4C WHITE PAPER A MODEL OF SUCCESS: How 4C can help power effective digital transformation 1 Executive summary As technology advances, digital transformation isn’t just important for companies to thrive; it’s a survival essential. How well firms adapt will decide whether they succeed, or as the CEO of C3.ai put it: “Companies that transform will be operating on an entirely different level from their lagging competitors. This will be tanks versus horses.” So, it’s no surprise that businesses want to digitise and evolve; overhauling everything from services and processes to company culture. In fact, IDC estimates global investment in tools that enable digital transformation will hit $1.25 trillion in 2019 and rise to $1.97 trillion by 2022. But buying smart new tech isn’t enough on its own: digital transformation doesn’t come in a box. support. In other words, businesses need a strategic partner with the right knowledge and technical ability. Recent years have seen a trust gap develop between companies and consultancies, mostly as a result of missed expectations. When organisations invest in specialist services they want evidence of effectiveness, but many solutions haven’t delivered. The 4C Success Model closes this gap by making business objectives its driving force. Not only does the approach begin by tying transformation strategy to KPIs, but it also continually tracks and optimises performance against them. Global investment in tools that enable digital transformation will rise to $1.97 trillion by 2022 Covering four competencies – design, build, learn, and evolve – the 4C Success Model is designed to help organisations navigate digital transformation in a way that works for their specific business, and lay the foundations for enduring success. According to McKinsey, 70% of transitional efforts fail. And the most likely cause of these failures is lack of understanding. Too often, companies see digital transformation as just another update and assume that once they install the latest software, the job will be done. But permanent change isn’t so easy to achieve: it requires a full organisational shift and several key ingredients -- including a strong delivery strategy, in-depth expertise, and continuous 2 3 The challenge: Upgrading digital ability can bring many benefits. It enables companies to deliver for their customers, keep up with competitors, retain their market positions, future-proof their business models and open up more revenue streams. But to realise these advantages, transitions must be durable and all-encompassing; and this isn’t always the case. A recent McKinsey study shows only 16% of firms feel their digital transformations have improved performance and fuelled long-term change, while a further 7% have seen performance uplift, but gains didn’t last. It seems transformations are being derailed by too little focus on two core factors: purpose and people. i. Purpose: what are we aiming for? The habits of those who have made the digital leap successfully are more strategic. Companies start by assessing their current practices and pinpointing where change is required. This deep understanding is then used to create a robust plan that outlines; how digitalisation will meet customer needs and enhance interactions, the goals progress will be measured against, and what shape execution will take. Frequently, transformation is viewed as a tech project; with the implementation of new systems as the one and only goal. But enhancing the toolkit is only part of the process, not the whole story; organisations must adjust the way they work, organise and operate in general. Companies that are disappointed with transition results often have one issue in common: they’ve overlooked the importance of setting a clear vision. When firms don’t identify what they want to achieve and how they will do so, they are aimlessly working towards an unknown goal. The outcomes of this logical approach speak for themselves: firms that meet important requirements are up to three times more likely to experience effective transformations. 4 The challenge: ii. People: the agents of change don’t get employees on board. Investment in smart tools will be wasted if the people using them don’t accept the need for change. This makes it crucial to ensure digital innovation includes everyone. Organisations that have made it through transformation place a strong emphasis on communication and empowerment. In addition to ensuring every employee understands the advantages tech brings to the business and their individual roles, they give them the abilities necessary to succeed in a more digitally advanced business. Joint research by Deloitte Digital and MIT Sloan Management Review reveals the main transformation issue for most companies isn’t activating tech; it’s adapting employee mindsets, organisational culture, and the way things are done. Businesses are coming up against workforce-wide reluctance to move away from existing methods and the individual anxiety that frequently comes with change. This problem isn’t unusual; significant disruption of the status quo can be hard to manage. But it’s also true that transformation is harder when companies 5 The solution: Technology is still central to digital transformation: McKinsey research shows companies with the highest success rates use more tech. But the power of any tool depends on how it is used. Keeping digital evolution going means taking a carefully planned approach. Tools should be chosen in line with real business needs -- not whichever solutions are generating the most buzz -- and implemented as part of a wider change process. This is what the 4C Success Model offers. Instead of leaving organisations to plug in, play and hope for the best, the model creates an ongoing partnership that earns trust and enables companies to reach transformation goals. Working closely together gives companies total transparency and ensures an equal share in the rewards. Meanwhile, the competencies of design, build, learn and evolve consistently maximise value. 6 How does it work? Companies don’t stand still and neither do their needs or their customers needs: solutions that deliver on key requirements today may not cover the priorities of tomorrow. This is why the 4C Success Model is a continuous cycle: constantly modifying each programme to fit changing business needs and growth. Business Problem: Understanding the landscape / system. What are you trying to solve? Business Objectives: What are you trying to achieve? Objective 1 Objective 2 Objective 3 DEPLOY PLAN VALIDATE BUILD Analyse Performance Build your model Train & test your model Deploy your model Identify problems Objective Monitoring Feature Road Map Sprint Cycles / Build Adoption Services BAU Tailored programmes begin with building a detailed profile. Before any work can begin, it’s essential to understand each business from every angle: including long-term objectives and any challenges they might face in achieving them, current strategies and initiatives, trends in their industry, and competitor activity. This makes it possible to identify which tools and services will enable companies to overcome transformation obstacles, and move towards realising their goals. Customised solutions then become the starting point for ongoing optimisation. Through continual testing, analysis and adaptation, programmes set off on a course to effective digital transformation 7 and beyond, with performance constantly assessed against KPIs to ensure solutions drive the best results. At every level, the model is underpinned by four competencies: design, build, learn, and evolve. PROJECT GOVERNANCE Features: What features are needed to develop the capacity? PROGRAMME MANAGEMENT CHANGE MANAGEMENT Capability: What do you need in order to achieve these? 8 i. Design: If solutions are hard to use, staff will avoid them -- and that means their chances of delivering customer value are slim. Usability is the foundation of programme design, with the initial focus on creating a positive experience for customers and employees. With the basics right, solution design can then be customised to align with a company’s strategic vision, KPIs, adoption issues, and training needs. encourage development. But this doesn’t mean design is fixed. Programmes are crafted with change in mind, which means they are always ready to rapidly adjust to fresh trends, challenges and goals. Using the detailed transformation map this generates, companies can quickly communicate plans across their organisation; ensuring employees understand and ii. Build Build is all about following through on core requirements identified by design. Where design hones in on barriers to transformation and determines the best solutions, build provides companies with the capabilities needed to address their challenges and meet business objectives. Every phase of building follows a methodology informed by over 20 years of experience, while tapping a varied pool of specialist skills and world-class tech. Formed of several key components, the methodology aims to: • Plan for delivery that will generate value as early as possible. • Build the features that will give organisations the ability needed to achieve objectives. • Validate that the programme is aligned to the business problem it aims to solve, as well as training users to make the most of systems and educate others on effective usage. • Deploy these features so end users can start using them, fast. 9 iii. Learn Most companies appreciate the potential of data as a revenue driver and collect it in huge quantities. But the information they hold isn’t useable. Spread across reports, spreadsheets, presentations, and even private folders, it’s not only hard to harness the greatest asset of data — producing speedy answers to business critical questions — but also make sense of it in the first place. This is where ‘learn’ comes in. The aim of the learn competency is giving employees at all levels the ability to make smarter, faster, and better-informed choices. And it does so by enabling companies to pull their data into a single view that provides instant access to descriptive, diagnostic or predictive insight and fuels real time action. The learn competency is specialised in building interactive and intuitive dashboards that show key information in an accessible format while also allowing end users to drill down and explore the data in more detail. On top of that, it uses the power of machine learning to discover hidden trends in data, enabling companies to more accurately predict future outcomes and become proactive instead of reactive. Closely linked to company vision and success metrics, this aspect of the transformation model paves the way for more precise, streamlined and profitable operations. iv. Evolve Transformation doesn’t end with solution implementation and neither does the model. Evolve moves with companies as they continue the process of change. Evolve is about offering nonstop support to ensure adoption is running smoothly across the workforce and improving results over time. Long-term objectives and performance against business goals are monitored on a rolling basis, producing an accurate understanding of progress -- and whether programmes are on track. The granular insight this evaluation generates makes it easy to spot where adjustment is required to hit goals and identify opportunities for additional tools or services to boost efficiency, and deliver ROI. The added advantage is that organisational insight becomes deeper over time, which means support teams can make more precise recommendations for design, learn and build. 10 Conclusion: There is an increasingly urgent need for digital up-scaling. Companies must reimagine their business models and tech if they want to stay in the race, let alone ahead of the curve. But digital transformation takes more than sophisticated tech. Before companies can update and innovate, they must know exactly where they want to go. And this makes it vital to begin with a closer look at which type of transformation will suit their particular organisational DNA. The 4C Success Model helps them gain this understanding and use it to drive their digital transition. Working in partnership with companies, the approach blends key competencies and wide-ranging expertise to ensure every programme has a clear purpose, and positive impact. Above all, the model is designed to fuel specific, tangible, and measurable results with solutions that keep providing value long after initial implementation. 11 10 weare4c.com hello@weare4c.com 12