3 principles of digital transformation strategy
Posted: Sun Jan 19, 2025 6:24 am
Let's look at 3 key principles of digital transformation strategy, compliance with which will allow a company to get the maximum benefit from the transformation process.
A specific goal that can be measured
Digital transformation requires a company to constantly analyze its current state. This allows identifying problems and opportunities. Based on the results of the analysis, management can focus on a specific area and develop a strategy for its modernization. Thus, digital transformation must be carried out within the framework of a specific goal.
Let's note one interesting shareholder data package study. According to Forbes, the ability to set clear goals is the most important skill that digital transformation (DT) leaders should develop. With its help, management can focus on one task and avoid chaos in the enterprise. Competent goal setting also allows you to evaluate the work done within the framework of digital transformation and link the process with key business performance indicators.
Principles of Digital Transformation Strategy
Let's look at the importance of this aspect using Procter & Gamble as an example. In 2012, the company set a goal to become the most digital company in the world. Bob McDonald was the CEO of P&G. He wanted to take the industry leader to the next level. But the goal was too broad. The company began to implement vague ideas. They did not bring the desired results.
After some time, P&G faced an economic crisis. Management had difficulty assessing and protecting the return on investment from the large-scale and expensive digital transformation efforts. A year later, the board of directors demanded that B. McDonald resign. Responsibility passed to A. G. Lafley. Many experts believe that if the company had not made some mistakes in the beginning, it would have been able to continue digital transformation even during the economic downturn. One of these mistakes was insufficient attention to goal setting.
Let’s look at another example. Amazon distinguished itself by setting a goal to introduce its Prime membership program. Jeff Bezos had a clear vision of what the ideal customer experience should look like. This helped achieve the goals. Many critics and some Amazon employees thought that unlimited two-day shipping for $79 was a bad idea, uneconomical, and dangerous to other projects and the company’s reputation. But the company had a clear goal, and the effort paid off. It provided customers with an extraordinary level of convenience in online shopping. This influenced the products that customers are willing to buy online. The result was the most successful membership program ever.
A specific goal that can be measured
Digital transformation requires a company to constantly analyze its current state. This allows identifying problems and opportunities. Based on the results of the analysis, management can focus on a specific area and develop a strategy for its modernization. Thus, digital transformation must be carried out within the framework of a specific goal.
Let's note one interesting shareholder data package study. According to Forbes, the ability to set clear goals is the most important skill that digital transformation (DT) leaders should develop. With its help, management can focus on one task and avoid chaos in the enterprise. Competent goal setting also allows you to evaluate the work done within the framework of digital transformation and link the process with key business performance indicators.
Principles of Digital Transformation Strategy
Let's look at the importance of this aspect using Procter & Gamble as an example. In 2012, the company set a goal to become the most digital company in the world. Bob McDonald was the CEO of P&G. He wanted to take the industry leader to the next level. But the goal was too broad. The company began to implement vague ideas. They did not bring the desired results.
After some time, P&G faced an economic crisis. Management had difficulty assessing and protecting the return on investment from the large-scale and expensive digital transformation efforts. A year later, the board of directors demanded that B. McDonald resign. Responsibility passed to A. G. Lafley. Many experts believe that if the company had not made some mistakes in the beginning, it would have been able to continue digital transformation even during the economic downturn. One of these mistakes was insufficient attention to goal setting.
Let’s look at another example. Amazon distinguished itself by setting a goal to introduce its Prime membership program. Jeff Bezos had a clear vision of what the ideal customer experience should look like. This helped achieve the goals. Many critics and some Amazon employees thought that unlimited two-day shipping for $79 was a bad idea, uneconomical, and dangerous to other projects and the company’s reputation. But the company had a clear goal, and the effort paid off. It provided customers with an extraordinary level of convenience in online shopping. This influenced the products that customers are willing to buy online. The result was the most successful membership program ever.