The way that most companies approach digital transformation is often like a shopping trip. They purchase a new software platform, move their operations to the cloud, implement automation, bring in an AI assistant and then claim they have modernized.
While technology can help improve productivity; the processes themselves often do not change — they simply move onto different software platforms. Meaningful digital transformation creates clarity in the process, provides reliable information, clarifies roles and responsibilities and gives the company new capabilities it did not previously possess. Technology enables the transformation — it does not cause the transformation itself.
Start With the Outcome
An effective digital transformation initiative starts by identifying what needs to improve. Improve customer service response time. Provide easier access to reliable information. Reduce the amount of time spent entering duplicate information. Preserve knowledge currently stored in one employee's head. Publish accurate information on multiple web sites. Provide visibility to teams regarding the status of projects. Increase security and accountability. Allow more time for creative work. Support better decision making. Implementing AI, moving to the cloud, installing CRM describe technologies. A product may be installed successfully without providing any meaningful improvements. Measuring an outcome requires determining if the work actually improved.
Understand the Work as It Exists
Processes exist formally and informally. Email, spreadsheets, handwritten notes, text messages, remembered exceptions, and informal workarounds represent how work is done in reality. Workarounds represent evidence. They demonstrate where the formal system fails to accurately represent the operational reality of the business. Before implementing new technology, observe what triggers the process, who participates in the process, what information is required to perform the process, where the information originated from, which source is considered authoritative for information, where delays occur within the process, which tasks require human judgment, how exceptions to the standard process are handled, what occurs when something goes wrong with the process, and what indicates that the work was completed. Transformation begins with discovery because a system cannot be improved responsibly until it is understood.
Fix the Process Before Automating It
Automation can expedite a strong process or facilitate confusion at a faster rate. Eliminate unnecessary steps. Clarify responsibilities. Define authoritative sources for information. Identify which decisions require human judgment. Determine what will occur when the standard process deviates from its intended path. Once these elements have been identified, automate the aspects of the process that will positively affect the quality of the work. Read Before You Automate Anything for a more detailed discussion about process discovery.
Establish Where the Truth Lives
Meaningful digital transformation relies upon credible information. Customer details, product descriptions, project statuses, public statements, and creative credits may exist across many systems. Integrating these systems may lead to contradictions being spread rather than resolved. A canonical source should define who is responsible for each piece of information, who can modify each piece of information, which pieces of information must be verified prior to being used, how modifications are communicated to others, what historical information and provenance must be maintained for each piece of information, what must remain confidential, what may be published automatically, and where approval is necessary for each piece of information. Canonical information does not mandate that each website or channel utilize identical terminology. It protects the integrity of the underlying facts while allowing each destination to communicate with its respective audience in a manner that best suits its needs.
Technology Must Have an Owner
Every significant system requires a person or team responsible for managing access to the system, configuring the system, documenting the system, integrating other systems with the system, maintaining data quality within the system, updating the system, resolving failures associated with the system, and continuously improving the system. When nobody has responsibility for the system, problems persist without resolution, integrations fail without notice, permissions accumulate over time, documentation becomes outdated, employees develop unauthorized alternative solutions, subscriptions persist beyond their useful life span, and crucial knowledge leaves with individual employees. Purchasing software is easy. Developing the ability to utilize the capabilities provided by the software is difficult.
Do Not Confuse Adoption With Success
High login counts do not demonstrate successful transformation initiatives. Measure metrics such as process execution time, manual transfer counts, error rates, search times, complete record counts, integration failure counts, response times, publication accuracy levels, employee confidence levels, and recovery times following system failures.
While dashboards can illustrate usage patterns; they may obscure whether your organization has become more capable as a result of implementing digital transformations.
Transformation Is a People Project
Digital transformation impacts how employees perform their jobs; how they interact with each other; how they make decisions; and how they view accountability for their actions. Digital transformation can also instill fear; resistance; and uncertainty among employees if they lack understanding regarding why transformations are occurring. Employees who are closest to the work being performed should be involved in discovery processes; design processes; testing processes; and improvement processes. Employees who are closest to the work being performed provide insights into real processes; as well as exceptions diagrams fail to illustrate. Training should provide employees with explanations of why processes are changing; what types of information they can trust; what types of information they are accountable for; and what actions they need to take when systems malfunction.
AI Does Not Remove the Need for Transformation
AI can analyze information; prepare drafts; categorize records; detect anomalies; expedite development processes; and minimize repetitive tasks. AI cannot remedy ambiguous ownership structures; contradictory data sources; undocumented processes; or absence of authority on its own. Implementing responsible AI integrations necessitates credible data sources; defined access parameters; provenance tracking mechanisms; clearly defined boundaries; human review protocols; approval mechanisms; monitoring mechanisms; recovery mechanisms; and accountability frameworks. AI provides value when it operates within well-designed systems.
Consolidate Before Adding
Numerous organizations currently possess valuable software applications. The initial phase of transformation should involve understanding what applications exist within your organization prior to acquiring new applications. Maintain robust specialized applications. Consolidate redundant functionality among similar applications. Integrate disparate applications that fulfill their respective functions well yet remain isolated from one another. Replace obsolete applications whose underlying data models or operating assumptions have become impediments to progress. Develop custom applications to support important and distinctly different workstreams. Read Your Business Does Not Need More Disconnected Software for a practical framework.
Transformation Requires Maintenance
Launching a digital transformation initiative does not signify completion of the initiative. Organizations must continually review access parameters; monitor system failures; correct authoritative sources; update documentation; evaluate integrations between applications; measure performance metrics related to digital transformation initiatives; gather feedback from end-users; eliminate unnecessary complexities; and refine workflow processes as work streams evolve over time. A digital system is an ongoing operational practice — not a one-time investment.
Mission HQ as Transformation in Practice
Mission HQ integrates knowledge bases; relationships; releases; assets; websites; articles; playlists; merchandise; publishing operations; and business operations throughout 1st Drop Music and Free the Line ecosystem. Mission HQ evolved from years of real-world processes rather than from a pre-defined feature list. Its architecture supports canonical information representation; provenance tracking; distinct voice representation for each destination site/channel; and governed AI-assisted workflow processes. The work involved developing architectures; implementing databases; comparing existing systems; migrating existing data; developing new code bases; testing new code bases; correcting defects identified during testing phases; and refining existing code bases. AI accelerates portions of this work; however it does not eliminate human judgment; technical expertise; and ongoing commitment necessary to develop dependable operating environments.
A Better Definition of Digital Transformation
Digital transformation represents an organization utilizing technology-enabled information management capabilities to generate meaningful improvements in how it operates; as well as what it achieves. Examples of digital transformation include acquiring software licenses; discontinuing software licenses; simplifying existing processes; consolidating multiple tools into single toolsets; integrating robust applications; developing custom layers on top of existing applications; clarifying ownership responsibilities for information assets; organizing information assets; as well as establishing new daily habits for employees.
Ultimately; digital transformation does not represent merely increasing the size of an organization's technology stack; rather it represents making your organization more capable. If you wish to discuss process discovery strategies; software strategies; responsible AI integration strategies; or strategies for developing connected digital ecosystems; please contact info@freetheline.com