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when defining a digital strategy for your transformation it helps to look at examples of how you might Define that digital strategy for your organization but what exactly is it that we need to do to do that that's what I want to talk about here today my name is Eric Kimberling I'm the CEO of third stage Consulting we're an independent consulting firm that helps clients throughout the world to reach their third stage of digital transformation success and on my YouTube channel I recently posted a video that dives into this digital strategy framework it's a deep dive strategy methodology that you can find a link to right here and in this video if you click on that you'll find about a 20-minute description of this slide right here this is where I dive into all the different work streams of what digital strategy is and what some of the things are that you need to think about as you go through defining your digital strategy in a way that's aligned with what it is you're trying to accomplish as an organization so what I want to do today is not talk through the details of this slide because you can do that in the video I already have my channel but instead I want to summarize this slide and give you a couple case studies and examples of how we might apply this framework to our digital strategy in defining our digital transformation approach and roadmap now for Simplicity purposes I'm not going to go through each of these boxes and Define all the Strategic variables within all these different boxes but what I'm going to do is I'm going to summarize three different areas one is the business Process Management piece of things I'm going to summarize the organizational change piece of things and I'm also going to summarize the technology piece which is not only just the Enterprise application piece of it but it's also all the technology pieces that include solution architecture business intelligence and analytics as well so we're going to cover these three things right here in a few examples I'm going to give you and what I want to do is give you three hypothetical scenarios which are actually real scenarios based on some of our current clients and I'm going to explain to you who the organization is without mentioning them by name but I'll describe what the situation is and what some of the Strategic considerations and variables are for each of those three scenarios that I'm going to share with you now before I dive into this though for more best practices on digital strategy and to better understand digital strategy I encourage you to download our digital strategy Playbook and it's a Playbook that includes this framework and it describes this framework in more detail you can download that playbook for free by scanning the QR code in front of you on the screen or you can go to the links in the description field below so let's dive into our first example I'm going to simplify this slide right here by taking us to a a more simplified template here that focuses on those three things that I just mentioned a moment ago you'll see here that we're going to focus on operational strategy people strategy and Technology strategy in this first example in the sort of blank canvas that I'm starting with on the digital strategy side of things is a Fortune 100 company so this is a Fortune 100 global company and the thing about this company is not only are they big not only are they complex and highly Diversified but they're also an organization that has grown through M A murders and acquisitions and the other thing to note here is they've grown through mergers and Acquisitions but they're also trying to figure out as part of that acquisition strategy of how to standardize and scale so these are sort of the high level strategic imperatives and the situation at a very high level Fortune 100 Global they've grown through acquisition and now they're trying to take all these disparate operations and standardize their operations and scale well the types of strategic considerations we're going to look at for this scenario are going to look a lot different than some other scenarios in the marketplace so in this case the operational strategy or the business process strategy is going to be very much focused on standard business processes so here's where we're going to look for ways to standardize our processes and we're going to look to despair it processes and fragmented business processes and we're going to try and find ways to standardize those we're also as part of the strategy perhaps going to move to a shared service model and what this means is that instead of having multiple it groups or multiple HR departments or multiple accounting departments for example now we're going to move to a shared service model where let's just assume we've gone out and acquired a bunch of companies that had their own I.T their own HR their own accounting now we're going to look to ways to consolidate that into single functions and that's going to help us drive down cost it's going to help us drive consistency across the organization and it's going to allow us to be better prepared to scale as an organization so that shared service model is something that you might find in this sort of scenario and just to take this one step further one of the operational strategies that many of our clients that fit into this bucket go for is they want a One business model so they're trying to act like one business they're not moving to a shared service model or to standardized processes just because they want to and not even just because they want to drive costs down but it's also because they want to start acting like one business they don't want to act like 10 or 20 or 30 different businesses or however many companies they went out and acquired they want to act like one global company with a standard set of business processes shared service models in one one business model now when we look at the people strategy then in this particular situation our people's strategy is going to be a little bit different here and it needs to align with the strategies we've defined so far so for example our people strategy might be more focused on changing roles and responsibilities and the reason this is important is because we're moving to the shared service model so if we're going to consolidate functions and we're no longer going to have a dozen different HR departments or a dozen different accounting departments now we're going to have one accounting department or one HR department or whatever it is that's going to be a significant change to roles and responsibilities it may also mean that we're going to have plan nutrition it may mean that we're going to eliminate jobs not a lot of companies do this as part of their transformation but many do and that's something that's very sensitive it creates a lot of turmoil it creates a lot of chaos and it can create a lot of resistance to change as a result of this because people ultimately don't want to lose their jobs or they don't want to see their colleagues or their friends losing their job so you may see resistance to change at a higher level because of that plant nutrition in overall change Management's going to be important for each of these scenarios that I'm going to talk through so I'm not going to call that out as a unique people strategy for this particular situation but it is worth noting the change management will become very important in this scenario but one thing I will call out as a standalone unique thing is the change impact in this scenario the impacts and the changes to the organization are going to be pretty significant they're going to be more severe and in some ways more harsh than you might see in another digital transformation so for that reason we have to fully understand what the change impact is so that we can deploy a change strategy that enables those impacts and allows us to move forward with that organization in that model now that we've defined the high-level operational strategic variables and the organizational strategic variables now we can start to look at the technology strategies that are going to best enable this scenario and in this case this might be a situation where we absolutely do want a single fully integrated tier one Erp system because it's going to allow us to standardize processes it's going to give us the scale we want it's going to better support our shared service model it's going to allow us to scale the organization potentially better than we have before so in this case we might be looking primarily at tier one Erp systems and if you aren't familiar with the term tier one these are basically the big Erp providers the big vendors that provide big solutions for big companies this is going to be your saps of the world it's going to be Oracle maybe Microsoft maybe workday those two systems are technically a tier two at this point but they're moving up as larger tier tier one sorts of systems so this might be a situation where a tier one ARP system is sort of the plan a and best of breed or bolt-ons are going to be the exception so in this case we're not looking for a best of breed approach we're looking for as close to a single Erp system as we can find and we might have some regulatory or some Legacy systems that have to remain for whatever reason that we then bolt onto and it may also be that we have a heavy focus on a cloud strategy here because in order to scale and standardize so Cloud strategy might be appropriate here because that better aligns with and fits with the need to standardize the need to scale the need to have consistent business processes a cloud based system or a set of systems is going to better enable that so this gives you an example hopefully of how you can Define some of these different variables to better support the direction you're trying to go with your digital transformation so now let's shift gears and look at a different example this was the Fortune 100 global company now we're going to go a different direction and provide a different case study this time focusing more on a mid-size high growth organization so this is a mid-sized company Thai growth and it's focusing on flexibility and growth Nimble agile those are a few terms that describe the situation you're Nimble and agile flexible entrepreneurial that's what we're dealing with here we're dealing with the mid-sized company that's going through a lot of growth perhaps there's some private Equity money behind it or perhaps this company has just for whatever reason hit its stride and starting to go through some pretty significant growth in the mid Market but whatever the case mid-sized company that needs more flexibility so in other words they're not looking for standardization they're not looking to move to Shared service models and they're not necessarily looking for common business processes this organization strategically values being able to move fast being able to be nimble and agile Etc so what does that mean for the operational strategy well first it means that we have flexible business processes so in other words instead of defining processes in a way that focuses on standardizing and having one set of business processes we might be more inclined to Define processes that are built to be flexible and adjust to changing market conditions it may also be that for a global company or we have multiple locations or we plan to have multiple locations in the future we might have flexible processes based on geography or it could be that it's based on changing markets and again this is very different than defining standard processes that are meant to be repeatable scalable and consistent across the organization it may be that we intentionally build our business processes to vary from location to location or to evolve as the business evolves now when we shift gears and go down to our people strategy then now we start to think about how do we deploy a change management in an organizational strategy that best fits this well this is where our organizational structure is less focused on shared services which may be the focus of a big Global mature company for a mid-sized company that's changing quickly and growing quickly it might be that we need to build people that can respond quickly to business processes and it might be that we're building and designing an organization is focused Less on a clear division of labor and more on flexibility and more on being able to do multiple things as an organization so this is where we might build an org to support I'll call it a jack of all trades mentality and that might be an extreme term for what I'm really trying to describe but what I'm trying to describe here is a situation where you don't have necessarily really clearly isolated roles but instead you have people that can handle a number of different functions to provide that flexibility and to be able to respond to differing customer demands and customer needs in the marketplace this may also mean from a resourcing perspective on the project it may mean that we don't have a lot of bandwidth no organization really ever has the amount of bandwidth that they need to fully support a project in an ideal way but this type of organization might struggle even more than the first example I gave with the big Fortune 500 company because they're growing quickly and they're focused on building an organization and growing and changing typically that means that this organization is going to have more resource constraints so we have to figure out how to manage a digital transformation with more limited resources so we'll just simplify by saying there's more limited resources and by the way this may mean that as a result of having limited resources or more limited resources it means that we're going to go at a slower run rate in our implementation it might mean that instead of having more people committed to a project more fully we have less people committed to the project which means the duration of the project is going to take longer so it might be that the overall digital strategy is a longer term Horizon now finally let's look at the technology strategy this might be a little bit different than the first example I gave with the global Fortune 500 company that wants a tier one Erp system to help standardize operations in this case the technology strategy might be best to breed this might be where we look at multiple systems intentionally because it allows us to deploy technology faster and that's really the focus here being flexible and Nimble and agile is we're trying to get technology out the door faster and we're trying to speed up the rate at which we move and at the pace at which we operate so we'll call this accelerated Tech deployments and it could also mean that we look at alternative Technologies not just best of breed Solutions but more software platforms so what are the not just the applications we want to deploy but just as importantly what's the platform we might deploy that allows us to develop new capabilities on top of the technology we might buy off the shelf so if we deploy a software platform like a force.com which is the Salesforce platform or Microsoft d365 has the Microsoft platform that you can build third-party applications on it might be that we deploy those platforms as a way for us to build our own capabilities our own competitive advantages and provide our own flexibility with the technology we deploy so you can see that the Strategic variables here are a lot different than other examples that might involve bigger or smaller companies so what I want to do next is give you a third example which is a smaller organization and what my third digital strategy look like so the final example I'll give here is a smaller organization that's focused on growth now this organization is say less than 100 employees less than 100 million in Revenue just to give you rough numbers easy math sorts of scenarios smaller organization less than 100 million but it's really trying to scale and grow to become a mid-size organization or a truly mid-market player in this case they might be using an old QuickBook system or some sort of limited technology and this is going to be their first foray until real robust off-the-shelf Enterprise Technologies so in this case our operational strategy might be even less mature than the first two examples I gave where now we're not focused on standardizing processes or even creating flexible processes here we're just focused on let's just create the processes because a lot of times the smaller organizations are shooting from the hip and they're adjusting and reacting very quickly but they don't have well-documented or well-defined processes so here the focus might become a focus on just defining processes to begin with might also be focused on documentation because just because you define the processes in your head doesn't mean they really exist or that they're necessarily documented so it might be that we're defining processes we're documenting it and it might also be that we're focused on our Revenue based processes so in other words sales processes and other things that allow us to drive that top-line Revenue growth that allow us to fuel our growth to get us to that mid Market whereas a larger organization maybe revenue is not their problem cost efficiency is their problem their focus might be on reducing cost and technologies that allow them to do that for a smaller company that's going through its initial growth curve it might be more focused on Revenue processes like your sales processes and now similarly with our people strategy it might be that we focus more on onboarding and development processes because as we scale we have to hire more people and we need to get a more robust HR set of processes allow us to hire more people and have a more formalized way of bringing on and training new employees it might be that because this is a potentially a less sophisticated organization that's never been through a big system deployment that now we need to focus more on training and education for digital transformation best practices so that they understand employees understand what it takes to be successful in this project so training and development might become more important here as it relates to digital transformation and then our technology strategy might be less focused on a big Erp system maybe not even focus so much on a best of breed solution but more focused on targeted technologies that fuel growth which is similar to best of breed but it's a little bit more isolated or a little bit more targeted so these are targeted Tech focused on growth and some examples of the technology that an organization like this might be considering would be CRM Tech to fuel some of the revenue growth that they're focused on it could also be HR or HCM Tech to focus on scaling up the organization and the people that you're hiring so these might be your two priorities right here you may not be as worried about your financial and accounting systems or your manufacturing processes your inventory management business intelligence that sort of thing or it could be that you are but in this example it could be that these are the two most important things they're going to be focused on and as a result this organization might build an entire digital strategy that takes these things into account foreign S three very distinctly different scenarios and situations that we commonly see with our clients some of them may resonate with you specifically and others might sort of sound like you but not really but the whole point here is to help you understand and think through defining what it is you want to be when you grow up as an organization what are your high level strategic goals and objectives and how can you build a digital strategy that helps enable those higher level business processes that you've defined or those higher level strategies you've defined now if we go back to our digital strategy framework and again you can view this by watching my digital strategy methodology Deep dive video that dives into this slide and into these work streams in a lot more detail but if we dig into this we can see that there's a lot more detail that we want to get to to Define but the key commonality here is these things are all done in the context of what our overarching business and organizational strategy is and we need to find a digital strategy that best fits our needs there is no one-size-fits-all answer there's no Silver Bullet you need to define a digital strategy that best fits what it is you're trying to accomplish as an organization so for more best practices and lessons on digital strategies I encourage you to read our digital transformation report annual report we publish each year that highlights some of the best practices Lessons Learned and also provides a number of software reviews and rankings from an independent perspective on technologies that might be the best fit for your organization in different types of scenarios so I encourage you to read that you can read that report by scanning the QR code in front of you or you can go to the links that I've included in the description field below so I hope you found this information useful and hope you have a great day oh boy I can all right you want a technology that supports that oh no

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