Australian organisations that approach business change as a “shape-shift” within a greater strategy, rather than a company overhaul, are poised for greater success in digital transformation, according to Microsoft.
Microsoft says new research it has just published - 'Embracing digital transformation: Experiences from Australian organisations’ - found that, while there was no “right approach” to the digital transformation journey, most organisations were opting for a “test and learn” approach involving discrete projects and experiments, rather than business-wide structured programs.
And, according to Microsoft, these smaller shifts allowed for fast iteration, encouraged buy-in from the rest of the business and reflected the pace of change in digital technologies.
Microsoft Australia’s Managing Director Pip Marlow says the research showed that leading organisations typically transformed the customer experience first, using data to win, grow and retain their customer base or better serve citizens - then moving on to other areas, including empowering employees, optimising operations and transforming products and operations.
{loadposition peter}The research also found digital transformation requires what Microsoft describes as a “pro-innovation corporate mindset” ahead of the right technology, and that successful transformation programs had buy-in across the business and were supported by strong leadership, an entrepreneurial culture and a pipeline to digital skills.
Organisations fell into two groups based on the extent to which they exhibited these traits, the research revealed.
Proactive and Embracing organisations made transformation a top priority and empowered their people to pursue it, while Motivated but Constrained organisations often found their digital efforts hampered by internal obstacles.
Microsoft says the research also found that all organisations shared concerns such as ensuring security and privacy.
“The most digitally advanced organisations had several common elements but the role of people, in terms of leadership, culture and ambition, was the most pervasive,” Marlow says.
“Our research shows successful organisations have leaders who embrace digital transformation and empower their people to innovate and fully explore the potential of new technologies.”
The research highlighted that proactive organisations also recognised the importance of questioning existing business models and experimenting with news ones, but only a handful were acting on this as part of the digital transformation process.
“Transformation is underpinned by a digital mindset that is a unique interplay of technology, people and process. It is adopting this mindset that we believe truly puts an organisation on the path to digital transformation,” Marlow notes.
And, while respondents said the pace of technological change presented ongoing challenges, most believed upcoming innovations including expanded cloud computing services, the Internet of Things, artificial intelligence and virtual reality would pave the way for future invention.
“Organisations expect digital technology to keep evolving rapidly, but they are also optimistic that it will create huge opportunities,” Marlow says.
“There’s no doubt that harnessing the right technology can dramatically improve customer and staff experiences and lift productivity. It can even take organisations into whole new areas of business or allow new ones to emerge.”