Digital transformation – or called change in this note – is implicit in innovation, inspiration, and the future. Any digital change aims to reduce time to market and cut costs and time of operation. It is expected to improve solution quality when more data is recorded and tracked. More important, in the research of Didier Bonnet and George Westerman: “those that are more mature outperform those that are not. I like the idea of a thriving business culture as more people think of change as their normal way of doing jobs. Whatever the active drive for change sounds a better idea than a passive one, isn’t it? In this note, I will number some main reasons for digital changes so far.
There are lots of drives for organisational digital changes. They might happen at all levels, from the strategic level to the tactical one that affects the structure or function. Based on my own experience and research, I will divide them into 2 groups.
Internal factors
At the strategic level, leadership change often leads to a massive change in an organisation. They include modification of business structure, business processes, and working methods. They are often consequences of:
- Strategic changes: Merge and acquisition (M&A) or disposal of business unit/ section or strategic partnership collaboration
- Structural changes such as organisation hierarchy
- People or Management/ leadership changes
- Process changes. Frequently happening at the department level, changes can come from a new product line, or process enhancement that requires an adjustment of the operation process and job function of relevant teams/departments. Adopting a new platform (SaaS) also leads to department-level changes.
External factors
Unlike the internal drives which come from management’s demands and strategic choices, external one can come from:
- Market development: customer demands and changing behaviours/tastes in the domestic market and supply chain of input in the area and global scale. The invention of the electric car and global warming awareness has caused a change in the tastes of buyers as more people prefer hybrid products.
- Technological advancement has become mainstream drive for digital in the last two decades. For instance, the advance of smart devices has changed consumers’ shopping behaviors as more people use mobile phones and mobile browsers to search and buy than desktops. Consequently, the enterprise had to change its marketing strategy, channels, and behaviors to meet customer demands. In particular, Covid has accelerated the digital transformation in almost every size of business.
- Government interventions. For instance, the transition of the prime minister in the UK so far causes systematic changes in taxes and policies during stagflation. They affect every business operation, sales, and financial management.
As I say, there are lots of drives for a digital change, depending on each business unit and sector. This note is just my accumulation and is based on sectors I have worked for and my observation. You can add more drives and reasons for changes with comments, please.
Norwich – Oct, 2022
Kate N.
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Source: CMI event: Change Management: Core principles to drive transformation https://www.youtube.com/watch?v=dCdx8SohaUw&t=568s
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