Tthe need for digital transformation is a topic that’s on every small business owner’s radar. However, according to David Rogers, a seasoned professor at Columbia University and the author of the upcoming book, *The Digital Transformation Roadmap*, a staggering 70% of digital transformation efforts end in failure. He believes this is due to the misconception that these efforts are primarily technological challenges, rather than complex organizational undertakings.
Yet, it’s imperative for entrepreneurs not to be disheartened by these statistics. Failure is not a foregone conclusion for your small business. Rogers emphasizes, “The imperative of digital transformation is less understood among small businesses. Some owners have started efforts, while others may not even be sure exactly what digital transformation means.”
In his forthcoming book, Rogers provides a framework that businesses of all sizes can employ to surmount the barriers to change. He asserts, “It gives leaders a hands-on toolkit to unlock the potential of every person inside their organization to drive growth.”
Embracing Continuous Change
David Rogers contends that digital transformation is the art of evolving an established business to flourish amidst the ceaseless tide of digital evolution. It’s a challenge faced by every business today. The rapid advancements in digital technology have revolutionized customer behavior, business models, and market competition across all industries. Irrespective of your business’s size, the primary challenge remains the same – the need to adapt in order to thrive and grow.
From giants like Netflix to Amazon and Domino’s Pizza, every company that has thrived in the digital era has done so by perpetually transforming their operations and perspectives.
Identifying Barriers to Change
Having delved into this subject for years, Rogers highlights five fundamental barriers that hinder companies of all sizes from successfully executing digital transformation:
1. No shared vision:
Lack of alignment around a unified industry perspective and the company’s role within it.
2. Lack of priority discipline:
Distracted by every new trend, companies often struggle to focus on core strategic priorities.
3. Absence of experimentation habits:
Rigid planning in the face of a dynamic digital environment hinders progress.
4. Inflexible governance:
Difficulty allocating resources and applying the same metrics to both established and emerging ventures.
5. Stagnant capabilities:
Failing to invest in the necessary digital technologies, data, talent, and culture.
The First Steps in Digital Transformation
For those yet to embark on the journey of digital transformation, David Rogers emphasizes the importance of formulating a shared vision unique to their business. This vision encompasses an understanding of industry shifts and the distinctive strengths that position the company as a key player in the digital future.
Motivation for change is equally critical. A “North Star impact” guides employees toward understanding the positive difference transformation can make. Simultaneously, a solid “business theory” illustrates how digital investments will yield financial growth, gaining support from stakeholders.
Measuring Success in Digital Transformation
The crux of measuring success in any digital transformation is establishing a shared vision. This clarity on where the company is headed and how the digital strategy impacts customers and finances enables the selection of pertinent key performance indicators (KPIs).
David Rogers cautions against beginning with generic off-the-shelf assessment tools, emphasizing the importance of understanding the desired customer and business impact. With a well-defined vision, measuring progress becomes straightforward.
Lessons from Big Brands
Smaller, growing businesses have an advantage in embracing change. They can glean valuable insights from the trials and triumphs of larger corporations navigating the digital shift. By addressing the five barriers identified by Rogers, these businesses can ensure a smoother transformation journey.
In conclusion, the words of Andy Grove, former CEO of Intel, echo through the process: “Only the paranoid will survive.” To thrive in the digital era, businesses, regardless of size, must embrace a culture of perpetual adaptation and innovation. Digital transformation is not just a technological upgrade; it’s a holistic reimagining of the way businesses operate in an ever-evolving landscape.
