Besides consulting the customer and their experience, it is of course also encouraged to sit down with the customer's customer. After all, this end user actually uses the products and will also need to notice the difference after the digital transformation. 

Human

The above must-haves have one common denominator: digital transformations are not just about deploying technology. They are about using technology to transform the way people work, interact and collaborate. Herein lies the crux of why a human approach is essential to the success of a digital transformation.

The new technologies, processes and ways of working must make sense to the organisation's employees and customers. From start to finish, people must be consulted and participate in the transformation process. This agrees Pascal Laffineur, CEO of Yuma: ‘We do not only aim for technical upgrades, we want above all to make change meaningful, understandable and useful for everyone.’

By embracing transparency, empathy, accountability and curiosity, you stay close to yourself and others as an organisation. Ultimately, the success of digital transformations depends on cultivating human-centred practices and principles. By embracing the human touch, organisations can harness the full potential of digitalisation. This allows them to drive innovation, improve customer experiences and create lasting value for all stakeholders.

In the digital age, you have to choose ‘Digital yet human.’ By harmonising people and technology, you implement a digital transformation in a way that really benefits people. Digital transformations must be relevant and impactful, for the people of today and tomorrow. 

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