September 01, 2019 - 1202 views|
Here's how businesses can devise a digital strategy that helps them optimize their digital partnerships and get the most out of their investment.
IDC estimates that 40% of all technology spending will be applied to “digital transformation,” with enterprises spending nearly $2 trillion by the year 2022. The trouble is, few businesses understand how to maximize their investment while also keeping the business at peak performance. Additionally, companies don’t always explore all the ways that services, processes and digital partnerships can support their digital strategy.
Quite often, executives spend considerable budget on digital programs, only to find they haven’t achieved the desired results. What’s more, digital investments have led to confusion among employees and partners alike, whereby teams are pulled in two very different directions: On the one side are technical and operational requirements, legacy technologies, tight timeframes and cost pressure; on the other are creativity, modernization, innovation and groundbreaking products or services.
Nowhere is the postmortem of troubled digital partnerships more evident than in Agile software development projects. Applied correctly, Agile can be an effective and game-changing collaborative tool to build applications quickly and deliver real business value. However, it’s not uncommon for partners to quickly assemble software that doesn’t fully align with business goals or fails to achieve a desired impact.
This is one of the reasons I wrote Transforming While Performing: to address how companies and executives can better understand the full implications of digital pursuits and devise a digital strategy to get the most out of these endeavors.
Before embarking on a digital initiative, it’s important to develop specific and mutually agreed-upon business metrics and goals. Doing so helps align companies and their respective partners. Additionally, I’ve identified three strategies to ensure companies maximize their digital efforts, investments and experience:
Innovating While Running the Business
In today’s fast-moving digital marketplace, companies don’t have the luxury of time. Businesses must incorporate new products and technologies swiftly and in parallel with ongoing commercial activities. No company wants to hit the pause button on revenue-generating services or products.
This represents the real opportunity with digital: transform your business for tomorrow without stopping your business from performing today. I’m willing to bet $2 trillion that you like the sound of that.
Part 2 of the series looks at the need to connect the design and engineering teams to achieve business outcomes. Part 3 discusses the importance of "learning to fail" as an essential ingredient of innovation. To learn more about engineering your digital strategy for business success, read our latest whitepaper on Outcome Engineering 101.