Key Success Factors for Digital Transformation
Digital Disruption and Digital Transformation are changing markets and businesses like never before. Currently, the discussion about digitalization and digital innovation is entering a new phase. How can companies become winners of digitalization? How can digital transformation be successfully managed within a company? In this article you will learn about three key success factors for managing digital transformation.
Key Success Factor 1: Managing the innovation paradox
Digital winners manage a paradox. The operational business requires different structures than the development of new ones. Stability and agility, rigid and flat hierarchies, fixed and flexible structures – for digital winners this is not a contradiction at all. They have internalized the principle of two-handed organizations described in science as ambidextry. The traditional organizational chart on the one hand, a network structure on the other. Two different – so-called “parallel” – structures in a single company.
The Innolytics software helps companies to build this second structure: A network organization with which the swarm intelligence of employees can be used in the best possible way.
Key Success Factor 2: Building a culture of innovation in all business areas
If there is no organization that supports him or her, those responsible for digitalization will be standing on the losing end. Digital change affects all areas of the company: Strategy and innovation as well as marketing, production, HR and finance.
Digital winners are building structures in all areas to support change. New forms of collaboration and cross-functional teamwork are emerging. This is supported by a digital innovation culture, which is characterized by a visionary innovation strategy, an innovation-promoting value system and proactivity.
The greatest results are achieved by companies that promote different forms of their innovation culture: An innovation culture of continuous improvement and optimization as well as an innovation culture that promotes disruptive innovation and the establishment of digital business models.
Key Success Factor 3: Increase implementation speed daily
Over the next ten years, the pace of change will increase dramatically once again. Technologies such as artificial intelligence and blockchain will redefine existing business models and markets from scratch. Data-based digital business models will increasingly complement or replace analog business models. Digital winners develop structures that make rapid change possible: Rapid development of new ideas for digital processes and digital business models, rapid implementation and testing, rapid termination of projects in the case of failure. Speed is a decisive factor that gives digital winners a competitive lead in the market.
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Digital innovation is required in all areas of an organization. Digital winners continuously develop concepts for new digital processes and offers in all departments and across departments. Innolytics® Software supports companies in this process of change: collecting, discussing and evaluating digital technologies, analyzing trends, developing ideas for digital processes and business models. Innolytics® supports you in successfully exploiting your key success factors for digitalization.