How to Launch a Successful Digital Transformation [Checklist]

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Through the introduction of high-tech digital innovations, Industry 4.0 unveiled a new business landscape full of opportunity. Technologies like robotic process automation, AI, IoT, blockchain, AR/VR, automation, and additive manufacturing all have the power to improve business processes as well as the potential for a high ROI.

94% of companies that digitized their supply chain practices reported that their digitization endeavors contributed to increased revenue, according to a recent study from Capgemini focused specifically on introducing and scaling digital technologies in the supply chain.

However, in spite of the potential for success, many companies have struggled to fully integrate and scale digital technologies and processes into their own practices. According to Capgemini, 86% of the surveyed companies were stuck in either the planning or pilot stages of digital initiatives.

One of the primary obstacles of launching transformative digitization initiatives is a lack of clear strategy and prioritization. Without developing an implementation roadmap, companies risk burning their digitization efforts before they have a chance to get off the ground. 

Every company is different, so, unfortunately, there is no one-size-fits-all solution to digitization. However, there are steps all companies can take to guide their digitization projects from concept to completion.

Digitization Project Strategy Checklist

1. Consider How Potential Technologies Would Align with Your Business Objectives

First, identify your digital business objectives, align those objectives with your company’s current situation, and determine how digital technology can get you from point A to point B.

At its core, your digital strategy should be a microcosm of your general business strategy, reflecting your company’s overall values and goals. Whatever technologies you choose to adopt should deliver impactful and tangible value to you and your customers. Avoid implementing technologies just for the sake of doing so.

As with any business strategy, you should also assess the future direction of your industry when considering your digitization options. 

2. Engage Your Team and Stakeholders

Once you’ve determined your starting point and end goals, it’s time to get all departments on the same page; everyone from management and IT to accounting and marketing needs to understand why and how implementing digital transformation will improve functionality across the business.

During the engagement process, make sure it’s a reciprocal conversation rather than a one-sided announcement. Think of your employees and stakeholders as a reservoir of information and ideas — they can provide specific feedback and criticisms that will refine strategy objectives.

3. Analyze Your Current Technology to Identify Future Technologies

Understanding the full depth of current processes can be a useful tool in identifying areas that need improvement. Begin by gathering and analyzing all available company data (financial reports, production rates, etc.). Use the feedback you received from employees and stakeholders in your analysis of these documents to provide context.

Once you have a clear picture of your current state of digital technology usage, leverage the 6 Ds of digital disruption as a framework to better understand how effective your current technologies are for production requirements and how they can be improved by the introduction of new technologies.

The 6 Ds of digital disruption address specific ways in which digitization impacts both market and business practices. Using the concepts of digitization, deception, disruption, demonetization, dematerialization, and democratization will be better equip you to identify the most beneficial digital technologies for your business.

4. Prioritize and Plan Your Digital Goals

When developing a formalized digitalization strategy, balance thinking ahead while staying mindful of the present. 

Digital transformation is a large investment involving expensive equipment upgrades and employee training, so you want to make sure you're setting it up to be scalable and ready to handle any technology or business changes in the future.

To determine digital priorities, develop specific guidelines shaped by goals, trends, financials, and the changing business ecosystem. You will also need to develop metrics to track whether the new digital technology is yielding successful results after implementation. Your success metrics should reflect what long- and short-term success looks like and account for how and when each specific technology will demonstrate its practicality. Some technologies take a longer period of time for a significant payoff, while others will show results immediately.

Your guidelines should also include recovery and contingency plans in the event that digital technologies become a failed investment. When your business finally reaches the launching point for digital projects, refer to these guidelines to identify next steps.

5. Think Big, Start Small, Scale Fast

With a formalized strategy in place, it's time for implementation. While it may be tempting to hit the ground running and accomplish many goals at once, it’s important to introduce digital technologies in phases.

To avoid spreading your efforts too thin or risk losing focus on the digital transformation process, limit the scope to launching either one technology at a time or multiple technologies that are integral to one another; doing so will enable you to maintain a sharp focus on each execution. To the same degree, you should also work at a pace that prevents the process from stagnating. Once you’ve successfully launched one digital technology and are starting to actively use it, it’s time to start focusing on the next steps that have been dictated by your technology priorities.

Moving Forward with Intelligence

Digital technologies have taken the world by storm, providing solutions to processes and operations across all industries. As powerful as these technologies are, they’re only advantageous if they’re integrated into your business properly.

With so many companies struggling to pass the planning or pilot stages of digital transformation, having a multi-step, strategic plan can provide you the ultimate competitive edge. 

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