The only thing constant, in today’s dynamic business environment, is change. Organizations that undergo digital transformation leave behind the ones that are not willing to adapt to this paradigm shift.
Altimeter’s principal analyst, Brian Solis, has identified the following 6 phases that organizations undergo, before they achieve successful adoption phase of digital transformation.
1. First Phase: Maintaining the Status Quo
Many organizations, at the top of their game, eventually decline in their ability to create further value for stakeholders, and eventually fade-away. It is because they refuse to make any changes in the status quo. They become oblivious of digital relevance and are eventually pushed to obsolescence. In this stage, organizations continue business as usual, with familiar legacy infrastructures.
2. Second Phase: The Inclination towards Change
In the second stage, organizations come to realize that digital transformation is important for creativity. At the team or departmental level, key persons start thinking about amplification of certain touch points. However, a comprehensive organization-wide plan is yet to be fully incorporated.
3. Third Phase: Formalization and Mobilization
At this stage, execution of intentional experimentation begins to accelerate. Key players and change agents, at this stage, become operationalized. They are on the lookout for approval from Executive Level for execution of digital transformation initiatives. Sometimes, the bureaucratic and hierarchal nature of organizational culture act as a glitch, creating roadblocks for successful implementation. Rectification of any such roadblocks is crucial to move towards a positive direction.
4. Fourth Phase: Strategy Formulation
By the time organizations reach this stage, they have already dealt with cultural barriers and have gained executive approvals. The intensive research and market analysis have enabled key visionaries to clearly see the importance of investment in technology. Strategic roadmaps are developed, as departments come to realize that digital collaboration will prove extremely fruitful over the mid to long term horizon.
5. Fifth Phase: Convergence
The organizations that manage to reach the convergence stage, have on-boarded an innovative team for digital transformation. This team solidifies processes, roles and expertise for smooth transformation.
6. Sixth Phase: Adaptation and Modernization
By this stage, organizations have completely adapted to digital transformation, recognizing that change is the only constant in the new business ecosystem. They plan on pursuing the technological path to help their business prosper.
Conclusion
For organizations, both small and large, digital transformation is a massive undertaking. By overcoming cultural hurdles, businesses can become more aligned to customer needs and thrive in the digital future.
