Prioritizing digital transformation opportunities
So, you’ve identified a number of digital opportunities for your business; but how do you determine which opportunities will give you a quick win or provide the highest business value at the lowest cost of implementation? Here are some best practices to help you kick-start your journey toward a digital transformation.
Tie your idea to your business objectives
The first step is to make sure your ideas map directly to your business objectives. Do any of these digital opportunities help you cost-effectively provide high-quality products or services? Do they help you reach existing and potential customers in meaningful ways? Do they help you retain and cultivate new talent? Which of these business objectives are most important to you?
Understand its value to your business
The next step is to pinpoint exactly what’s truly important to your business. If you’re a manufacturer, is it increasing sales? If you’re a retailer, maybe you need to be able to interact with customers across multiple channels. If you’re a healthcare organization, your priority might be to increase patient engagement and feedback. Only when you understand the value that each digital opportunity offers can you even start to decide which ones are worth pursuing.
Identify its ease of implementation
Next, you need to figure out how difficult, costly, and time-consuming the opportunities are to implement. The highest value opportunity might not necessarily be the best one to pursue. If it’s a potentially expensive project that will take months to implement, the ROI could ultimately take too long to justify. Look for opportunities that have high business value and are easy, inexpensive, and quick to implement. To quantify the value of the opportunities against the potential ROI that they can deliver, you need to ask key questions about each opportunity, such as:
• Can I do this with existing off-the-shelf and easy-to-implement technology?
• What are the dependencies? Is this tied to other projects?
• How much and how long will this cost to implement?
By scoping the impact of each opportunity and comparing it against the potential value that opportunity can deliver, you can start to establish your priorities.
Plan your roadmap
Once you’ve identified which opportunities to pursue first, you should put all the opportunities you plan to pursue on a roadmap. This will give you a visual playbook of just how you’re actually going to execute these opportunities over time. Build important factors into the roadmap, such as interdependencies, internal resources, and budgets. Doing this allows you to see the bigger picture, and gives you another opportunity to discover potential conflicts or issues.
All of this can often be a difficult and confusing process, especially when your organization lacks the practical experience of planning and executing these types of digital strategies. This is why the vast majority of organizations work with a third-party solution provider on their digital transformation initiatives. Make sure you pick a partner that can help you strategize, assess business value, prioritize, roadmap, build, prototype, keep things moving, and successfully implement your digital opportunities. You need a partner that can help take your organization all the way from ideation to execution.
In today’s hypercompetitive environment, it can be a real struggle to differentiate your business from the competition. Embracing a digital transformation of your business and tapping into the right digital opportunities can be just what you need to stand out from the competition.