Unfortunately, there is no magic formula for successful digital transformation for companies. Every company has a different level of maturity, exhibits cultural characteristics, and has different framework conditions shaped by its business model. However, in our experience, the following 10 guiding principles should be used to ensure that digitization projects do not lead to excessive demands with only marginal benefits right from the start, but instead that the full potential can be exploited.

1. Clarity in the form of a digitization strategy

If there is such a thing as a top priority when it comes to successful digital transformation in companies, then it is: clarity. Clarity about the purpose of the undertaking and the target state. It is crucial that management finds a common view on this at the outset. A disunited management are conceivably poor ambassadors and catalysts for a successful digitization project. A digitization strategy is clarity put on paper and a tool for implementation. Regardless of whether it is an overall strategy for the company or for individual areas - without it, there is a high risk of fragmentation and resource-intensive coordination during subsequent projects.

2. Awareness of the holistic

By initially pestering management with uncomfortable questions and going in search of the spots covered by operational blindness, we set a thought process in motion. We try to cultivate an awareness that all areas of the company must be taken into account in a digitization project. According to a study of the HWZ 75% of Swiss SMEs do not have an overall strategy for digitization and are therefore missing out on the opportunity to exploit the full potential of digitization in their company. A digitization strategy ensures that all areas of the company are examined for their potential instead of launching isolated measures.

3. Clean inventory

Gut feeling is a bad advisor on the way to a data-driven, digital company. Documented ACTUAL processes create objectivity and are the starting point for any digitization project - because they are the basis for consideration, planning and implementation. How do we get the information? With interviews, workshops and data analyses. Process management and digitization go hand in hand. Therefore, any company that does not yet have process management is advised to do so: A digitization project is the perfect occasion to start!

4. Potential is not equal to potential

The result of the inventory is that many identified areas with digitization potential are on the table. At our last customer, there were 56 of them. Not manageable for an SME with 35 employees. That's why we need to evaluate them according to the following criteria:

When these two parameters are weighed, the feasibility and usefulness of the individual measures are determined.

5. Free up sufficient internal resource

According to a Study of the FHNW 46% of SMEs state that the biggest barriers to digital transformation are the high time commitment and other projects that have a higher priority (35%). Therefore, critical to success: planning and freeing up sufficient internal resources. The implementation of a digitization strategy usually keeps an entire company on its toes: at the organizational, cultural and technical level with people involved from virtually every area in the company. This means that other projects may have to be put on hold and the employees involved may have their workload reduced so that they can devote it to the project. An excessive burden on employees leads to rejection of the change and to inferior quality. Both are negative factors for a digitization project.

6. Quick wins for signal effect

We often experience implementation euphoria. But beware: Without time planning and thus prioritization of activities, the efforts often end up in excessive demands and not infrequently in a standstill of a digitization project. When it comes to timing, resources (see commandment no. 5) must be aligned, and tactically it is worthwhile to put some quickly and easily realizable measures (quick wins) into the initial phase. In this way, you warm up as a project team and achieve a signal effect in the company by being able to communicate the first small successes to the employees. In short: It is better to take realistic baby steps, i.e. mammoth steps that are too demanding.

7. Inward-facing homework comes before the customer experience

57% of companies say their first strategic focus in terms of competitiveness is to improve the digital customer experience. At the beginning, we often hear the desire for new products that are geared to customer needs. The goals and drivers for digitization are weighted differently depending on the company and business model. However, the lower the digital maturity level of a company, the more homework should first be done on internal processes, data and the technical integration of systems. For the simple reason that they are THE foundation for the successful development of new products/services and customer-focused processes.

8. Sustainable structures

Dedicated positions that focus comprehensively on the digital transformation of the company are scarce. Only 12% of companies have a Chief Digital Officer (CDO). Regardless of whether there is such a person in charge or not, companies should adapt their organizational structures. After all, digitization projects are complex projects. Today, a CIO will hardly be able to manage them alone. A core team and project groups are needed to develop and manage digital strategies and measures. Because digital transformation is not a sprint but a marathon, it is also important to ensure that this team remains continuously involved in the topic and is responsible for its further development.

9. Make culture the No. 1 priority

Around two thirds of the companies

see employees' reluctance to change their work habits as a major obstacle to digital transformation. However, Only 14% of the companies mention the improvement of employee engagement and empowering employees as their No. 1 internal priority. Breaking down cultural barriers is the supreme discipline when it comes to digitization. It requires sensitivity on the part of management. There is no universal template that fits every company. From our experience, both communication and employee empowerment are the keys to reducing fears and prejudices and creating a dynamic so that digitization is lived by employees.

10. Building a data-driven mindset

We believe that data plays a key role in digitization. It can be collected, measured, and analyzed in a wide variety of places in companies and used as the basis for making data-based decisions. Moreover, in the form of information units, they form the basis of any digitization project. A 42% of companies see great potential in data-driven business through increased competitiveness. In order to become a data-driven company, the availability of data, rules for dealing with it (data governance), and high data quality are required. Data competence cannot be built up overnight. This is also a continuous process that requires corresponding organizational (e.g., establishment of competence centers), cultural (data-driven mindset) and strategic changes (e.g., data strategy).

Our Conclusion

The most important thing when it comes to digitization is to decide to start the journey and stay on it. Following the 10 success factors described above will ensure that the full potential of digitization is explored. The structured step-by-step approach described above helps to counteract an overly rapid organizational and cultural overload with focus and clarity. 

Last but not least, the topic should (also) be fun! If the management and the employees stick to the same goal and work together towards it, a dynamic of enthusiasm and an awareness of the necessity of the topic will arise with the first visible successes. This is the important breeding ground for the successful implementation of a digitization project.

Banian accompanies you on your digital journey. Throughout, from strategy to implementation. No matter where your company stands, together we will find out how we can best support you.

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