The question is: what does that actually mean? Does automating one specific task make a business any more efficient? Or does it just look pretty as executives attempt to justify the investment to the board? Yes, the pandemic has accelerated technology adoption for many organisations, but in many cases those investments have been a knee-jerk reaction with little prior thought going into the genuine business impact of the solution. 2022 is the year to change that. It is now time that companies made educated adjustments to their business models based on statistical data - creating maximum impact at minimal expense.

Understanding Digital Transformation

Digital capabilities distinguish between leaders and laggards. But digital transformation isn’t only about technology adoption. It encompasses six dimensions: customer, operations, innovation, people, governance, and technology. Only when organisations understand this can they begin to truly see genuine business value from their digital transformation efforts.

Some companies and executives succeed with hiring the right talent, getting their priorities straight, and executing their transformation programmes successfully. Others don’t. And those that don’t are typically the businesses that only consider technology in their transformation efforts.

If someone wants to become a world champion, they must practice every day. They must measure their performance regularly. They must compete against others to understand where they stand. And, so it is with businesses. This is all about executive management, strategising, and effective execution. Since Norton and Kaplan the Balanced Scorecard is the defacto tool to develop, measure, and execute strategies. But now they must add digital to it as well.

Measuring Transformation for Optimal Impact

To master digitalisation and deliver tangible business impact in 2022, organisations must excel in four key aspects: foundation, processes, advanced technologies agenda and analytics. These will work together to ignite and mature the digital journey.

The foundation is about establishing a flexible culture that embraces the organisation's values, as well as its core goals. Businesses that are agile in their approach will establish a fully integrated digital transformation faster and more successfully than those that are rigid.

The process refers to an organisation’s strategy. Every component will need to be transformed by digitalisation and fully integrated with the right tools and approach.

The next step in establishing operational excellence is investing in advanced technologies. By staying up to date with developments in technologies and key trends, businesses will be able to implement the most advanced solutions into their digital strategy effortlessly.

Finally, analytics is essential. Measuring and analysing data, technologies and processes will help businesses to understand what is working, what isn’t working and the next steps an organisation needs to take in improving digital maturity.

Success in 2022

Digital is here to stay. Those who embrace them will have a competitive edge over those who don’t. The choice seems easy, but the truth is hard. Execution will make the difference. Don’t stay in the dark. Know where you are, where you go, stay on track, outperform your peers, and dominate your industry. We’ll see you on our side.

Digital transformation is a team sport. Feel the sense of urgency. Establish the guiding coalition. Define your digital vision, communicate to the whole organisation. Agree on common objectives. Onboard all possible digital heroes and volunteers. Encourage and empower action. And you will see how your people, your processes, your systems, and your business will flourish.