DIGITAL STRATEGY
62 to create channel conflict , particularly if innovations threaten to cannibalise revenue streams . The digital unit therefore needs to be reintegrated at some stage , and that becomes more difficult as time passes . Whatever the choice , the ultimate goal has to be to enmesh the old and the new .”
A recurring theme within these key factors is the need for a digital mindset to maintain momentum . It is important for organisations designing a digital transformation strategy to encourage a digital culture . One way to develop such culture is through education . It is important for employees to understand the changes that are happening within the organisation and how the changes will impact their way of working . It is also important when it comes to education to boost the skills and system . The success of a digital transformation strategy requires the ability to acquire and develop competencies relating to digital skills , technologies , processes and operating models to avoid skill gaps and shortages .
Ultimately , “ whatever structures a company chooses initially , it will
reach the stage when only a fundamental organisational redesign will do ,” comments McKinsey . Organisations will need to redesign many fundamental aspects of its operating model in order to realise the true potential of a digital transformation strategy . “ Silos drawn along functional lines have always been a drag on collaboration and performance in large organisations . In the digital age , when companies need to reinvent the way they work on the fly , an inability to connect all parts of the organisation to
AUGUST 2020