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Digital Transformation – Objective, Approach & Measure –  A brief note
Digital Transformation – Objective, Approach & Measure – A brief note

January 20, 2022

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Digital improvement has become the core of business strategy for every company irrespective of size, demography, and nature of business as everyone seeks to become category winner in their own categories by being more efficient & effective than yesterday and technology certainly has helped many to achieve this objective. It also subconsciously creates space for an organization to be a cost leader in comparison to peers and in some cases differentiator as well.

Companies successfully managing to upgrade themselves stand to gain from improved efficiency, cost reductions, and value extraction from core activities. Those who have not embarked on this journey yet have already started preparing roadmaps, consulting vendors, and gathering up resources to move into this direction keeping in mind the demand from the industry and from their customers.

The rush to catch up influences top management or during the pace of transformation, there is a good chance of the leadership to get lost in the web of new ideas and initiatives.

Hence it is very important to layout a method to define the start and measure the route progress.

The approach can be broken into multiple elements may be as per running concerns of the organization or internal approach towards such initiatives in history, but the primary & generic ones could be:

  • Define where you wish to be i.e. “Objective” business goals to meet.
  • Flexible / Adaptive Execution so that measures can be accommodated during the probable dynamic journey

With the definition of approach definition of “measure” (during the course of) also becomes imperative i.e. you need to constantly evaluate your investment of time & money, to know if it is really reaping the benefits of running in the direction you had expected?

Here are some best practices (examples) that can be used to achieve the right balance between effectiveness and efficiency for increasing organization growth.

Level I - Digital metrics need to influence the business making and should give a direct indication of business impact. For example, if an automated system goes down for an hour, the metrics should indicate the impact on inventory or revenue as well, rather than, just the information that the system faced an outage for an hour.

Level II - Mature organization to level of using leading indicators rather than lagging indicators E.g., for serving the purpose of avoiding  Level I altogether if possible, hence placing the organization in a position of strength (more informed) than earlier.

So, for an organization, before they approach working towards Level II which may or may not be their ultimate destination, they have the success of Level I to be treated as tollgate. The bottom line is like any other IT initiative, the definition of approach and success criteria is to be laid out much in advance & also to be monitored throughout the journey - parallel to benefits around business & with very objective manner.


Author: Kapil Khanna,                                                                               

Head - Data, Godrej Infotech

Kapil Khanna has 16+ years of experience with different IT & Business applications and has worked extensively in the areas of strategic planning, client acquisition, delivery & resource management. His mission in life is to help clients to use technology objectively. He has a master’s degree in computer applications from Sikkim Manipal University, and Micro- master’s in Business Management from the Indian Institute of Management, Bangalore.

 


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