Leading digital transformation: Empowering business leaders for success

Thursday, 15 February 2024 01:35 - - {{hitsCtrl.values.hits}}

By Dr. Aruna Dayanatha

Digital transformation, often seen as the domain of ICT professionals, frequently falls short due to a lack of comprehensive business understanding among these experts. A study by Harvard Business School emphasised that digital transformation is not about technology and IT professionals in Sri Lanka declared at a conference that they could contribute only up to 20% to the success of such initiatives. When IT professionals lead, they excel in technology but may overlook broader business implications. Thus, non-IT managers must step into leadership roles for digital transformation projects, although they may face knowledge gaps in ICT.

The rapid evolution of technology compounds this challenge. Even IT professionals sometimes struggle to keep pace with new technologies emerging constantly. To lead digital transformation effectively, business managers need a nuanced understanding of technology’s role in business change. This entails distinguishing digital transformation from mere information system modernisation, which is a common misconception.

The traditional Input-Process-Output model often falls short in digital transformation projects. Instead, adopting an Events-Input-Process-Output-Decision model shifts focus to business considerations, facilitating effective negotiation with IT professionals. The first step in transformation is making the business digital-ready, involving elements like digital leadership, culture, and data foundation.

Management plays a pivotal role in digital transformation, requiring a shift in the traditional management paradigm. Rather than focusing on abstract concepts like engagement and commitment, managers should adopt a simpler approach centred on sensegiving. Sensegiving influences the meaning-making processes of subordinates, ensuring clarity and direction amidst the complexities of digital transformation.

Managing vendors in digital transformation projects presents its own set of challenges. Vendor selection and contracting are critical to success, as vendors often prioritise abstract results over practical process considerations. Business leaders must be well-versed in contract law and negotiation to secure favourable terms that align with the organisation’s objectives.

Data management is central to digital transformation, yet it presents unique challenges. Data, defined as evidence of business events, must be managed effectively to reconstruct events accurately. This requires an understanding of laws pertaining to evidence and data protection, as well as strategies for paperless data management.

In conclusion, successful digital transformation demands a robust understanding from business leaders. They must navigate complexities and challenges by equipping themselves with necessary skills to drive successful digital transformations within their organisations.