In our latest publication for V3 co-founder Peter Ballard considers five aspects which make for maximal investment in digital transformation.
The key take away from our V3 publication is that to achieve a significant return on digital organisations need to adopt a smarter approach. We’ve drafted up an overview of the articles highlights, alongside some pointers on getting the most out of your investment in digital transformation.
- The facts don’t lie: nearly four out of five large digital transformation projects fail to deliver.
- By 2020 global investment in DT will reach $2trillion - if only a fifth of those produce a positive return $1.6 trillion is set to be written off at some point in the near future.
This is because companies appear blind to the true causes of failure, and set out without a proper plan for success.
But, there are still significant rewards to be had:
1) One successful project can transform an organisation's market share and profitability and set them up for the foreseeable future.
2) NOT investing isn't an option for many: if they don't invest, their competitors will.
Five key pointers to make sure you see return on your investment in digital transformation:
- Measure what matters: If you want a return on your digital investment set KPIs that are customer - and employee - focused: NPS scores, CSat, employee engagement scores and staff turnover are good options, but try softer measures too, like collaboration indicators, ideas contributed, and qualitative insight.
- Co-create experiences: Be inclusive by rooting your programme in genuine customer or employee needs. Successful digital initiatives embrace customer and staff input and involve them in designing and architecting solutions throughout the life of the project.
- Transform the business, not just IT: Intially, focus on the business problem, not technology. Map out the current experience, across all touch points, channels and devices, then overlay what an ideal customer experience might look like, and identify the biggest gaps. Where is the promise/expectation of a good experience is the greatest? Ask yourself where does the reality of delivery fall short? Then apply design thinking to create a seamless experience for a customer.
- Reward outside-in thinking: Think differently to facilitate a change of company culture. We have to find ways to encourage and reward thinking from outside the organisation. Teach teams to seek out insight from customers and other viewpoints external to the project team.
- Make your way to strategy: You need a coherent customer experience strategy to support your investment in digital transformation. Anchor customer experience to the business through creating a digital product/service prototype and then iterate. Players like Monzo do this very well, they evolved their strategy out of having first made a working prototype and testing it with customers. Have the confidence to let customers guide your priorities and overarching experience strategy.
Companies can save millions of wasted dollars by turning the focus of their digital transformation initiatives towards customers and how their experience of interacting with the brand can be made better. With this shift in mindset, technology becomes the enabler, the end solution to a customer problem, rather than the starting point and sole justification for investing.
The take home: For companies seeking to realise the significant return of their digital investments, learning first how to bring their customers into the design process is the secret to their success.
Want to find out more? Click here to access the full article published by V3.