From strategy to real change

Most companies have a digital strategy. But that digital strategy can also be part of the problem, at least when it isn't closely connected to the overall business strategy. A digital strategy can easily become ineffective when it exists in isolation.

Successful companies put digitalisation high on the agenda and drive initiatives that have a real impact on the business. That's why you also need to set goals that connect to the business as a whole: increased growth, better margins, shorter lead times or more loyal customers. Those that succeed connect business goals with data and technology, driving everything in the same direction.

Anything that doesn't create business value can easily become an isolated activity: impressive on paper, but of little practical value.

Insights as a driver of change

Driving change requires the ability to act quickly on new insights. When too much time is spent on planning, there is a risk of losing momentum relative to the surrounding market and competitors. Failing to act in time can be a significant risk. It's easy to fall behind.

That's why organisations need to be able to move faster in their development work. Starting with hypotheses and testing ideas on a small scale makes it possible to quickly discover what works and what doesn't. This approach provides a clear picture of what should be scaled up and what isn't worth developing further.

Short decision-making paths, continuous measurement and evaluation, and a willingness to experiment and make mistakes are important ingredients in an organisation driven by change. Less control, more enablement.

It all starts with culture

For a hypothesis-driven approach to work, however, you need a culture that allows it. Culture is a critical factor in determining whether digital initiatives become successes or turn into drawn-out processes. Companies that are good at driving change have one important thing in common: they dare to experiment.

Getting there requires three things: trust, pace and a clear direction. The teams doing the work need to feel they have the autonomy to make decisions without first going through several layers of approval. They need a clear direction, but the freedom to choose how to get there. And they need to know that learning is at least as valuable as success.

Seen this way, it's no coincidence that successful companies have leaders who talk just as much about learning as they do about results.

Measure success based on impact

Digital initiatives that can't be linked to revenue, efficiency or customer value tend to fall flat, even when the project itself is technically impressive. You need to show how digitalisation affects the business as a whole. Activity, number of features launched, users or clicks are easy to measure. But don't forget to measure the actual impact as well.

Where activity metrics focus on the number of features launched, impact metrics instead show the value those features create.

Here are a few examples:

• An e-commerce company launches a new search function. It measures how many customers use it, but also the resulting increase in conversion rate and average order value.

• A bank tracks the number of users of its app. It measures the value of the service based on how quickly customer enquiries are handled and whether customer satisfaction increases.

• An industrial company measures the number of customers registered in its customer portal. It also tracks how the portal enables customers to report delivery issues and get faster support, which in turn increases customer satisfaction.

An organisation that makes data-driven decisions, learns in real time and can move quickly is well positioned to succeed with change and digitalisation.

Focus on results rather than activities. When you can demonstrate tangible outcomes such as increased revenue, lower costs or greater customer loyalty, digitalisation stops being a cost item. It becomes a competitive advantage and a driver of growth that moves the entire business forward.