Tim Hertzig, principal at Deloitte’s Know-how practice and global product owner for the firm’s Ascend digital transformation solution, notes that most implementations are typically viewed as IT-driven initiatives. “These initiatives often fall short of their intended impact because they neglect crucial change management strategies that foster adoption. Moreover, they frequently overlook industry-leading best practices, leading to subpar results.”
According to Kristi Kaplan, a principal at Deloitte and government sponsor of the firm’s Ascend platform, know-how rarely generates value independently. “It’s not just about having knowledge, but rather how that expertise is leveraged and integrated into an organization that ultimately drives value,” she notes. To achieve sustained success and avoid fleeting gains, executives require a robust, long-term strategy for organizational transformation.
The strategic alignment of digital transformation initiatives has the potential to liberate up to $1.25 trillion in additional market capitalization across all Fortune 500 companies, unlocking new avenues for growth and profitability. Without a strategy and technology-aligned investments, companies may needlessly incur costs of up to $1.5 trillion by pursuing “random acts” of digital change for personal gain alone.
Finest practices for implementation
Deloitte’s research reveals that successful companies employ a range of best practices to effectively design and execute their digital transformations. Three stand out:
Governance must span across the entire organization, effectively bringing together key stakeholders from enterprise, human resources, finance, and information technology to foster transparency and drive informed decision-making, thereby sustaining momentum and propelling progress. Profitable initiatives are collectively owned and operated; every executive has a clear understanding of their role in the mission lifecycle, recognizing the crucial decisions required to propel progress forward.
“It’s when transparency is absent, leaving stakeholders without a seat at the table and no emotional investment in the process, that IT groups can unwittingly lead a business transformation that wasn’t intended.” “When enterprise leaders neglect to address fundamental issues such as change management, technology adoption, and organizational retraining, the risk profile escalates significantly.”
Executives crave the reassurance and insight that their intellectual property investments are yielding tangible returns, seeking transparency as soon as potential risks emerge to avert full-blown crises. “The incorporation of transparency becomes an integral part of a company’s governing dynamics.”
