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Errors in digital transformation that cost you money

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Errors in digital transformation that cost you money

Until today, some company leaders did not grasp the importance of the digital transformation of the company. They had not realized the urgency of this transition and did not understand that this put their own survival at risk. In each discussion the excuse was recurrent: “Later we will have the time and resources to address these issues.” That lost time is what is now charging them a bill. What is going through their heads? They must Honduras Phone Number List  be suffering a lot to see that what they put off for so long could be their main lifeline today. “Nothing is going to happen,” they said a couple of months ago. “We are a solid organization,” they argued. Well, that optimism hit a wall and now everyone is in a hurry.

The current pandemic caused by COVID-19 has been a strong wake-up call for those who saw digital as a useless cost or as a project for the next generations. And it is not that that makes us happy. On the contrary, this blow of reality worries us. Because we belong to that same ecosystem and the poor preparation of some will end up impacting us all. It is time to digitize, to be able to survive The first conclusion – for businesses – about the moment we live in is very clear: if we want to remain competitive we must allow our value proposition, products or services and brand to be touched and transformed by digital in order to continue operating, otherwise we will collapse. Yes, the one we live in is a temporary situation —or that is what we hope—, but we must learn from it for future planning.

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As a society, we cannot afford to be left out of digitization. Doing so would reduce our competitiveness and condemn us. From now on, companies must put digital at the center of their objectives. But not only those who are at zero in this regard, EVERYONE! Including professionals from different areas of knowledge. The whole world must take ownership of digital. Nobody can turn a blind eye on this matter. We have to embark on this purpose in order to maintain the way of life that we chose centuries ago. There is no other way, there are no alternatives; digital is the stage today and it is the best route to face what is coming.

Mark Raskino – a recognized leader, vice president of the British firm Gartner – spoke at length about the transformation in the book he wrote with Graham Waller called Digital to the Core: Remastering Leadership for Your Industry, Your Enterprise, and Yourself”Digital at the Center: Remastering Leadership for Your Industry, Your  Forex Email List, and Yourself.” In that excellent paper, published in 2016, the authors addressed how important it is to take the digital revolution seriously. In addition, they presented the digital macro forces that impact markets and affirmed that digitally transforming a business means adapting the government, management and execution of tasks to the new digital reality of the planet. So there is the challenge. Fortunately, we are not alone in it. There is a lot of information available to deal with it.

The 10 mistakes you should avoid in the digital transformation of the company
If you have followed us closely in recent years, you will have noticed that we are advocates and promoters of digital transformation processes. Our mission is to be a support for organizations that launch themselves into the digital world, and we do it for profit – we have to live on something – but also with the firm intention of providing knowledge and experience for competitiveness. That is exactly what we are looking for with this article, to deliver content that increases the chances of success of the digital transformation.

Living a digital transformation process is a lot like creating a company. It’s almost like starting a business from scratch, because digital impacts everything. Therefore, leaders must commit to the process and thus be able to achieve the objective. Next, we share ten mistakes that you should avoid in the digital transformation of your company:

1. Walking aimlessly or never walking Launching into digital transformation without a clear plan could be costly. The same would happen if you spent an eternity planning, without launching into action. If the objectives and the work schedule are not clear, the digital transformation will be a messy and inefficient process. That is the first of the chaotic scenarios. Organizations need to know what they are looking for before they start looking for it. Understanding this is critical, because it will better distribute resources, establish a logical workflow, and intelligently assign responsibilities. But the matter does not end with the development of the plan, it is also necessary that each collaborator understand it and measure its importance. Digital transformation is a complex process that challenges companies and their collaborators, therefore we must prepare to face it.

Now, as we said, you shouldn’t overreact in this regard either. And that would be the second chaotic scenario, because becoming a digital company is more about doing than planning. Contradictory? Yes, a bit, but that’s the point. Not so much that it burns the saint nor so little that it does not illuminate him. That should be clear to us from the beginning. Leaders must avoid making the mistake of immersing themselves in endless days of debate. Think fast and act immediately! That is the slogan, which is very similar to the Lean Startup method – a model of thinking that pushes us to experimentation, action and adaptation.

2. Drain the package
Digital transformation is the responsibility of the entire organization. Especially from managers. From the person in the highest position to the night watchman must be involved in the process. No one can drain the bundle. In recent years, business circles have talked about the importance of leaders for businesses to excel in today’s markets – a statement we subscribe to. Well, for your information, leaders don’t just order and supervise; leaders are good at engaging with transformation processes. This, then, is a wake-up call for those managers who limit themselves to giving instructions. This is not how the desired digital transformation will be achieved! To achieve the goal, they have to actively participate in the process and make it a priority challenge. Now is the time for them to take responsibility and lead the transformation from within. Get off the box and get into the ring.

3. That does not affect me
A couple of weeks ago we shared one of the articles on this blog on Twitter. In particular, the one that suggests that all companies are obliged to take the step towards electronic commerce . A few seconds after issuing the tweet, a follower confronted us saying that what we were saying did not apply to him, because his business was a parking lot. Surprise! Taxi drivers believed that they would not be affected by the digital world either and look at the mess that was made with Uber and the other platforms for passenger transport. Getting the one with the glasses is another common mistake. Closing yourself out of change, because apparently it doesn’t impact you, is extremely dangerous. Entrepreneurs have to challenge their brain. Entrepreneurs have to think about how their value proposition can be transformed with the incorporation of digital tools and processes. That is the challenge.
4. Look at my belly button
Sitting down to observe your surroundings is not a brilliant idea either. Too often, organizations focus excessively on themselves and what they want to do, instead of analyzing customer needs, present opportunities and the competitive market situation to seek examples and learnings for their digital transformation. The route they take is simple: let’s look at what the neighbor or direct competitor does in order to “get inspired.” And, immediately afterwards, they reply. That tactic is not bad, but it has little creativity and innovation. Focusing on what’s going on around me — looking only at my business category, my competitors, and my geographic environment — is neither sneaky nor educational. Navel gazing is a weak starting point for embarking on a digital transformation. Companies that take the issue seriously analyze other industries, other markets, other countries. The more diverse the approach to the problem, the better.

5. Quick!
Trying to impose record time on digital transformation is not an appropriate goal. This is not as simple as installing new software on your computer or opening an account on a platform to have video conferences. Moving a company to digital is not something that can be accomplished in a day or a few months. In fact, it’s a lifelong project — considering the rate at which technology evolves. Organizations must be savvy and approach change incrementally to protect their resources and ensure their stability. Revolutionizing everything at once is costly and clumsy. Be patient! Assume the transformation process in stages. Subdivide all your work into small projects, then gradually add components. That is the only way to get ahead. Always remember that each technology adopted will impact your company in some way and that impact could derail your operational structure in no time.

6. And the collaborators?
eye! Digital transformation encompasses everything. You cannot change a product or service without changing your production processes. In the same way, the company cannot be changed if the mentality is not changed and the skills of the collaborators are developed. It is very common to see a business fail that has invested a lot in technology, but little in its equipment. Digital transformation is a task that brings together many work fronts, and a very important one is the development of employees and the socialization of action plans. Companies and their leaders need to understand this once and for all: digital transformation is more of a human challenge than a machine one. If it is not approached that way, it will fail.

7. Let’s buy gadgets
Do you treat digital transformation as a purely technological project? Do you focus your discussions on providers and tools? There is the problem. Organizations that embark on digital transformation, but treat it solely as an IT project – information technology – are manufacturing their way to failure. Don’t get us wrong, we are not suggesting that IT teams are not a critical actor in the process. They are! What we want to emphasize is that there are other areas that are important to the process. Don’t focus on gadgets, suppliers, and tools! Transforming to digital has more to do with a paradigm shift than with the purchase of equipment and platforms.

8. Let’s check everything except that
Nothing can be untouchable. The transformation to digital forces us to review everything, otherwise, the change will not be completed.

Business leaders have to be willing to make tough decisions during the digital transformation process. The adoption of new technologies will force them to make some painful decisions — changes in employees, in processes or in the portfolio of products or services. Nothing can be exempt from this meticulous review. In a process of digital transformation, everything is questionable. Believing that something should be left out will leave loose ends that will later come to light and cause problems. The mentality of “this is how we have always done it and it has worked, there is no reason to change it” must disappear from the organization. That was the way of thinking that buried Blockbuster and Kodak.

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9. I don’t have time to look at numbers
Not listening to the data and feedback that is obtained during the digital transformation is unacceptable. The great advantage of the digital world over analog is the possibility it offers to have real-time metrics for decision-making. Why ignore them?

Taking steps in digital ownership without calculating impact and adjusting actions is foolish. Leaders don’t have to be comfortable with a simple hunch. They should take each one and look for answers in the data before making decisions. It makes no sense to continue being guided by hunches if you have the indicators at hand. Let’s use the tools to verify our suspicions and be more assertive in the paths we take. Companies that do not face digital transformation in this way reduce their chances of success. Data is valuable! Let’s put them in the equation!

10. We are done!
Digital transformation is not a destination, it is a journey — never ending, by the way. When you think you’re reaching your goal, think about this: the digital revolution started in the mid-1940s — 80 years ago — and it’s still going on. What makes you think that your process is over?

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