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#Technology | Digital Transformation
THE INVESTMENTS
The outcome of a transformation is a direct result of
the investment you put in. Each transformation goes
through several steps, and each one requires a certain
type of investment. The identification of those steps and
the correct and timely resources allocation are key to a
successful transformation.
Every digital transformation initiative goes through four
phases: building, launch, growth and maturity. Each phase
requires specific attention and budgeting the correct
resources at each specific phase is a factor of success.
The Building phase is when the company invests in the
preparation of the digital transformation: there is often
management time investment, strategy work, recruitment
and the creation of the digital initiative.
The Launch phase is when the company just launched the
initiative. It is an uncertain period because success or failure
are not clear yet. There is often support, maintenance, early
marketing campaign and product/service optimization.
The Growth phase is when the company initiative hits its
first objectives and must scale up to ensure the smooth
management of a growing demand.
The Maturity phase is the phase when the company is fully
fitted to exploit the initiative. There is no growth anymore
and most of the efforts are on operational excellence.
THE NUMBERS
It is crucial to measure the right KPIs at the right time.
The Innovator Dilemma by Christensen detailed the
reasons why large corporations fail to exploit and develop
innovations. Christensen describes how companies apply
the same success metrics for their innovation initiatives
and why it results in unrealistic expectations and failures.
For a digital transformation initiative, ODIN Canvas suggests
adapting the timing and the metrics to the type of initiative,
and clearly and thoughtfully desynchronizing the success
of the initiatives from the traditional KPIs of the company.
Metrics should be defined by the Objectives block, timed
by the Investments block and evaluated by the Distance
block.
Knowledge: what we have learned and can be reused later
to improve the business
Often overlooked by the top management, the acquisition
of knowledge is crucial in our fast-changing world.
Understanding, measuring and storing the knowledge
acquired by a company during a digital initiative can be
the seeds for future success.
BEAST MAGAZINE #11
Examples of Knowledge metrics are:
• Human capital (skills, experience)
• Structure capital (documentation, processes)
• Relationship capital (brand, customer relationship)
Competitiveness: the transformation initiative helps the
company remain competitive within its market.
Digital initiatives can help businesses stay afloat by
ensuring that their revenue and growth are stable in a highly
competitive market. Here are examples of Competitiveness
metrics:
• Market Share within their Market
• evenue and Profit
• Brand Recognition
Growth: the transformation initiative helps the company
to grow outside their initial market.
That’s the traditional focus of companies engaged in
a digital transformation. This category includes Digital
initiatives that will help them generate additional revenue
thanks to new products/services or markets. Find below
several examples of growth metrics:
• Market Share in a New Market
• Revenue and Profit
• Brand Recognition in a New Market
Social & Environmental: the transformation initiative
helps the company to be more society- and environmentfriendly.
Social & environmental impacts will be more and more
analyzed by the public and by governments. Transparency
and general knowledge are the norm now, and failure on
those points may have devastating consequences on
companies in terms of image and credibility. It is important
that companies include those types of metrics in their
assessment of success. Some examples are:
• Workplace Quality and Diversity
• Carbon footprint
• Governance
The ODIN Canvas is a simple and efficient framework built
to help companies set up the four pillars of every digital
transformation: doing the right investments, setting clear
goals, understanding the hurdles and choosing relevant
KPIs. This agile framework which requires regular updates
is used as a map. It is a tool specifically built for digital
transformations but it can only be as good as what you
put in. For better performance, it must be driven by top
management and shared with as many people as possible
in a company so that it can be refined and challenged.
Everybody in the company has to own it. For more
information, visit www.odincanvas.com.