Understanding Dual-Track Transformation
The first track—an enterprise-wide orientation—focuses on identifying and implementing new digital technology throughout an organization,while simultaneously attempting to change cultures and business workflows impacted by digitalization. While important, this big-picture approach is complex, time consuming, and doesn’t completely fulfill its goals until many of the associated components are in place. For this reason, benefits may take years to materialize, which helps explain why most executives in the survey are dissatisfied with the transformation results they’re seeing so far.
The second track,which is equally important because it can fill in the gaps left by grand-scale transformation plans, focuses on acomprehensive collection of workflows that run within and across business units. These workflows span two important categories: The first includes any unique processes developed to foster competitive advantage, such as call center resources that enhance customer experience by reducing problem-resolution times. The second addresses critical processes like accounts payable and receivable, purchasing, materials management, and other areas that represent the lifeblood of enterprises.
Over time, these workflows may not have been adequately modernized as new digital tools emerged to automate processes and eliminate manual steps. Because it’s more targeted and delivers incremental improvements, transformation of business workflows can quickly yield business value, or what may be thought of as rapid-cycle innovation. In addition to speed, this approach can also help business units prioritize important changes that otherwise can’t compete for resources against large-scale transformation projects.
More focused than still-important enterprise-wide transformation, rapid-cycle innovation relies
on the people who manage or use individual workflows. Their hands-on, day-to-day involvement with the processes gives them unique insights about which modernizations will yield the best outcomes. It’s important to note that rapid-cycle innovation doesn’t replace enterprise-wide transformation—each is a necessary component for business modernization.