COVID-19 has accelerated digital transformation across companies of all sizes and industries. In fact, a recent DBS Digital Readiness Survey found that one in two corporates in India have a digital transformation strategy in place. However, a Forrester Consulting study commissioned by Dell Technologies found that more than 55% of companies, including respondents from India, are struggling to meet their digital transformation goals.
The fact is that digital transformation isn’t just about implementing new technology – rather, it’s about enabling fundamental, large-scale change across the organisation. And that can be challenging. One of our customers, a high-tech manufacturer of software and hardware solutions for the construction industry, had a digital transformation strategy in place to change their revenue model to a recurring revenue one. However, their CFO needed help operationalising this strategy on the ground.
Why do organisations find it hard to turn strategy into execution? Because many of them adopt a siloed or project-based approach to transformation. This approach fragments their business processes, data, and experiences, ultimately driving up costs, and forcing the project to be abandoned.
An enterprise approach, by contrast, looks at transformation holistically, connecting different parts of the business to deliver a cohesive and differentiated customer experience. At Salesforce, we use the mantra, “Think Big, Start Small, Move Fast”, coined by Brett Colbert, VP of Enterprise Architecture. Our Illuminate approach is a pragmatic seven-step approach that builds on this mantra to help create digital transformation blueprints.
To understand how Illuminate works, let’s go back to the example of the high-tech manufacturer who wanted to pivot to a recurring revenue model, We leveraged Illuminate to show the company’s CFO and his team that their digital transformation couldn’t just be about creating new product SKUs, or setting up a subscription and billing process – it had to be broader than that.
The shift to a subscription model needed to be preceded by a shift in the organisation’s mindset – from product-centricity to customer-centricity. That meant building new capabilities such as renewals management, customer success, and customer health monitoring. Also, all of these capabilities had to be connected to deliver a seamless, differentiated customer experience.
Using deliverables one and two from the Illuminate framework, we identified the end-to-end business capabilities needed for the company’s transformation.
Once these capabilities were identified, we conducted a capability gap analysis from three perspectives:
The next step was to prioritise the gaps identified. We evaluated each business capability against three factors:
With this, we created a blueprint for transformation that could be executed effectively (see illustration below). The organisation is currently implementing the blueprint, and is well on track towards achieving the desired recurring revenue targets.
Some key points to consider when creating a blueprint for change are:
The key takeaway is that any change or transformation needs to have an enterprise approach. Various business functions must be unified in a cohesive manner to deliver exceptional customer experiences. Salesforce’s Illuminate framework, built on key enterprise architecture principles, enables this kind of enterprise thinking in a structured, yet agile method.