9DECEMBER - JANUARYthey did business gained market share and achieved greater success in executing their strategies.Necessary to execute a business strategy. Efficiencies gained through technology must be carefully evaluated. This is the traditional job of the Chief Information Officer or Chief Technology Officer (CIO/CTO), and it is critical to managing cost and avoiding risk. Trying new things to gain efficiencies is desirable, but if you are going to bet the farm, or at least take a big swing in changing the technology of the organization, make sure it directly supports the business strategy. When Michael Dell reformulated his company to provide massively customized computers, when banks deployed ATMs in lieu of only face-to-face banking, even when Henry Ford deployed the assembly line using standardized parts, they were all transforming how their businesses operated internally, with their partners, and with their customers. Leveraging appropriate technologies. Faced with the technical decision of leading-edge versus bleeding-edge versus no edge at all, the CIO/CTO is faced with a dilemma. There is not a best practice because there is not a standard organization.Every organization in the world is truly unique. No company has the same combination of vision, strategy, operating model, environmental conditions, customer base, and partners. Even within a very rigid, top-down driven organization, the variations between divisions, branches, and product lines will have significant differences. How do we determine the right technology, and more importantly, the right digital transformation approach to improve engagement? Leadership must be both aggressive and selective in making technology decisions for digital transformation. Three questions which must be asked and answered before executing a successful digital strategy and resolving the CIO/CTO's Dilemma.1. Does the digital transformation align with the vision and strategy of the organization? There must be no space between where the organization says it wants to go and the method by which it will get there. Whether it is the vision and strategy that needs to be adjusted, or the approach to digital transformation, the key is to ensure alignment.2. Is the digital transformation synergistic with the operating model, or is it disruptive? Transformation by nature is disruptive. If the approach does not call for significant changes to operations, it may not pass the sniff test. In the more likely event that digital transformation will result in a painful change that breaks the model... celebrate! The purpose of digital transformation is to do things differently, and to be precise, to create greater business value while doing so.3. How aligned is the organization's leadership to drive the change? The vision might come from one mind, but the view is for all to behold. Success in digital transformation is correlated to how well the vision is understood and the level of stakeholder engagement. Leadership is the most critical factor in driving change and helping the employees positively engage in that change. This will disrupt what people do, which creates a natural resistance that must beovercome. Leaders themselves can be the greatest source of resistance because the change could topple the kingdoms they have built.Here is the CIO/CTO's dilemma. It is not unusual for a technology leader to be hired with the express purpose of digitally transforming the organization. That newly hired leader isexpected to develop a killer strategy to make this happen, without causing much turmoil in the business and without taking time away from the core business activities. This is not possible and will result in disappointment within the organization and despair by the CIO/CTO.Success comes from a better understanding of the relationship between business strategy and how it leverages technology, more thoughtful use of technology to engage with people and add business value, and in thinking through the hard questions about how the digital transformation will be executed. This requires a strong CIO/CTO, an engaged business leadership, and overall willingness to change. These are the key ingredients for successful digital transformation and a competitive, growing business. Digital Strategy is about transformation -- the change neededto create synergies with customers, employees, partners, products, services, and the information space all aroundDouglas Duncan
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