Digital transformation is more about transformation than about digital

There are quite a few misconceptions about the concept of digital strategy. While exploring definitions to form my own, one element stood out: Accenture calls it the "fusion of business and technology strategies,". MIT Sloan calls it "aligning technology use with business goals." Other definitions emphasize "embedding" and "integrating" digital technology.

Many view this as simply adopting digital tools, but true digital transformation is much deeper—it requires rethinking and reshaping business processes, strategies, mindsets, and company culture. The real challenge lies in a change trajectory without disrupting the core functioning of a business. You do not want to transform or even disrupt without looking at operational readiness. A thoughtful approach is essential to avoid operational chaos, resource strain, and budget overruns.

When defining your digital strategy, it's essential to assess feasibility and pace yourself. The rapid technological advancement can overwhelm, making it tempting to pursue everything at once. So, how do you approach with caution and avoid missteps.

Focus on value creation

Map your current technology stack to identify gaps, redundancies, and integration challenges. Technology should be embraced because it brings your business additional value, not for the sake of the possibilities it offers. So, start with a clear definition of the business goals you aim to achieve with your digital transformation. That might be

• Optimizing operational efficiency;
• Improving customer experience;
• Creating a competitive advantage or differentiation;
• Improve decision making, based on intelligent data use.

Assess resource readiness

Employees are accustomed to certain established workflows. So, describing existing workflows and identifying bottlenecks and areas to improve is a good way to start. Ensure you have the capacity to manage the adoption while maintaining business continuity, since overburdening teams with too many changes can lead to burnout and errors.

Regular and sharp internal communication is critical. There might be resistance if the "why" of the change track is unclear. There might be confusion if training and support are lacking or insufficient. It is crucial to ensure everyone is on board.

Collaboration across departments is essential. Cross-functional alignment ensures that changes are harmonious and avoid creating silos or friction between teams.

Additionally, digital transformation requires significant investment, not only for technology but also for maintenance, support, and potential team expansion. A thorough budget assessment, including total cost of ownership, is crucial to avoid unsustainable expenses.

Pace yourself

Embrace (and sell) transformation as a journey, not a race.And though ambition is great, you need a good amount of critical thinking when drafting your plan. You need a realistic roadmap. Because trying to implement multiple solutions at once can lead to disappointing results. 

Test, learn, adapt

Transformation should be iterative, focusing on small, measurable wins that build up confidence. Regular KPI reviews ensure that initiatives stay aligned with business objectives and provide opportunity to make necessary adjustments.

I am all for pilots, but make sure to assess the impact of the broader rollout before engaging in a trial. Do not engage in pilots which you are most likely not able to scale easily later. This can be of much frustration to the team working on it. 

And last but not least… work with trusted partners, which can support your with valuable insights and guidance.