3 “Aha” Moments About Digital Transformation That Will Save You a Lot of Time and Heartache

If you think digital transformation is simply about adopting new technologies and digitizing your offerings, you’re missing a huge piece of the puzzle. 

Sure, the tech component is important, but it’s not the secret sauce that actually drives innovation or delivers a return on your investment. In fact, digital transformation actually has very little to do with technology.

What actually moves the needle is a lot more complicated, but after a few decades doing this work I can confidently say that there are three core truths about digital transformation that, when honored, produce the kind of bottom-line results that make the juice worth the squeeze. 

1. Technology is just a tool, not the outcome

As the child of a technologist, I grew up hearing my dad say,” technology is just a tool” whenever I’d get starry-eyed about some new-fangled computer, laptop, or game. But it holds true for Digital Transformation in 2023 as much as it did for my little, portable Mac in 1992.  A lot of times organizations get hung up on tech as the outcome, but transformation is really about how people interact with the technology.

It’s not enough to simply have a digital presence in someone’s life, or to make an app, or to build a feature. Transformation is about providing the tools and systems that will solve a problem in people’s lives, whether it’s making something easier, faster, more efficient, more robust, etc. 

Don't make the mistake of getting so hung up on the technology that you forget about the reason for needing it in the first place. People – and their experience of the product/service – should always be at the center of your transformation.  And believe me, people are a lot more complicated than technology, so if you can wrap your head around this core belief, you’re going to be better positioned for success right out of the gate.

2. Digital transformation won’t be successful unless you address underlying systems and operations

Here’s the second “aha” moment about transformation: You can't lay new ideals on top of old structures and expect the system to work. In fact, it’s a guaranteed way to expedite a breakdown. 

New ways of working are essential for transformation to be effective. That means you need to evaluate AND shift your budgeting and funding structures, underlying tech architecture, team structures, customer service channels, and anything else that falls into your operations bucket.

Why? Building something new requires a complete overhaul of how the work gets done. Old processes aren’t going to cut it when you’re trying to push forward something that’s completely novel to the org. If you’re still treating technology like an out-of-the-box solution that you can plug in and walk away from, you’re going to have an uphill battle. In fact, if you skip the operations part, you might as well skip the transformation altogether.

3. If culture eats strategy for breakfast, then transformation is on the lunch menu

Smart, motivated people can do anything, but only if their environment is conducive to it. The culture of an organization determines whether innovation is possible or not; if autonomy is possible or not; if psychological safety is present or not. In other words, culture isn’t something an executive team gets to decide. And we’re not talking about the values printed on the break-room wall – we’re talking about the lived experiences of the people in the org. 

Do people feel comfortable making decisions on their own (even many levels “down” in  the organization)? How often do leaders get updates on progress? And are those updates informal conversations, or a PowerPoint presentation designed within an inch of its life? People need to feel safe and empowered to step up and try new things, and transformation is a MAJOR new thing that’s riddled with change, trial and error, and uncertain territory. If your culture is operating from a fear-based mindset, change is going to happen slowly, or not at all. 

That’s why it’s essential to examine the truth of your current company culture as soon as possible. Understand the gap between where you are and where you want to be, then build a bridge between the two (more on that, here). Now, I know this is starting to sound all doomsday-eque, but I promise you my intention is simply to drive home the fact that people are the most important aspect of transformation, not technology. 

When I first started my consulting career, I was really focused on the “what” of transformation (what tools? What products? What features?), but I soon realized that the “how” was even more important. I started noticing the flaw in passing off transformation recommendations that didn’t have a focus on people and systems.  The truth is, all the investment in the world isn’t going to have an impact if an organization isn’t equipped to transform successfully without this component.

It was actually this realization that inspired me to start Tuckpoint Advisory Group, the evolution of my consulting work that focuses on addressing operating model transformation as an essential component to the digital transformation process. Because if we aren’t teaching organizations how to work differently – to really tap into the intersection of people, strategy, technology, and business model – then neither have we done our jobs as transformation guides nor does the organization have an actual chance at creating meaningful change.