Digital Transformation - The Strategic Imperative
Transformations are hard, and digital ones are harder.
A recent etventure study from 2021 reveals the understanding of digital transformation in German companies…
Digitization of the existing business model
55%
Development of new business model
28%
Standardization and optimization of IT
12%
Training and digital training of employees
5%
…and shows where companies realized concrete value through digitization initiatives.
Use of new technologies / market trends
72%
Building digital competencies
70%
Development of new digital business models
45%
Development of innovations
33%
Sales increase
29%
Increased efficiency / cost reduction
70%
Access to new customer groups
49%
Optimization of the customer experience
44%
Expansion into new markets
32%
Six typical obstacles in digitizing business functions and ways to overcome
- Conduct integrative discussions to establish a joint digital vision
- Identify linkages in strategy discussions and link specific elements to broader strategy
- Identify management sponsor and give initiative owners clear responsibility and authority
- Establish or redefine employee incentives that are aligned with the digital agenda
- Work in cross functional teams integrating business as well as customer view on digital initiative
- Set up a dedicated capability build up program and invest in top talent recruitment
DDIAM has developed Guiding Principles for Digital Transformation Initiatives
Defining the Initiative Value
- Secure senior management commitment
- Set clear, ambitious targets
- Secure investment
Launch and Acceleration
- Start with lighthouse projects
- Appoint a high-caliber launch team
- Organize to promote new, agile ways of working
- Nurture a digital culture
Scaling Up the Digital Initiative
- Sequence initiatives for quick returns
- Build capabilities
- Adopt a new operating model