Key Considerations for C-Suite Leaders Involved in Digital Transformation Initiatives

With spending on digital transformation initiatives worldwide projected to hit $3.9 trillion by 2027, the pressure is on organizations – and specifically the C-suite – to ensure that not only are they best positioned to tackle the digital challenges of today but that they can quickly adapt to those of tomorrow as well.

C-suite leaders find themselves at the center of these digital transformation efforts as they are often responsible for navigating the various strategic and tactical priorities involved in digital transformation projects and often oversee, approve, and fund digital transformation initiatives. In addition to the digital transformation boom stemming from the COVID-19 pandemic, the momentum associated with emerging technologies, like artificial intelligence, continues to fuel an unrelenting push for organizational digital transformation. But making sure digital transformation projects progress seamlessly is, of course, easier said than done and requires a comprehensive and methodical approach.

Below are several of the considerations that have the greatest impact on the success or failure of these projects and how best to handle them in order to drive success.

Strategic alignment on all fronts

At the heart of successful digital transformation lies the crucial need for alignment with the organization’s strategic goals. Executive leadership must clearly define and articulate the transformation’s purpose, timing, and desired outcome. Since large-scale transformation projects often span multiple disciplines, fostering a culture of cross-collaboration and communication becomes imperative. Leaders can ensure continued alignment and innovative solutions during a transformation by leveraging diverse viewpoints and building cross-functional teams.

C-Level backing for change management

A recent Prosci study underscores the significant impact of change management on project success. In fact, projects with excellent change management are six times more likely to achieve objectives than those without. By integrating a change management program into the transformation event, leaders can accelerate results and engage employees to plan, manage, and sustain change. This structured approach not only prepares and transitions them to adopt the transformation vision and new ways of working but also fosters high energy for a reimagined future.

Customer expectations are higher than ever

It’s crucial that C-suite leaders recognize that customer sentiment is ever-evolving, and this should be a key aspect of the transformation strategy. Personalized chatbots, customer portals, and mobile and web-based applications are becoming standard. Ease of use and accessibility is no longer a luxury; internal and external customers expect it. By incorporating tools such as feedback widgets, social monitoring platforms, and customer service surveys, leadership can measure customer satisfaction more efficiently and adapt in near real-time to consumer sentiment. Integrating advanced analytic platforms and AI tools can quickly uncover trends and provide customer feedback that might have gone unnoticed. For example, companies are leveraging AI in e-commerce to predict trends and implement dynamic pricing models so that the pricing of goods automatically adjusts to maximize potential sales. This helps to inform digital transformation efforts and allows for constant improvements to be made.

Innovation and agility propel transformation

Continual innovation is required in today’s market, and C-suite leaders are pivotal in pushing the evolutional life cycle of continuous improvement. Organizations can create a culture of innovation that is responsive and agile by:

• Adopting agile practices outside of technology and expanding into other business areas
• Investing in scalable technology allows the architecture to expand and contract as market demands dictate
• Empowering front-line managers to make decisions so companies can react more swiftly to market demands
• Enhancing data analytical capabilities by leveraging machine learning, deep learning, and AI

If these elements are successfully woven into an organization’s culture, teams are both able to become more creative and unlock new levels of efficiency to turn great ideas into reality.

Data and analytics in action

Like a house, a stable foundation is needed to maintain a resilient structure. In technology, the foundation is comprised of data. Poor data can lead to poor decisions, especially with AI-based technologies where foundational models rely solely on data without context. While making good decisions relies on complete and accurate data, using incorrect data can lead to significant financial losses. For example, Unity Technologies ingested bad data from a large client that caused major inaccuracies in various predictive models, resulting in a loss of over $110 million when incorrect marketing information was being displayed at the incorrect time.

Since data governance provides the framework for all other technology initiatives, senior leaders need to establish comprehensive data governance frameworks that expand past mere rules and policies. These frameworks create a culture where the organization supports enhanced data-driven decision-making and employees view data as an asset and a competitive advantage.

Compliance at the core

Before embarking on a transformation, leadership needs to understand the regulatory environment specific to their industry. This requires looking at current regulations and understanding potential changes happening in the relatively short term. For example, Software AG spent significant time and money developing a model to monitor rail traffic in Europe, only to have the regulations released from the General Data Protection Regulation (GDPR) put the product in direct conflict with privacy laws. Numerous similar stories are associated with the introduction of the California Consumer Privacy Act, among others, so it is important to have a clear view of the regulatory landscape.

Cybersecurity safeguards

Before and during a transformation, C-suite leaders must keep their finger on the pulse of cybersecurity. Newer technologies are aggregating large datasets of customer, banking, and personally identifiable information (PII), which demands a premium and can be extremely valuable on the dark web. Implementing an innovative technology is a perfect time to ensure adequate cybersecurity measures, and post-implementation testing of new integrations will provide additional peace of mind. Protecting digital assets is not only a technical challenge; it’s a human challenge. Regular employee training, updates on potential vulnerabilities, and encouragement to take an active role in organizational security will help foster this security culture.

The future is now

When executed properly, digital transformation builds resiliency throughout an organization and stimulates sustainable growth. It positions organizations to maximize performance with a methodical digital transformation approach to optimize operations, improve business agility, and create consistent value for customers, employees, and stakeholders.

Written by Cory McNeley. Originally published by Dataversity.