A strategy is needed for small and global digital changes in the company. It will help to introduce technologies into business processes consciously, for the benefit of the enterprise, and not just take what worked from a competitor. So, what is a digital transformation roadmap?
The purpose of the digital transformation roadmap
Digital transformation is relevant for various business areas. For example, in the financial sector, change automates operational accounting and helps to predict the implementation of plans or deviations from them. In sales, it is about implementing CRM systems and automating sales funnels. Finally, in marketing, technology allows you to increase the conversion of sites and the effectiveness of advertising.
Enterprise digital transformation can be viewed from two perspectives. The first is the digitalization of the business model: the transformation of the model of interaction with the client, the transition from traditional sales to the model of a “smart” product, complemented by a digital service for the client. The second is operational digitalization: the introduction of digital tools to improve the efficiency of the enterprise within the existing business model.
A digital transformation strategy is a complex concept. The strategy includes studying the company’s current state and setting development goals. Also, specialists study the industry and digitalization trends when creating a strategy. The result of this study is a document with a digital transformation roadmap and recommendations for choosing tools and process KPIs.
Basic approaches to forming a strategy
The need for unity in approaches to digital transformation processes determines the need to identify and systematize the applied models and strategies. Based on the analysis of digital cases, in particular, from among the above companies, several fundamentally different approaches to the implementation of a digital strategy can be formulated:
- Approach 1. The digital strategy is considered an independent functional strategy as part of the overall corporate strategy. Integrating into the overall corporate strategy, the digital strategy of each company becomes unique.
- Approach 2. The digital strategy is not separated into a different strategic plans. The impact of digitalization processes is reflected in the specific functional strategy. The technology implementation roadmap is located at the intersection of innovation development and IT strategies.
- Approach 3. The company’s strategy does not imply a strategic development plan with a set of measures but is formalized exclusively in budgets with key performance indicators. A digital strategy needs to be developed. This approach is mainly related to Russian practice and is associated with the general trend in forming corporate strategy, its role, and practical significance in management.
How to build a digital transformation strategy?
A transformation strategy may not need to be invented for a simple business, such as selling goods. However, in larger and more complex companies, a digital transformation strategy is created in several stages. There is a guide on how to create a digital transformation strategy:
- Strategic session of the top management of the company. At these sessions, management sets the company’s goals for the next five to ten years.
- Research of the company and its growth points and analysis of competitors. At this stage, you need to find out what trends are in the industry and what competitors have already implemented.
- Research technological and managerial trends. For digital transformation, it is important to choose relevant tools.
- Formation of project portfolios. For each project, you need to write goals, objectives, and an image of a good result.
- Test implementation and efficiency check. It is important to show managers a quick result: how much we saved on a small implementation, but how much we will save or earn on it in a year, two, or five years.