Powering your Digital Transformation Journey
You’re probably sick of hearing about digital transformation. And who can blame you?
The phrase has been around for over a decade and has officially achieved buzzword status. Our proof? Everyone from tech marketing departments–yes, including OutSystems–to global enterprises use it in every possible way to sell their particular products or solutions.
But despite the overuse of the phrase, it doesn’t change the fact that digital transformation is still important—and still a thing that many companies are still struggling to get done.
This blog explores the topic of digital transformation: the different phases, the challenges in achieving it, and tips for success. There are even success stories that show how some organizations are tackling it.
The different digital transformation areas and their impact
Digital transformation is possible in five main areas. Before I get to them, I think it’s a good idea to review the definition because true digital transformation is more than automating manual processes in one area.
What is digital transformation?
Digital transformation is the integration of digital technologies into all parts of an organization to deliver value to customers. That means identifying how to use technology to deliver new products and services, to improve existing products and services, and to streamline processes.
Talk about a huge deal! And because it is, it’s advisable to tackle it in phases, because the level of impact these efforts can have on the business is major. Some might even say “disruptive” or “life changing.” One way is to focus on one of the most common areas and make it your phase. The following are the most common areas–and the good news is that you don’t have to do them in any specific order. Try one–get it done–and then see which one to try next. Whatever works best for you is the right way to go.
Internal business processes–and a real-life example of successful digital transformation
Transforming internal business processes is all about automation and efficiency. How many times have you submitted an expense report and bemoaned the amount of time it took you to get it done? Or struggled to understand why six people have to be involved in something that you think could theoretically be accomplished with two? And, the biggest digital transformation red flag of all: Done something on paper that could have been managed electronically?
If you identify with any or all of the above, your company is crying out for internal business process transformation–the kind that makes your employees work smarter, not harder, and helps reduce frustration and burnout–like Minnesota-based Park Industries did. This builder of high-precision machines for stone and metal fabricators is currently the largest North American manufacturer of stone-working machinery. With OutSystems, the company has modernized apps and automated internal processes faster.
Watch the Park Industries webinar for all the details.
Customer experience–and a real-life example of successful digital transformation
You’ll often hear “personalization,” “seamless,” and “omnichannel” used when talking about transforming the customer experience. Oh no, more buzzwords!
But, like “digital transformation,” they’re buzzwords for a reason. Customers really do care about this stuff. They want their apps to recognize them, provide recommendations, and make getting things done–like placing an order or paying a bill–quick and easy. Digital transformation is really the only way to give them what they want.
So what does transforming the customer experience look like? Here’s one opinion from a satisfied OutSystems customer. “OutSystems provides the innovation and agility to accelerate the digital transformation of Western Union. In just 11 months, we delivered a full-service digital banking experience that expands our relationship with customers,” says Tom Mazzaferro, Chief Data Officer at Western Union.
Read the full Western Union story
Products or services–and a real-life example of successful digital transformation
Another type of digital transformation revolves around the actual products or services that you’re offering your customers. Imagine, for example, that you’re a healthcare company with in-person consultation. If you can modify that service so it’s also available online, you could reach an entire new swath of customers. Another example that we can all identify with is the advent of streaming services, which changed how everyone consumes entertainment content, and the invention of “smart everything.”
Take the story of The Exceptional Family Member Program (EFMP), a U.S. Department of Defense program that provides services to employees who have special needs family members, for example. After numerous complaints about the paper-based system, BAM Technologies, a veteran-owned software development company, used OutSystems to accelerate the digitalization and modernization of the U.S. Army’s EFMP.
Infrastructure–and a real-life example of successful digital transformation
The back-end infrastructure that many organizations are running also cries out for digital transformation. From software to hardware, what’s under the hood at many more established (and thus large and far-reaching!) organizations might be a shock to anyone familiar with more modern infrastructure choices. Okay, maybe “the cloud” doesn’t sound that modern anymore—but that’s even more reason why you’d be surprised to learn about all the organizations that are still working on a cloud migration strategy.
This type of digital transformation may not be visible to folks on the ground, but it can pave the way for more efficient resource consumption, improved security, and better scalability. Cengage has experienced this firsthand. A global technology company that creates digital learning experiences, Cengage used OutSystems to extend the power of Salesforce and provide its employees with a seamless experience.
Taking on these phases isn’t for the faint of heart–our customer stories prove that. There are a number of things that can get in the way and that companies must overcome to be successful.
5 top challenges of digital transformation initiatives
If digital transformation were easy to accomplish, everyone would have done it already, and the term would have died a happy death in 2012. Alas, here we are. And the fact is: Digital transformation—whichever type you’re trying to pursue—is hard.
If you’re embarking on a digital transformation journey at your own organization, here are the challenges you can expect to find and some tips for overcoming them.
Digital transformation challenge #1: Lack of strategy and direction
A lack of clear strategy and vision is a big problem for digital transformation. It’s unfortunate that this has to be said at all, but you would be shocked at the number of major corporations that jumped on the digital transformation bandwagon without thinking it through. And, without a well-defined plan, these organizations struggled to make progress or benefit. That’s because without anything to guide your initiatives, you’re left with unclear goals, disconnected projects, and a short-term focus.
Digital transformation challenge #2: Changing hearts and minds
If you want to succeed with a digital transformation strategy, you have to do one key thing first: Get everybody else on board.
Change is hard, and this kind of change is no exception. They say you can’t teach an old dog new tricks. Although you may not have an organization full of old dogs, it doesn’t change the fact that upsetting the status quo is never easy. This is especially true if you don’t have a top-down executive mandate for digital transformation. Not only do you have to change the hearts and minds of everyone on the team, you also have to learn how to evangelize the benefits of digital transformation to the higher-ups.
Digital transformation challenge #3: Money, money, money
You’ve probably heard the expression: “Fast, cheap, and good. Pick two.” When you’re purchasing technology, you usually can’t get all three. If you want fast and good, you have to sacrifice cheap. If you want fast and cheap, you have to sacrifice good. And on it goes. (Although there may be an exception here: Have you considered low-code?) The bottom line, though, is that a digital transformation initiative is never going to be free, nor is this the time to cut corners. Investment in software or hardware because of the price and watching it fail costs more than getting it right the first time.
Digital transformation challenge #4: Talent
If you have a bang-up digital transformation plan but none of your current employees will be able to use and take advantage of the technology…you don’t have a bang-up digital transformation plan. Yet, when companies embark on a digital transformation initiative, they often do it without thinking about the skills and resources needed for the transformation to go smoothly. This is a mistake. Without the proper skill sets, or at least an aptitude and interest in learning new ones, your employees are likely to be overwhelmed or unable to do their new work properly. You might have to bring in outside consultation at a higher cost because things aren’t running the way they should.
Digital transformation challenge #5: Your architectural landscape
This probably goes without saying, but let’s say it anyway: Your enterprise architect better be heavily involved in this process. Otherwise, efforts could go the way of all the other failed digital transformation efforts before yours, where you fix one thing, only to find that your fix is incompatible with seven other things. Think of it this way: You can’t buy a brand new state-of-the-art electric car and then show up at a gas pump to fuel up. You better have a plan in place for electric charging.
These hurdles can all be overcome; it just takes a good plan and 5 big steps.
A 5-step process for digital transformation
If you’ve been tasked with the challenge of digitally transforming your business in any way, there’s no need to panic. You’ve got this! Use the following step-by-step process to set yourself (and everyone else involved) up for success.
Step 1. Establish the problem
Identify three to five core areas where you feel that manual processes or siloed legacy tech is causing problems. Examine your processes, procedures, and workflows and determine where automation can increase efficiency, drive productivity, and reduce manual errors. Collect insights from your IT team, employees, customers, and partners. It’s also important to have specific examples of the problems and why they hurt your business. “COBOL is an outdated programming language” (for example) may be true, but it’s not enough to paint the picture of a burning problem. “It’s hard to find developers with COBOL skills,” on the other hand, demonstrates why COBOL is an actual problem in your business. “COBOL compatibility issues are causing bottlenecks” is another.
Step 2. Consider solutions
Once you’ve identified the core areas of focus for digital transformation, it’s time to evaluate and propose solutions. Consider the goals and objectives you want to meet. What’s your timeframe? How will you measure success? Identify which modern digital solutions would address the problem and then deliver the expected outcomes. A proper investment in research here can help you evaluate the right choices.
Step 3. Determine the financial and talent investment required
Now that you have some solutions in mind, do the math regarding what it will cost your organization. How much will you need to invest in software, cloud, hardware and so on? If your proposed solution involves new or different skill sets than are present on your current team, outline what these are. You should factor in the expense of upskilling or hiring additional resources. If you’re considering several possible solutions, it’s a good idea to lay out costs for at least a few of the choices so you can prepare.
Step 4: Identify risks associated with the project
No project, and especially no digital transformation project, is without risk. There are compatibility conundrums, scalability snafus, and the frequently overlooked issue of vendor lock-in. With the introduction of new tech come cybersecurity threats, ready to lurk in corners, along with the specter of tepid user response and adoption. You can be prepared for and overcome these risks when you clearly explain what they are, propose mitigation strategies, and share the impact if something goes wrong.
Step 5: Paint the picture of what success looks like
This last step is the most important. Although your strategy should be based in reality, it should also paint a clear picture of the future, so everyone involved can understand why you should make this effort. The real magic happens when your vision materializes, complete with the benefits, and stakeholders begin to rally around the cause. With their buy-in and your solid plan for implementing your solution, you have a great shot at the kind of digital transformation success that makes headlines or–way better–headway against your competitors.
Conclusion: Our biggest pro tip for digital transformation
At the risk of burying the lede, we saved our biggest and best tip for the very end of this blog: Your easiest path to digital transformation is through a low-code platform.
A low-code platform, you say? Isn’t that for building toy apps? Dear reader, it is absolutely not. Or, at least, the OutSystems low-code platform is absolutely not.
OutSystems is the fastest way to transform your organization (we even have our own set of tips!), from delivering those seamless and personalized customer experiences down to fixing that pesky legacy infrastructure. To learn a bit more about how major companies have used OutSystems to go from mission impossible to mission accomplished, check out this ebook walking you through three approaches for modernizing legacy tech.
