Finding the Right Balance in Digital Transformation
Michaël Renotte I 9:30 am, 10th December
Digital transformation is now synonymous with business growth and innovation. However, the pursuit of digital evolution is not only about adopting the latest technologies. It involves achieving a harmonious balance that simplifies complex processes, empowers non-IT users, and makes data actionable for insightful decision-making. This article examines these three crucial elements to guide organizations through their digital transformation journey effectively.
Streamlining Complex Processes through Digital
Transformation
A core aim of digital transformation is to
streamline operations by simplifying complex processes. This often means
automating repetitive tasks, integrating disparate systems, and eliminating
unnecessary steps that provide no added value. Such measures can boost
efficiency, reduce costs, and enhance customer satisfaction.
The challenge is in identifying which processes
to simplify and determining the most effective approach. It requires an
in-depth understanding of current workflows and an evaluation of technologies
like AI, machine learning, or blockchain that can deliver the desired outcomes.
A report by McKinsey identified that digitizing information-intensive processes
could cut costs by up to 90% ("Accelerating the digitization of business
processes", McKinsey). For example, FedEx's application of machine
learning to optimize package routing significantly improved delivery times and
reduced operational costs.
Simplification should enhance employee efficiency without sacrificing functionality or security. As the saying goes, "If it ain’t broke, don’t fix it". It’s crucial for businesses to avoid unnecessary overhauls when integrating new technology.
Empowering Non-IT Users in Digital
Transformation
Digital transformation should not be confined
to IT departments. For true success, non-IT users must also be empowered. With
the right tools and platforms, non-IT employees can make significant
contributions without needing extensive technical expertise.
Empowerment can take many forms, such as
no-code or low-code platforms that allow users to develop applications - we are
devoting a special report to these subjects in another section of this magazine
- or automate processes independently, or user-friendly analytics tools that
make data accessible to everyone. For instance, Microsoft PowerApps enables
employees to create custom apps to suit their specific needs without requiring
extensive programming knowledge. Providing non-IT staff with these resources can
propel an organization forward, fostering a culture of innovation at all
levels.
Empowering non-IT users goes beyond providing
tools; it includes offering training and support to ensure they feel
comfortable using new technologies. This transition eases the adoption process
and ensures effective utilization of digital tools throughout the organization.
Gartner predicts that by 2026, due to automation
pressure and staff shortages, around three-quarters of all new applications
will be built using low-code technologies ("Gartner Forecasts Worldwide
Low-Code Development Technologies Market to Grow 20% in 2023", Gartner, December
13, 2022). According to Senior Market Research Specialist Varsha Mehta, "equipping
both professional IT developers and non-IT personas - business technologists -
with diverse low-code tools enables organizations to reach the level of digital
competency and speed of delivery required for the modern agile environment."
Gartner also predicts that by 2026, developers outside formal IT departments
will account for at least 80% of the user base for low-code development tools
Making Data Actionable
Data is the bedrock of digital transformation.
However, large volumes of data only become valuable when they are organized,
analyzed, and made accessible for decision-making. Making data usable involves
implementing systems to ensure accurate and consistent data collection and
leveraging analytical tools to transform raw data into actionable insights.
Data usability means presenting data in a way
that is understandable for all users, not just data scientists. Visualization
tools play a critical role by converting complex datasets into
easy-to-interpret graphs and charts. Tools like Tableau and Power BI allow
non-technical stakeholders to derive and act on insights.
Furthermore, making data usable demands a
strategic approach to data governance to maintain quality and security, while
complying with regulations like GDPR. Effective governance ensures that data
remains widely accessible within an organization while protecting it from
breaches or misuse.
Deloitte Luxembourg underscores that "a
strong data strategy and governance helps to unlock existing silos, reduce
operational risks and costs, and enable more accurate reporting and customer
engagement" ("Data as an investment," Deloitte Luxembourg, February
16, 2023).
Achieving the Balance
Achieving the right balance in digital
transformation involves simplifying complex processes to boost efficiency,
empowering non-IT users with confidence in technology, and ensuring data is
accessible and actionable for informed decision-making. This balance requires
meticulous planning, a clear vision of what digital transformation entails for
the organization, and an ongoing commitment to improvement.
By concentrating on these vital areas, businesses can navigate their digital transformation journey successfully and reach their full potential. Companies such as Toyota, which have effectively digitized their production processes, demonstrate the advantages of a balanced approach ("Toyota Kaizen Methods: Six Steps to Improvement", by Isao Kato and Art Smalley). In essence, the key to digital transformation lies in the seamless integration of technology, people, and data to drive sustained growth and innovation.
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