At a Glance
- Organisations need to develop a well-defined strategy that encompasses both data transformation and digital transformation approaches to unlock the potential of big data.
- Data transformation and digital transformation approaches are often misunderstood as two separate concepts, but they are actually two sides of the same coin.
- Adopting a digital transformation approach within an organisation can change the way you work.
- It is important for organisations to understand the key questions that matter most when embarking on a digital transformation journey such as what’s trending and what’s important in their region and for their industry.
In the age of digital transformation, organisations are awash with data. Big data has shifted from being a luxury to a business necessity. Embracing its power is pivotal to staying ahead, as neglecting it, like the Luddites can lead to falling behind.
To unlock the potential of big data, organisations need to develop a well-defined strategy that encompasses both data transformation and digital transformation approaches. This integrated approach will pave the way for effective use and strategic alignment with ever-changing business needs.
Understanding the Data Transformation Approach: The Power of Structured Insights
Data transformation is defined as the process of transforming raw data into a structured format for analysis and reporting. It involves a series of steps and techniques – to integrate and enrich the data – so that it can be used for decision making, forecasting, and work planning.
The Five-Step Approach to Data Transformation
- Data discovery: Identify the data required to support the organization’s business objectives. Data can come from multiple sources, such as operational systems, customer data, and social media data. Conduct a systems and data landscape audit, validating technology and data infrastructure to facilitate seamless data use across the organization.
- Data strategy: Forge a data-driven organization by defining how data aligns with the organization’s goals. Leverage data to drive operational efficiencies and seize the opportunity to leverage data and advanced analytics.
- Data implementation: Develop a data architecture that meets the organization’s current and future needs. Invest in top-tier data security and governance practices, to ensure the integrity of data and the organization’s data foundation.
- Advanced analytics: Develop solutions to integrate decision making, operations, and data into an autonomous, enterprise-scale artificial intelligence (AI) application that connects the organization through a secure, single source of truth.
- Automation: Maximise tangible benefits by automating processes and tasks throughout your organisation, streamlining workflows, and improving efficiency across the board.
Unravelling the Digital Transformation Approach
Digital transformation leverages cutting-edge technologies to reshape an organization’s operational structure, delivering value to customers. Beyond technology implementation, it demands a cultural and mindset shift to embrace the opportunities in this digital age.
The Five-Step Approach to Digital Transformation
- Digital strategy: Develop a robust digital strategy that aligns with the organization’s strategic goals.
- Digital discovery: Identify opportunities by reviewing the digital landscape, establishing sustainable digital architecture for both hardware and software, and identifying appropriate digital solutions.
- Roadmap and planning: Develop a prioritised and purposeful digital roadmap.
- Implementation: Effectively manage digital implementation through close collaboration with internal and external stakeholders.
- Digital adoption: Define and deliver change management and digital adoption initiatives, continuously measuring digital adoption during and after the implementation lifecycle.
Meticulous Execution Matters
Understanding the steps in data transformation and digital transformation approaches is one thing, but successfully implementing them is another. Organisations that are new to the approaches’ complexities may find it challenging to implement it in their operations. To navigate this journey effectively, involving the right people with the right expertise from the outset becomes imperative.
“There is a lack of understanding of both data transformation and digital transformation approaches. This can lead to confusion. Digital transformation requires a clear strategic vision of the business and cannot work in isolation. It must align with the broader business strategy to deliver real value,” says Renoir Group Head of Transformation, Max Ferrin.
He adds that organisations need to be able to implement digital transformation effectively by having a clear understanding of the organisation’s business goals, the right people and technologies, and a commitment to continuous improvement.
“In some organisations, there is a lack of know-how expertise or skilled people to effectively implement a digital transformation methodology. This can lead to the wrong solution being formulated and implemented,” says Ferrin.
Ferrin explains that both data transformation and digital transformation approaches are often misunderstood as two separate concepts. “In reality, they are two sides of the same coin. Adopting a digital transformation approach within an organisation can change the way you work. Once it is embedded within an organisation, the digital strategy ensures that data is used in multiple ways.”
“For some, data transformation is just about digitised reporting, but it involves more than that. Therefore, getting the right experts is crucial. With our expertise in consultancy management perfected, Renoir can help organisations and clients to understand the key questions that matter most when embarking on a digital transformation journey. These areas include what’s trending and what’s important in their region and for their industry,” adds Ferrin.
How we can create a bespoke plan
Data and digital transformation are becoming increasingly important as businesses continue to generate more data and rely on digital technologies to operate. These transformative approaches have the potential to disrupt existing industries and create new opportunities.
However, there is no one-size-fits-all approach. Organisations need to develop a clear plan that is tailored to your specific needs, shaped by their available resources and current circumstances.