[Lean Digital Transformation #1] Business Impact - a Core of Your Digital Transformation Journey
If we can choose one of the three main pillars in successful Digital Transformation, we believe that defining “Business Impact” needs to come first in any Digital Transformation project. “Business Impact” should be set as a goal in your project to describe what you want to achieve and realise throughout projects.
After years of experience in supporting the most valuable companies in the process of their digital transformation, we firmly believe that without clear goals and knowing what business impact has more value to your company, the real transformation cannot happen.
Among reasons that could prevent you from experiencing a successful Digital Transformation for your team and company, we listed two significant problems that companies would struggle with implementing a successful Digital Transformation and some of our solutions.
1. Ambiguous Goals in Digital Transformation
Some companies just start with Digital Transformation’s goals as something very ambiguous, such as “Introduce Digital Transformation to the company” or “Start using some digital tools.” However, we need to realise Digital Transformation itself cannot be the business goal. Digital Transformation is something that comes after you keep making successful transformations. If you just set “Digital Transformation” as a goal, you may find yourself frustrated because you don't know the steps or success definition.
But how do we set a clear goal?
At CI&T, we encourage and hold several workshops using design tools (e.g. design thinking dynamics, value engineering methods) to help our clients and their team define goals and focus on the real business impact. In every project’s first moment it is important to have all the members related to the project and executives to exchange ideas on “What are the current problems/blocks we have?” “What business impact do you and your team want to make?” “What makes your business grow?” and “What should be our next step?” From those answers, we can help unlock our client’s business goals.
Besides, A3 method is another powerful management tool with a focus on problem solving. It helps to promote the continuous improvement of processes and, through it, the strategic planning of companies is designed based on the real business pains of a company.
Having clear goals using the right tools help us not only enhance creativity and communication within the teams, but also showing some definitions of “success” in projects.
Rose Hashinaga CI&T Sr. Operation Transformation Manager
2. Digital Transformation is Not a Magic to Solve Everything in One Day
Some people believe that Digital Transformation is a magical tool to solve any problems quickly and easily, and once you implement it, it stays there forever without any effort. However, as mentioned above, Digital Transformation is not a goal or a tool you can buy at the store. Digital Transformation is not the same for everyone.
Continuous PDCA & Teams with Right Mindset
In order to improve business results, it is necessary to change not only the processes, operations or include the latest new technologies in the scope of work but the mentality of the organisation as a whole. Most CEOs agree that when it comes to digital transformation, digital is the easy part. Large budgets allow us to hire teams and consultants, the most advanced tools. Digital Transformation's challenge is to put innovation projects to run on a large scale, in a sustainable and permanent way. The transformation needs to reach the company's DNA, and for that, it is necessary a cultural change.
Also, to maintain positive impacts in business through Digital Transformation, CI&T has a cycle with five crucial steps, continuously running within the company;
1. PDCAs + OKRs: Alignment, measurement, and presentation of results, learning.
2. Renewal of Energy: Reflection about the effectiveness of transformation. The feedback cycle of Master Strategy. Redesign of human relations networks.
3. Hoshin: Connection and engagement with the transformation. Alignment of mindset with the origin in business
4. Kanri: New competencies put into practice and establish Safety.
5. Master Strategy: Strategic hypothesis and forceful message to motivate action.
Transformation is not something you can implement once and get it over. We always need to transform as the world changes continuously. When you stop your transformation, the company stops growing.
Ingrid Tsukahara CI&T, Quality Manager
Business goals in the center of Digital Transformation
Digital Transformation comes as a result of continuous challenges, tests, learnings, and finally, successes. In order to realise and get positive outcomes, you need to think about the “business impacts” you want and work for it. However, achieving a business goal is not the end of the story. To keep growing, we need to find another business impact we want to achieve for continuous growth and transformation. CI&T is always here to walk through your whole journey.
Kentaro Okada CI&T, Sr. Business Growth Manager