Why IT is Just a Tool, Change is Critical, and Collaboration is Key.
Slioch & Loch Maree, Wester Ross © Al lee-Bourke
Summary
Digital Transformation is more than technology.
Change is critical to digital transformation.
Change management is critical.
Drive benefits through adoption.
Realize business gains effectively.
Understand the Benefits Dependency Network.
Map value through Digital Transformation.
Don’t just add tech; transform.
Effective change, effective results.
Digital Transformation and the Benefits Dependency Network
Digital Transformation requires effective change management to drive adoption and realize business benefits. The Benefits Dependency Network (BDN) approach developed by Cranfield University School of Management recognizes that IT benefits come from its use rather than IT itself. BDNs are based on five fundamental principles and map business value from Digital Transformation.
IT has no inherent value.
Benefits arise when people do things differently (no change, no value)
Only business leaders and managers) and end-users can realize business benefits.
All IT projects have outcomes, but not all outcomes are benefits.
Benefits must be actively managed for.
Let’s look at these.
Principle 1: IT has no inherent value
IT by itself has no value; its value comes from its use to improve business processes and outcomes. It is a tool, like a hammer or a saw, that requires skilled individuals to use it effectively. IT can create innovation, streamline processes, and generate value when used by knowledgeable individuals. However, inexperienced or untrained individuals can create chaos, confusion, and even financial losses. IT is like a toolbox consisting of various tools such as hardware, software, databases, and networks, each with a specific purpose. IT can only create value when used appropriately and effectively by skilled individuals in a business context.
Principle 2: Benefits arise when people do things differently (no change, no value)
Digital transformation requires a change to achieve better outcomes, which means people must be willing to do things differently. Change management helps guide people through this process and helps them understand why change is necessary and how it will benefit them in the long run. Without change management, people may not understand the benefits of doing things differently or know how to adapt to new processes and systems. To reap the benefits of digital transformation, people need to be willing to try new things and embrace change, with effective change management leading to improved outcomes for the business as a whole.
Principle 3: Only business leaders, managers, and end-users can realize business benefits
Digital transformation requires collaboration from business leaders, managers, and end-users. They all have critical roles to play in ensuring the success of the transformation. IT professionals might have technical expertise, but business leaders, managers, and end-users determine the success of digital solutions. It’s like building a house - everyone brings unique skills to achieve the vision. It’s essential to work together, pass the baton, and stay focused on a common goal to reap the benefits of digital transformation.
Principle 4: All IT projects have outcomes, but not all outcomes are benefits
Benefits and outcomes are not the same things. Outcomes can be positive or negative, while benefits are always positive impacts resulting from the project outcomes. For instance, implementing a new system that leads to chaos and confusion is not a benefit. An analogy to planting a garden helps to understand this. Just like sowing seeds will yield some outcomes, such as sprouts or weeds, implementing an IT project will also lead to outcomes. However, not all outcomes are beneficial. Adverse outcomes can offset or mitigate the benefits of the IT project. It’s essential to assess the outcomes carefully and ensure they benefit the organization in the long run.
Principle 5: Benefits must be actively managed to be realized
To realize benefits from technology, managing benefits is necessary. This means setting clear objectives, tracking progress, and adjusting as needed. Just implementing the technology is not enough. Benefits need to be actively managed, just like tending to a garden. Neglecting benefits will lead to failure to materialize. Clear objectives and progress tracking are essential to stay on track. Celebrating successes reinforces the benefits’ value, encourages continued usage, and builds momentum for future digital transformation efforts.
Wrap-up
To summarize, digital transformation is about technology, driving adoption, and achieving business benefits. By adhering to these five change management principles, organizations can boost their chances of success and guarantee truly transformative digital transformation initiatives. Remember that IT has no intrinsic value - how it’s used matters!
*Including business outcomes, increased efficiency, and cost savings.
Potential Objections and my response
Objection: “The article places too much emphasis on change management and not enough on technology.”
Response: Change management practitioners must build collaborative relationships with project teams for successful Digital Transformation. Different value systems and ideas of success can make it challenging. The joint value proposition of project and change management is crucial. A disconnect between the two is a significant obstacle to success. Change management is about helping people make personal decisions to change and promoting adoption to ensure effective technology usage. Digital Transformation offers possibilities, but change management makes them a reality. We need both to succeed.
Objection: “The article assumes that everyone in the organization will be willing and able to embrace change.”
Response: When it comes to Digital Transformation, not everyone is on the same page. About 16% of people are early adopters and can easily accept new technology. However, most people, the remaining 84%, need help to adopt new technology. This is where change management comes in. Change management is a process that helps people through the innovation and decision-making process using the ADKAR™ model. This model focuses on autonomy, competence, and relatedness. And don’t forget ‘excellent’ change management can help mitigate resistance by up to fifty percent.
While it may be impossible to get 100% adoption, excellent change management can significantly improve the chances of success for the early and late majority. It’s important to remember that change is not easy for everyone, and it takes patience and persistence to guide people through the process. Organizations can help people embrace Digital Transformation and achieve its benefits by applying the right strategies and techniques.
Objection: “The article assumes that all benefits of digital transformation can be easily quantified and measured.”
Response: Regularly evaluating and adjusting the transformation strategy is crucial to ensure all benefits are being realized, even if they can’t be easily measured. Identifying and managing these outcomes is important in the transformation effort. Excellent change management can increase the chances of meeting or exceeding project objectives by six times, being on or below budget by 1.6 times, and being on or ahead of schedule by 4.3 times with our Digital Transformation program. These results are positive.
© Al Lee-Bourke al@554north.scot
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