Tag Archives: strategy planning

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Key Success Factors in Digital Transformation

Category:EA,Services Tags : 

Based on a conversation this week where the topic of digital transformation was discussed, we synthesized the following:

Many talk about ‘digital transformation’; fewer agree on what it means and doesn’t mean; and too few succeed in doing it!

Using the term as defined in our recent post, then digital transformation represents the change to a different business model where the future business achieves a different market position with (maybe radical) different services, offerings, delivery methods, locations and meet-up. Using this definition, a lot of organisations will today maybe work with digitization, but not the same as digital transformation. Companies that strategically seek to change the paradigm and business model are radically different than those companies which talk about digitizing some processes. To quote recent post,

 “Digital transformation is the strategy to execution toward a new business model which is based on a different paradigm, that it splits rather than fits the existing processes, and for that you need to map-out your future business model. Don’t start with your existing processes; start with your future operating business model!”

It becomes more evident that the discipline to succeed requires a top-down approach to define the target business model. Some may suggest that ‘digitization’ could be a step towards the ‘digital transformation’, however, if the digitization is based on fitting processes, and digital transformation is based on splitting processes, one will almost never lead to the other!  To succeed with digital transformation, there is at least a handful of key success factors to consider. Let’s discuss some of the important ones:

  1. Map-out your future business models. Digital transformation is about getting to the open-minded discussion of where we want to ‘move to’ in terms of future products, future services, future customers in order to innovate the business model. This has nothing to do with optimizing the existing business processes but is a pure forward-thinking exercise. As highlighted in the McKinsey Quarterly, organizations are embracing digital transformation to knock down traditional industry boundaries and disrupt conventional business models.
  2. Drive-out your business model for time and space. Digital transformation is also about exploiting digital advances and to couple digital technologies, then to use these advances and couplings to optimize the business model to eliminate or optimize the value chain and customer experience in time and space. This may be barriers or man-power works today, it may be self-service or differently delivered in the future. We often say, that Michael Porter is still valid reading, just to be seen in the new digital context! Eg. if one can deliver an email rather than a physical paper envelope, it opens a lot of future services and delivery models.
  1. Plan with Scenarios. No-one has the full insight to the future, so to plan and make it realistic often involves scenario-based planning or risk considerations. As discussed in the recent post, the quote of Dwight D. Eisenhower is still valid, “In preparing for battle, I always found that plans are useless but planning is indispensable”. We always recommend the exercise of information management to provide risk-based or scenario-based planning, which is typically where tooling such as  MooD or similar digital transformation suites can help. Reason is, that for a company to survive coming 3 or 10 years, it is hard to argue that no considerations of external threats, new technologies, emergent legislation should be not be considered. May well be that the forecast is poor and the prediction ends up being wrong or displaced, but planning as the preparation and improving the agility of what to respond as an enterprise is indispensable.
  1. Make it business-led on a digital platform. If you want to make an impact, try to avoid too many barriers. Focus on the strategic change with focus on strategy-to-execution. This is most easily accomplished by enabling the strategy-to-execution with modern technology. With a core focus on the strategy implementation, it is possible provide actionable insights. This may or may-not be solved with agile approaches, which is another topic.
  1. Be first in the game. Unless protected by borders or regulation, the front-runner is most often the winner. The only constant is the change – and as highlighted in the McKinsey Quarterly article, organizations are embracing digital transformation to knock down traditional industry boundaries and disrupt conventional business models. In other words, the first ones to see the potential of the new business model are likely given a better chance to reach it.

If you look for advise how to start and implement a digital transformation initiative, please do not hesitate to contact us.

You may contact us for our solution, next-insight, to read more. We help to align long-term planning with short-term planning, which is an ongoing architectural process – and a digital process of information management. Long-live the digital planning. If you have questions, please make contact. We are a consulting house with senior profiles and business solutions; we provide deep expertise in digital planning, digital governance and process automation. We power your digital mood!


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Do you dare _not_ to invest in new EA?

Category:EA Tags : 

Key focus for next generation EA is transparency, portfolio planning and collaboration in the cloud. Previous generations of EA focused on either drawing capabilities or solution architecture with lots of modelling in “thick clients”. The new generation of EA has a business audience, who needs a platform that is an intuitive cloud based web-portal, managing an eco-system of data-sources and much interaction with your colleagues. This is what helps you to create success with your IT strategy, business processes and portfolio management!

A next generation EA with proper advice and implementation will drive-up maturity of governance and process optimisation of your company. It offers collaboration to build a unified view of the business; it is a living architecture with portfolio updates so that data is fresh and updated; it is managed by people in your organisation. This is a giant leap to get factual insights to make better decisions.

Next Insight® is our digital cloud-offering of a market-leading next generation management solution to master strategy execution and Enterprise Architecture (EA). Connectivity is key! You get the digital automation that offers adaptors to e.g. ServiceNow CMDB, ARIS, MEGA toolsets. This enables a user-friendly full-stack transparency between technology and business, between planning and operations, between architecture and sourcing.

This helps companies to make scenarios and strategic planning to do value forecasting. It allows us to interview and assess your stakeholders and business executives to interpret what the strategy formulation means in terms of business priorities and execution – shared and communicated to the organisation – updated and enriched back to the stake holders.

With our approach you will learn how to create rapid results to align processes and data to build up information layers and a digital model of your business that supports learning and performance monitoring.  we offer you overview, analysis and management perspectives on portfolios such as

-Your business processes

-Your compliance, risk, GDPR

-Your applications and systems

-Your products and services

-Your technologies (servers etc.) with ServiceNow Adaptor

-Your investments (projects, demands, etc.)

-Your governance (decision boards, members, etc.)

Next Insight® is the market leading cloud offering with an agile thinking behind. We are in the business of digitalisation and digital transformation – offering the obvious choice to any large organisation that needs to succeed with strategy execution and transformation.

The true value of such a management system is the ability to manage large amount of data, using rapid results and prebuild adaptors to AD, Finance, ServiceNow CMDB etc. This approach offers you a digital model, by Gartner referred to as the digital twin of how the organisation behaves compared to real data.

Our next-generation platform offers you the planning option to compare model data and real-world data. As build on proven and leading technologies and methodology, some refer to this as enterprise intelligence – something that is more interactive and cloud-enabled than classical approaches, and something that helps you to get processes and master data in control.

You may contact us for our solution, next-insight, to read more. We help to align long-term planning with short-term planning, which is an ongoing architectural process – and a digital process of information management. Long-live the digital planning. If you have questions, please make contact. We are a consulting house with senior profiles and business solutions; we provide deep expertise in digital planning, digital governance and process automation. We power your digital mood!


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Digital Transformation – The Cultural shift is paramount

Category:Uncategorized Tags : 

Last month we met with CIO’s and EA’s to discuss the most important elements of succeeding with Digital Transformation. The first thing we discussed was the definition of a ‘digital transformation’ – to discuss and facilitate the discussion of how to differentiate it from ‘digitalization’. In essence, the following focuses on the transformation, not to mix up the two terms.

As ‘digital transformation’ at the heart it is about data and enabling a new business model, it is also about establishing a new culture. If ‘digital’ loosely means data, and ‘transformation’ means changing shape; then ‘digital transformation’ is about transforming the shape of the business model to use data smarter, i.e. it is about moving the organisation to a new paradigm where existing processes are ‘split’ rather than fitted and optimized to become data-driven.

This also brings us to the main take-away. We can enable a digital transformation faster with proper technology and roadmaps, but at the heart, it is about people and changing culture. To succeed with the transformation, time and space should be challenged, which will impact the culture in different ways  – and it will challenge managers in todays business operations.

This brought us to the second observation, if people are not freed-up to work with the new shapes, they typically drown in day-to-day activities focusing more on lean and continuous improvement. This is why many organisations decide to move transforming development to new sites or do acquisitions, as it seems too hard to change the prevalent culture.  

It brings to the surface the dialog of Schein versus Porter – is it the culture or the strategy that drives the change – What drives what? They main take-away seems to be that the culture shift is paramount to the change, if not, the transformation effort may dilute. If we want to change the culture, we need to consider how this should be ignited, proven and collectively accepted. Hence, the organization may have to challenge itself to step outside the comfort zone and challenge the type of earnings and offerings. A research by Warren Ritchie indicates, that innovation does not take-off by size of the company. On the contrary, most innovation comes from either smaller or very large corporations as they both manage the working culture with slack and innovation focus. But be aware, most large corporations may tell you they have an innovation culture, but they may mix-up the words of a culture of continuous improvement versus that of transforming the paradigm!

To example this, e.g. Spotify and other music streaming services decided not to invent a larger CD; and likewise, Philips who introduced the CD did get royalties from the former music cassette – they both changed the way services could be delivered – challenging the media, space and time. Is it likely that the organisation and culture of Spotify is different from that of the labs building hardware devices in the 90’s? – absolutely.

In a nutshell, different shapes of the business model, offering different services by use of new technology, time and space is the driver of the digital transformation. This will not circumvent continuous improvement of the existing processes of today’s operations, but it is not the same approach and success factors, see post. To succeed with a larger change, the shift of culture is paramount, needs to be addressed, but proper technology and approach may accelerate the pace in which your organisation can succeed. 

We can help you to plan the change, and may with our digital transformation suite accelerate the pace.

We power your digital MooD.