Picking what NOT to do is an IT Strategy

Technology change and progress never stops. There is always a newer version, a better alternative piece of software or another way of supporting an evolved business process or two.

For internal technology departments and especially those within larger organisations, this rate of change means there's never an end in sight. In a world of infinite need and finite resources... there's usually a long list of things to do once the current projects & programmes have been delivered.

With all this demand and the expected pace of implementation (that can come from all angles including: business stakeholders, vendor sales people and consultants) it can feel like everyone wants to change everything at once:
New finance system? Yes
New HR software? Sure
New B2C website? Of course
New B2B website? No problem
New sales portal? Yeah
New customer data platform? Naturally

Faced with a these requests, perhaps along with a potential new-found investment in technology to fuel a "digital transformation", senior IT people will want to say yes. Who wouldn't want more resources, increased budgets, the chance for some new "toys" or the opportunity to stick a big 'look what I've done' post on their LinkedIn profile?

But like the proverbial plate spinner, who (theoretically at least) should know how many plates they can spin at once... those in a position to take on technical work need to understand how much change they can take implement before they hear the sound of virtual crockery smashing. Experience needs to inform them (and so do their managers, subordinates and peers) just how much change their organisation can take on in parallel.

But when the demand for so much change outpaces the organisation's ability to deal with that change, someone has make the important decision as to what to do and therefore what NOT to do. 

Nobody, least of all IT people (prehistorically noted for saying "the answer is no, now what's the question?") want to tell a business stakeholder that their project is less important than another... but sometimes there is only so much change you can do at once.

Digital Transformation needs a mindset change

I believe that digital technologies are changing every industry. Or to put it another way, I've yet to meet one that remains unaffected. And therefore companies have quite rightly identified the need to reinvent their business models, products and approaches to just survive in an environment that is changing faster and faster each day.

Therefore just meeting the digital challenge (let alone trying to innovate ahead of it) means creating new ways to solve industry-wide problems in new ways... often with software rather than physical objects.

In other words.... organisations  now need to change their way of thinking as well as completely amend their investment in new technology, business models, and processes.

In my view this is the way they can truly create the most value for their customers (and employees) and therefore compete better in an ever-changing digital economy.

But just changing the skills needed for digital transformation isn't enough.

The Four Technical Pillars of Digital Transformation

There's no doubting that the path to successful Digital Transformation involves changes to: people (e.g.skills), processes, products (e.g. the creation or improvement of customer facing software) and proposition. The temptation is therefore to assume the technology will just "sort itself out" without an investment in thought, effort and finances. 

So what technology is now supporting the transformation to digital?

Here's my top 4:

The move to cloud

The use of online cloud-based services such as Amazon (AWS) and Microsoft (Azure) means that issues such as the hosting and the scaling of digital platforms becomes an on-demand Operational Expenditure (Opex) rather than a Capital Expenditure (CapEx) cost. With this high cost barrier now radically changed (as we create a shift from one column to the other on the Finance Department's spreadsheet), this means that demand and growth of online services are easier to deal with.

The digitisation of services
The conversion of the physical into software has been happening for some while. We've had digital media players and MP3 collections for many years now and you only have to look at how many of our daily tools are on our mobile devices, including: cameras, credit cards, health meters, maps, messengers and travel tickets. Now, with increased processing capability everywhere, what else can now move from being tangible to tap-able?

The creation and use of APIs

Organisations increasingly want simpler user interfaces that present and collate functionality and content from multiple systems behind the scenes. Your users don't care if your systems are having to pull together multiple source of data to present their online information in the way they want it, if you don't they will get frustrated (and consequently look to go elsewhere). Building Application Programming Interfaces (APIs) for each software system  enables this flexibility by providing the means for others to remotely invoke your applications functionality in a system-to-system way.

The adoption of DevOps

As the speed and complexity of digital delivery increases, companies realise they must integrate software development and IT operations. DevOps is the newer approach to this, where continual deployment becomes the norm and the ability of your tech team evolves form just being able to create stable code, to also deploying this code to a stable managed (typically cloud) environment.

4 Steps To Surviving Digital Transformation

There's no doubt that we are in the middle of a revolution in technology (and therefore the businesses that knowingly or unknowingly rely on technology). As nearly everything becomes software and change happens quicker & quicker, businesses are being asked to transform themselves or be changed

So how does an organisation survive in a world where digital transformation is now the norm?

Embrace technology
It is no longer important for just your company COO or CTO to have all the senior level technical knowledge (although even some of these don't!). Instead other Exec roles such as Commercial Directors and CEOs now need more than just an awareness of what IT can deliver.

Hire the best people

This is very easy to say and often one of the hardest things to achieve. Hiring talented and motivated staff with a personality & approach that matches your company is incredibly difficult. Do you care if they don't wear business attire? Do you mind if they sometimes work from home or outside of the core 9 - 5 hours?  Do you want to pay them what the market (e.g. your competitors) pays?

Hint: If you don't have a huge network of digital contacts, make sure you know and use a very closely aligned recruiter.

Stay fast and agile

Don't just ask your staff to work faster and faster, there is a limit to the amount of output an individual or team can deliver - despite the 'lean' and 'growth' or hack' approaches that seem so popular now. Instead agile delivery needs support from all levels of the business (and it has to be encouraged from the top of an organisation, not just the bottom or the middle layers!).

Have a plan & communicate it
"Failing to plan is planning to fail" is the old maxim. And this is especially try when you are trying to carry out a potential change to your customer experience, back-end business processes and goodness knows what else.  There's also no point trying to carry out a digital transformation in a communication vacuum, it just doesn't work. And I don't mean just communicate with your peers or immediate boss either. Communicate with your board, your minor stakeholders and perhaps even shareholders (and consider communication to your customers too).
Hint: Adopt some of the newer communication, collaboration & project tools. If you don't know what Slack, Trello or even Yammer is.... find out!

Digital Transformation Starts and Ends with a Digital Architecture

The implementation of business transformations within organisations, and especially digital business transformations, is growing to a peak level right now. Chief Information Officers and Heads of Transformation are stepping in to: “digitally enable businesses”, “implement customer self-service channels”, “put the customer at the centre/focus” or just to simply “be more digital” (whatever that means).

However, when you ask these organisations what they are doing to change their internal systems and technical architecture design to facilitate this change, many either go quiet or simply utter something such as “it’s not about technology, it’s mainly about people”… Which I have worked out to actually mean “that technology stuff isn’t as interesting as building something nice & glossy I can show to the board”.

But let’s flip this around for a minute…

Digitally enabling your business usually means taking control of the data in your organisation and enabling it via online technologies. Yes, it does therefore mean the creation of some sort of new database or cloud-based big data lake that can then have modern web services integrated to it, so that some or all of this can be presented within a browser interface.

Implementing customer self-service channels, typically boils down to pretty much the same thing.  Web services and functionality are (securely - obviously) exposed to external customers via web and mobile App channels, so that contact centres or telesales operations can be scaled back or redeployed to different tasks. This also usually comes with a more onerous set of performance & availability criteria, so that a (near) 24/7 service can be offered to customers. However, presenting these services to real users also means that the systems behind-the-scenes need to be able to scale and adapt to changing user demands. Just plugging a rich user interface into a legacy system and hoping for the best is not digital architecture, it is digital anarchy.

Putting the customer at the centre of a business is an easy thing to say and a much harder objective to implement. Most organisations have been created to make money and therefore have lines-of-business designed to perpetuate this purpose. Consequently, technology systems are developed to support these structures and maintain the status-quo, rather than re-orientate things to make sense to the customer or help facilitate their engagement. It might be the ideal, but very few companies actually have end-to-end integrated systems that enable a single customer to be consistently tracked throughout their entire lifecycle. In short, creating technology to enable a customer to be in the middle of a business isn't always as easy as the sales PDF brochure states, especially if you don’t have a decent vision of how these systems need to work together.

So what can a decent technical architecture do for your company’s digital transformation?

It can provide a stable backbone that can support your technical & process change objectives. It can facilitate agile incremental delivery based upon re-usable components. It can help your business grow by supporting integration of other online services, API’s and data sources.

If you’re planning any of this, can you afford to NOT have the right digital architecture?

Digital First Doesn't Mean Digital Only

You still read lots of blogs and white papers on the Internet that cite the typical "Digital first" mantra or equivalent phrases such as "Drive all our customers to self-serve", "Provide everything online by default", etc.
And personally I've helped to either put companies online, transform their business models to the always-on world or improve their digital proposition.

But through all of this we really need to occasionally take a step back and consider those prospects or existing customers who are:

- Not able to get access online
E.g. because their internet service is not working or even not good enough

- Not able to fully use the service
E.g. for those who have accessibility needs beyond those met by WCAG compliance (or at least beyond the basic compliance level that is typically aimed for by most websites)

- Not their preference or natural choice
E.g. those who have never used online technologies or feel confused and even frightened by the concept of using something as simple as a browser interface

So when transforming the user experience and building other interactions whilst sitting in your 'cross-functional' agile teams of user experience, product managers, designers, developers, testers and content specialists... take a moment to consider those who are not digitally enabled and how they might get on. 

You Are Not A Digital Transformation Consultant Until....

Take a look on Professional networking social platforms (such as Linkedin) or some job listing websites... and you will see people stating they are Digital Transformation Consultants or something similar. I know.... because I'm one.

But am quite dubious of some of these people, who just seem to be Digital Project Managers or Digitsl Business Analysts who have just given themselves a new title.

So here's my short list of things a person who claim to be Digital Transformation Consultants should have done:

1. Transformed something
   It is pretty obvious to state and nobody is criticising someone for consistently delivering decent projects to scope and budget... but if a person hasn't actually transformed a business, they shouldn't say they actually have.
2. Delivered something
   Yes, I know I said above that just being a Project Manager isn't enough to qualify as being a Digital Transformation Consultant, but neither is not having a hand in the delivery. If a person just comes up with a few lines in a PowerPoint presentation about "a move to digital" or "facilitating self-service" and then moves onto the next job... then that's not enough in my opinion.

I'm sure I'll add to this list in future.

So have I missed anything?

Disrupt Or Get Disrupted

There's a couple of phases that have been going around in my head for the last week or so.



These are:
- If you're not part of the solution, you're part of the problem
- Change is the only constant



Both reflect my feelings about the current progress of digital transformation across a range of industries. From taxi services through to financial institutions, new models of working based upon technology and data, have now disrupted existing companies and sometimes entire markets.

So if change is happening all the time....



Who is leading your disruption?
You probably have at least one person in your organisation who is the advocate of digital change. They may be a lonely voice shouting about the need to 'embrace change', 'test and learn', ' fail forward' or 'adapt agile'. Or they may be a senior manager with the drive, staff and responsibility to push digital to the top of the agenda. either way, these people need the support of the exec team and remit (including budget) to trial new things that could mean the difference between your organisation being a Blockbuster or the next Netflix.



When will the change happen?
Most of us are among the disrupted rather than the disruptors - Only 7% of companies surveyed by Gartner in 2014 felt they were truly digital and of the remainder, only 83% felt they would be digital by 2017.

An inability or resistance to transform and adapt in an ever-changing world is a big failure these days. Nothing stays the same for very long in business and This Shit is Gonna Get Faster.



Don't be complacent
Larry Page and Sergey Brin once said "Google is not a conventional company. We do not intend to become one." Does your organisation run on apathy and complacency? If so... change get it or stand a significant chance of disruption!

Digital Transformation Consultancy is Big Business

It seems that every consultancy is suddenly talking about digital business transformation or disruption. And just like the digital disruptors, who have been encroaching on the territory of traditional organisations with new and exciting business models that threaten to eat their lunch... the more traditional management consultants and strategy firms have all been getting in on the digital transformation consultancy game.

 From all the marketing information I've received over the last few months, it would see that you're not a modern consultancy unless you produce a white paper on the subject of Digital Transformation and the 'uberization' of business.

That’s Not My Digital Strategy

Those readers who have read with their children may well be familiar with the “That’s not my…” series of books. 

For those who have not had this privilege, the repeated concept of every book is a series of pages that all say what something is not, in an effort to explain what something actually is.

e.g. “That’s not my Dog…(to a sheep)... it is too fluffy” or “That’s not my car…(to a space ship) it is too shiny”.

Given I have spent a fair amount of time on this blog, consulting and in other ways attempting to explain what Digital Strategy is and how to correctly implement it… I thought I’d adopt a different (and slightly more childish) approach and explain what Digital Strategy is not.

A New Website:

That’s not my Digital Strategy, because it is just the implementation of a customer-facing front end to your organisation.

A Business Transformation:
That’s not my Digital Strategy, because a business transformation programme has responsibilities beyond the implementation of the projects or work streams that deliver a digital strategy.

A Digital Platform:
That’s not my Digital Strategy, because although a Digital Platform can have the capability to provide online functionality across your organisation… it is not the thought & business case preparation beforehand nor the subsequent use and commercial measurement of that activity.

A Digital Marketing Strategy:
That’s not my Digital Strategy, because it is just focused around the acquisition and retention of online customers, not the whole concept around the delivery of useful features such as self-serve functionality.

Digital Leadershift - get ready for a BIG BANG

Transforming your organisation from an analogue dinosaur to a Digital First one is hard, very hard. You not only need the right team of people, the right technology and the will to change internal processes, you need this change understood & supported at the senior level too.

But this isn't about getting the CEO to blog or the Managing Director to Tweet (they should know how to do that already), it is about having the right drive from on-high to correctly sponsor and if necessary push through the required changes that a digital transformation needs.

In short, it needs a shift in the mindset of the leaders to a digital way of working... or a digital leadershift.

However different market sectors and industries are affected by the disruptive effects of digital in different ways. And to illustrate this best, a recent report from Deloitte Digital depicted a 'Disruption Map' that shows the extent to which 17 industries are affected across two dimensions: Degree of Impact (The 'Bang') and the timing (The 'Fuse').

As we know... some industries are already in the middle of their shift. Sectors such as retail (High Street eCommerce has been a beacon of online innovation for the last few years) and Leisure (The consumer travel sector has both blossomed and suffered as online acquisition, customer self-service and aggregation has affected airline travel, etc. - and just look what the likes of AirBnB and to a certain extend Google are doing to the hotel market).

So it is probably no surprise that the leaders in those industries that have already been affected are nearly all digitally savvy. But what about other sectors where the fuse is much longer?

Well in a lot of cases key individuals from shorter fuse industries have moved across to help other verticals understand and manage their way through this disruption. For example, senior staff from tech start-ups are now finding roles in Financial Services and Professional Services.

But other senior managers in those where the disruption hasn't really hit yet are less aware and prepared for the changes that are bound to come. Some may know the Big Bang is coming, but for others it could be a big shock.

Are you a digital driver or just a passenger?

Are you the person leading the digital change in your organisation, or are you just along for the ride?

I've now seen enough digital transformation initiatives to know who is driving from the front and who is not. It becomes quite clear after a while (especially if you are frequently involved with similar types or style of programmes) to identify the leaders and passengers in online change initiatives.

So here are my tips on how to recognise these two types

Digital Leaders:

Typically these people have the vision or initiative to start the digital revolution within an organisation. They may be the technical person that creates the overall enterprise solution that enables a shift away from analogue processes to online ones, or the executive who drives forward the business case or rationale for sweeping channel shift. They may also have a number of different roles across a project, either stepping into different positions where necessary or act as the project manager in the absence of any other leadership.

Digital Passengers:
These are the people that try to align themselves to a digital change project without actually having any responsibility (yet will be first to claim all the credit when change does start taking place). They will understand that 'digital is the next big thing' but will not have had any real experience and yet claim to be knowledgeable when stakeholders or executive sponsors are in the room.They are also most easiest to identify by their repetition of a small number of key facts they have picked-up along the course of the transformation, possibly even getting them wrong over time.
Or put more esoterically... Just because a person is standing in the direction of movement,  it doesn't mean they are actually going that way.

Why the role of CDO is needed

In a posting on eConsultancy this week, Ashley Friedlein provided his thoughts on Why a Chief Digital Officer is a bad idea. This article basically stated that a CDO wasn't needed in the modern board room.

Having written on this blog about the role the Chief Digital Officer should have, I thought I would disagree with Ashley's opinions. However, despite the (obvious linkbait) headline, I found myself partly in agreement with the post.

You see, we are living in a time of tremendous technical change, where digital technology has moved on significantly in just one employee generation. This means that there are still very few career digital people on the boards of major organisations... but this is gradually changing and one day all members of the C-suite will be 'digital natives' and have grown up with online.

Until then, the role of CDO is needed, but as a transformation role.

One alternative approach that might work for some major organisations... is to take on a Digital Non-Exec Director. This would be someone who has the full compliment of online skills, to see the company leaders through this evolutionary period. This would have the benefit of integrating a CDO-type person into the organisation, without the need to restructure the board.