Digital Solution Offerings: Techniques to Deliver Success for Digitalization

When we talk about digital solution offerings, first of all, let’s discuss what digital solutions are, what are digitalization and digitization, and what are the needs for that.

What is Digitalization

Simply put, digitalization is the journey of shifting business activities – processes, data management, communication, and more – from paper to an online environment.

It involves utilizing digital tools and strategies to perform tasks, resolve issues, and forge innovative ways to serve customers, veering away from solely traditional, manual, or physical methods.

Digitalization aims to metamorphose businesses into platforms that are not only more accessible and efficient but also modern and enjoyable, ensuring a smooth and delightful experience for both the providers and their cherished customers.

What is Digitization

Digitization might sound complex, but let’s break it down into something easy and relatable. Imagine your physical photo album. Now, consider converting all those printed photos into digital files you can view on your computer or phone. That’s essentially what digitization is about!

In business, digitization refers to converting information, like documents, images, or sounds, from a physical format into a digital one, for instance, turning paper invoices into digital files or converting old training videos into digital formats.

So, why do businesses digitize? The simple answer is easy storage, quick access, and efficient information management. Digitization ensures that valuable data isn’t lost to time or physical damage, and it can be easily organized, shared, and analyzed with the help of computers, thus paving the way to step into the broader journey of digitalization.

Difference Between Digitization and Digitalization?

While they might sound alike, “digitization” and “digitalization” are distinct concepts in the business world. Digitization is the initial step, converting physical information into digital format, like turning paper documents into digital files.

On the other hand, digitalization dives deeper, using digital technologies and data to transform business processes, creating new avenues and enhancing overall operations. In essence, while digitization deals with the ‘conversion’ of information, digitalization is about strategically utilizing that digital information to innovate and improve how businesses operate.

Digital Solutions for Digitalization

Digital solutions open up opportunities, especially for larger businesses aiming to embrace digitalization. These solutions encompass various tools, technologies, and strategies that assist in transforming the digitalized data (achieved through digitization) into actionable insights and streamlined operations.

For sizable businesses, this might involve implementing robust Enterprise Resource Planning (ERP) systems to manage various processes efficiently, employing advanced data analytics to harness the power of big data, and adopting cloud computing to ensure scalable and flexible IT infrastructure.

Furthermore, enhancing customer experiences through e-commerce platforms, mobile apps, and customer relationship management (CRM) tools becomes pivotal. It’s all about selecting the right blend of digital solutions that align with the unique needs and goals of the business, paving the way toward a future that’s not only digital but also sustainably progressive.

Digital Solution offerings can be in multiple areas, such as:

• Digital Transformation, which includes Application Development and migration and Integrations, Mobile Application Development (Native or Hybrid)
• Digital Insights (Data Engineering, BI Analytics, Artificial Intelligence, Machine Learning, etc.)
• Cloud Enablement (Cloud-Native App Development, Cloud Migrations)

Why Companies Fail is Realizing the Real Benefits of Digitalization

Successful digitalization is a complex process and involves a harmonious blend of technology, processes, and people. Some companies fail to fully realize the benefits of digitalization due to various reasons, which might include:

1. Lack of Clear Strategy:

• Without a well-defined digital strategy that aligns with the business’s overall objectives, digitalization efforts can become disjointed and ineffective.

2. Resistance to Change:

• Employees might resist the changes by digitalization due to fear of redundancy or a shift in work dynamics.
• Organizations might stick too rigidly to legacy systems and processes.

3. Inadequate Technology and Expertise:

• Implementing digitalization requires the right technological tools and expertise to utilize them effectively. Some companies might lack in-house expertise and fail to source the right external partners.

4. Cybersecurity Concerns:

• Insufficient emphasis on cybersecurity can expose the business to risks and breaches.
• A data breach can tarnish the reputation and customer trust.

5. Insufficient Data Management:

• Managing, analyzing, and utilizing big data effectively can be a challenge. Inadequate data management strategies and systems hinder the potential benefits of digitalization.

6. Underestimating Customer Experience:

• Sometimes, the focus might be too much on internal processes and not enough on how digitalization impacts customer experience.

7. Inadequate Investment:

• Insufficient financial or resource investment in digitalization initiatives might lead to suboptimal systems and processes.
• Sometimes, attempting to digitalize on a tight budget leads to choosing cheaper, less effective tools.

8. Scalability and Flexibility Issues:

• Failing to adopt scalable and flexible digital solutions that can adapt and grow with the business.

9. Regulatory and Compliance Challenges:

• Navigating through the web of regulatory and compliance requirements while trying to digitalize processes can be complex and challenging.

10. Ineffective Change Management:

• Inadequate training, communication, and management of the change process can lead to unsuccessful implementation.

When a company doesn’t adequately address these challenges, the digitalization initiative might not bring the desired advancements or improvements. Thus, focusing on a holistic approach that includes strategy, technology, change management, and continuous improvement is crucial to realizing the full benefits of digitalization.

Implementing Successful Digitalization Projects

When we kick-start a new project in the digital solution offering area, do we directly go and estimate the project and start working towards the Statement of Work (SoW)?

The answer is obviously “No”. However, if we are doing so and not setting up a solid foundation for the solution, there are high chances of failure. Digital Solution offering is a challenging area where many factors play in, where few are controllable, and few are uncontrollable. Therefore, it is essential to properly deal with the controllable factors and reduce the risk of the Software Development Lifecycle (SDLC).

Returning to our original question, what should we do before estimating the project? Below are the industry-wide accepted observations that the increase in the project’s success depends on:

1. Deep understanding of the requirements
2. Defining the scope
3. Set SMART milestones
4. Understanding the business
5. Set the success criteria

Let’s understand them in detail.

Deep understanding of the requirements

Based on my working experience, it is a common scenario that people often fail to define or communicate the requirements correctly for the project. Therefore, it becomes the sole responsibility of the technical team to do back-and-forth communication and develop a deep understanding of the requirements before jumping to the estimation phase.

Secondly, it is essential to note the risks and assumptions about the project. Finally, establish communication about the major failures and the impact that such failures can have on the project. Findings of such failures at the very start of the project will give way to tackle them effectively if they arise.

Suppose there is a request to add a new feature to the existing application. In that case, it is necessary to have an application walkthrough from the development team or any project stakeholder.

Sessions conducted to develop an understanding of the requirements can be recorded so that they are easy to refer to if needed. It is crucial to seek the permission of the attendees before we record the sessions.

Defining the scope

It is a common scenario where conflict arises because of miscommunication about the expectations and scope definition. Therefore, it is a good idea to understand the expectations of the project and how the business will use the solution. Doing so will help increase the usability and set the path for development as the goal will be clear.

While defining the scope, it also makes sense to talk about the timelines. The agenda is to know if there is any hard deadline for delivering the solution. It will help later during the estimation phase.

The technology stack can also be discussed during the scope definition process. Knowing about the current technology stack, any expected technology stack to be used, or the flexibility to use an efficient technology stack to fulfill the requirements is good.

Suppose the development team is suggesting a technology stack. In that case, it is important to consider factors such as scalability, security, reliability, infrastructure, experience/capabilities in technology, and other factors and compare multiple technologies.

Managing Resistance to Change

Resistance to change is a common hurdle in various organizational shifts, especially in digitalization endeavors. Overcoming this resistance involves combining strategic, psychological, and operational approaches. Here’s a deeper look into how businesses can navigate through this challenge:

1. Clear Communication:

• Transparent Dialogue: Communicate the reasons behind the change, its benefits, and how it will be implemented.
• Continuous Feedback: Establish two-way communication channels where employees can voice their concerns and give feedback.

2. Inclusive Change Management:

• Involve Employees: Engage employees in the digitalization process, considering their input and involving them in decision-making.
• Change Champions: Identify and leverage change champions within the organization who can inspire others.

3. Training and Development:

• Skill Development: Provide ample training opportunities for employees to acquire the necessary skills for the digital transition.
• Support Systems: Implement mentorship and support systems to help employees navigate the new digital environment.

4. Reward and Recognition:

• Acknowledge Adaptability: Appreciate and recognize employees who adapt well to the changes.
• Incentivize Learning: Consider rewarding employees who proactively learn new digital skills.

5. Security and Redundancy Concerns:

• Job Security Assurance: Address fears related to job losses or role redundancy transparently.
• Career Pathways: Illustrate how digitalization can open up new career opportunities within the organization.

6. Leadership Alignment:

• Unified Leadership: Ensure all leaders and managers are on the same page regarding the digitalization initiative.
• Leading by Example: Leaders should actively engage with new digital tools and practices, signaling their commitment to change.

7. Cultural Adaptation:

• Promote a Digital Culture: Foster a culture open to innovation, experimentation, and digital practices.
• Address Cultural Barriers: Identify and mitigate any existing cultural aspects that might hinder digital adoption.

8. Flexible Implementation:

• Phased Approach: Consider implementing changes in phases instead of a radical shift, allowing gradual adaptation.
• Pilot Projects: Test the waters with pilot projects to identify potential issues and formulate solutions before a full-scale rollout.

9. Provide Necessary Resources:

• Accessible Tools: Ensure that digital tools are user-friendly and accessible to all relevant staff members.
• Adequate Resources: Provide necessary resources, like time and budget, to facilitate a smoother transition.

10. Transparency and Trust:

• Trust Building: Develop trust by being transparent about the successes and failures during the digitalization process.
• Consistent Actions: Ensure that actions are consistent with communications to maintain credibility.

In essence, overcoming resistance to change, especially in digitalization, is about empathetically addressing the concerns and anxieties of employees while providing them with the necessary tools, skills, and support to navigate the transition effectively. Integrating these aspects into the change management strategy can pave the way for a smoother, more successful digital transformation.

Set SMART milestones

SMART (specific, measurable, agreed, realistic, time-framed) is well-known in the business and should be used while establishing the project’s milestones. We can define the milestones by looking at the scope of the requirements and communicating with the product owners. Moreover, having milestones is important for the development team to check the progress and smooth requirements delivery cycles.

Understanding the Business

We can achieve excellence if we know the background of the organization/business. Unfortunately, this is the most neglected step and doesn’t get much attention. The development team might be able to deliver a solution that works well and fulfills all the requirements. Still, it will be challenging to use if the product’s end-users don’t resonate or face difficulty in usage.

Therefore, it is important to develop a deep understanding of the following:

• Business,
• product stakeholders,
• Industry sector,
• Business process that will use the tool
• Sponsor of the project,
• Budget-related information

Set the Success Criteria

It is important to set criteria to measure the success of the project. This will help the project owner and the development teams work harmoniously and progress towards the agreed goal. Success should be defined by outcome, quality, finance, and timelines. It can become challenging sometimes, but there should be a way to measure the defined success criteria.

The above factors will increase the chances of the project’s success and the chances that the stakeholders involved are satisfied. Once we take care of the above steps, it is a good idea to go to the next phase to estimate the deliverables.

Conclusion

In today’s competitive and rapidly changing world, digitalization is important not just for business growth but for business survival.

However, digitalization is much more than implementing digital solution offerings isolated. It needs a clear vision with ultimate business objectives and then breaking those objectives into a chain of various digital solutions.

Once the above-mentioned tasks are over, one has to have a detailed roadmap, with implementation milestones with a complete understanding of the business and the stakeholders, and setting up the success criteria for each milestone.

Often, even with the realization of all the above, the resistance to change becomes the weak link in the chain that makes the efforts fail. Hence, change management and resistance to change are crucial in implementing digital solutions to achieve digitalization and reap its full benefits.