As the impact of digitalization accelerates, organizations continue to invest in digital technologies to transform their legacy environments and connect them to new digital business models. In my previous blog, we discussed that digital transformation is more than just about technology, and that an enterprise-wide digital transformation strategy should also consider organization and business model aspects. In this blog, we’ll continue the conversation by covering three key questions to consider in developing a digital strategy and roadmap.
Every organization is different, and their digital journey is different. Therefore, each digital transformation strategy and roadmap will be unique to the organization. However, all organizations that want to transform should consider three common and fundamental questions:
- Ambition: Where do we want to position our future business?
- Core: What do we want to do with the core of the business?
- Growth: How do we drive growth?
Setting their AMBITION
Organizations that successfully transform their businesses start with reviewing their current position and where they want to position their future business. How is our company performing, and how are we positioned in the market?
They examine their current environmental factors, including key trends (e.g., societal, regulatory, technological and cultural), as well as macroeconomic and market forces. They also assess their competition and market demands.
The key is to answer the “Why?” questions. Why will customers buy or use our products or services in the future? Why will we be relevant to them? Why will they see us as adding value to their lives? Why do we matter? Why do we exist?
Answering these questions will help determine the position of the future business, as well as the required strategy for getting there. Does the organization need a core growth strategy? Or, if it’s in a crisis mode, does it need a turnaround strategy or rapid financial boost?
A strategy for their CORE
A financially healthy organization needs an efficient and agile core business strategy. It needs to determine what to do with the core of its business in terms of, for example:
- Restructuring non-core activities to focus on the core
- Improving the core through operational simplification and efficiency to drive continuous improvement
- Transforming the existing core organization, business model and technology
- Developing a new core business that scales as needed
Determining where your core business is headed and what you need to do in response is critical to formulating the right digital strategy and roadmap.
A strategy to drive GROWTH
Organizations equally need to differentiate and drive growth to succeed in today’s digital world. Strategies around this are sometimes dependent on core changes, but often driven independently due to customer and market pressures and the need for pace. Key areas to consider include:
- Market expansion
- Improved channels and experience
- New business combinations within the ecosystem
- New product and service innovation
Considerations for your transformation roadmap
The exact nature of an organization’s digital transformation journey depends on its market environment, business drivers and degree of market disruption. A successful digital transformation journey begins with a partner—one with a proven track record of helping clients to build their digital transformation strategy and roadmap.
CGI is working with clients across industries to assess their current business and collaborate on enterprise-wide digitalization to secure their future competitiveness. If you’d like more details on these key questions and our approach, I would welcome the opportunity to talk to you. Feel free to contact me.
About this author
Vice-President, Digital Transformation Global Lead
As Vice-President and Global Digital Transformation Lead, Craig is responsible for bringing together CGI’s global digital transformation point of view, solutions and services portfolio. With more than three decades of transformation expertise, Craig provides portfolio management, thought leadership, counsel and support for clients’ digital transformation ...