{"id":24285,"date":"2018-10-25T10:40:59","date_gmt":"2018-10-25T09:40:59","guid":{"rendered":"https:\/\/digileaders.com\/?p=24285"},"modified":"2019-01-17T09:46:47","modified_gmt":"2019-01-17T09:46:47","slug":"stages-digital-transformation-we-cant-run-before-we-walk","status":"publish","type":"post","link":"https:\/\/digileaders.com\/stages-digital-transformation-we-cant-run-before-we-walk\/","title":{"rendered":"Different stages of Digital Transformation and why we can\u2019t run before we walk"},"content":{"rendered":"<p class=\"p1\"><span class=\"s1\">In the world of transformation, there are many buzzwords and mis-used terms that can confuse the message.\u00a0The term \u2018digital transformation\u2019 is often used quite loosely to describe anything from digitisation\u00a0through to new\u00a0digital products and services, but it is\u00a0worth taking a moment to disambiguate different\u00a0things it refers to. We think of this primarily in three stages or layers:<\/span><\/p>\n<ul class=\"ul1\">\n<li class=\"li3\"><b><\/b><span class=\"s3\"><b>Digital Optimisation<\/b>: the adoption and use of digital tools to change the nature of a process\/service.\u00a0Digitising analogue processes or optimising existing services will help a company remain competitive.\u00a0It doesn\u2019t\u00a0fundamentally\u00a0change the business model, but allows modification and efficiency.\u00a0The outcome of optimisation is often not particularly exciting, but can help a company stay afloat in a new world.\u00a0<\/span><\/li>\n<\/ul>\n<ul class=\"ul1\">\n<li class=\"li3\"><b><\/b><span class=\"s3\"><b>Digital\u00a0Transformation<\/b>: utilising digital tools through changing ways of working. It also doesn\u2019t change the business model, but changes the way the business operates and makes new things possible. It expands the definition of digital to include structure, culture and leadership styles.\u00a0<\/span><\/li>\n<\/ul>\n<ul class=\"ul1\">\n<li class=\"li3\"><b><\/b><span class=\"s3\"><b>Digital Innovation<\/b>: utilising digital tools and new ways of working to completely change the business model.\u00a0It opens up possibilities for a different set of products\/services or modifies the company\u2019s value chain.\u00a0<\/span><\/li>\n<\/ul>\n<p class=\"p1\"><span class=\"s1\">Taking the\u00a0example of an accountancy firm, at the optimisation stage, the company might buy and learn how to use digital tools, such as introducing an Intranet as a tool for company wide communication. They are doing the same work but more\u00a0efficiently. In the transformation stage, the firm has a\u00a0chance to redesign how they work to\u00a0fulfil their current business model.\u00a0Perhaps data scientists and\u00a0AI developers work together to produce real-time audits using big data. The company is still providing auditing services, so the business model hasn\u2019t changed, but they are doing it in a very different way, which would hopefully give them a competitive edge.\u00a0In the Innovation stage, the firm might discover that this approach opens up entirely new lines of business,\u00a0such as\u00a0predictive analytics or\u00a0additional insights above and beyond assurance.\u00a0Because of the firm\u2019s fluidity and new ways of working made possible by the previous stages, it can test, pilot and launch these new service lines\u00a0quickly. If\u00a0successful this then changes or enhances their business model.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Each stage has benefits.\u00a0Customers of the optimisers may see things move online or see services become faster and more responsive. Customers of the transformed will see a vast improvement in their service or\u00a0be offered\u00a0new products or iterations of existing products\/services that improve their value.\u00a0Customers of the innovators\u00a0could see new products\/services that could disrupt existing markets. The value has increased and expanded into new areas.<\/span><span class=\"s1\">\u00a0<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">But tempting as it is to rush straight to digital innovation, the underpinning platform, digital literacy and ways of working need to be in place to give themselves a good chance of success. On the other hand, we should not see digital as just a better email client or a\u00a0way to automate poorly\u00a0designed processes.\u00a0Although this is a critical first step and enables the business to avoid falling behind, too often we see companies stop there.\u00a0Once companies become\u00a0digitally\u00a0mature, they need to strive for transformation and innovation in the ways they do things and ultimately in \u2018what\u2019 they do. This is true digital transformation and it goes beyond\u00a0just\u00a0the tools we use.\u00a0<\/span><\/p>\n<hr \/>\n<p>Originally posted <a href=\"https:\/\/postshift.com\/different-stages-of-digital-transformation-and-why-we-cant-run-before-we-learn-to-walk\/\">here<\/a><\/p>\n<p class=\"p1\" style=\"text-align: center;\"><span class=\"btn-container\"><a class=\"btn btn-md btn-primary\" href=\"https:\/\/digileaders.com\/insights\/\">More thought leadership <i class=\"far fa-caret-right\"><\/i><\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the world of transformation, there are many buzzwords and mis-used terms that can confuse the message.\u00a0The term \u2018digital transformation\u2019 is often used quite loosely to describe anything from digitisation\u00a0through to new\u00a0digital products and services, but it is\u00a0worth taking a moment to disambiguate different\u00a0things it [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":24297,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"class_list":["post-24285","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","topic-ai","topic-innovation","topic-transformation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Different stages of Digital Transformation and why we can\u2019t run before we walk<\/title>\n<meta name=\"description\" content=\"The term \u2018digital transformation\u2019 is often used quite loosely to describe anything from digitisation\u00a0through to new\u00a0digital products and services\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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