How Boards Help In Digital Transformation
Businesses must embrace innovation at every walk for driving growth. The COVID-19 pandemic has posed a massive challenge to the world, and the companies that are not adapting to digitization have faced setbacks. With innovation gaining importance, Boards play a crucial role and can help prioritize and manage digital transformation within the organization with their expertise, judgment, and skepticism for the long term.
In 2020, 72 percent of data and analytics leaders globally were leading the digital transformation initiatives with Data quality, ROI, data sharing, with quality being the top of the listed priorities.
The face of digital transformation is changing for varying organizational dimensions as companies shift from operations and efficiency to a digital mindset. Now, digital transformation involves not just technology but also people and processes. Here is how Boards can play a role as primary digital transformers in organizations.
Making Informed Decision with the Right Data
Data is the fundamental requirement for bringing any transformation; thus, business leaders should have the correct data for making decisions that turn out to be effective for the organization. Customer experience is the primary factor for every business, and it should be delivered strategically. Not all products open up new markets; some may enhance core business competencies that are transformative. Board members can assess the company’s vision and align the efforts to create value.
Foster the Five Promoters of Innovation
Board directors can consider the below five innovation facilitators that every digital transformation program should embrace for sustainability:
Data Intelligence:
The Board must use the analytics obtained to unleash business insights and develop products suitable to the customer’s needs besides the correct data.
Automation:
Using digital services for automating tasks can improve operations and deliver engaging experiences.
Technology Innovation:
The Board can command to deliver customer experience related to AI engines, augmented and virtual reality, and machine learning such as speech and gesture-based interfaces.
Connecting People:
Boards can interrelate people, products, spaces, and technology to transform the interactions and engagement models among customers, company executives, employees, investors, and partners.
Cybersecurity:
â€Securing state-of-the-art security for safeguarding customer data should be practiced by the Board directors. An average cybersecurity breach can cost companies $3.86 million.
Identify the Who’s And What’s Of Digital Transformation
Boards responsible for bringing in digital transformation projects need to be equipped with the right questions to execute and sponsor a project. Here are some essential questions to consider:
Is the organization ready for a transformation?
There are three key areas organizations have to look over while transforming:
- Moving from on-premise data centers to the cloud.
- Process automation.
- Digital customer interactions.
What approach will help fund the project?
Boards need to sort out which approach will ensure a digital transformation and how it needs to be funded. Agile development delivers the best results and can help in financing a project.
What does the digital transformation guarantee?
The Board must investigate if the digital transformation plan is transparent and risk-averse and whether it achieves its aims.
Does the team collaborate well?
The Board should ensure the project team has the right skillset and collaborates well for on-time and budget project delivery.
The Board’s Role in Bringing out Digital Transformation
Beginning a digital transformation requires exemplary leadership and must demonstrate resilience, vision, and the digital capability to build consensus. For an effective digital transformation, the Board should primarily focus on the strategic plan, risks, opportunities, and change its management program and monitor performance for prolonged organization success.
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