Going Digital? The Digitization Piano
The benefits of going digital can be big. However, we are still seeing organizations stuck in the status-quo and unwilling to change.
The main issue that corporate leaders are facing is implementing digitization the right way. Combined to this comes the fear of change which is a main barrier to innovation.
For change to be implemented, it is vital to first of all have a clear understanding of what must be transformed.
Basically there are 7 distinct components of a business which can be transformed digitally. These categories make up the "digitization piano":
- The BUSINESS MODEL (how a company makes money)
- The STRUCTURE (how a company is organized)
- The PEOPLE (who works for a company)
- The PROCESSES (how a company does things)
- The IT CAPABILITY (how information is managed)
- The OFFERINGS (what products and services a company offers)
- The ENGAGEMENT MODEL (how a company engages with its customers and other stakeholders).
These 7 categories or focus areas make up the most important elements of an organizational value chain as it relates to digital transformation.
For each of these categories, an assessment can be made for the current level of transformation and the future required level of transformation.
Lasting change can be accomplished sometimes effectively by transforming multiple categories and multiple technologies simultaneously. This level of change does require focus, as there are thousands of potential combinations, and a high degree of collaboration. The digitization piano must be played as chords instead of single notes.
⇒ Do you agree these 7 are the main aspects of going digital?
Michael Wade, (2015) "A Conceptual Framework for Digital Business Transformation", Global Center for Digital Business, 2015, June, pp. 1-16