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The five facets of digital transformation

Zafirah Salim | Feb. 22, 2016
IDC has developed a framework called the Digital Transformation MaturityScape to help business and IT leaders understand and cope with the challenges and opportunities of DX.

5. Worksource transformation - This dimension refers to the "transformation of the way businesses source, manage and optimise talents in an organisation to increase the productivity of employees," said Jimenez. These 'talents' refer to both internal and external employees, including temporary employees. This group of employees has to be well-trained because they are "brand ambassadors" and can influence the customer experience, he added.

This dimension requires business leaders to foster innovation within the ecosystem. CP ALL Public Company Ltd, a conglomerate that owns the 7-11 retail chain in Thailand, is a shining example of this.

According to Jimenez, the company faces an employee retention problem because its employees, who are mostly students, tend to work only for a short period of time due to school commitments. In order to promote retention, the company came up with various incentives to entice its student employees to return to the company after graduation.

Firstly, it partnered with the government to allow its employees to enroll for training courses at a discounted rate. The company also created an award programme, called the President's Awards, to drive innovation. Every month, this award is presented to the employee with the most innovative ideas on improving the business such as cost-cutting solutions or ways to drive better customer engagement.

These simple solutions ensure that employees are satisfied, and in turn be more productive. It is a win-win situation for both employers and employees, noted Jimenez.

Among the five areas, the worksource dimension is lacking the most investment, according to Jimenez. Contrary to this trend, he feels that this is an area that companies should start focusing on.

"I'm not saying that this is a top priority, but a lot of companies are making an effort to transform their employee experiences and satisfaction. You need to ensure that employees are satisfied and that they buy-in to the whole company culture and vision," said Jimenez. "An employee's experience and satisfaction is just as important as a customer, and it is essential in delivering improved customer experience."

Keys to a successful digital transformation

According to Jimenez, crafting an effective DX strategy is undoubtedly something every organisation keen on exploring DX should look at first.

The success of DX projects is linked to having a robust DX strategy with quantifiable metrics attached to it so organisations can track the progress of their digital initiatives. As such, business leaders should start small and focus on the metrics. "Scaling DX is complex, so focus on those dimensions or business areas where your organisation has stronger capabilities and track the progress," advised Jimenez.

When crafting a DX strategy, he recommends tech CXOs to seek an optimal balance between innovation and agility, and risk and resource redundancy. CIOs also need to recalibrate IT organisations' fundamental priorities; and devise a plan to transform its role from custodian of the infrastructure and project executive, to more of a service provider.


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