How technology transformation strategy sets you apart: Be Different, where It Truly Matters

Differentiation should enable you to simplify, accelerate and embrace growth – while creating value.

Have you ever reflected on the technology journey of your organization? Ever wondered why implementing technology transformation in your organization is such an uphill struggle? Do you sometimes ask yourself whether technology is an enabler or a hindrance?

If so, leverage this article as a catalyst to a systemic approach and encourage your organization to let go of the old processes and technology stack by adopting a new approach to delivering technology transformation. A company can, for example, perceive the complexity of IT transformation as somewhat bewildering.

The pursuit to be different can lead to organizational aversion when driving simplification and standardization. Business continuity reasons are often cited as a formidable barrier to technology transformation. Having said that, rest assured that technology transformation is doable!

If you are responsible within your organization for delivering transformation and are uncertain where to begin, but truly believe that technology transformation is the key enabler, read on.

Technology-enabled business transformation

Traditionally, organizations tend to retrofit their existing processes into new technological solutions. They tend to further complicate and customize their processes for the sake of being different, without fully understanding the essence of differentiation. This leads to extremely complex processes and customized solutions. These not only restrict the organization’s agility and ability to compete, but also increase technology debt and raise total cost of ownership. Whereas organizations that tend to better understand their value chain and enable differentiation while promoting agility, simplification, and standardization, lay the foundation to incremental and exponential growth.

1. Discover through a future back approach

First, understand and identify your desired target state capabilities leveraging future-back strategy with key stakeholders within your organization. Ensure that the as-is does not become a hurdle and restrict your vision for the future. Don’t restrain yourself to solve an immediate problem.

2. Define the hypothesis to arrive at a target technology architecture

The second step is crucial. After having identified the required target state capabilities, it is important to classify them into ‘Common’, ‘Differentiating’ and ‘Innovating’. This classification enables you to decide where to adopt and when to adapt. This also sets you up for success in defining relevant, tailored operating models and sourcing strategy. Then leverage a hypothesis-based approach to define the target technology architecture. Do not allow the existing landscape to limit your architecture choices. The outcome of this process? Capabilities and processes mapped to a recommended technology architecture.

3. Develop a roadmap and cost plan for the target technology landscape

Develop a roadmap to transition to your target technology architecture while considering your business priorities, existing investments, and future investment needs. Consider the need to minimize costs and business disruption while maximizing speed and value. In addition, develop an investment profile including the inevitable one-off costs and targeting recurring costs and potential stranded costs. The Capability map then looks like this:

Visualize the future and work back to what is core

So technology transformation is not as much about technology as it is about people and helping them to navigate around their ‘phobiaX: a fear of losing something’. As compared to the traditional approach of organizations retrofitting their existing processes into the new technology solutions, the new approach enables organizations to visualize their future and work back to what is really core to their business and where and why they should differentiate.

Organizations undergoing a complete IT transformation journey of the organization, department, function or region, can leverage this framework in a way to minimize noise around what is needed against what is wanted with a solid backing of the exact reasons for each choice in the form of a hypothesis.

Keep an open mind about the imperative of IT transformation

Technology Transformation without business disruption is achievable. Overcome your reluctance to make change happen, because it will not disrupt your business processes as much as you may think. Mitigating your mistrust of technological transformation is the next step in the growth and development of your company. So, keep an open mind about the imperative of IT transformation. Recognize that not all aspects of your business operations may be as unique as you think it may be. And that the time for change has come. Turn your fear factor into an empowering flagbearer and embark earlier upon a compelling technology transformation that will give you a sustainable competitive advantage. If technology-enabled business transformation is core to your agenda and if these challenges resonate with you, please reach out to us.