Digital transformation change management is crucial in the journey. Why? Read on to know more.
Digital Transformation Change Management
Change management is the process of planning, organizing, and facilitating the implementation of a change in an organization. Change management can be defined as “the art and science of managing transitions and transformations in the organizational environment to achieve organizational objectives”.
Companies today are facing a lot of challenges like:
- Organizational Complexity. The number of employees is increasing, and we have more departments and people working on different projects. The work culture and technology have changed so rapidly.
- Globalization. The companies are looking to expand their businesses globally and hence they need to manage their work culture that is compatible with the organization’s global strategy.
- Accelerated Pace of Change. The market is changing so rapidly that companies need to change their strategies quickly to keep up with the market demand. For example, the smartphone market is so competitive. So, companies need to come up with new technologies and launch new products very frequently.
With the above challenges in mind, companies are looking for digital transformation (Dx) change management to address these issues.
This is the process of managing the change that happens in the organization due to digital technology. Dx has changed our habits, preferences, and expectations. It has caused a great impact on our society that we cannot ignore when it comes to business strategy.
So when a company decides to go into Dx, it needs to assess the impact of digital technology in the company. Also, on how it can transform itself to get a competitive advantage for the organization.
Steps to Change Management
The change management process consists of two major steps:
1) Business Change Management. This is about aligning the organization’s business strategy with the digital strategy. The first step then is to come up with a new business model that can sustain the organization’s competitive advantage.
2) Technology Change Management. This is about transforming the organization by implementing new technology. Dx of an organization usually includes the following areas of technology: Cloud computing, internet of things (IoT), robotics, and artificial intelligence (AI), and more.
The change management process is also a continuous process and a systematic approach to achieve the desired results. It may take a long time for a company to achieve its Dx goals. Hence, it is important to have a plan that aligns the organizational structure with the new requirements of digital technology. This helps in achieving the goals of Dx on time and within the budget.
Also, it is important to manage the change in an organized manner so that there is minimum impact on the organization. Change management involves planning, organizing, and facilitating the change process in the organization.
It then includes several activities that include:
1) Defining a vision and a strategy of Dx.
2) Communicating the vision and strategy to all the employees in the organization.
3) Defining a roadmap of Dx.
4) Creating a culture of Dx in the organization. This includes training employees to make them aware of the changes that are going on in the organization and how they can work with these changes.
5) Managing all kinds of risks related to Dx.