Tapping Volcanic Transformation
Core Issues in People, Process and Technology
The Change Agent
The business and technology strategy experts at TEKsystems Global Services (TGS) explain the story of digital transformation and holistic business strategy through technology innovation today.
Transformation Bubbling Through the Bedrock
Fascinating parallels exist between nature and technology. Studying volcanoes, for example, gives us a window into the planet’s history, forming the continents, atmosphere and oceans. Similarly, a surface-level view of any technology system or initiative never tells the full story. A comprehensive analysis digs through the layers and identifies the connections where transformation begins. Technology powers a complex system embedded into every aspect of business today, so digital transformation initiatives should run parallel with continuous changes in technological innovation.
Of course, this is much easier said than done.
Companies frequently embark on modernization efforts with great expectations, only to see their plans not come to fruition due to a lack of alignment across business and IT teams and their respective systems and capabilities. Addressing this common problem is essential for companies to succeed in their transformation and modernization efforts. And it’s critical to shift the focus to optimizing processes and providing more real-time business value through technology—rather than the technology, especially the surge of AI, driving change.
Applying AI can boost efficiency and serve as a strategic differentiator for businesses. AI, however, is not always the solution. Decision-makers should take a well-rounded approach and understand short-term and long-term business goals. Rather than reacting to an outcome or following a fad, they should create a thoughtful, well-aligned approach balancing people, process and technology.
Like the hidden, powerful movement below the earth’s surface that produces spectacular eruptions and morphs landscapes, effective balance and connection between business goals and technology initiatives can catalyze progress and lead to volcanic transformation.
Digital transformation is a continuous flow of technology innovation and adoption. There is no endpoint in transformation. Most organizations have ongoing digital transformation initiatives, but many lack a sustained strategy for long-term technology investment, optimization and business alignment. Transformation efforts should balance strategic thinking with exceptional execution.
Strategists, designers and technologists can combine their expertise to carry the transformation from vision and strategy to implementation and optimization.
Vision and Strategy
- Explore and envision: Assess current-state value streams with respect to customer needs, business objectives and transformation readiness. Prioritize targets for the establishment of new or updated technology and/or experience strategies
- Shape and validate: Align on transformation parameters and metrics and define guiding principles and key future-state components in partnership with stakeholders. Then establish a roadmap to guide realization, and complete foundational work to enable implementation.
Implementation and Optimization
- Build and evolve: Establish operating models, ways of working, programs and reports to govern modernization efforts. Execute on modernization and innovation efforts from any additional exploration needed through operationalization.
- Operationalize and scale: Hone and extend modernization processes, tools and reporting to enable continual innovation and adaptation of digital solutions. Manage your value streams to ensure the ongoing success of your digital transformation.
Our Perspective
Organizations can gain greater transformation success and return on technology investments by aligning people, process and technology with an intentional strategy across business teams and partners.
Smart Problem-Solving for Enterprise Digital Transformation
Digital transformation relies on an informed strategy and plan that supports higher-level objectives. Effective outcomes for business success are determined by many moving parts and components that align these high-level objectives. In value-driven transformation, companies go through a discovery phase, strategize and then plan the transformation. When complexity increases, potential for challenges increases along the way. Proper planning and communication, however, help companies avoid roadblocks.
“Effective enterprise transformation strategies are foundational to current and future business success. Complex technology initiatives rely on expert guidance combined with careful planning and alignment.”
Lindsey RevierPractice Director, TEKsystems Global Services
Cracks in the Crust: Challenges and Risks in Digital Transformation
Companies aren’t realizing the business value from their current efforts in modernization or transformation.
Why is this happening? Barriers to success often arise from the following:
- Lack of alignment and poor coordination of teams, processes and initiatives
- Lack of innovative thinking to precipitate new, value-focused opportunities
- Absence of feedback loops to continually iterate and maximize value
- Unmanaged changes with inefficient adoption plans
- Lack of governance and enablement mechanisms, resulting in inefficiencies, redundancies, underutilization of capabilities and increased security risk
- Technology that isn’t useful or doesn’t provide realistic benefits internally or externally
- Unrealistic or insufficient budget to support the technology initiative
- Increased complexity, which stresses the current technical ecosystem
- Companies that chase technology for its novelty without full visibility on people, process and technology from beginning to end
of organizations say the initiatives failed to achieve the desired business goals. They invested millions on transformations, and only 12% achieved the original ambition.1
Transformation is complex and requires attention from all impacted parties. Many companies fail to focus on a bigger-picture approach to include every layer in people, process and technology for a successful outcome that solves the root of the problem, not just a symptom. Aligning business objectives with the right investments is essential, especially in AI, because it’s now part of every conversation. Hesitancy circulates due to unknowns with AI, and inefficient investments result from businesses simply desiring the new, shiny thing. A common mistake is poor or misdirected technology investments. Ensure you’re solving the right problem and being intentional with these investments.
Due to the complexity of technology implementation, missing steps is not uncommon. You must ensure that you launch a full value assessment and run a realistic cost-benefit analysis early on while deciding what initiatives you move forward with. Organizations can help avoid costly misses by connecting the work to their strategic goals. They should measure ROI early and create and manage checkpoints throughout the process to ensure alignment and correct direction.
Optimize the Value Potential of Transformation
When you begin a digital transformation, build a sustained strategy for long-term technology investment, optimization and business alignment. Digital transformation experts can help businesses engage key stakeholders and align business objectives and priorities to ensure you have a roadmap to the future. An effective partnership can optimize value potential across the entire organization by infusing industry and domain expertise to create a strategy that guides the transformation and prepares you to implement meaningful change, deliver value and gain a competitive edge.
As your digital transformation initiatives progress, prioritize the core business changes with a big-picture perspective, whether related to business processes or how value is measured and received. Your enterprise architecture landscape should also be prepared to adopt new technologies such as AI.
AI is advancing at a rapid pace and creating new ways of transforming the way we do business. Whether or not you are implementing AI tools or completely transforming your business's processes, you must have a solid success strategy. While the rapid pace of implementation and change in the AI space poses legitimate concerns, people also have significant optimism about its potential to foster innovation and drive positive value. Implementing an annual objective and key results (OKR) framework ensures businesses remain agile and forward-thinking, aligning teams with clear and measurable goals to capitalize on AI’s transformative opportunities. Companies should set appropriate benchmarks and receive guidance from expert strategists, who can provide workshops and brainstorming sessions to build a roadmap for the best results.