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Strategy Development for Digital Transformation

Taking into account both internal and external factors, such as the corporate culture, existing technology, market dynamics and customer expectations, sustainable and effective strategies are developed to strengthen the competitive position and increase the level of digital maturity.

Approach to Strategy Development for the Digital Transformation

1. Objective & Vision

The long-term goals of the digital transformation and the vision that the company wants to achieve are defined.

2. Analysis of the Digital Maturity Level

The company’s current status in terms of digital technology and capabilities is assessed.

3. Environmental Analysis

The external factors that can influence the digital transformation are assessed and evaluated:

  • Market conditions and competitive landscape
  • Customer expectations
  • Technological trends

4. Strategical Planning

The strategy development is based on the objective, the analysis of the maturity level and the environmental analysis. This includes selecting the right digital technologies and initiatives, planning the implementation and defining KPIs to measure performance.

5. Implementation Planning

The implementation of the digital transformation is planned and scheduled, including resource planning, project management and change management.

6. Evaluation and Control

Ongoing monitoring and evaluation of the performance of the digital transformation against the defined goals and KPIs is essential in order to make possible adjustments to the strategy based on the evaluation results.

Here you will find a detailed description of the individual process steps:

The development of a digital transformation strategy begins with defining the objectives and vision. In this process, the organisation defines its long-term goals and the vision it wants to achieve through digital transformation.

The vision for digital transformation should be inspiring and forward-looking, providing a clear idea of what the organisation wants to achieve through the implementation of digital strategies.

These vision and goals provide a framework within which the digital transformation will take place. They determine the direction of change and provide concrete measures to achieve the desired improvements. They ensure that all digital transformation activities are aligned with and contribute to achieving the company’s overarching goal.

The next step in developing a strategy for digital transformation is to analyse the company’s digital maturity level. This step is crucial to assess the current state of the organisation in terms of the use and implementation of digital technologies and existing digital capabilities.

The digital maturity assessment usually includes a thorough analysis of the current digital infrastructure, the technologies used, the digital skills of the employees and the digital processes in the company. It examines how and to what extent digital technologies are already being used and how well the company is able to implement and utilise new digital solutions.

The company’s digital culture is also assessed. This includes the willingness and openness of employees and management to digital changes, their ability to adapt to new digital processes and technologies and their willingness to undergo continuous training in this area.

Analysing the digital maturity level provides valuable information about the company’s strengths and weaknesses in terms of digital transformation. It identifies areas for improvement and provides a solid foundation for the development of an effective digital transformation strategy. This strategy should aim to further strengthen the organisation’s digital capabilities and address any weaknesses in order to achieve the set goals and digital transformation vision.

Another important component in the development of a digital transformation strategy is the environmental analysis. This process involves assessing the external factors that can have a significant impact on a company’s digital transformation. These factors include market conditions, competitive landscape, customer expectations and technological trends.

Market conditions provide important information about the current market situation, including the general state of the economy, industry trends, market demand and regulatory requirements. These conditions can significantly influence the pace and direction of digital transformation.

The competitive landscape provides insight into how competitors are using digital technologies and what digital strategies they are pursuing. This can help to identify potential opportunities and threats and develop a digital strategy that differentiates the organisation from its competitors.

Customer expectations play a crucial role in digital transformation. Today’s customers expect seamless digital experiences, personalised offers and fast responses. Companies must adapt their digital strategies to these expectations in order to remain competitive.

After all, technological trends are having a significant impact on the digital transformation. Innovations such as artificial intelligence, cloud computing, big data, the Internet of Things and blockchain are changing the way companies work and interact with their customers. Companies need to take these trends into account and adapt their digital strategies accordingly.

Analysing the environment helps companies to gain a comprehensive perspective on the external factors that can influence their digital transformation.

Strategic planning follows the definition of the objective, the analysis of the digital maturity level and the environmental analysis. In this phase of strategy development for the digital transformation, the aim is to develop a specific approach based on previous findings. The focus here is on selecting the right digital technologies and initiatives, planning their implementation and defining KPIs for measuring performance.

Selecting the right digital technologies and initiatives requires a thorough assessment of the various options in terms of their suitability to achieve the defined objectives. This could include technologies and initiatives in the field of artificial intelligence, data analytics, cloud computing, the Internet of Things or other digital innovations. This selection should take into account the specific needs and capabilities of the organisation as well as the findings from the environment analysis.

Planning the implementation involves developing a detailed action plan that defines the steps and timelines for the introduction of the selected digital technologies and initiatives. This plan should also consider potential challenges and risks and provide strategies for overcoming them.

Defining KPIs to measure performance is crucial to monitor and evaluate the progress and success of the digital transformation. These KPIs could, for example, measure the degree of digital integration, the improvement of the customer experience, the increase in efficiency or the profitability of new digital business models.

To summarise, strategic planning is a comprehensive process that enables the development of a digital transformation strategy tailored to the company’s specific goals and needs. It is a critical step in ensuring that the digital transformation is implemented effectively and delivers the desired results.

Strategic planning is followed by implementation planning, a crucial step in strategy development for digital transformation. This involves the practical realisation of the developed strategy, taking into account aspects such as resource planning, project management and change management.

Resource planning is a fundamental prerequisite for the successful implementation of digital transformation. It includes the allocation of the necessary financial, human and technological resources for the implementation of the selected digital technologies and initiatives. In this process, the company must decide which resources need to be provided internally and which may need to be procured externally.

Project management involves structuring the implementation into clear, realisable steps and milestones. Effective project management ensures that the digital transformation steps are completed on time and within budget and that any problems that arise are resolved efficiently.

Finally, change management plays a crucial role in implementation planning. Digital transformation usually means far-reaching changes in the way the company works and therefore requires careful planning and management of the change processes. This includes supporting employees during the transition, communicating the benefits of digital transformation and training employees in new digital skills and ways of working.

Implementation planning is a complex process that requires careful planning and coordination. But when done effectively, it ensures that the digital transformation is implemented smoothly and successfully and the full benefits of digital technologies are realised for the business.

The final step in strategy development for digital transformation is evaluation and control. This phase involves continuously monitoring and evaluating the performance of the digital transformation against the defined goals and KPIs. It ensures that the digital transformation is on track and delivering the expected results.

In the evaluation and control phase, the implementation and impact of the digital transformation are regularly reviewed. This includes monitoring the implementation of the planned digital initiatives and projects, checking compliance with time and budget plans and measuring performance against the defined KPIs.

The evaluation results provide important information about the progress and effectiveness of the digital transformation. They show whether the digital initiatives and projects are delivering the desired results and whether they are helping to achieve the overarching goals.

The digital transformation strategy can be adjusted on the basis of these evaluation results. If certain initiatives or projects are not working as expected, corrective measures can be taken or alternatives considered. At the same time, successful initiatives and projects can potentially be expanded or replicated in other areas of the organisation.

Evaluation and monitoring is therefore a continuous and iterative process that enables the company to constantly improve and adapt its digital transformation strategy. It is crucial to ensure that the digital transformation successfully guides the company towards its long-term goals.

Further Information

THE MAK’ED TEAM has a wealth of experience in the successful implementation of digitalisation projects. Below you will find further information on the approach to digitalisation in the various areas of the company, project examples, case studies and more:

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