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Digital Transformation has to be led by business value, not technology

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Too many companies start the decision-making process with technology in mind.

Technology and digital has become so engrained in business functions and processes that it has actually become a stopping point for new business functionality and innovation. It’s a bold statement, we know.

The trouble is, a lot of businesses have a love/hate relationship with new technology and software. In some cases, it’s even seen as a necessary evil as new technology usually means expense, user training, and worst of all; change.

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People don’t like change.

It’s no secret that traditionally, people don’t like change. It’s understandable given that change usually means disruption and new ways of doing things.

The good news is that when it comes to digital transformation, technology isn’t the place to start. The bad news is that everyone starts with technology anyway.

Technology is the vehicle, not the destination

We’re not going to pretend that technology won’t play a part in digital transformation, digital relies on technology after all, but what we are saying is that technology isn’t the place to start and it’s not the destination.

When you go on holiday, you don’t determine where you’re going or how you get there based on the vehicle parked on the drive. Instead, you work out where you want to go and when, you plan the trip and finally, you plan how you’re going to get there. In digital transformation, technology is the vehicle.

What’s the destination?

If we can agree that technology is the vehicle for digital transformation and digital transformation itself is the idea, then what’s the destination?

To some extent, this is going to depend on your individual business but the destination is the business value i.e. what are the benefits and value that digital transformation brings to your company.

The easy answer is: when broken down, digital transformation can be remarkably simple yet powerful. Starting small with inefficient business processes, building support and buy-in and educating the company on digital transformation can guide you to a successful automation program that doesn’t involve paper.

Further to this, some of the benefits of digitising the back office include:

  • Flexible working
  • Mobility
  • More efficient processes
  • More efficient use of space

If these are all things that your business strives to do, then you have your business value and this is where you start.

Your goal is to digitalise paper processes to gain the aforementioned benefits (these might change based on your company motives and values). How? With the use of technology.

Suddenly, technology isn’t a reason for doing or not doing it, it’s simply a way to achieve the goals and get the business value you set out for.

Going back to our earlier metaphor, not everyone likes flying but if it’s the easiest way to get there, then you’re not going to it stop you from going on holiday. I.e. If the business value is strong enough, technology should not stop it from becoming a reality.

Where to get started with digital transformation

When considering what to digitise and which paper processes are the least efficient, it’s important to think about the business goals and what will provide real value.

Don’t make the mistake of only digitising the customer facing processes, far more benefits can come from digitising the back office processes and can help with the process of digitising customer facing processes.

When making a business case for digital transformation, make sure the benefits and business value is clearly stated.

Contact Xenith and find out where you can start with digital transformation