Many companies fail to create lasting value from their technology investments. At Sigli, we help companies navigate the complexities of digital transformation. We’ve seen many corporate leaders struggle to achieve long-term results. All too often, they fall into the extremes of short-term hype cycles: eager adoption followed by disillusionment. The result? Wasted resources and lost opportunities. Sustainable change and lasting competitive advantage are possible. However, they require both a mindset shift and a strategic pivot.
What is digital transformation?
Confusion and disagreement about “digital transformation” are common in the corporate world. That’s why it’s important to begin with an accurate definition. We speak to some of the world’s leading tech thinkers for our regular Innovantage podcast. In a recent episode, Dr Stijn Viaene of Vlerick Business School provided a definition that perfectly encapsulates our view at Sigli:
Digital transformation is a strategic response to turbulence in the environment of the organisation, turbulence, driven in large part by immense advances in digital technologies.
Fundamentally, digital transformation is a strategic way of responding to the “threat of not surviving” and the “opportunity of thriving.” This definition is so powerful because it lays the groundwork for the two core ingredients of successful digital transformation: the right mindset and an adaptive strategy.
Cultivating a “digital transformation mindset”
Digital transformation is a response to nonstop avalanche of opportunities and threats. Such a response requires a capable culture. And a capable culture starts with the right mindset.
There are three components of the digital transformation mindset:
- Accept turbulence: Turbulence is uncomfortable, and the desire to escape it is understandable. But it’s precisely where opportunities lie. If you can navigate it better than your competitors, you have a uniquely powerful advantage.
- Acknowledge the need for systemic change: You can’t confine digital transformation to a silo, whether tech, marketing, or IT. It must be systemic: cross-departmental, collaborative and flexible.
- Realise the worst thing you can ask for is a single toolkit: There’s no magic recipe. A multi-factored, evolving approach is necessary. The closest you’ll get to a magic recipe is instilling a growth mindset—learning while you implement.
Taken together, these three elements lay the groundwork for successful implementation. They protect against common mistakes and act as a guiding framework for long-term change, avoiding the quick-win, crisis-jumping approach typical of many leadership styles.
How to build an adaptive enterprise: 6 practical steps
Armed with the right mindset, leaders can start to think about the practicalities of digital transformation. But implementation quickly becomes complex when enterprises with tens of thousands of employees are involved. Roadblocks arise faster than you can blink.
That’s why it’s vital for enterprises to build adaptive processes and a culture equipped to drive these processes. Creating such an enterprise is a marathon, not a sprint. However, with the right approach, it’s entirely possible.
1.Work with the existing culture and compartmentalise change
Changing a corporation's mindset is difficult. This is why picking the right battles is vital. It is far better to work with existing mindsets and ease them in the right direction than to enforce new ones. The time may come when leaders have to allow people to choose whether they’re in or out. In the early stages, however, being overly blunt is unlikely to be effective. Rather, compartmentalising change is a far better approach initially. Focus on the most promising and essential areas while extending an open invitation across departments.
2.Think about your talent management agenda
Recent global events have highlighted the differences between Europe and North America. Extreme firing waves rarely happen in Europe. In the US, they’re much more normal, ostensibly at least. Whether you subscribe to a more regulated European model or a Trumpian worldview is largely academic. In either case, you need a tested means of recruiting and keeping the right talent. Successful digital transformation is impossible without a skilled workforce. Irrespective of how your agenda mirrors the nuances of local labour markets, it should always prioritise the acquisition of the best possible people.
3.Take a portfolio approach (especially with AI)
You should treat your digital transformation strategy as you would a portfolio. By spreading risks and benefits over multiple technologies, you increase your chances of sustainable long-term growth. This is particularly true when it comes to the array of AI tools on the market. For small to medium enterprises with limited resources, a portfolio approach may not be possible. However, there is a greater opportunity for partnerships. The fear of losing control that’s so common in large enterprises is largely absent in these cases.
4.Recognise the need for immediate gratification
Human beings are natural adrenaline junkies. Yet the short-term mindset is antithetical to sustainable transformation. But that doesn’t mean quick wins aren’t important. Issues only arise when they take centre stage. If you don’t introduce robust feedback mechanisms and pluck down low-hanging fruit, people will look for another drug. The worst expression of this is a crisis mentality, where leaders engineer and jump between large-scale problems in a false paradigm of growth.
5.Avoid silos and prioritise the “information” in information technology
If the IT function doesn’t make use of information as a core resource in your enterprise, is it succeeding in its role. Today’s CIOs should look at bridging technology and information. A substantial part of this is managing how data feeds into a richer understanding of technology across the whole organisation.
6.Take a position in relation to AI
In recent years, one of the most widely held beliefs about AI has been challenged. Our Innovantage podcast guest Stijn Viaene describes this as “the assumption that all of the higher-order work will always be for human intelligence—anything that involves creativity, curiosity, courage.” With the release of ChatGPT, this illusion has been demolished. At a certain point, companies will need to take a stance and answer a vital question: “Will we fully automate work, or will we prioritise the augmentation of humans?” The link between this choice and the future of a company is very tight, even if it’s not seen. It can set the whole tone and vision for how an enterprise approaches digital transformation. While there are no easy answers, testing, exploration, and forecasting need to begin now.
Define your company’s identity in the new digital age
Sigli works with you to create meaningful, lasting digital transformation. We do this by combining two elements: nuanced strategy and deep technical expertise. When it comes to AI, that expertise encompasses both its current power and its profound potential. Moreover, we recognise generating lasting value from technology is not just a matter of spending money. It’s a matter of empowering your talent and defining your identity as a company. If you’d like to learn more about how Sigli can help your organisation successfully undertake digital transformation, visit our website: www.sigli.com
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