FOCUS ON SELF-STUDY CPE


moved to a digitized shop floor system and streamlined its decision-making processes. To improve customer experience, Lego added mobile apps, games and even movies to its products. Te first Lego film generated an additional $467 million in revenue (off a production budget of $65 million). Of course, these are extreme cases and big, famous businesses, but they highlight just what a difference


transformation:


• Do you need to upgrade your systems?


• Will you need to bring in new technology?


• Will you change your processes to a new structure?


It is extremely important to set baseline metrics when deciding on process transformation. Tese will help you understand if the


Digital IT transformation is about using modern technology to create or modify business processes, culture and customer experiences.


embracing digital IT transformation (or failing to embrace it) can make to your business. Tere are four main areas of transformation that you need to consider:


1. PROCESS TRANSFORMATION


Tis is most appropriate when a business needs a radical transformation. It can modernize your processes, integrate new technology and save money, while still incorporating your core systems. Process transformation can result in the most drastic changes to your business. Before you begin—and to help decide whether it is the right step for you right now—you need to ask yourself what your goals are for


transformation is a success. So, as well as setting new Key


Performance Indicators (KPIs), you should also set baseline metrics based on your expectations of the new structure and the typical results of your old structure. Include things like time, cost, errors and downtime suffered. You should involve your team in


this process. Ask for feedback on how your current system is working, its benefits and drawbacks. Find out how the people using the systems would make improvements and how their jobs could be made simpler. What would they like to see in the new system? How can they see new processes improving their role and making them more productive? Tis kind of feedback can give you


the most valuable insight into how your systems should be working to


make the biggest improvement. And before you embark on process transformation, you should create an ideal workflow path. Tis will help you identify the areas that you need to focus on first, to really understand both the system tasks that take place and the human element too.


2. BUSINESS MODEL TRANSFORMATION


As we saw in the case studies, it is possible to adapt or even completely reinvent your current business model to open up new opportunities for growth. Never has this been more evident than in our post-pandemic society. Te COVID-19 pandemic really changed the way we think about customer experience and digitization of products and services. As businesses, we were forced to make quick decisions and digitally transform practically overnight. And although there was some tweaking along the way, we learned a lot about the barriers that are actually in place to prohibit change and those that we place there ourselves. If you need a good example of a business model transformation, you just need to look at the way the healthcare industry quickly overcame privacy concerns when it shifted to virtual appointments. However, not every business model transformation needs to be at the level of Netflix. It could mean something as simple as using data to offer customers add-on products and services that complement what they already buy, and the needs they’ve communicated to you.


July/August 2023 CPAFOCUS 17


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