Introduction: Example of a Digital Transformation Roadmap
Techminy – Example of a Digital Transformation Roadmap. Example of a Digital Transformation Roadmap. You should first understand digital transformation and why you want to do it. Next, you should find out how to do it.
Many articles provide general tips on everything you need to consider, but a seasoned strategist understands that much of it is just common sense. Your knowledge is limited to the essential aspects.
Through the example company RedYabber, we will walk you through the process step by step and get down to the specifics in this digital transformation plan example.
The process involves answering six simple, logical questions in order:
- What’s the point of going digital?
- How can we change? What do we need to do?
- What do we really need to change?
- What changes are necessary for transformation?
- How should we put together the change kits to carry out the transformation?
- How do we put the change packages in order over a transformation time horizon?
Our Example Case Study For a Digital Change Roadmap
RedYabber produces traditional wooden toys that are available in both global and local stores. As more online stores like eBay and automated manufacturing and supply chains have come online, RedYabber has found it harder to compete with its rivals in terms of price, shipping speed, reach, and quality.
The business goals have changed, but the mission hasn’t. The leaders have agreed that it’s time to switch to digital ways of working and go through a digital transformation.
They have set four clear goals that they want to reach in the next three years:
- Automate production and storage for just-in-time delivery to reduce inventory and product costs.
- I am making choices based on facts, not feelings.
- Market and sell online to depend less on brick-and-mortar stores.
- Come up with new wooden toys that kids and parents can use instead of electronic devices.
What’s the point of going digital?
To begin, let’s quickly go over some of the most popular reasons for going digital:
- To make things better for customers
- To make things work better
- To get better at making decisions
- To get ahead of the competition
All of these are related to RedYabber and likely have implications for your own company.
The first step in creating a roadmap for digital transformation is to identify the issues your company is currently facing. This will help you stay on track with your strategic vision or goals and keep you moving in the right direction.
Remember that a task isn’t always a negative thing; it can also be a chance to do something great.
The RedYabber team narrowed their problems down to just six main ones when they got together to write them down.
In order to change, what do we need to do?
Pick out at least one goal for each task.
For digital transformation to succeed, a goal will outline the necessary steps within a specific timeframe (three years for RedYabber).
The image below illustrates how RedYabber’s nine goals relate to their six challenges.
Some of these goals aren’t just digital, like “cut the time it takes from order to dispatch by 50%.”This is because digital change, or digital, is just a tool that makes things possible. How can we utilize digital tools to achieve our goals? That is the question.
What do we need to change?
Getting digital isn’t just about making goods or projects; it’s also about making capabilities. For a business, capabilities serve as the fundamental components that enable its operations.
Create a capability map to determine the skills required for digital transformation.
As the name “map” suggests, this is a picture that illustrates all the components of the business, or a portion of it, that contribute to its success. It’s one of the most important parts of capability-based planning.
With this in hand, look over each skill and decide:
- Does the ability help us reach our goals or deliver on them?
- How much change do we need to make in order to reach our goals?
- What is the most important thing about making the change?
Consider each skill from the perspectives of people, process, and space, and consider what adjustments the business would need to make in each of these areas. Digital transformation often transforms the term “physical” into “technology.”
The next step is to create a picture that will display the answers to these questions.
This means using simple labeling and color coding to show how the capabilities relate to each other and to the goals for digital transformation.
RedYabber used color coding, as we discussed in our piece on capability mapping, to indicate that a high level of change was required. Orange meant a medium level of change, yellow meant a low level of change, and blue meant no change at all.
They also used two kinds of labels: stars with letters that show whether the importance is high, medium, or low, and numbers in circles that connect each capability to one of the nine goals.
What needs to change in order to transform?
After identifying your current and future skills, you must create a plan to improve them.
Create a list of the tasks required for each skill to achieve the associated goal. Of course, you should focus on the skills that are important, meet goals, and need to change.
The RedYabber example has people, cog, and wrench icons next to each course of action. These icons show whether the action is mostly about people, process, or technology.
How should we put together the change kits to carry out the transformation?
Upon completion, you will possess a multitude of potential strategies. The next step is to organize them into sensible groups, which we’ll call initiatives.
Depending on the level of detail, an initiative can be either a project or a program.
How do we put the change packages in order over a transformation time horizon?
Your list of projects forms the roadmap for the digital change strategy.
RedYabber must plan their projects in a manner that aligns with their three-year digital transformation plan. RedYabber’s plan features five timed stages that ensure a logical and achievable distribution of tasks over the next three years.
The rows divide the strategic themes into groups. For instance, the projects related to marketing are arranged individually in a row. This makes sense because similar projects may depend on or naturally follow each other.
Below is the final product of our example digital transformation plan.
Putting together and sharing your roadmap
When you finish the six steps, you’ll know the why, what, and how of digital change.
There are many tools available that can help you make and show strategy roadmaps. We can categorize most of them into three groups: general desktop tools, business architecture tools, and lightweight tools specifically designed for this purpose. We like the second type better because it’s generally more efficient and makes communication easier.
Regardless of the tool you select, ensure it aids in creating a robust plan to ensure success.
Conclusion: Example of a Digital Transformation Roadmap
In closing, having a clear and structured example of a digital transformation roadmap is key to a successful digital transformation in this modern era. The roadmap not only provides a clear direction but also helps companies navigate the challenges that may arise during the transformation process. With the right approach, companies can maximize the potential of technology to improve efficiency, competitiveness, and innovation. Every digital journey requires careful planning, commitment from the entire team, and a willingness to adapt to change. Start small, evaluate progress regularly, and adjust strategies as needed to achieve optimal results.