There is a great deal of hype these days about ‘digital transformation’ - the term is often used but rarely defined. Often digital transformation framework is only seen as part of technology and IT. Digital Transformation Framework. It is not enough for an organisation to change because of commercial pressures. In turn, the digital change framework provides the blueprint to successfully move from one stage to the next to effect change from a 360-degree view. As much as technology can be considered a hard deliverable, the reality is that it is your teams that will deliver the value. In the next section, you see the six basic building blocks that make digital transformation possible: Strategy, Process & Innovation, Culture, Technology, Customer Engagement, and Data Analytics. By following the principles in the above digital transformation framework, any organisation can create a logical and pragmatic approach to drive success in this period of radical change. Successful companies are the ones that are the most adaptable. We’re working with many clients in the enablement and adoption space - find out more about our services here, read more about digital enablement here or email me, Daniel Painter, for more information. While digital technology pervades daily life in many countries, it is not technology that is the driver behind the need for an organisation to digitally transform. As a result, people – customers and employees – constantly change their expectations. The reality is, it’s not the largest nor the most currently successful companies that succeed. All content © 2019 Cognifide. The first step in establishing the transformation PMO is gaining executive and management support. The framework enables the strategy and roadmap that allows organisations, of all sizes, to evolve and success in the rapidly changing market conditions that now exist. It’s all about the endgame, not an end in itself. This method of regular communication and engagement with teams also reflects a different way of working for many organisations. The 8-step Kotter change model refers to a change management framework developed by Dr. John Kotter, one of the world’s foremost experts on organizational change management. There are a number of key areas for Change Management in the digital age: Digital Transformation, Digital Talent, and Digital Leadership. This can cripple an organisation, making it lose momentum and, if the business was already teetering on the edge of financial viability, it could be what tips it beyond a point of return. The single most effective component of a digital transformation framework is that it provides the organisation with one, unifying language. For any digital transformation framework to work, the leaders of the organisation need to have the right mindset to adapt and adjust as the journey unfolds. It changes their life. Organisations that successfully follow a digital transformation framework are equipped not only to improve, but also to drive innovation and disruption strategies. Most organisations have a long and proud history. The importance and scale of a digital transformation are so great that a single executive is usually appointed to lead the transformation, with the full support of the Board, CEO and the rest of the leadership team. All Rights Reserved. Before starting to develop a digital transformation framework, it is important to understand that this kind of change is not a quick-to-do-and-then-it’s-done thing. An organisation is made up of its people; if they are not kept informed throughout the change – of both the good and the bad – the program will not succeed. Does that sound like a circular argument? Digital transformation frameworks like the ones used by leading companies, including Cisco, McKinsey, and Accenture, can help organizations understand the change their business needs to go through in order to stay competitive. The framework is a tool, used across an organisation, that guides all levels of the organisation through the journey. Why do organisations need to digitally transform? What is a digital transformation framework? Even if every group is working collaboratively toward a common goal and that technology is not the only focus, an organisation’s digital transformation can falter if there is not an adequate investment in the cultural change stream of the digital transformation framework. She has significant cross-industry experience and extensive background in strategy, digital, marketing and execution. The right digital framework is one that is adaptable to an organisation yet can be phased into logical, cohesive steps that will show tangible progress. It changes their life. These are two of the most important factors in a digital transformation strategy. Similarly, even if all streams are working towards the common goal, if they are not collaborating, the program will falter. A roadmap that defines the stages to progress through the transformation is devised, with the knowledge that it will change and adapt as required. You can see change is happening when people understand, question and digest. How to create a digital transformation framework . People usually resist when not engaged, or through rumours and scaremongering. The benefits of a digital transformation framework, How to choose the right digital transformation framework, A template to lead through the period of change, An organisation-wide visible program for reference, A working straw-man of risks, benefits and progress towards the goal, The opportunity to redefine what success looks like for the company, An agreed approach with the leadership team, A template that provides governance insights, A working straw-man to determine progress towards the goal, A template that provides all employees with an understanding of what’s ahead, An understanding of the change and how they will be involved, An understanding of the change and what it means for customers, The opportunity to work in cross-functional teams across the organisation to achieve the desired end state goals, A template to understand what will be required during the period of change, A blueprint that maps current state and the goal end state, An understanding of the cross-organisational flow-on effects of the change, The mandate to map the current state and the future state, The opportunity to develop a new, iterative way of working and solving problems, The mandate to reposition the brand, protect it during the state of change, A guide to engaging with customers to make them a part of the ongoing journey and transformation of the organisation, The mandate to assess current product/service performance against the expectations of customers leveraging new technologies, The mandate to assess current systems and skills versus the required future state systems and skills – eg. However, the payback is significant. Thus, change management for digital transformation also includes creating a dialogue about not only the technology but also the modifications of processes in different teams. Organisational change at this scale is complex, even with a digital transformation framework. We will use the information you provide to contact you about relevant content. That’s a myth. People adapt to the technology. But the cycle goes something like this: People invent technology. Keep change messages focused on the customers’ benefits and not the organisation’s directly. No matter which framework companies choose to execute for digital transformation projects, the key factor to its success is who is in charge of the change management. It also ensures that change is directly influenced by what technology has been built, so that change managers understand how technology should be embedded in an organisation. It is necessary to establish a transformation roadmap that captures the vision of the transformation and the people, process and technology changes needed to get there. Partner & Chief Experience Officer at Edgelab Ventures, Jen is an expert in innovation, product & service design, customer experience and all things digital. Then, by increasing effort in the other streams to ensure the whole organisation moves together, at the right speed. This elevates the importance of the activity in the minds of technologists, and also of sponsors. We know, for example, that 70 percent of change programs fail to achieve their goals, largely due to employee resistance and lack of management support. The initial phases ensure the organisation knows what it is doing and, why it needs to do it. While technology is a vital component, overlooking the other streams in the Initiate step will derail the transformation rapidly. It’s time to put more value into engaging the people that really drive digital transformation success. Change is a fluffy term which many organisations find difficult to fund, mainly because the value is basically impossible to quantify. Like Prosci’s ADKAR model , Kotter’s 8-step model has been used by industries around the world to power change, overcome obstacles, and improve the outcomes of business transformation programs. It’s this environment that is forcing organisations to rapidly transform. Without management of change, no change … Without management of change, no change occurs. The organisation needs to have a vision of the future for the company, its staff, its customers and, the overall marketplace in which it operates. Here are a few Workforce Institute articles that share how to use change management strategies for managing HR’s digital transformation. We're always looking for new faces to join the Cognifide family. Digital transformation framework: A conceptual framework that captures a holistic way of planning a digital transformation. How it will happen is more important than what will happen – the mindset change of doing things differently is what success is hinged upon. Establishing new benchmarks begins at the start of the transformation. Contrary to what many think, change can actually be very tangible. For it to be a capability, we must build it into our operating models, assign resources to it and give it a roadmap. This inability to quantify the benefits, together with the lack of physical outputs of a change programme, are the key reasons why there tends to be underinvestment. The entire digital ecosystem is disrupted due to disruptive innovation. … you get the picture. The same feelings of fear and being overwhelmed can consume entire teams rapidly in times of high pressured change. People adapt to this technology. We also know that when people are truly invested in change … Course Objectives. The Only Digital Transformation Framework You Will Need. When anything in that environment changes, be it quickly or over time, they are not equipped to adapt and changes. At the end of the day, the success of digital transformation depends upon the perfect marriage of technology release, mindset shift, process implementation and education and training. The three most common mistakes that organisations undertaking a transformation make are enough to derail the program. Change Management has always been associated with change within organizations in a general way. The framework will provide: Leadership. Your organisation may have already begun its digital transformation – officially or, unofficially. The short answer is yes. All rights reserved. This is not the case, the two should not be confused and that is why digital transformation must be accompanied by a change programme. (2015), discussing their digital transformation framework, call for further research on digital transformation strategies, considering different … Having a digital transformation framework is one tool that will assist with the change, but it too needs to be adaptable to whatever the organisation and its people encounter along the way. All businesses must continually improve to increase margins and, decrease costs. Remove this by being honest and transparent and involve them in designing the end solution and making leaders and change agents known. The framework is a tool, used across an organisation, that guides all levels of the organisation through the journey. It will provide participants with a robust framework to systematically identify areas requiring change management when navigating digital transformation. The term change management may have earned itself a bad reputation. Digital literacy is comprised of four hierarchical components. They change their behaviours due to the technology. By clicking ‘Subscribe’, you acknowledge that the information you provide will be transferred to MailChimp for processing in accordance with their Privacy Policy. The purpose of the transformation is to progress toward the end-state, and changes in direction without changing the end goal will be required. Usually, a dedicated, cross-functional team is created to lead the culture stream throughout the change. The more people embrace technology, the greater their expectation that every company they work for or, buy products and services from, will also embrace technology. Disruption refers to the confluence of external factors that are currently undergoing change: It is this current convergence of events that drives organisations to embed a digital transformation framework and embed innovation into the fundamental DNA of the business. © Copyright 2020 Expert360. are being readily adopted into the mainstream outside of the workplace, it’s easy to imagine that acceptance of new enterprise technology might be on a par. It is especially hard for business leaders to understand in the context of digital, because we are repeatedly told that many enterprise technologies are off the shelf and need limited management. People love technology. A digital transformation framework highlights the overlapping areas of the organisation that must change. Firms should also look to rapidly up-skill the digital expertise of their workers, and deploy agile ways of working. We're committed to protecting your privacy. This section looks at what impact Change Management has on organizations today. If this is the case, it is imperative that a digital transformation framework is established to ensure that the transformation is successful. Each part of an organisation has a vital role to play. The upside is if this does occur, the program can be returned to the right path by viewing the organisation and the pressures upon it as a whole. You will shortly receive an email asking you to confirm your subscription. Home Digital Transformation The Change Management Process and Enterprise Architecture The Change Management Process and Enterprise Architecture. In the last decade, people have embraced and demanded new technology faster than ever before. But, as our lungs fill with hope and the air around us smells of fresh baked change and innovation, there remains an unflattering stench lying beneath the floorboards of our organizations…. Change management as it is traditionally applied is outdated. apply to become an Expert360 consultant here. Regardless of the industry in which an organisation exists, common pressures from profit margins, competitor activity, employee expectations, customer expectation and technology drive the decision to commence a digital transformation. Without a sense of progress, the organisation is at risk of suffering from change fatigue. This is often done because it is the most widely understood trigger for commencing the program of work. We use MailChimp to manage our email subscriptions. Surrounding them are people with the right mindset and those that are ready to take a digital transformation framework and adapt it to the needs of their organisation. Change fatigue – the emotional response of employees caught in a cycle of endless change, with no positive end in sight – can be avoided by implementing a digital transformation framework. Leadership is born through dramatic periods of change, yet good leaders do not do it alone. In this context, it means that change management is vital to digital transformation, no matter how imminent the external threat” (O’Marah 2017). Now, enter all the external factors that are driving disruption – customer expectations, employee expectations, new technology, new business models and new, rapidly growing startups. For more information, check out our privacy policy. It’s about organizational change. While any of these three mistakes can occur at any time, they are all interrelated. A digital transformation framework is the blueprint for how an organisation moves through a period of significant change because of the current evolving business conditions. The resolution is to ensure that there are regular communication forums, at all levels of the organisation, for those leading the transformation as well as those who are dealing with the program day to day. 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