3 Frameworks For Transforming Business Vision Into Digital Reality

Strategic DX failure is often the result of a lack of alignment on business vision, poor communication, and ineffective execution. But this doesn’t have to be the case.

The power of a digital transformation (DX) strategy lies in its scope and objectives.

Over the next two years, DX will become central to the corporate strategies of more than 60% of Global 2000 enterprises, according to analyst IDC, while the percentage of enterprises with advanced DX strategies and implementations will double over the next three to five years. Yet despite this projected growth, industry experts estimate that 66% to 84% of DX business strategies will fail.

So how can APAC businesses prepare themselves for a successful digital transformation?

As business strategy principal at Adobe, I’ve seen firsthand the journey businesses undertake when they embrace digital transformation. I’ve also come to realise that strategic DX failure is often the result of a lack of alignment on business vision, poor communication, and ineffective execution.

But this doesn’t have to be the case. Enterprises can implement a variety of different DX strategies and frameworks to ensure success. IMD, Cisco, MIT, and McKinsey have set the standard for translating business vision into a successful DX plan.

IMD/Cisco Model

IMD and Cisco’s digital transformation plan divides the organisational value chain into seven key pillars: business model, structure, people, processes, IT capabilities, product and service offerings, and engagement model. This framework is effective because the seven high-level categories are easily understood and applied by business leaders. The categories are then combined with a list of 28 questions that evaluate the depth of transformation required, all of which can be applied to a workshop scenario.

In practice, in 2006, high-fashion retail giant Burberry was struggling with its brand identity and needed to transform itself into a digital leader. It applied IMD and Cisco’s model. The graphic below illustrates the DX strategy.

As a high-level guide to a future business vision, this framework works wonderfully. Be warned, however, that I’ve seen customers struggle when taking high-level views such as this one and extrapolating it into an execution plan. But if vision and direction are what you need from your digital transformation, then this framework is a good starting point.

MIT Digital Compass Model

MIT conducted a major global survey across industries in 2012 to 2013. Its aim was to identify best practices associated with digital transformation. The best companies were named “Digital Masters.”

MIT then created a “Digital Compass” framework based on how these companies approached digital business transformation.

The Digital Compass consists of four phases and 12 core segments linked to best practices in digital transformation. The compass evolved from experience, not theory, giving it a high degree of credibility.

This tool is particularly effective because it covers the life cycle of a DX program. It allows for any of the 12 segments to act as your starting point, without having to run through it from beginning to end. The tool structurally assesses your digital readiness, though it won’t give you a subset of qualitative or quantitative tools that qualify your digital readiness. (For that, I recommend the book “Leading Digital: Turning technology into business transformation,” which provides proactive steps for each of the 12 segments.)

The McKinsey Model

McKinsey’s grassroots approach identifies the business departments that can benefit most from the implementation of technology. According to McKinsey, technology drives value in businesses in four ways: enhanced connectivity, automation of manual tasks, improved decision making, and product or service innovation.

What makes this model effective is its ability to use digital technology to accelerate a business externally alongside an existing marketing strategy. It also led McKinsey to consider the impact of digital technology on internal business and the efficiencies and benefits it can create.

Similar to the MIT model, there is no subset of tools to assist in executing this framework. This tool best suits businesses that have already embarked on their digital journey and are looking to revisit their current strategy by evaluating against an alternate framework.

Identifying Business Value

These models can all assist APAC businesses in identifying the value of properly executed digital transformation. It’s recommended that business leaders assess their own value, invest proportionally to address key opportunities and risks, and keep in mind that the greatest digital value may not only reside in customer-facing functions but also behind them.