Gartner: barriers to digital transformation

Gartner has identified six obstacles that CIOs must overcome to transform their organization into a digital business and, most importantly, they are lack of talent and resistance to a new digital culture.

As businesses continue to embrace digital transformation, they are finding that digital business is not as easy as buying the latest technology, but requires significant changes to culture and systems. A recent survey by Gartner found that only a small number of organizations were able to successfully complete their digital initiatives going beyond the testing and piloting phases.

“The reality is that the digital business requires different skills, work practices, organizational models and even cultures,” said Marcus Blosch, vice president of Gartner. “To transform an organization designed for a structured, orderly and process-oriented world into one designed for ecosystems, adaptation, learning and experimentation are difficult. Some organizations will be able to navigate in this change, while those that can’t change will become obsolete and will be replaced.

Gartner has identified six obstacles that CIOs must overcome to transform their organization into a digital enterprise.

1 – A culture that resists change

Digital innovation can only succeed in a culture of collaboration. People need to be able to work across borders and explore new ideas. In fact, most organizations are locked in a culture of silos and hierarchies that resist change.

“The challenge is that many organisations have developed a culture of hierarchy and clear and unambiguous boundaries between areas of responsibility. Digital innovation, on the other hand, requires the opposite: inter-functional, self-managed collaborative teams that are not afraid of uncertain outcomes.

CIOs aiming to create a digital culture should start small, defining a digital mentality, assembling a digital innovation team and protecting it from the rest of the organisation to enable the development of the new culture. Links between digital innovation and core teams can then be used to scale new ideas and spread the new culture.

2 – Limited sharing and collaboration

The lack of willingness to share and collaborate is a challenge not only at the level of the ecosystem but also within the organization. Issues of ownership and control of processes, information and systems make people reluctant to share their knowledge.

Digital innovation with its cross-functional collaborative teams is often very different from that to which employees are accustomed with regard to functions and hierarchies. “It is not necessary to have everyone on board at an early stage. Instead, try to find areas where interests overlap, create a starting point, test the idea and use a success story to get the momentum for the next step,” Blosch continues.

3 – Business isn’t ready

Many business leaders are convinced of the need to move into a digital business. But when the IOC wants to start the transformation process, it turns out that the company does not have the necessary skills or resources.

“IOCs should take care of the digital readiness of the organization to gain an understanding of both business and IT readiness,” Blosch said. “So, focus on early adopters with a willingness and openness to change, while keeping in mind that digital may not be relevant to some parts of the organization.

4 – Lack of talents

Most organizations follow a traditional model organized into functions such as IT, sales, and supply chains and largely focused on operations. The switchover to digital can be slow in this type of environment. Digital innovation requires an organisation that takes a different approach.

People, processes and technology merge to create new business models and services. Employees need new skills focused on innovation, change and creativity along with new technologies such as artificial intelligence (AI) and the Internet of Things (IoT).

“There are two approaches to breaking this talent gap. In smaller or more innovative organizations, you can redefine people’s roles to include more skills and competences needed to support digital. In other organizations, using a bimodal approach can create a separate group to manage innovation with the required skills.”

5 – Current practices

Having the right talent is essential and having the right practices allows talent to function effectively. Very structured and slow traditional processes do not work for digital. There are no proven models to implement, but every organization must find the most suitable practices. “Some organizations can move to a product management approach for digital innovations because it allows for multiple iterations. Operational innovations can follow the usual approaches as long as the digital team is experienced enough to extend its reach and share the learned practices with the organization,” Blosch explained.

6 – Change isn’t easy

It is often technically demanding and expensive to do a digital job. Developing platforms, changing organizational structure, creating an ecosystem of partners – all this takes time, resources, and money. In the long term, businesses should develop the organisational skills that make change easier and faster. To do so, they should develop a platform-based strategy that supports continuous change and design principles and then innovate on that platform, allowing new services to draw on the platform and its core services.

Source: https://bit.ly/2wfOpDj                                                                                <p <p

 Translated by: Lubea News on Line

Reference: 2018 – 07 – 24

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