11/02/2019
Defining Digitalization
More and more, digitalization has become a buss word.
Here is a definition for digitalization as this is key for companies to “become digital”. A fact is that digitalization will have a major impact on the society and the markets over the next years.
Without such definition, the risk is that e.g. only tangible aspects of digitalization will get focused: the technology aspect incl. automation of processes or digital capturing of data. It will result in delivering services and products faster at a lower cost and if you are lucky in higher quality. A corporate driven by cost control might deliver focusing only the technology aspect, but will not become digital.
So - What is this digitalization?
First, digitalization is a mindset, a set of values and beliefs that is driving your actions.
It means to develop a passion:
- for making the world a better place (this is serving conscious and unconscious needs of clients, the workforce and the society),
- for creativity and innovation (combining this with the first point is the base for disruption),
- for agile leadership to build on the self-determination, collaboration and intrinsic motivation
- for learning consistently, early and often – or fail early, fail often, fail forward, for adapting consistently and reinventing yourself
- for networking
- for technology.
The first point is by far the most important. For many companies it is key to free the intrinsic motivation of their own workforce in order to build on their expertise, their creativity and their knowledge. Technology is the enabler that allows to realize the better world. Established corporates have to overcome their focus on quantifiable measures justifying today's strategy and bonuses and have to get rid of lip-services as transparency will identify them as such anyway.
Second, digitalization is the process to establish this mindset, a set of methodologies to “become digital”.
These are methodologies like Design Thinking, Customer Journey, Lego Serious Play®, etc. to design the world as a better place. An innovation process to collect and build on ideas of the workforce. Transformational instead of transactional leadership to unlock the potential of the existing workforce. Objectives and Key Results methodology to get rid of intransparency, annual budgets and static review cycles. Incubators to kick-start this transformational process. A smart learning process for the workforce, leaders and managers to customize learning. A change management to orchestrate the transformation. Etc.
The good news:
Becoming digital does not mean to get rid of all values and beliefs and the methodologies that exist today. This set of values and beliefs is not hammered in stone, it is a starting point for your own definition. And then, you have to adopt existing methodologies keeping in mind your set of values and beliefs and add new methodologies on demand. As a leader, the only person stopping you is the man in the mirror.
Please let me know your thoughts on a definition for digitalization as I believe it is a key step to become digital.
