Digital Transformation

How to succeed in Digital Transformation?

“There are a lot of leaders who do a good job talking about digital but only few are actually walking the talk.”Tom Goodwin, EVP, Head of Innovation of Zenith Media

Before starting its own digital transformation, did you ever conduct a benchmarking assessment to mesuring the Digital maturity of your company through Strategy, organization, culture & capabilities?

How improve it and how well running your digital transformation and at least achieve sustain long term performance? How align leadership and employees around goals and digital strategy?

Mac Kinsey structures the different components under the notion of “Digital Quotient”.

The Four levers of digital transformation thus defined are applied with more or less ease and efficiency by companies. The both “organization” and “culture” are by far the most complex!

Strategy : does your Leadership Vision clarified and adapted?

The strategy will result in a clear and precise roadmap adapted to a long-term orientation, based on  User Centric. Prior work identifying business opportunities and threats is essential to provide an appropriate response in terms of resource allocation and prioritization. A Quickwin policy is often targeted by companies at the start of the transformation process, allowing them to win the support of all employees.

Capabilities: What systems, tools, digital skills, and technology to achieve digital goals?

This is not just about Cybersecurity or Flexible IT infrastructure and other automation processes. But also to develop Data driven digital insight for a 360° single customer view and targeted product and services decisionning. It is about relying on digital marketing and the omnichannel customer journey, to create a strong connection between brand and customers. Technological innovations make it possible to improve services and products. Tangible and measurable, managers invest more easily in this leverage, often without linking it sufficiently to the others factors. Yet far from being enough if not adopted by the collaborators.

Organization: The processes, structure and talent supporting execution of digital strategy

Much more difficult to design and implement, because it is specific to each company. A single, horizontal organization is no longer viable. The “project” mode promotes the success of digital transformation. Governance and KPIs must be clearly defined. How do I set up my team’s operating model to be more agile? Would an external resource be able to contribute to succeed?

No miracle recipe unfortunately.

Nespresso has provided some answers to this problem by adapting a multifaceted organization (500 employees for the digital service only). On the one hand, a split organization, both “Local and Global”, which responds to the specificities of the markets and the global strategy of the brand. On the other hand, a team focused on the current situation responding to customer satisfaction in real time, and another dedicated exclusively to future innovations tested and implemented by their care. “Blend dates “open to all employees are also organized to improve the customer experience.

The organization can also be served by dedicated buildings and offices, such as the flagship” Des Dunes” built for this purpose by Société Générale.

Culture: What practices and mindset to capturing digital opportunities?

Ian Rogers, Chief Digital Officer at LVMH – “The big moment for an organization is when they have embraced the fact that digital transformation isn’t a technical issue, but a cultural change.”

The lack of culture is the first source of failure: before the presence of archaic system and applications, lack of digital skills and even lack of clear leadership vision!

On July 2017, Cap Gemini has given interesting results of an international survey. The subject of this research is about Digital culture in companies. It underlines the low global level and also the significant gap between employees and leadership.

How do you explain these data?

Little interest in change, insufficient digital knowledge and skills, a burdensome hierarchy?

Several tools and methods can promote the development of this culture: communication in the form of Corporate Social Networks (Whatsapp at Nespresso), intrapreneurship (Société Générale), innovation labs with specialized resources to advance new expertise, partnerships and opportunities (Labo Village du Crédit Agricole), Hackatons (SNCF organized its first in 2012) or Serious Game (AXA) … innovation trip of the top executives in Silicon Valley for example to open up and get inspired…

08Starting with a simple and short term project with a quick return on investment is a good start. The success of the first projects and their dissemination will motivate the teams to pursue. It is therefore essential to enhance the value of results by measuring tangible progress that benefits first to customers and secondly to employees’ working environment. This makes it possible to bring together different actors as start up and needed to unified traditionally siloed parts of organization. This method encourages them to develop creative means, in agile mode.

This exercise requires granting the right to failure, and employee empowerment to implement an iterative process of transformation.

Other pitfalls can impact the successful development of a company’s digital culture. Fear, ego and other “power games” to defuse in a process of transformation. The skills development of employees is also essential to develop. The external support of experts or the integration of “talents” and their skills can help to strengthen this approach, in addition to adapted training.

Which KPIs should be selected to monitor this progress in terms of digital culture? difficult question!

A rate of employee participation in different projects can be an indicator, such as the number of workgroups created on internal mailboxes (Slack…).

Measuring the progress of both “EX” (Employees eXperience) and the traditional “UX” would also be a good indicator, since employee satisfaction contributes to customer satisfaction.

The most important thing to avoid discouraging is to measure behaviour and not the success or failure of the actions carried out.

So, when is your turn on the e-CAC40 podium? Look at the video of Société Générale, number 2 of 2017!


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