Preparing for a Transformational Journey
The DX Roadmap series is produced by Victoria Fide Marketing with input and oversight from our leadership team and industry SMEs.
Table of Contents
What if you could control the outcomes of your transformational journey?
70% of technology initiatives end in failure, but there are specific, proven steps you can take to significantly increase the odds of your success and take ownership of the outcomes of your transformational initiatives. You may be surprised to hear this, but most of those steps happen long before a project kick-off.
Preparing for a transformational journey is similar to preparing for a road trip – you need to determine the destination, choose your route, prepare the resources you’ll need for the journey, and even plan what you will do once you arrive at the destination. This series is designed to serve as your tactical checklist to prepare for your self-directed transformational journey, as well as a roadmap to guide you along that journey toward business success. We will guide you as you follow principles that have proven to ensure transformational success, taken from Victoria Fide’s proven process based on 30+ years of DX experience.
In this first article of our DX Roadmap series, we will demystify the buzzword, “digital transformation” by looking at what constitutes real transformation. We will explore how to use preparation to steer your project toward predictable outcomes, and help you determine how much preparation you need for your own transformational journey.
Are you ready? Buckle up and let’s get started.
What is Digital Transformation (DX)?
Digital transformation, often abbreviated as DX, can be defined as the strategic adoption of digital technologies to significantly transform business activities, processes, and capabilities. This transformative practice is not limited to the simple upgrade or enhancement of technology but is a deep, fundamental change that permeates the entire organization, impacting its culture, customer engagement, employee roles, and business strategies.
While some might use DX synonymously with a technology upgrade, it’s important to differentiate between these two. A technological upgrade represents a mere change or improvement in a given technology, often without drastically altering the way the business operates. On the other hand, a transformational initiative brings about transformative change, revolutionizing how the business functions and interacts with its customers and stakeholders. A technology initiative with small changes requires far less preparation than a transformational initiative. This series is specifically tailored toward this kind of transformative change.
In an increasingly fast-paced, digital world, DX is no longer a luxury but a necessity. To remain competitive, relevant, and to ensure its survival, companies must adapt and evolve with the quickly changing environment. DX is that crucial step in the evolution, equipping businesses with the tools and strategies to not only survive but thrive in the modern age.
The #1 Determining Factor for DX Success
While the idea of digital transformation may sound promising, the harsh reality is that a significant number of these initiatives do not achieve their intended objectives. According to numerous studies including McKinsey, Forbes, and the Standish CHAOS report, only 30% of DX initiatives meet their intended objectives. Why such a low number? If you were to do a web search on the common reasons of DX failure, you would find lists citing things like lack of leadership, poor project management, poor data management, and more.
As you can see, DX initiatives are risky. There are a lot of things that can go wrong, and the bigger the scope of the transformational project, the bigger the risk. However, as any gambler will tell you, the bigger the risk, the bigger chance of reward, and organizations that are seeking transformational change have a chance to reap transformational rewards.
The question is, how can you improve your odds of success?
Transformation is not easy, but it doesn’t have to be impossible. Take control of your project’s success today and schedule a free 30-minute consultation to find out how Victoria Fide can equip you for transformational success.
Our experience and research indicate that the #1 determining factor for success in digital transformation is preparation. Thorough, strategic preparation can help organizations foresee potential issues, plan for them, and adjust strategies as needed. This type of preparation begins long before project kick-off, and its effects are felt throughout the project execution and beyond, enabling companies to not only measure their outcomes, but accurately predict them and sustain them well into the future.
How Much Preparation is Really Necessary?
We often have clients push back on the amount of preparation we advise. Their first reaction to our recommendations is generally, “Is all that really necessary?” As you go through this series, you may find yourself asking the same question, and our answer for you is, “It depends.” The level of preparation required corresponds to the level of risk, which in turn corresponds to the level of change. Initiatives that are truly transformational will represent significant change and therefore hold significant risk. Thorough preparation is one of the strategies we use to mitigate those risks and ensure predictable outcomes.
Let’s return to the analogy of a road trip. If you are going to take a short trip to the grocery store, you do very little preparation. You may not even check to see how much fuel you have. On the other hand, if you are traveling across the country, you will likely undertake much more preparation. You might change the oil, check the tires, check the belts and hoses, and make sure your fuel tank is full. You will pack supplies, plan your route, reserve hotels, and notify your credit card company of your travel. If you are traveling around the world, your preparation will be even more involved — you’ll acquire a passport, learn about the culture, and research how to use the different currency and public transportation.
Most DX initiatives are closer to world travel than a trip to the grocery store. In fact, some DX initiatives are so transformational that they are more like a move to the other side of the world than taking a trip. For instance, if you’re moving from a “Brick & Mortar” business model to operating primarily online, or if you’re implementing ecommerce for the first time, those would be transformational initiatives that would significantly change the way your business operates. The FBI IT Upgrade Project (FITUP) in the early 2000s is a prime example of this type of significant transformational initiative and the risks associated with such a large transformation. The size and impact of your DX initiative will determine the amount of preparation necessary to mitigate the myriad of risks associated with such a large undertaking.
Navigating the Road: Ensuring Success in Your Digital Transformation Journey
Embarking on a large digital transformation journey comes with a large set of risks. The more transformational a project is, the more risks it will incur. These risks can range from technological challenges to employee resistance, budget overruns to unforeseen market changes. However, these risks can be effectively mitigated with adequate preparation. In future articles, we will explore specific steps that will enable you to align your people, processes, and technology toward a common goal, set realistic expectations, measure progress accurately, and achieve your business objectives.
Our goal is to equip CXOs like you to achieve sustainable success with your self-directed DX initiatives by providing granular, tactical steps through each phase of Victoria Fide’s proven process for transformational success. We know what it takes to achieve success with digital transformation, so allow us to become your travel advisors as you journey toward a brighter future, beat the odds, and achieve transformational success.
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