With the future uncertain, companies must strike a delicate balance between investing in innovation and saving for difficult times. Entec Si CEO Eman Al-Hillawi explores how companies can build effective business transformations that secure their future while ensuring the implementation of their transformation programs.
As mainstream applications of quantum computing and digital twinning continue to grow, it is clear that the new year will bring a wave of technological advancements. Over the next decade, the development of generative AI could add nearly £5.5 trillion to global GDP, with investment in AI set to rise by 36% each year into 2030.
Now more than ever, businesses need to be agile and embark on a journey of continuous change to proactively respond to technological advancements. Digital transformation is critical to such adaptability, but it is an ongoing process and requires full support from the senior leadership team. This is possible by building a compelling business case.
Timing is everything when it comes to building a successful business case for digital transformation. Ideally, a strategy for change should only be initiated when the organization is ready to embrace it. For example, if your employees aren't familiar with basic cloud software, it's too early to invest in advanced tools that will take time to implement. Instead, it's best to assess your organization's readiness and consider whether new digital changes or solutions will have the impact you need. These measures are the necessary foundation for a strong business case and establish the practicality of a transformation effort before more time and resources are invested.
Information gathering is critical when developing the content of your business case. Listening to people in the field and understanding how both their experience and the customer experience can be improved will help establish the types of changes needed. Early communication is essential to building a complete picture of change with employees in mind. This fosters employee buy-in and ensures that the entire organization embraces the change initiative.
Employee engagement further ensures that the chosen digital solution meets the needs of the business, not just the preferences of senior leaders. Cost management is a fundamental part of any transformation process, and it's important for senior leaders to understand that digital transformation takes time and cutting corners won't yield the same rewards. Gathering intelligence therefore allows for stronger, more informed debates. The business case accurately reflects the business problem or challenge that will be solved through the right digital investment, identifies the new services needed, and explores the opportunities that may arise from the change.
good business case
A good business case similarly demonstrates the benefits of the investment, showing how it outweighs the costs and feeds into the overall business strategy. As guardians of the business's vision, senior executives want to know how new technology will advance the goals they have set for the business, such as succeeding in new markets, reducing costs, and increasing demand for new services. You would think so. .
To achieve this objective, it helps to include a benefit realization plan that maps out the value that digital transformation investments will bring to different business areas. This should include short-term and long-term benefits to ensure the new technology helps your business grow and evolve. The business case should determine how the company will continue to improve customer experience, service efficiency and staff wellbeing through internal and external changes.
Senior leaders will also explore the tangible assets of digital investments – whether they deliver additional revenue or new revenue streams. Senior management, who is responsible for determining the end goal of the business and inputting the elements to achieve it, ultimately seeks clarity and explanation from his case for the business.
Intangible assets are also important when building the case for digital transformation. Measuring how employees, end users, or customers feel about change can be difficult, but measure a baseline of employee opinion through employee surveys, direct engagement, and customer feedback forums. This will help establish where your organization currently stands and how you can adjust your digital investments. The biggest impact.
Building an advocacy cohort ensures that this information and business case is effectively communicated to the senior leadership team. This requires members of the executive team to support the case in senior leadership meetings and take responsibility for framing the business case language in a way that senior leaders understand and empathize with.
For companies looking to begin digital transformation in 2024, it's a good idea to allocate a portion of your budget in your business case for contingencies and trialling new solutions. This gives you the space to deal with the unknown, experiment with technology, and decide on solutions that bring the most benefit to your business and increase adoption rates. While senior leaders may be tempted to make large upfront investments in the new year's exciting digital tools, it's important that the business case conveys the importance of testing solutions that add real value.
As such, the business case remains a strength for making prudent and informed decisions.
Companies are forced to change with the times. The business case ensures that it is done with business objectives and people in mind.
Eman Al Hilawai is the CEO of Entec Si, a business transformation consulting firm.
