How to create digital business transformation for an SME?

Hi Vedran

This is a tough question.  I write from the perspective of my experience in financial services risk and regulation.  This suggests that there may not be a single answer to your question. 

One option is a top-down perspective that emphasises capabilities to enable the business to lead the transformation.   In the case of financial services, the digital transformation will include a fair amount of AI tools and the capabilities include adapting risk management and governance to support this.  See my paper “The Role of Risk Management in Supporting the Adoption of Artificial Intelligence in Financial Services” available from www.crescendo-erm.com under thought leadership.

There are, however, other options driven by specific business needs, which I call ‘data driven’, ‘enhancing customer journeys’, ‘IT-enabler’ and ‘digital non-transformation’.  See this post in my blog for further details.  These types of digital transformations are not mutually exclusive, but they are different. Equally, they are not substitutes for each other and the real challenge is prioritising between them. This will inevitably vary between businesses.

Interestingly, we are talking to an (mid-size) insurer about the possibility of a bottom-up approach, along the lines of the ‘data-driven’ type.  The intention is to generate a use of AI in the business with a view to establish credibility and support the investments needed.  I think this bottom up approach is even more important in an SME environment.  

Hi Vedran,

At first place an SME is too general. 

1. Industry, region, scale and exact company profile  are the first answers to define the case. 

2. Honest and deep analysis of the client`s needs  and growth opportunities. Once having a straight goal , your company will be much more exact to state to what extend and scope the digital transformation strategy will look like. For best result here i would suggest gathering the appropriate team members having the vision and most likely "feeling the goal" together with some external references from company`s representatives from other industries that already  have applied successfully DT.

3. Clearly outline the company needs and goals vs the current situation and based on the analysis in step 2.

4. Then get the working group to work and brainstorm on the exact steps of the DT plan.

5. Depending on the scale and complexity a professional digital transformation consultant may be onboarded as well. 

Hope that will help you. Whishing you good luck.

Mihail ,

Hi Vedran

I'd steer well away from the concept of a Digital Strategy and instead, consider simply Strategy. There are bound to be digital techniques that support the overall strategy but I've seen many organisations go round in circles trying to create a Digital Strategy.

We use the N2D Method to clearly determine the strategy. It's an algorithmic model that balances business objectives against "customer" needs, clearly highlighting the priorities for an organisation. This approach works for all types of organisations. It's worth a look.

Let me start with a promise: I will not try to sell you anything here. Forgive me if you had other expectations.

Then I'll ask you a question about your question: is this something you need for your own consulting firm, or something for your clients (to whom you offer, among other things, DT services)?

I know that often "the shoemaker walks barefoot" and you may genuinely need help with your own digital strategy - but more likely this is a teaser question, intended to trigger a debate, rather than get to a straight answer. Given your own description (excuse me for checking your profile, which nobody else bothered before rushing to answer), you obviously know the answer(s) to your own question much better than those who spoke so far. So - how would you answer the question?

And if (just in case) it's a genuine need for help, let me continue with the questions: How 'S' or how 'M' is the target SME (hypothetical or real)? The approach to DT would be very different for a single-owner business employing 100 consultants, and a firm of 12 equal partners with no employees. Size, incorporation model, ownership structure, please?

Finally, one more question: assuming it's your own company (I know, rule #1 in business is 'Don't assume!' ;)  - which current activities and tasks you believe should never be digitized?

Hi, 

I would use a practical, common sense approach - so start with basics. What does your SME really need? How will it profit from it? What is the goal and the benefits? How is the path to it.

Rushing into digital transformation without having the cores settled - you can test them using "Fix this next" methodology (a free evaluation worth $100) here - if you do not achieve the "order" status, maybe you need to address other vital needs first. 

Once that time is ready, the path to do it is to follow 3 aspects: ux, value and efficiency. Once these aspects are met, re-evaluate with intra-connectivity aspect, which will lead you to ultimate answer. Above all, try to keep it simle. If you need additional help, finish the above test and get in touch :)

Hi Vedran,

With the current situation in play and budgets and cost being a very sensitive issue we at TheCXpower approach the strategy in a four-phase manner, before investing in digital technology

• First, assess your business through the CX value lens(Optimization, Improvisation, Channelization and Innovation)
• Know your customers and segment them basis Customer Experience expectations {Persona Building}
• Know your Talent assess which part of your business talent requires an upgrade to the digitization you are proposing
• Design Led thinking of what impact it will have on either Customer satisfaction, cost, revenue, easy and simple to use etc.

I hope this answers your query if you need any support on Custome Experience Enhancement do contact us. regards Allwynn

Vedran,

I have assisted a range of US and international management consulting and consulting firms over the past three years to virtually develop their digital strategy and digitalize their service offerings.

We use this software (my company's) https://vimeo.com/423243072/c0db320dfe with the Digital Strategy template.

The consulting firms range from solopreneurs, through small boutiques, to those with several hundred personnel.

Two weeks ago, I virtually facilitated a UK consulting firm leadership and managers to assemble their digital go-to-market strategy over the prior two weeks (me in the US, they each in their UK home offices). They won their first project from a CEO yesterday. 

If you would like to learn more, I am happy to explain the details.

I hope that helps answer your question.

Regards,

Michael

We offer a simple set of tools that can help to set the strategy for digital transformation in a few short steps (you can workshop in a couple of days, or run an evidence-based programme in a few weeks. The tools are called The N2D Method.We can train you to use the tools in 2.5 hours and you will only pay when you use them. This would help you understand how to best serve the organisation and their customer, spot the biggest opportunities and dispassionately assess the variety of tools they could use. This means you can be certain the solutions are rooted in the needs of the people the organisations serves, not the most popular technology at the time. The tools also allow you to scenario plan for a variety of circumstances.

Let me know if I can give you more information.

Jess

Hi Vedran, 

When I raised a similar question because I wanted to have the opinion of experts/consultants, I wasn't ready to implement anything in my company.  You might find the key points they shared with me relevant for your case.

https://consulthon.com/challenge/380/what-are-the-main-pillars-of-digital-transformation

Back at that time, I had another 'burning platform'. However, with Covid environment, my main business goal is the transformation of my business. Part of it is also creating new products and services.

Konstantin advised me to evaluate the current digital infrastructure and to analyse return on investment. I have chosen odoo.com as the management software to run my company. 

Bruce shared his 5 pillars, but my company is facilities cleaning, so not all is relevant for me. However, it might be useful for you.

Marieta pointed me to read Christian's approach and I really liked to main sentences:

https://consulthon.com/challenge/366/what-is-a-good-methodology-for-digital-transformation

"Whatever you do, don't try everything at once. Pick 2 or 3 opportunities to focus your digital roadmap on."

"Technology is not the standalone solution, but combined with people on board and a people strategy will lead to a good digital transformation"

Hope that helps as a start. Do share your feedback when you start it.

Nick

Vedran,

Management consultants and consultants are using SchellingPoint to digitalize their professional services. https://schellingpoint.com 

I was working with a consulting firm in Europe this morning on just this subject. In some cases, SchellingPoint is part of a digital strategy. For others, it is the core of their digital strategy. 

In either case, digital means being able to deliver projects 100% virtual, use technology for quicker, easier, virtual, higher quality.

This two-minute video introduces the concept for consultants, and this three-minute video introduces the overall capability.

There are 60 case studies on the website in the Resources/Case Studies page, illustrating the breadth of clients and topics enjoying digital delivery.

If you would like to see a live case study in the technology, or discuss where this fits into a consultant's digital transformation strategy, please just let me know. 

Best regards,Michael

There are a number of pillars defined for Digital Transformation (DT). In the main, these are Customers | Competition | Data | Innovation | Value. Each of those pillars deals with the "what" aspect of DT - but not the "how".

DT is a mindset that needs internal advocates to work. It's no good simply deploying or migrating with a "hit and hope" strategy - individuals need to be invested in the overall plan. Many times I have hit issues where an individual is concerned that their role is in jeopardy with a strategy being devised to migrate their work tasks to a Cloud solution - and that is a major issues. So - aside from those 5 pillars - People is a massive part of a DT plan. A good way to gauge your readiness for DT is in understanding not only what you need - but also what is available in the Cloud, to satisfy that need.

In the very first instance, it is imperative that each person involved in a DT plan is aware of their role. That will require education. Education not only in their part to play - but what the strategy will bring, as benefits - optimization, automation, ease of use, ease of access, etc. All of these things are set to give a level of comfort to that individual - and not to alienate them - as a plan of DT is devised. So, rather than them being an antagonist or non-conformist - they become an advocate - or even a Power User.

Once you have the People on your side, the process of DT planning becomes much more of a project or program - than a hill to climb - the Process and Technologies. Ideas and innovations will come from all sides - and all of it is valid input to the plan. Frequently I hear "Oh - yeah - we could do that.... and that... and that, too..." - the people are invested!

I've read the other responses here - all are valid, in their own way. How you go about a DT plan is really down to the business you are in, the tools you use and the technologies that drive them. The rest is in the approach to those elements. More loosely defined, you could categorize them through a good, old standard used within the "RFP" process - Functional Requirements, Non-Functional Requirements, Security Requirements, Operational Requirements, Deployment or Migration Requirements and Commercial Requirements.

I've written a free introduction to DT around contact centers ("DTPS") over on SkillShare - but it works equally as well for any line of business - it could be 45 minutes of your day well spent:  [removed]