810 words. 3 minutes. Updated 27 Apr 2024
What is the risk in blindly embracing Digital Business Transformation? DBT is a meme, vague like all buzzwords. It seems to champion the cause of technology.
In this article, I explain what I call the "technology myth", despite common tech failure [1]. Then I move on to explain beneficial approaches to business innovation, a sensible approach to the use of technology, and how to implement changes successfully.
Digital business transformation: the blind imperative
The rallying cry (see article [2]) is that everyone must embrace DBT or get left behind! Of course, there is some truth to that, in the sense that all kinds of innovative change is occurring, but that is nothing new.
The imperative to innovate is fueled now by societal changes (due to lockdowns) and the word digital — i.e., everything tech, ultimately connected with “the Fourth Industrial Revolution”, AI, and even the “transhumanist” agenda, God save us. The implication is that digitization (i.e., technology, in some unspecified form) is the immediate answer to all business challenges.
Technology failure
Well, a parallel stream of reporting reveals that IoT; IIoT; SaaS; ERP; RPA (robotic process automation); big data analytics; client profiles management; and various enterprise applications fail or under-deliver at alarmingly high rates.
In a previous post [3] I responded to the reasons for failure given in online reports. What is not mentioned in those reports is that the challenges were already identified and solved back in 1980s and ‘90s. Project leaders still seem to routinely ignore the needs of roll-out and principles of successful program implementation. Further, the stories show that people installing new systems are even forgetting tech basics like inter-operability of systems, upgrades and compatible file formats.
The technology myth
Rampant tech failure scarcely has any effect on the DBT imperative. I believe it is because the technology myth is sacrosanct. This is the myth operating in the subconscious of managers, saying: “We must purchase the new [fill in the blank] high tech application, because that action, in and of itself, will inspire employees to adopt new behaviours, generate efficiencies and save the business!” The flawed corollary is: “By adopting the latest technology, we know we have correctly identified the root problem in the business.”
Of course, I'm not anti-technology. Technology can obviously facilitate the needed creative change to respond to new conditions. Proponents of a new technology will often rightly propose radical changes that no-one had even considered. Moreover, software vendors can hardly be blamed for imposing a solution when they ask: “What is your business process?” and the client is at a loss to answer. The client has not bothered to map out the existing workflow, and so is likely to accept any tech solution uncritically.
The fundamental point is that beneficial business changes do not originate in the technology itself. The technology is merely the enabler of some desired change, which has a deeper logic.
The most pressing need might not even require a technological fix. It might be to engage our employee group with newfound trust, or do client outreach, or identify supply chain risk. Therefore, beware the technology myth, which jumps to the conclusion that new tech solves everything.
Identify transformation and innovation proejcts
Different approaches to transformation are evident. The author cited [2] recommends tracing through “a visual representation of your entire prospect and customer buying journey.” We have to cast the net wide to identify the most potentially valuable changes. HBR says [4] that: “a complete strategy has to encompass carefully coordinated choices about the business model…”
Needs for business change can be identified in strategic planning and innovation exercises. A participatory process works well. The firm’s strategic identity, capacity for change and special assets come under review. [5] Innovation methods are useful to reveal the most likely targets for change, including product/service combinations and more efficient processes. [6]
We see that the need for “Digital Business Transformation” is a relative question. Innovation does not absolutely require technology. And as long as we are not slaves to the technology myth, we will use tech only as part of a wider plan to introduce well conceived changes.
Successful implementation
The "implementation gap" will plague all planned changes unless care is taken to pay attention to the success factors [7], both in IT and in administrative initiatives generally.
Conclusions
1. Identify priorities for change in comprehensive reviews.
2. Make sure technology serves, not drives, the business.
3. Reject the technology myth. Don’t become another failed program statistic.
4. Do risk assessment at the front end to fix the uncertainties, especially regarding program implementation.
References
[1] (Forbes, 2021) “14 Common reason software projects fail” – recent representative article
[2] (Mike Lieberman, square 2 marketing, 2021) “Rate your digital transformation progress “
[3] (Robertson 2020) Innovation – successful tech implementation – scroll down to 3-part series
[4] (HBR, 2021) “Why do so many strategies fail?”
[5] (Robertson, 2019) Strategic Planning: Process, Templates and Effective Implementation
[6] Innovation: How Can My Organization Get Started? – innovation methodology; free introductory course
[7] Principles of Successful ERM Implementation - this podcast edisode is a good start