First on the list is senior management buy-in . When it comes to budgets and decision making , having executives onboard and taking a proactive approach will drive quicker decision making and gain support across the entire organisation , as well as a smooth transition process and clear priority focus . “ The CEO cannot simply sanction a digital transformation ; he or she must communicate a vision of what needs to be achieved , and why , in order to demonstrate that digital is an unquestionable priority ,” states McKinsey , this clear communication is crucial to maintain momentum and reduce failures when digitally transforming operations , which leads to the importance of identifying key milestones and targets to aim for , with a clear roadmap and regular progress updates . “ Targets are needed for each source of value creation – cost savings , revenues , improved performance of agents , and satisfaction of employees and customers — and for new ways of working and the new capabilities required ,” adds McKinsey .
Another key element to designing a digital transformation strategy is investment . When it comes to investing in a digital transformation strategy , McKinsey explains that “ investment is likely to result in lower profits for a while . But without it there is a serious risk to profits in the longer term ”. Organisations willing to truly commit to the investment needed will be able to pull off a digital transformation strategy . While investment is a core element of designing a digital transformation strategy , resources are not unlimited and particularly in the current climate it is important to manage the risk when investing in projects . McKinsey therefore , highlights the importance of sequencing initiatives . As the more value a digital transformation captures , the more it becomes self-funding and builds great support .
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