Visionary industry and business leaders, big consultancy firms as well as the academe espouses the need for any organization to go “Digital”. Here I used the word digital to also encompass data management and analysis as it should be in my view. I’ve seen the clamour for this movement on “Digital” for decades now and in various forums and venues. Rightly so, this rallying cry has further heightened with the dawn of Generative AI across industries.

C-suite and companies responded to this need but not all are able to fully tap the potential of becoming a digital empowered company. Leaders are eager to dive into digital transformation being aware of the merits but later on struggles with the “tuition” around the needs to drive the change. In my experience, aside from the usual budget constraints, there are a couple of huge “downstream” factors that are not immediately seen, appreciated and fully addressed before diving into the transformation initiative. Leaders that have led and gone through such initiatives could enumerate a list. Allow me to share at least three items to consider:

Digital + Systems Integration: Harnessing the full potential power of data in the organization requires data points from various departments. Existing companies would have data infrastructures and most likely siloed systems in place. In such situations it is also possible that redundant systems exist as each department in the organization rush to do their required analytics in the past. Multiply this complexity when you deal with an organization that is multi-market with each market building their own fragmented ecosystems. It is best for any organization to first map out the existing systems and understand the degrees of integration in the system. This is a task that your IT team I believe cannot fully answer. It is best to include departments that have the broadest and deepest view of how value is created in the organization – in my experience it would be Corporate and Supply Chain Strategist, CIO and Business Analytics team and Finance. Such exercises would also show gaps in the system. Knowing the lay of the land is the first step before structuring a staged approach of integrating the most important systems needed across the organization. That staged approach should incorporate the next two other down-stream factors.

Governance: In most organizational discussion, governance is one of those sensitive topics that creates debates as it surfaces responsibilities, pin down swim lanes and crystallizes accountabilities. This is not simply done by going over and doing a RACI (Responsible, Accountable, Consults and Inform) workshop. Governance exercises tackle processes, policies, approvals and check-balance venues. Existing companies would have data infrastructures and most likely siloed systems in place. Governance is a daily activity and not a one-off. Digital Governance heightens the sensitivity as this is not simply about apps or vendor approvals to include in the organization. Digital Governance encompasses not just infrastructures but includes how Data is generated, treated, translated, analysed and used within the organization. 

People Factor / Talent + Culture: Digital transformation is not just about technology and / or building a department. Digital Transformation is truly “change management” as it deals with not only the structure, digital systems and processes. It impacts people - their mind-set, behaviours and attitude. This similar to governance is not a one-off and more over needs to ripple across each member of the organization.

Hopefully, the three watch-outs I mentioned helps you and your organization in your journey to be truly “Digital First”. If you’ve started and missed out on this three items, just circle back … like most anything in life it’s an iterative process.