To leverage GenAI effectively, organizations also need to consider the development of other skills beyond conventional ones that are essential to each function.
3. Maintain an agile business and technology architecture
An agile business and technology architecture can act as a foundation for transformation. Most organizations have fragmented systems — a mix of legacy and new digital stacks. Fragmented systems and rigid architecture would hinder an organization’s ability to provide seamless experiences to customers and result in inefficient processes. The potential to explore future business models, partnerships and products depends on the agility of the organization’s technology landscape. The organization must see to it that its applications and technology infrastructure are not considered as isolated functions. Instead, its transformation should align with the business strategy and outcomes.
4. View data as an asset and embed cybersecurity
In line with the first pillar above on a nonlinear approach to value creation, data must be considered as an asset and managed accordingly. Data assets increase in value with usage and hence the treatment of data as an asset must be strategic. However, this is often complicated by existing operational structures, fragmented systems and a lack of distinct data ownership within an organization. Data also becomes the foundation for the organization to leverage advancements in data or AI technologies and create a frictionless enterprise.
As the organization undergoes greater digitization, its vulnerability to cyber attacks escalates, heightening the risk of data and privacy breaches. To combat these threats, organizations must envision and implement technological solutions with cybersecurity in mind, underpinned by comprehensive data protection and privacy policies.
5. Set clear governance policies around decision-making
Transformations are intense to an organization, its employees, customers and connected ecosystem players. It’s critical for each decision to focus on business outcomes envisaged at the start of the transformation. Often, amid the complexities of the transformation process, such focus can be lost, making the transformation lose momentum and derailing it. A sound operating model, clear decision-making, the willingness of leaders to accept trade-offs in decisions and being on schedule are also crucial for success. In addition, it is critical for the leadership team and board to establish clear governance policies around decision-making at the beginning of the program.
Continuous alignment of the five pillars above with short- and medium-term objectives and placing emphasis on urgency and timeliness are crucial to the long-term success of digital transformation. Organization leaders must stay up to date on technological advancements and trends while encouraging knowledge-sharing among employees. This will help them adapt and fine-tune the digital transformation process as challenges arise. By applying these principles with the aim of delivering superior customer experiences, organizations can better position themselves for success in an increasingly competitive and complex world.
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Summary
Companies are under increasing pressure to realize beneficial outcomes from digital transformation. For it to succeed, they must address five key pillars. These include nonlinear value creation, dealing with skill gaps, driving business and technology architecture agility, focusing on data as an asset and cybersecurity and having clear governance policies for decision-making.
