One of the benefits of micro transformation is that it can help companies manage digital transformation fatigue. Instead of launching new initiatives that offer early promise but fail to deliver lasting results, micro transformation targets and focuses on KPIs that would be most impacted by a new system or process, accelerating time to value delivery. KPIs are identified, the value that can be gained is clearly defined and a strong business case can be made to pursue the effort. This is what we want to do, this is what it will take and this is what will mean for our business when it’s done. When that message is conveyed, it can unlock a series of operational efficiencies, risk mitigation benefits and resource optimization opportunities. These steps help digital transformation move beyond middle managers to align with the strategic priorities of the organization, focusing on specific KPIs that can enable those strategic priorities.
For example, a manufacturer that has struggled to digitally transform operations on its shop floor embarks on a new strategy. It involves dialogue with frontline workers who share the challenges they face in doing their jobs. It’s a chance to share perspective that is informed by their work each day. Management hears these insights and shares the KPIs that matter most to the company’s financial performance. The needs of the customers are woven into the dialogue as well and fairly quickly, the seeds of a new strategy are planted. The buy-in that is gained from these initial conversations with key stakeholders is an essential component to building a plan that makes sense for the business.
What goes into micro transformation is a lot more than the solution and the actual delivery of the work. There can be deep process design and process improvement work that goes beyond simply driving transformation and implementing automated solutions. It’s about an organization challenging its team to think bigger, and then building a smart, scalable plan to make it happen. Why do we operate this way? Where can we find opportunities to improve? In some cases, it’s reinventing how a company does a task, even if it’s been done that way for generations. Micro transformation is about helping companies and their people set aside their fear of trying new things. But it’s doing it with a clear sense of purpose. It’s tackling change with a methodical approach that is informed by insight from frontline personnel and is consistently backed by KPIs.
Minimize complexity, add connectivity
An EY team worked with a client that develops safety products, a market that has elevated expectations when it comes to performance and reliability. There is complex coordination with different legal and compliance teams, as well as managing through data sets, that comes into play to ensure the product delivers for the customer. In this case, the company was looking for a better way to manage all the complexity.
A traditional digital transformation effort would apply mission-learning, gain insight, prioritize information and develop an action plan to manage incidents. Typically, this would include a collaboration platform, a workflow capability plan and a feedback mechanism as information comes in. There would also be siloed initiatives, analytics and workflow tools and several initiatives that manage different data flows. It’s a lot to manage, which creates more opportunity for breakdowns in communication.
Micro transformation takes a different approach. It creates an entire process orchestration in terms of how data comes in and triggers workflows and queues, based on the priority of the risk associated with the incident. Details are automatically driven to the teams that need to be focused on the incident and everyone is working off the same plan. Knowledge is fed into the insights engine as it comes in so it can become more intelligent and keep everyone apprised about what’s happening. It creates a level of connectivity that would be difficult to achieve through standard practices. The ability to respond to incidents, manage risk and maintain product flow are critical KPIs for any business. Micro transformation can address these KPIs by helping an organization streamline important processes to mitigate the organization’s risk and convey confidence that the organization is prepared to respond when needed.
As companies think about their digital journey, micro transformation provides an opportunity to leverage capabilities that can drive business value without committing to a massive undertaking within uncharted space. Immediate value realization is not something companies have to wait months and years to get benefit out of, which is a big part of leveraging this approach. These can be a series of phased MVPs or “minimum viable products” that can generate meaningful ROI. It’s a way to break down silos, test out hypotheses and learn more with less risk and lower technical debt than a full transformation. In this scenario, end-to-end digital automated capabilities enabled through micro transformation can help companies get to value more quickly without disrupting core operations.
