The news from Tiguring

Why using digital principles to implement transformation?

Why using digital principles to implement transformation?

As a matter of fact, Digital adaptation is a survival issue for the bank and insurance sector.

A key success factor for the achievement of a digital transformation project is obviously to be consistent with the digital principles themselves. In other words to become digital, the path has to be digital and then: Simple, Agile, Cost Effective and Fast.

However transformation programs are still designed and engaged through long and expensive programs: long term Business Projects, huge IT, end to end multiannual projects…

None of those methods can achieve a digital adaptation of organizations. Systemic approaches became irrelevant. They are natively digital opposite. All the involved actors need to challenge their habits. And for some of them, like IT consultants; the business model itself is challenged.

Acknowledging the above reefs, a new C level is appearing: the Chief Digital Officer. For the CDO, the challenge will be to integrate the organization. Even stronger challenge in financial sectors where historic IT is the spinal column of the business process. Risk is high for the CDO to exhaust his strength and progressively be driven in out of the companies digital expenses.

How to achieve digital adaptation with a real non systemic approach?

First forget about global transformation ambitions. Everything does not need to be transformed. Only non-adapted body parts must change to improve capabilities of the entire organism to cope with new environment. Energy for change has to be precisely targeted where the leverage effect will be the strongest.

To do so, the company must identify digital opportunity clusters and then value the transformation potential for each cluster within a digital perspective: Simple, Agile, Cost Effective and Fast.

Then, the company should set up human-scaled project with engaged multicultural teams.

Milestones and goals will be defined or redefined on the short-term basis (for instance weekly or monthly). The test and learn process has to be promoted: whenever it‘s possible, failure must positively be taken into consideration and the project team members supported.

At the end of the day, these smooth and disseminated actions will lead to a deep, costless and significant change. Technological adaptation will be achieved together with an equivalent ambitious cultural change.