In the third of our sequence of digests on Forrester’s findings and forecasts for 2019, we look at digital transformation and how it will be different this year to last for many companies with Allen Bonde, VP Research Director at #Forrester.
Allan Bonde’s first observation was that 2018 had shown that many firms’ experience of attempting large scale ‘big bang’ transformation had been problematic with a number failing in their endeavours.
This, Bonde felt, was frequently because people’s focus needed to shift from transformation efforts to innovation efforts to improve everyday processes. He illustrated this quoting the anecdote of a Chief Digital Officer who’d hidden his digital road map away and instead was looking to go out into the field to talk to others business leaders and gather grass route support for change strategy, taking small incremental steps towards improvement to make his transformation achievable.
Allen Bonde felt that in 2019 transformation focus would be on pragmatic efforts, creating efficiencies and taking big transformation and making it small. Operational improvements would become higher priorities as companies ‘tuned up their digital experience stock’.
To execute this, Bonde said we needed to build up our cultural reinforcements as we accepted constant change. This meant re-evaluating strategy to put the right people in the right roles. This would mean shifting customers to:
• Lower cost digital channels
• Launching digital products
• Turning data assets into new products
• Driving automation in everyday tasks faced employees and customers
Allen Bonde acknowledged this would be uncomfortable for a lot of people, currently modelling their business case on a B2C basis. Instead though, Bonde felt that the B2B route would be the main profit driver, as digital leaders should look at the macro economic picture and decide upon their investments based on which tools would result in ‘payback’.
Forrester anticipate 25% of organisations will decelerate their digital spend either through an assumption they had done enough, or that they were worried about the economy – and will end up losing market share.
The winners would be the 15% of top companies who are customer-obsessed, who will look to invest more, build the right processes and modern architecture to be ‘fit’ and back this up with the right product managers and digital leaders to roll out the next phase of ‘pragmatic transformation’ using the right processes to achieve this.
Senior Account Manager for Amicus ITS, Ben Davis added: “These observations by #Forrester echo with Amicus ITS’ thinking. In the last two and half years we have been supporting our customer base in their journeys to digital transformation. Our Consultancy efforts primarily focus on understanding our customers, their business outcomes, priorities, IT environment, challenges and budgetary constraints. For the public sector, our customers are also challenged by other wider mandates including UK Gov’s Cloud First strategy. For the health sector, the desire to achieve the digital transformation, create improvements and efficiencies is there in full. However, there are so many legacy applications and keeping the lights on is as great a struggle as any desire to fulfil ‘transformation’”.
“In the NHS, they are operating in a highly politically charged environment where targets and patient service must come first. For instance, we see a resistance in Office 365 adoption because of the high ongoing revenue costs. What this sometimes fails to take into account, is that in subsequent years, NHS organisations would stand to make significant productivity gains and efficiencies, making the operating costs far lower. Those productivity gains and efficiencies are sometimes intangible. For instance, a business may struggle to pin a value on the implementation of Microsoft Teams for collaboration, or say, Microsoft Forms (a powerful and easy tool for customer service questionnaires and surveys)”.
“Healthcare organisations are simultaneously looking to implement clinical advances which utilise the best of modern technology, but unless they are freed to be able to take the steps towards digital transformation, they will ultimately always face an uphill struggle. Minister of Health, Rt Hon Matt Hancock MP said in September 2018 that he wanted to accelerate a vision of a greater technology-driven NHS. This necessarily has to be more than a five year political plan which ensures it is not just full integration of technology across primary and secondary healthcare, but the binding in of health and social care with wider agencies to provide a full patient-centric service and efficient NHS”.
“The road to digital transformation is not a rapid journey for any organisation. The business change has to be carefully thought through and engaged with by all stakeholders to have a chance of success”.
If you are interested in discussing your digital transformation plans or any challenges you are facing in confidence, please contact our Sales team on +44 2380 429429.