Digitalization and reality. Should I change something?
Information technology will continue to change our lives and we have no way to escape or protect ourselves from these changes.
Another attempt to explain to a person what Digitalization is and why you should always analyze your location in this system of coordinates made you refer to literature on the subject once again. The literature, unfortunately, is only foreign.
Under the slogan "Russia does not lag behind" I share with you free translations on the topic.
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In 2017, Professor and Expert on Strategic Planning, Innovation and Leadership, Lucy Kueng, published a certain “Guideline” on Digital Transformation (“Going Digital”). Her research was conducted with the participation of more than 60 companies. Objective: to study and identify the main components of the Digital transformation, to study how they occur, what steps, tools and concepts are particularly useful.
The second work, THINK ACT BEYOND MAINSTREAM (TABM), presents us with research data on the same issue in the construction industry. The study was conducted according to the results with the participation of top managers of 40 different companies in Germany, Austria and Switzerland.
I will give a certain “review” of this work below, a free translation, the original is available on the net . My comments are in italics.
The work of “Going Digital” is focused on the media industry, whether or not to apply such recommendations to all sectors of the market is an open question, but in my opinion, its conclusions are not limited to the work of the media.
Two decades after the advent of the Internet, the structure of the new ecosystem became clear, as well as the problems faced by the organizations:
All this leads to the conclusion that the role of digital technologies is changing - now they are not just tools that help companies do something better, technologies change the way they do business.
According to one study (DIHK), 93% of companies agree that the development of technology affects every process of each company.
The main task of organizations now is a change, Digital transformation. Those companies that focus on developing and implementing their own Digital strategy will become industry leaders.
Future Firms will use Digital tools for timely deliveries, reducing storage and transportation costs, and increasing efficiency. Sales will be carried out through electronic portals, which will optimize not only prices, but also the processes of cooperation with suppliers. Intellectual technologies and robots will be introduced in production, all production processes will be planned in advance in order to optimize work. Marketing and sales will be focused on applications and platforms to get dealers and customers for sale. In the after sales service, customers will be provided with new services and support. Platforms will increase the transparency and efficiency of processes for customers. At the same time, they will use the data to better understand the needs of their customers and to form customer profiles.
In TABM Digital, the transformation was divided into four key areas: digital data, digital access, automation, and interoperability.
The report also reflects the results of an analysis of the degree of involvement of various companies in the Digital Revolution:
The results of the assessment of the influence of Digital technologies on the incomes of different business areas are also presented:
In the work of “Going Digital”, the “best practices” of Digital transformation were also analyzed, which allowed us to identify four elements (and they must be considered together):
So, now let's move on to the description of what was said in the reports:
Organizations need a long-term strategy.
Any organization needs a long-term goal. At least two decades of changes and made us doubt the ability to follow strategic plans, it is always worth remembering:
innovation is not equal to strategy; speed does not provide a strategic advantage.
The strategy is necessary for the organization to have a clear understanding of where it should be at the moment and where it plans to be in 10 years.
Companies need to ask themselves: “Can we guarantee that in five to seven years we will have an attractive and growing business that still fulfills its main mission?”.
Focusing on strategy is also a discipline that allows an organization to abandon unprofitable products, because projects with low potential limit opportunities for experimentation. They should be abandoned. But all changes in the organization should be carried out "in accordance" with the goals.
Metrics are needed to track strategic results; in addition, if compiled correctly, they can lead to improved performance,
What metrics are worth paying attention to in this case? Of course, for those who can assess the amount and quality of the work done. For example, how long does it take to respond to a customer complaint? How quickly does the site respond? How often do your applications fail? What is the quality of your content?
These metrics can be “tied” reward, which would direct the energy of employees in the “direction” of success.
What tools will help an organization become Digital
A business model is a compact, simplified view of a business, designed to provide a holistic description and analysis of the activities of the entire business process system.
When forming a business model, you should ask yourself the question “What is the business model of the organization? What is the revenue base? Why would anyone want to buy exactly your product? ”.
When organizing work processes, it is worth referring to the already existing models and tools used. The matrix below reflects some of them:
For the formation of a business model, rely on technology.
The business model remains a central task, but now technologies should become its immediate part.
The most popular digital tools today can be called:
1. Electronic sales platforms.
The format of electronic trading platforms ensures that contracting processes will be more transparent. Electronic sales reduce vendor costs by increasing efficiency.
2. Monitoring and control systems supporting processes.
Automated systems are a great step towards optimization. Software to ensure supplies, allows you to deliver materials on time. Storage and handling costs can be minimized.
Intelligent technology can optimize capacity utilization. Applications that use RFID2 and GPS simplify delivery and transportation. Such software solutions help build logistics processes.
Production processes can be automated, allowing customers to specify exact product specifications. Product quality is controlled by sensors, and high efficiency is guaranteed by automatic control.
3. Intellectual machines and robots.
Equally, the industry sets new standards for cash expenditures and labor costs, increasing quality requirements.
"New shiny things" or how not to get bogged down in innovations
The emergence of "New brilliant things" has caused the collapse of long-term strategies and this phenomenon is likely to not disappear, but only intensify.
Organizations are off track with the flow of new technologies and products, which can be both steps to success and costly distractions from the main mission. That is why any innovative project, any “new and brilliant thing” should be evaluated against the strategic goals and business models.
Many new things are not a strategy. When introducing new technologies, you need to ask the question: “Should we change our workflow?”, “Are we creating some kind of new process?”. These questions are key and allow you to move from “a large number of shots” to “more targets”.
Innovation still remains a priority, but the evaluation process requires rigor, but sometimes it’s worth saying: “You know what? We are not interested. ” The first question to ask is: "Is the game worth the candle?"
“New shiny things” violate strategies, divert attention and waste resources. Assessment processes are based on an analysis of how technology will contribute to the achievement of strategic goals.
The product is no longer what makes it digital.
External factors and the "alignment of forces" in the market change with the development of technology. Now the product is a complex object that requires an understanding of what values ​​it provides to the client and how it must be maintained.
The perception of a product is changing rapidly, including marketing, service, and post-customer service. This means that the product of different organizations may not differ on its own, but in the aggregate of the services provided (including the website, applications, content management systems) is perceived by customers differently.
With the advent of the Digital product comes the concurrent recognition of the significance of the UX (User Experience). The post-customer service tools add value to the product by providing them with various services.
There are changes in the field of promotion and advertising. First, the relationship between organizations and the client has become two-way. Secondly, this dialogue became “dialogue equal”. Third, social networks are increasingly viewed as a source for acquiring new customers. Their role has grown simply due to the fact that content is optimized for certain platforms.
According to Axel Springer, “platforms have scale, direct contacts with the audience, data. They have everything to bring customers and sellers together, and they do it much better than ever. ” Now customers are holding the key to scaling, so their needs are closely monitored, and UX (user experience) is the top priority.
How to live and work in the digital world?
One of the distinguishing features of a digital organization, its competitive advantage, is its organizational culture.
Organizations and their employees need to understand that things will continue to change and change should be perceived as a “norm”. Organization flexibility is a growth tool, insurance against changes in the external environment, but how can it be achieved?
The main priority of a successful organization is people. Properly organized process of hiring employees, the formation of key skills, continuous development and training provides the organization with an influx of new ideas and skills, shortening the cycle of creating innovations. Training is a way that really changes the organization. Learning is a priority and is central to the transformation process.
Focus on technology. Changes in culture can be a side effect of technological projects. A properly built tool can focus employees' attention on things important to business.
Feel free to share experiences. This is not about competition, but about speed and time saving. By entering into contact with others, you get the opportunity to find answers to many questions and avoid mistakes that someone else has already committed. The better the communication, the higher the chances of meeting with those who can help you.
How to manage it?
Digital leadership is transparency and communication, leaders are transforming - their main task is to constantly remind about strategy and priorities, how you get there.
The best thing you can do for employees is to ensure clarity of goals, explain what you want to do and offer people the opportunity to become part of it. However, leaders cannot “introduce” a culture alone - companies need those who emphasize the need for change. You should have a few people who live in the culture you aspire to, which can become symbols of the organization. Do not forget that those who do not want to be part of the "journey" must leave the company.
Another task of a leader is the realization of personal limitations, the understanding that delegation, transfer of responsibility is essential, and strategic decisions need to be taken in conditions of uncertainty. It is extremely important to distinguish between reversible and irreversible solutions.
Jeff Bezos classifies decisions by type 1 (irreversible decisions that need to be made slowly and thoughtfully) and type 2 solutions (double-sided doors, if companies make mistakes, they can do everything in reverse order).
As a result, Digital transformation is the invasion of new products, new systems, new processes, new platforms.
Organizations need to change, management needs to properly articulate a long-term strategy, form a business model, and constantly keep focus on digital transformations.
From all of the above, there can be only one conclusion - today, to ignore the Digital transformation is a big mistake.
Another attempt to explain to a person what Digitalization is and why you should always analyze your location in this system of coordinates made you refer to literature on the subject once again. The literature, unfortunately, is only foreign.
Under the slogan "Russia does not lag behind" I share with you free translations on the topic.
')
In 2017, Professor and Expert on Strategic Planning, Innovation and Leadership, Lucy Kueng, published a certain “Guideline” on Digital Transformation (“Going Digital”). Her research was conducted with the participation of more than 60 companies. Objective: to study and identify the main components of the Digital transformation, to study how they occur, what steps, tools and concepts are particularly useful.
The second work, THINK ACT BEYOND MAINSTREAM (TABM), presents us with research data on the same issue in the construction industry. The study was conducted according to the results with the participation of top managers of 40 different companies in Germany, Austria and Switzerland.
I will give a certain “review” of this work below, a free translation, the original is available on the net . My comments are in italics.
The work of “Going Digital” is focused on the media industry, whether or not to apply such recommendations to all sectors of the market is an open question, but in my opinion, its conclusions are not limited to the work of the media.
Two decades after the advent of the Internet, the structure of the new ecosystem became clear, as well as the problems faced by the organizations:
- Environmental pressure;
- The rapid evolution of technology platforms;
- Problems of strategic planning and management;
- Gradual merging of product, data, social networks and information technology.
- Gradual merging of product, data, social networks and information technology.
All this leads to the conclusion that the role of digital technologies is changing - now they are not just tools that help companies do something better, technologies change the way they do business.
According to one study (DIHK), 93% of companies agree that the development of technology affects every process of each company.
The main task of organizations now is a change, Digital transformation. Those companies that focus on developing and implementing their own Digital strategy will become industry leaders.
Future Firms will use Digital tools for timely deliveries, reducing storage and transportation costs, and increasing efficiency. Sales will be carried out through electronic portals, which will optimize not only prices, but also the processes of cooperation with suppliers. Intellectual technologies and robots will be introduced in production, all production processes will be planned in advance in order to optimize work. Marketing and sales will be focused on applications and platforms to get dealers and customers for sale. In the after sales service, customers will be provided with new services and support. Platforms will increase the transparency and efficiency of processes for customers. At the same time, they will use the data to better understand the needs of their customers and to form customer profiles.
In TABM Digital, the transformation was divided into four key areas: digital data, digital access, automation, and interoperability.
- Digital data - allows you to collect and analyze information to obtain data about each element in the value chain.
- Automation is the use of self-organizing systems in work processes.
- Digital access is the potential provided by mobile Internet access. Interaction - describes the possibility of maintaining communication between individual activities.
The report also reflects the results of an analysis of the degree of involvement of various companies in the Digital Revolution:
The results of the assessment of the influence of Digital technologies on the incomes of different business areas are also presented:
In the work of “Going Digital”, the “best practices” of Digital transformation were also analyzed, which allowed us to identify four elements (and they must be considered together):
- The first element is the long-term goal.
The goal establishes the main mission of the organization, helps to answer the question "Why does this organization exist?". The methods and method of achieving the goal may change, but the goal itself must remain unchanged. - The second element is the business model. Processes, organizational culture, management methods.
- The third element is the strategy of working with "New shiny things."
Innovative products disrupt the classic work. The organization should know the answer to the question “What will we do if there are new products and platforms? How will we understand if we need them? ” Innovation must always be evaluated; evaluation must be made in the context of the first and second elements. - Technology and data are the fourth element, they make up the central “nervous system”, supporting, informing and fueling other elements.
So, now let's move on to the description of what was said in the reports:
Organizations need a long-term strategy.
Any organization needs a long-term goal. At least two decades of changes and made us doubt the ability to follow strategic plans, it is always worth remembering:
innovation is not equal to strategy; speed does not provide a strategic advantage.
The strategy is necessary for the organization to have a clear understanding of where it should be at the moment and where it plans to be in 10 years.
Companies need to ask themselves: “Can we guarantee that in five to seven years we will have an attractive and growing business that still fulfills its main mission?”.
Focusing on strategy is also a discipline that allows an organization to abandon unprofitable products, because projects with low potential limit opportunities for experimentation. They should be abandoned. But all changes in the organization should be carried out "in accordance" with the goals.
If strategic goals are to be met, then progress must be measured.- This is another important thought that needs to be learned.
Metrics are needed to track strategic results; in addition, if compiled correctly, they can lead to improved performance,
For example, the Washington Post identified the following metrics for one of its projects: profitability, revenue, number of new visitors, number of subscribers.
But, unfortunately, no change in performance has occurred.
Why?
None of these metrics was in the area of ​​their control, i.e. they could not directly change these indicators.
What metrics are worth paying attention to in this case? Of course, for those who can assess the amount and quality of the work done. For example, how long does it take to respond to a customer complaint? How quickly does the site respond? How often do your applications fail? What is the quality of your content?
These metrics can be “tied” reward, which would direct the energy of employees in the “direction” of success.
What tools will help an organization become Digital
A business model is a compact, simplified view of a business, designed to provide a holistic description and analysis of the activities of the entire business process system.
When forming a business model, you should ask yourself the question “What is the business model of the organization? What is the revenue base? Why would anyone want to buy exactly your product? ”.
When organizing work processes, it is worth referring to the already existing models and tools used. The matrix below reflects some of them:
For the formation of a business model, rely on technology.
The business model remains a central task, but now technologies should become its immediate part.
The most popular digital tools today can be called:
1. Electronic sales platforms.
The format of electronic trading platforms ensures that contracting processes will be more transparent. Electronic sales reduce vendor costs by increasing efficiency.
2. Monitoring and control systems supporting processes.
Automated systems are a great step towards optimization. Software to ensure supplies, allows you to deliver materials on time. Storage and handling costs can be minimized.
Intelligent technology can optimize capacity utilization. Applications that use RFID2 and GPS simplify delivery and transportation. Such software solutions help build logistics processes.
Production processes can be automated, allowing customers to specify exact product specifications. Product quality is controlled by sensors, and high efficiency is guaranteed by automatic control.
3. Intellectual machines and robots.
Equally, the industry sets new standards for cash expenditures and labor costs, increasing quality requirements.
For example, in the construction industry, 3D technology opens up new possibilities for inspecting construction sites and identifying objects on the ground, which allows for more accurate design and planning.
Robots track the progress of construction, 3D printers make construction plans in 3D.
Industry uses BIM - an object-oriented building model (3D). BIM minimizes planning errors, allows you to quickly calculate, quantify additional costs and shows alternatives.
"New shiny things" or how not to get bogged down in innovations
The emergence of "New brilliant things" has caused the collapse of long-term strategies and this phenomenon is likely to not disappear, but only intensify.
Organizations are off track with the flow of new technologies and products, which can be both steps to success and costly distractions from the main mission. That is why any innovative project, any “new and brilliant thing” should be evaluated against the strategic goals and business models.
Many new things are not a strategy. When introducing new technologies, you need to ask the question: “Should we change our workflow?”, “Are we creating some kind of new process?”. These questions are key and allow you to move from “a large number of shots” to “more targets”.
Innovation still remains a priority, but the evaluation process requires rigor, but sometimes it’s worth saying: “You know what? We are not interested. ” The first question to ask is: "Is the game worth the candle?"
“New shiny things” violate strategies, divert attention and waste resources. Assessment processes are based on an analysis of how technology will contribute to the achievement of strategic goals.
The product is no longer what makes it digital.
External factors and the "alignment of forces" in the market change with the development of technology. Now the product is a complex object that requires an understanding of what values ​​it provides to the client and how it must be maintained.
The perception of a product is changing rapidly, including marketing, service, and post-customer service. This means that the product of different organizations may not differ on its own, but in the aggregate of the services provided (including the website, applications, content management systems) is perceived by customers differently.
With the advent of the Digital product comes the concurrent recognition of the significance of the UX (User Experience). The post-customer service tools add value to the product by providing them with various services.
There are changes in the field of promotion and advertising. First, the relationship between organizations and the client has become two-way. Secondly, this dialogue became “dialogue equal”. Third, social networks are increasingly viewed as a source for acquiring new customers. Their role has grown simply due to the fact that content is optimized for certain platforms.
According to Axel Springer, “platforms have scale, direct contacts with the audience, data. They have everything to bring customers and sellers together, and they do it much better than ever. ” Now customers are holding the key to scaling, so their needs are closely monitored, and UX (user experience) is the top priority.
How to live and work in the digital world?
One of the distinguishing features of a digital organization, its competitive advantage, is its organizational culture.
Organizations and their employees need to understand that things will continue to change and change should be perceived as a “norm”. Organization flexibility is a growth tool, insurance against changes in the external environment, but how can it be achieved?
The main priority of a successful organization is people. Properly organized process of hiring employees, the formation of key skills, continuous development and training provides the organization with an influx of new ideas and skills, shortening the cycle of creating innovations. Training is a way that really changes the organization. Learning is a priority and is central to the transformation process.
Focus on technology. Changes in culture can be a side effect of technological projects. A properly built tool can focus employees' attention on things important to business.
Feel free to share experiences. This is not about competition, but about speed and time saving. By entering into contact with others, you get the opportunity to find answers to many questions and avoid mistakes that someone else has already committed. The better the communication, the higher the chances of meeting with those who can help you.
How to manage it?
Digital leadership is transparency and communication, leaders are transforming - their main task is to constantly remind about strategy and priorities, how you get there.
The best thing you can do for employees is to ensure clarity of goals, explain what you want to do and offer people the opportunity to become part of it. However, leaders cannot “introduce” a culture alone - companies need those who emphasize the need for change. You should have a few people who live in the culture you aspire to, which can become symbols of the organization. Do not forget that those who do not want to be part of the "journey" must leave the company.
Another task of a leader is the realization of personal limitations, the understanding that delegation, transfer of responsibility is essential, and strategic decisions need to be taken in conditions of uncertainty. It is extremely important to distinguish between reversible and irreversible solutions.
Jeff Bezos classifies decisions by type 1 (irreversible decisions that need to be made slowly and thoughtfully) and type 2 solutions (double-sided doors, if companies make mistakes, they can do everything in reverse order).
As a result, Digital transformation is the invasion of new products, new systems, new processes, new platforms.
Organizations need to change, management needs to properly articulate a long-term strategy, form a business model, and constantly keep focus on digital transformations.
From all of the above, there can be only one conclusion - today, to ignore the Digital transformation is a big mistake.
Source: https://habr.com/ru/post/350408/
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