Digital transformation: Is doing it fast and doing a lot good?

What is digital transformation?

Online learning during social distancing. Photo: My Ha

Choosing what to transform first can be done in the following order: What is mandatory and what you do not regret when transforming should be done first. For example, what is mandatory is online learning during social distancing, what is not regret is the most difficult thing for the organization that has not been solved yet.

Next is what is more effective in the digital environment, for example, state agencies choose digital transformation in providing online public services first.

And then, what comes to the digital environment can create new services and values, for example, e-commerce trading floors not only sell banana bunches like before, but can also pre-sell banana trees in farmers' gardens by attaching IoT sensors, allowing buyers to choose trees from when they are young, monitor the care process, and harvest the fruit.

In other words, when choosing what to do first, choose what is the most difficult, or the biggest "pain", the long-standing problem, also known as the millennium problem, or the hottest problem, the one that people are most concerned about, then bring it up to see if digital technology can solve it.

First, is it okay to conduct small-scale trials?

Some businesses choose to digitally transform by conducting small-scale, short-term experiments first, in a bottom-up manner. Successful experiments can help confirm new ideas, discover future trends, and change perceptions.

However, doing a lot of experiments without strategy and direction will create the illusion of short-term success without creating lasting change. Ideas that bloom, test on a small scale, but are not implemented on a large scale will waste time and resources.

First, can digital technology be used to reduce costs?

Increasing productivity and reducing costs should be the goals of every organization and business. But if you only aim for that goal, it means accepting that technology will not fundamentally change your organization and business. For example, if you accept that, traditional taxi companies should continue to operate as before and will not be affected much by platform providers like Grab or Uber. However, the reality is not like that.

Fast and more is good?

Doing things quickly and doing a lot does not mean being effective. Digital transformation leaders need a cool head to calmly find out the organization's difficulties, understand the operating/business model, the context as well as the psychology of people/customers when considering implementing digital transformation.

Digital transformation can start small, but the guiding mindset must be one of holistic and comprehensive innovation.

PV