Five Steps to a Digital Transformation
Through the digitalization of the business, the communication between machines and employees can be enabled. For this the products are set up with RFID-Chips. They send data with information about statuses, position or errors to the cloud, so that the employees can recognize problems early or prevent them.
In order to enable the digital transformation, a clear strategy is needed. Processes, knowhow and core competences must be documented and potentials must be analyzed. In the best case, this job is done by someone who understands the topic and can realistically evaluate the potentials of the company. Often, external consultancies form the IT- field are assigned for this job.
The digital transformation consists of five phases:
1. Status quo analysis
- Collection of data regarding the current status of the company and business model
- Analysis from the internal perspective
- Analysis of the value chain and their stakeholder
- Goal: Clarification of the products and services of the company that is to be digitalized and integrated into a network.
2. Goal definition:
- Definition of goals, dimensions and framework for the new business model with help of the questions: “Where do we want to position ourselves?” and “What are our priorities? “
3. Best practices:
- Examination of the potentials within the company
- Analysis of best practices that would contribute to the digital transformation and be integrated into it
- Business model design, in order to create different variations and specifications
4. Digital Fit:
- Evaluation of the different Business model versions regarding goals, customer requirements and digital integration
- Carve out of the suitable business model
- Finalization and implementation of the business model definition
All five phases can only succeeded through their most important element: the employees and executives. It is important that people with vision support such complex projects and accompany the change.