From Reactive Technology Modernization to Proactive Digital Transformation

From Reactive Technology Modernization to Proactive Digital Transformation

Most small and medium sized organizations are spending money on technology modernization reactively, without being aligned with their business goals. They invest in modernization projects like replacing old Office Applications with Microsoft 365, expanding from email and calendar to Microsoft Teams, decommissioning servers, migrating to the cloud and so on. That leads to overspending in spite of the small budget they have, questionable business results and very little return on technology investments. 

The reason is that they are responding to problems reactively  

  • change in market conditions (competitor has a better, website we need one too) 
  • internal business improvement opportunities (a new CRM would help on sales) 
  • security concerns (compliance requirements) 
  • aging infrastructure (the server was down and we need faster internal network) 

They try to add pieces from random puzzles hoping a meaningful picture will turn out 

The solution is way simpler than it might seem. The goal is to turn reactive strategic technology modernization projects into proactive digital transformation. 

In other words, seeing a complete picture first and adding the right pieces from a single puzzle, one piece at a time. 

 

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1. Proactive Digital Transformation Areas 

The first step is to understand the complete picture and see what modernization opportunities can yield the best return on investment. 

There are three main areas of modernization: Technology Infrastructure, Digital Maturity and Business Capabilities. In each main area there are three core components to look for. That means business owners need to prioritize and make decisions in nine areas. 

From Reactive Technology Modernization to Proactive Digital Transformation

Modernization to improve Technology Capabilities

These projects intend to improve technology capabilities or the base of the technology infrastructure.

  1. Technology Infrastructure and Cloud modernization – Modernization of storage, data centers, server infrastructure and cloud
  2. Network and Communication modernization – Modernization of network infrastructure, firewalls, switches and communication devices
  3. End user enablement modernization – Modernization of workstations, laptops, tablets, smart phones and related operating systems

These modernization projects are usually managed by the CIO and the internal IT team or the vCIO and the managed service provider. Usually, a Technology Strategy Roadmap is governing these projects, so the business owners should be able to budget and see these coming in advance.

Modernization to improve Digital Maturity

These projects intend to improve digital maturity and capabilities in order to use the underlying infrastructure.

  1. Application management – Modernization of core office applications such as Microsoft Office 365, Line of business applications
  2. Risk management – Modernization of policy and compliance, identity management and cybersecurity awareness
  3. Information management – Modernization of data management, analytics, reports and access to various insights

These modernization projects are usually not managed by anyone. The CIO and internal teams or the vCIO and managed service provider execute the technology projects but they fail to adopt the technologies across the organization. The well performing organizations have a dedicated role between the business and the technology team.

Modernization to improve Business Capabilities

These projects intend to improve business capabilities such as finance, operations, marketing, sales, service, HR or management.

  1. Customer & Web Experience modernization – Modernization of website, social media presence, sales enablement, support processes and customer feedback
  2. Internal Operation modernization – Modernization of line of business applications, processes, analytics and project management
  3. Management modernization – Modernization of planning, execution, employee development, delegation and teamwork

These modernization projects are typically led by the business units. The problem is that these leaders typically have less experience leading technology related projects. The well performing organizations have a dedicated role to coach and help the business leaders through these business-technology projects.

 

2. Proactive Digital Transformation Process

Once they’ve seen the map and all the different modernization areas, they need a simple and repeatable process to identify opportunities and complete modernization projects successfully. That results in less work and higher return on any technology investment.

Proactive Digital Transformation Process
1. Identify Modernization Opportunities

The first step is to identify modernization opportunities very quickly in order to identify the major opportunities in all areas. This is typically a 60-minute session called Business Improvement Review 

2. Create a Modernization Action Plan

The second step is to create a strategic action plan for modernization that helps to make strategic decisions that lead to proactive measuresThis is a process with four 90minute sessions called Digital Maturity Assessment leading to a comprehensive 6 to 24 month roadmap of modernization projects. 

3. Plan Modernization Projects

Most technology-business projects fail because of a lack of planning and coping. Therefore the third step is to start scoping and planning the individual projects. For each project this is five 60minute sessions called Digital Transformation Discovery Workshops. These workshops produce project visions, timelines and execution plans. 

4. Execute Modernization Projects

Once we have the plans we need somebody who has time and most likely skills to lead these projects. It can be the business owner, a division leader or a consultant from outside. The process has to be repeatable and followed by all in order to succeedDigital Transformation Execution Process is a set of quarterly, monthly and weekly best practices to do in order to ensure the success of those projects. 

 

On a bumper sticker: 

Organizations are modernizing technologies by reacting to market changes, aging technology challenges and business opportunities. These disjointed and reactive modernization projects don’t yield the needed return on investments. The solution for small and midsize businesses is to prioritize the modernization projects and execute them under a proactive digital transformation initiative. 

 

Jaycen Kuehn – Certified Digital Advisor in the Edmonton, Alberta area

Jaycen Kuehn, Digital transformation expert - Edmonton Alberta Canada

Jaycen has witnessed that more and more technology related projects become overly complicated and end over budget. The frustration on the business side and the technology side has been growing ever since. Businesses no longer trust that technology projects are successful to the business and technology people have become cynical of business requests. 

He has seen that if technology related projects are going to decline that means the innovation capabilities of small and medium businesses are going to decline too. This will diminish the ability of the smaller businesses to compete and bring new products and services to market. 

After talking to many business executives and technology leaders he realized that a huge underlying change has happened without anybody noticing it. Most technology projects became business projects. These projects could not be managed by business owner nor technology people. These initiatives call for a new leadership: Leadership in Digital Transformation. 

He researched the topic and started formulating methods, tools and best practices to make technology projects more successful. He joined Digital Maturity Group in order to learn more and to further develop Digital Transformation Project Management and Leadership Best Practices. 

He scopes, implements, manages and closes successful Digital Transformation projects in Northern Alberta, Canada.

Get in Touch with Jaycen

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