Introduction.
Digital transformations are occurring at a fast rate, and these changes are necessitated by consumers expectation of faster, more efficient and convenient ways of them accessing a service or product. This requires companies to be highly innovative in their strategies to make profits and build a stable clientele base which makes them competitive in the market. Hardys may adopt the following innovations, and by tailoring for their services, it makes them more competitive, cost-effective and more profitable through new and recurring income streams.
Benefits of Digital transformation
Focusing on browser-based geo-location may boost Hardy’s customer service quality such as in their DIY guides and trade guides, a customer’s location may be visible and a suggestion of where to get items from what they are viewing online can be presented to them thus making it easier for customers to purchase items such as the obsolete parts which cannot be bought. This may bring more traffic since there are efficiency and speed in getting what they want since they have an alternative to visiting the store or purchasing things online. This may also earn the company income if they partner with stores in promoting their goods through their platform.
Customer-based mindset can be exploited through the use of shoppable windows where customers can engage themselves in an augmented and virtual reality of trying out services they want such as in a care guide of a musical instrument the customer can experience it virtually. This will make the process more convenient and personalised for the customer as it elicits a reality that they are going to engage in.
Visual-based technology will be significant such that Hardy’s can engage with apps that provide these services with an example being Pinterest such that when a customer asks they can be directed to Hardys platform. Having a strong social media presence is essential in marketing as more people find out about services provided by Hardy’s, there is a need to engage in social media platforms. This improves relationship and customer service contained as customer-facing technologies such as Chatbot will be used in answering questions in the shortest time possible and programmed to advertise specific contents to specific consumers through social media platforms. Platforms that connect consumers with service providers such as TaskRabbit by IKEA can be a great way of gaining new clients.
Data analytics and collection is essential in sales, marketing, customer service and operations such as Walmart using machine learning and Big Data. This is because it plays a significant role in making informed decisions on what services to offer the clients, which areas need improvement and those that need to be abolished. This enables the company to focus on the client’s needs and preferences to improve their experiences at the same time it shows the operational efficiencies. Digital transformation will consolidate all data to the digital platform hence making collection and analysis possible.
The mapping process in Hardy’s business requires identification of objectives within the entire scope of trade. Information is then collected from all departments, and this is usually from the staff. When all this data has been received, the facts are used in creating a plan for suggested modes of action. The analysis is then done to see which challenges face the departments and why it happens. After gaining this data, new methods which eliminate the unnecessary work done, combine steps which are similar, and creation of new techniques to make productivity enhanced are set in motion. Once these are rolled out, there is a need to keep digitised data that keeps track of how the new methods work through routine reviews to achieve the goals of the business while keeping up with current trends
Fig 1.1 Benefits dependency map
Project, programme and portfolio.
According to the Standish Group Chaos report (2015), it is estimated that 29% of projects are successful when the set goals are met on time and are within the stipulated budget. When proper guidelines are not followed such as a result is overspending or non-completion, 52% of projects become challenging. It is necessary to implement innovative projects that deal with digital transformation to attain business longevity.
A centralized project portfolio management should be centralized so that departments come together when making decisions on implementations to be made on the digital aspect of the business. This will promote the success of the transformation as every department is looped in and they can offer a suggestion on things that can ensure the efficiency of their departments thus cutting probable losses.
The IT department should be vital in identifying the digital services required for the company and assess what is necessary for each department. Specifications on requirements and expectations should be clearly stated, and roles and responsibilities should be issued to ensure compliance where all the tasks are precisely checked on to ensure they are time-bound. Management of portfolios ensures that digital transformation is done step by step such that not too many projects are done at once to avoid little or no gains for the business.
Project portfolio management, in this case, will ensure their projects selected are those that are in line with the company’s objectives, prioritizing projects with the best ROI, ensure informed decision making in projects undertaken, utilization of resources at an optimum level. This will improve the success rate of digital transformation through a governed and transparent way. All this is facilitated by the ability to communicate with concerned parties while directing the workforce of the company in achieving a common strategic objective in digitalization.
Employees are more informed of their client’s base and therefore can get customers information and history particularly on the Hardy’s platform which can be used to generate more sales by offering their best service to each customer.
By predicting potential issues using technology such as the Internet of Things (IoT) assets, the company can take a preventative approach to them. This will enable avoidance of losses through eliminating reactive services, reduce the risk of interruption due to system failure and manage cost wastage.
Optimization scheduling ensures that planned processes take place in time with an order to avoid cases of customers being bored with repetitive services or guides which require updating and uploading to provide a variety of content and incorporate new ideas with the constant changes in the market.
Leadership and change management skills.
The first step of digital transformation is the identification of tasks to be done such as website revamping, brand new marketing campaign and syncing customer support systems with information. This will give a foundation of the digital transformations to be undertaken as the current digital capacities have already been identified. Departments should be trained in the tools they are going to be using. The second step is ensuring that the set capacities should be adopted across the organization for smooth and efficient coordination. A team should be created which represents all departments so that their needs are met. In this case, Hardy’s requires customer service and support, marketing and IT teams who provide a way of gauging what customers may need, what the company already offers and this is used in creating a personalized service that meets each customer’s needs.
The third step is to digitalizing the company’s unexplored opportunities in the market. This can only be done when the minimal conditions of digital strategies have been implemented, and new ways of exploring the market are continuously being looked into. Finally, optimization mode requires harmonization of all organization operations which requires constant creations to include new functionalities in both the company and the market by having a periodic evaluation.
Digital transformation usually causes a change in management as it impacts both the industries structures and all levels of a company up to its extended supply chain. The leadership should always ensure that when such a change occurs productivity can be achieved at optimum while gaining a competitive and relevant advantage in the market.
Strategies should be set when making a digital transformation. There is a need for creating a harmonized and streamlined process which utilizes the enhanced technologies for the benefit of the company through improved customer service and service production.
Real-time operational intelligence will enable the company to reduce operating costs while focusing on customer experience and increased strength in the market. By transforming service delivery to that which is proactive, there is the automation of the entire supply chain such that managers to junior staff can coordinate effectively and the weakest link in the chain can be easily identified to avoid losses.
The management skills require people who are up to date with current digital trends in the market and can use advanced technological algorithms in accurately predicting customers demand. This puts the company at an advantage by being dynamic and operations being tailored for customer’s taste thus retaining their loyalty. According to a report by Altimeter, 31% of companies digital lack skills and experience in their workforce and leadership as they fear change and think it is a costly process.
Being open-minded and having digital skills is not all that is necessary for a leader in the digital transformation initiative. The leader needs to be visionary and a forward thinker. Digitalization is not a onetime thing but rather, a dynamic aspect. Seeing that Hardy’s is playing catch up, once it is at par with other like-minded retailers, Hardy’s should take up the position of a trendsetter in the game. This will need a team of innovators to work round the clock to identify and implement emerging trends in the digital world.
Fig 1.2 Leadership skills for digital managers.
| CEO |
|
Director of digital transformation |
| Real-time operational intelligence |
| Digital savvy |
| Forward thinker |
| Risk taker |
| Team leader |
Fig 1.3 Managing risk
Fig 1.4 Risk matrix
List of figures.
Fig 1.1 Benefits dependency map
Fig 1.2 Leadership skills for digital managers.
Fig 1.3 Managing risk
Fig 1.4 Risk matrix
P3O Model
The P3O Model is essential and fits well within the project programme of the organization. The adoption of the guidance provided by the P3O is critical since it can enable decision-making while delivering a support structure for the business change. The first functional area of P3O is based on strategic planning. At Hardy’s DIY Guides, the management needs to embrace key concepts including prioritization of the need to undergo digital transformation to meet the needs of the customers. Before implementing any change, there is need to understand the organization and the ability to deliver on such changes. The next functionality is based on tactical or delivery support. The management at Hardy’s DIY Guides need to ensure that they come up with resources which will be needed to achieve the identified goals and objectives in line with the project programme. Finally, the development of a centre of excellence such as an Information Technology hub that will lead the digitalization portfolio within the company can help in the attainment of identified goals. Mainly, the focus should be on development of a consistent portfolio, programme or a project which is tailored to the organization’s needs. Most importantly, is the need to ensure that there is support from the senior management? The P3O Model is critical as it offers fundamental aspects with regard to the issue of organizational governance and control that is vital for Hardy’s DIY Guide.
SFIA Framework
Realization of an elaborate digitalization programme aimed at Hardy’s DIY is dependent on key aspects, among them leadership. The SFIA 7 Framework is key as it is based on key themes including software engineering, cyber security, digital transformation, agile and DevOps, big data and informatics, and knowledge. The management must ensure that there is an alignment of the organization needs with the identified SFIA Framework. For example, there is need to adopt a robust digitalization programme, therefore, sections within the organization need to adopt the SFIA Framework and work toward achievement of that. The focus of the management should be the adoption of skills and competency to enable the realization of the identified goals and objectives.
Risks to be managed
As the organization attempts to improve on its performance, consideration should be made to the risks likely to be encountered. Mainly, there are governance, implementation and contextual risks. In the contextual risks, there is the aspect of selecting a digital enabler’s team that is in line with the objectives. In addition, there is the concept of ensuring that the digital technologies that is set is appropriate for the business. Hardy DIY needs to ensure that they obtain the best technologies that can help toward the realization of identified objectives. Finally, there is the risk of ensuring that there are relevant governance systems to facilitate the entire process.