Digital transformation initiatives need patience because the process is gradual. The problem is, no two companies have the same approach. In this article at the Enterprisers Project, Stephanie Overby shares how you can effectively manage digital transformation initiatives like a portfolio.
The Category Effect
Businesses have been trying to leverage emerging technologies. However, digital transformation efforts have faced many barriers. Ambiguous goals, bad change management, limited budget or buy-ins, and evolving urgencies doomed several. EY Americas Woody Driggs insists that the problem is elsewhere. The majority of organizations fail to realize that not all digital transformation initiatives have the same motivation. So, Driggs suggests treating the digital transformation efforts like a portfolio of projects. Taking that into consideration, you can group the projects into three categories—‘protect, optimize, and grow’.
The Protective Portfolio: These projects should mainly deal with ‘cybersecurity, data privacy, reputation management, and regulatory or compliance activities’. Ensure the portfolio operations are steady, meticulous, and constant. The portfolio should maintain a delicate balance between introducing emerging technologies and addressing related issues.
The Optimizing Portfolio: These digital transformation initiatives improve chief business processes in the company. Ensure that you have a clear set of requirements chalked out before embarking on the journey. Once you optimize the procedures, you must continually upgrade them to maximize benefits.
The Growth Portfolio: It supports those new initiatives that can earn massive ROIs or prove highly risky. Gather all the new ideas and be ready to fail fast to move forward with the game. These digital initiatives should be able to experiment and research without inhibition. Driggs advises managing this portfolio as a private equity fund.
Leading the Initiatives:
Deploy different leaders for these portfolios. If need be, create different C-suite roles that fit the portfolios. Pace Harmon director Brian Caplan observes that these digital transformation initiatives can have various goals with separate transparency demands from customers. Whether you hire an external CIO or promote an experienced senior, nobody or everyone could be the right fit.
To view the original article in full, visit the following link: https://enterprisersproject.com/article/2019/10/digital-transformation-management-mistakes