A simple digital transformation strategy in 3 steps

A successful digital transformation hinges on a well-thought-out transformation strategy.

In our previous blog, we took you into the world of digital transformation: its definition, benefits, and the role low-code does plays. In this post, we dive a little deeper into the theory, especially for SME+. A successful digital transformation requires a well thought-out transformation strategy. Without a clear plan in place, achieving desired results becomes difficult. Let us show you how to put together a good transformation strategy in only three steps.

• Step 1: Where do you want to go? 

• Step 2: What are you coming from? 

• Step 3: What approach should you take?

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What is a digital transformation strategy and why is it important?

At Grexx, we thrive on trying new things and experimenting. It allows us insight into what works and what doesn’t and it’s always nice to try small things to see if there’s any success to be had. Starting with any idea can be a fantastic catalyst for enthusiasm and inspired learning, so why not give it a try?

Because there’s more to it than that. Whilst small projects can be tremendously fun and instructive, in the grand scheme of things, they are like loose sand: they don't create a solid foundation for any organization. The key lies in consistency, in having a clear picture of what you want to achieve, your current situation, and your approach.

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Don't be distracted by the allure of smaller projects.

Another important reason for creating a digital transformation strategy now is that it takes time and experience to successfully transform, so starting now can lead to faster progress when challenges arrive. If you let things run their course and postpone the process, you will limit your options in the future. Whilst a well-planned strategy is vital for business development, it certainly doesn’t have to be overly complicated. 

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Step 1: Where do you want to go?

What are your goals and objectives? Why do you want to achieve them? What impact will they have? In principle, these are simple questions, but answering them succinctly can be challenging. The key to developing a successful digital transformation strategy starts with getting clear on where you want to go.

This can be approached at different levels: organization-wide, department specific, or perhaps your focus on the digital transformation of a particular product or service. All levels are fine, just make sure it aligns with your overall goals and objectives. 

For example, if your goal is to improve efficiency and performance in the purchasing department, how will this look and what processes do you want to address? Do you want to buy cheaper materials, reduce your margin of error, always have enough stock? How can these processes be done better, and why is that worthwhile? How does this fit into the company-wide digital transformation strategy? If you notice the last question is tough, consider broadening your strategy beyond just one department.

Ideally, the digital transformation strategy at the department or service level also aligns with the company-wide strategy. In practice, this is not always the case. That doesn't have to be a problem, for example, when your department or service is deliberately deployed as a kind of testing ground. In that case, pay extra attention to step 3.

Tip: Dare to dream

We are all inclined to think within existing frameworks. It is difficult to let go of what you already know, or think you know. This is logical because your mind doesn’t want to keep reinventing the wheel, yet this also means opportunities can be missed. That is why it is important to let go of those existing frameworks from time to time.

Sometimes we use an ambition session to achieve this. We discuss our ultimate ambition - a pipe dream, a seemingly impossible goal that would result in great success – then we think about how we would approach that goal if we could start from scratch today. Without existing frameworks, without the worries you may have when thinking about the future. This gives you a chance to let go of your fixed perspectives and think more freely about what you want to achieve. Reality will soon return.

If you need statistical justification, check out McKinsey's research shows that "60% of jobs are 30% automated”.

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Step 2: Where are you coming from?

You now know where you want to go. To plot the route, you also need to know where you are coming from. What is the status quo? What does your organization, your department, your service, or product look like now? What work and processes are you dealing with? Which employees, customers, or other stakeholders are involved and how do they interact within those processes?

The more you can map out your current situation, the better prepared you will be for the journey ahead. You don't have to have every detail figured out; adjustments can often be made along the way. Just make sure you understand the big picture.

This is one reason why low-code often works so well: the people doing the work know exactly what the processes and work are like, what the exceptions are, the unwritten rules. Low-code gives them the chance to automate things themselves, without needing a technical background, purely based on domain knowledge. As so-called Citizen Developers, these people can make immediate improvements by easily automating routine work and processes by digitalizing. That gives immediate results and lowers their workload. A highly motivating outcome! 

Read more here about why having software created is a thing of the past.