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Tag: Agile

What Should Inform the Digital Transformation Strategy

Digital transformation is high on the agenda of many organisations, but unfortunately, a very high number of these transformations are believed to fail.

The figure commonly cited is 70%. Part of the reason for these failures is the fact that organisations start to transform digitally without proper consideration to what they are doing and why. This can lead to inappropriate spend and uncoordinated efforts in achieving digitisation. Here I will consider why a digital transformation strategy is needed, the elements that need to be considered in informing it, and what should be included in the strategy.

The Need for a Digital Transformation Strategy

Businesses worldwide are transforming to the new digital reality. Those that adopt digital transformation strategies are able to access new business models and capabilities that enable them to gain competitive advantage. A digital transformation strategy will help the organisation to capture and make better use of the data available to it. This can inform both faster and better decision making, to take advantage of market opportunities or increase efficiency. Having a digital transformation strategy is also likely to be beneficial for the employer brand. People like working for organisations that are innovative and leading the way. Having a digital transformation strategy demonstrates that an organisation is forward-thinking.

These issues aside, it is difficult to achieve digital maturity without a digital transformation strategy. Failing to develop a proper strategy could result in digitisation happening anyway in a piecemeal and uncoordinated fashion that is not best placed to meet the broader needs of the business going forward. It is much better to coordinate this across the entire organisation so that the move is undertaken efficiently with regard to both time and money.


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What Should Inform the Digital Transformation Strategy

Critically, business objectives should inform the transformation strategy. The goal of the strategy should be to develop it such that it will help move the business forward. Clear business objectives driving the strategy will ensure that it best meets the needs of the business in the short, medium and longer term. Additionally, it is no good the IT department deciding on the digital transformation strategy without consulting the many varied functions throughout the organisation. Their input is needed too, so that their requirements are understood, and so that every component of the business can be aligned within the strategic approach taken. Failing to engage departments will make the digital transformation strategy more likely to fail, since people may be likely to resist change if they are not included at the outset.

Data should to a large degree inform the digital transformation strategy since a key factor in effective digitisation is being aware and able to make informed decisions. There needs to be consideration to the data that will help drive awareness in the organisation, how this can be analysed and presented to help with informed decision making, and how this can all be achieved quickly. However, contrary to popular belief, while technology should be a part of the digital transformation strategy, the technology itself should not necessarily be a driver of it. What is meant by this, is that attention needs to be paid to the technology that will enable the digitisation of the business, and what is required, rather than getting excited about new technologies that could be used without analysing need. It is all too easy to get bowled over with amazing sounding new technologies but fit for purpose is a key consideration here. Clearly technology has a role to play in the strategy, but it is not the key element.

What Should be Included in the Digital Transformation Strategy

The digital transformation strategy should take into account factors such as who, how, what, when and where. Who is a particularly pertinent factor, and consideration for all functions across the organisation needs to be included in the digital transformation strategy.

There is a distinct human resources component to developing a digital transformation strategy. For example, the strategy should include analysis of the types of skillsets needed within the organisation to deliver it, and how these will be obtained, if not already within the organisation. In some cases, these skills could be developed from within, but in others they may need to be hired. The human resources element of the strategy must be factored in, so that capability and budget can be understood and planned for effectively. In addition, given that moving towards digital transformation will almost certainly require new ways of working for people up and down the organisation, thought should be given to the cultural change needed to drive the strategy forward. Defining the culture that will help the organisation to succeed in its digital transformation strategy is one element of this, and the other is developing a plan to roll out the change effectively.

Being aware of the risks that are faced in implementing a digital transformation strategy is also something to include within the development of the strategy. Understanding issues that could arise and mitigating against them will give the strategic imperative the highest possible chance of success. At the same time, monitoring activities needs to be part of the roll out of the digital transformation strategy. The roll out can begin with pilot tests, adapting the technology based on feedback received. Beyond this, new development and enhanced solutions can be rolled out.

Summary

It is clear that having a digital transformation strategy in place is important to achieving digital maturity, competing and being efficient. A digital transformation should not be led by the technology alone – rather it needs to take into account the needs of different functions within the organisation, the business goals, and the data that will be needed to drive the organisation forward. Effective digital transformation strategies consider people issues such as skills and capabilities needed and the culture that will be required for the organisation’s digital transformation strategy to succeed.

How to Improve the Customer Experience through Digital Transformation

Digital transformation brings with it many possibilities, but arguably one of the most important is transforming the customer experience.

Yet digital transformation does not always deliver this. One research study demonstrated that only 19% of customers felt they had a significant improvement in their experiences with companies, following $4.7 trillion of investment in digital transformation. A large number of companies (47%) have not even begun with digital transformation. These organisations are fast getting left behind and are missing a trick, when reports show that companies that have transformed digitally are 26% more profitable than those that have not. Given that companies that have undertaken digital transformation report the process taking between two and eight years, it is time to get underway.

What Customers Want

Customers have become increasingly demanding in recent years. Digital technology has driven this change. Shopping online and via mobile has presented customers with the opportunity to get what they want, when they want it, and now they expect this. At the same time, e-commerce, personalisation and new ways of communicating with customers have led to tremendous benefits for customers. In short, customers want instantaneous interactions and experiences and to be able to communicate with the organisation in the way that they prefer. Finding ways to deliver this through digital transformation can bring great benefits.

Why Be Customer-Centric?

Many digital transformation efforts focus too heavily on the opportunities that this brings for lowering costs for the business. This is unlikely to lead to greater customer satisfaction with the company. It is better to put the customer experience central to the process of digital transformation to reap the greatest rewards.

There are many quantifiable benefits to being customer centric in order to engage customers. Customers that are very engaged have been reported to purchase 90% more frequently, and they spend almost two thirds (60%) more per purchase. This presents a massive opportunity for businesses across all industries. Happy customers are much more likely to be retained, and it costs much more to gain a new customer than retain an existing one. This means that focusing on the customer experience with digital transformation efforts makes a lot of sense.

If you aren’t yet convinced consider this statistic: Companies that earn $1 billion a year have the potential to earn an extra $700 million over a three year time frame through investing in delivering an improved customer experience.


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How to Improve the Customer Experience through Digital Transformation

There are a vast number of ways in which companies can have a great impact on the customer experience through digital transformation. One example is the use of chatbots. When implemented thoughtfully, chatbots improve the customer experience by allowing customers to communicate with the business at any hour of the day and on any day of the year and get a rapid response to their question. Studies show that 84% of customers prefer this due to the instant availability of chatbots. It is worth considering what you can do to automate customer communication for greater customer satisfaction through this approach.

Another remarkable benefit of digital transformation is the amount of data that companies can glean about their customers. Digital technology offers the opportunity to capture this data and analyse it, so organisations can learn much more about their customers than ever before. For example, it is possible to get a much better understanding of customer purchasing habits, which can drive improved marketing. This offers a great advantage, but only if it is implemented effectively (as I will explain below).

Digital technology can also be used to integrate the back end and the front end of systems, which can deliver the benefit of streamlining the customer journey. This means customers have a smoother, easier experience and are more likely to come back.

These are just a few of the countless benefits that digital transformation can bring for enhancing the customer experience.

Transforming the Customer Experience

It is important to note that when considering the use of digital transformation to improve the customer experience, the approach that should be taken must be enterprise-wide. An overarching effort like this will help to ensure that all possible customer touchpoints and interactions with the business are taken into account, so that digital transformation can genuinely deliver everything it sets out to for the customer experience. From a cultural perspective, ensuring that the organisation is genuinely customer focused is important from the outset.

On this note, a common mistake in going transforming the customer experience, was revealed in a study which showed that just 25% of respondents had set out to map the digital customer journey before trying to undertake digital transformation in this area. This is indicative of a bigger problem, which is a lack of organisational focus on customers in the first place. The problem is that some companies get tied up with focusing on a narrow approach of only using data to find ways to market to customers. This has the potential to seem robotic in nature, and it can be not particularly warm or welcoming from a customer perspective. Having some empathy with the customer and considering what customers might actually want is critical in the digital transformation process to avoid these types of problems. Taking a human-focused perspective is important, to get it right.

Summary

Digital transformation can bring about a great range of benefits if the customer is placed centrally to the effort. A focus on the customer journey can lead to increased revenues through enhancing customer loyalty and driving additional sales. Benefits of digital transformation for the customer are numerous, and include the ability to get what they want, when they want it – which customers now expect. It is important to take an enterprise-wide approach to improving the customer experience through digital transformation to avoid getting too caught up in a cold and impersonal approach that may end up alienating customers.

Failing Fast in the Age of Pandemics

When I first heard the phrase “fail fast, fail often,” I was horrified. It was cited as a mantra by the early adopters of Agile methods.

But I didn’t understand what it meant in those relatively early days of Agile. The expression conjured up missed deadlines, broken promises, and an undisciplined approach to software development. I found the term threatening—it went against everything I believed in as a project manager. This quote by a CIO in a recent article summarizes how I felt back then: “I really don’t like the term ‘fail fast.’ I don’t like the term ‘failure.’ It’s got so much laden on it. I understand the folks in Silicon Valley; they mean something different.”

As I learned more about Agile and became certified in 2010, I came to understand that in many respects failing fast was a reaction against the “do it right the first time” slogan of the quality movement of the 80s and 90s. I learned that failing fast does not refer to a lack of success—simply a different meaning of success. Failing fast is a way to experiment quickly and be OK with throwing away unsatisfactory results. It‘s also a way to ensure that “sunk costs,” money already spent, is not a factor in future decisions.

So what exactly does it mean to fast?

Most definitions of ‘fail fast fail often’ include some of these elements:

  • Speed of execution. A project where the “speed of execution is a lot more important than perfect execution.[i]” In other words, it’s more important to get results quickly than to get perfect results. A feature of the old quality models, which required doing things right the first time, was having zero defects. Having implemented several large projects right after this kind of quality training, I now realize that the teams spent an inordinate amount of time trying to ensure that every aspect of the project would work perfectly. Back then even small defects were discouraged. In other words, the cost of preventing defects was far greater than the benefit of an earlier implementation.
  • Taking a large project, breaking it into small pieces, and time boxes (iterations) mean that more features can be completed in shorter amounts of time.
  • Experimentation and extensive testing. This includes trying new things, learning from these trials, and refining the inputs and/or tests in order to achieve different results. The number of tests is less important than learning from the results and making changes.

Failing fast in the age of pandemics

But let’s get back to the topic at hand—the need to fail fast, particularly as it relates to Covid-19. Many in the health care industry are realizing the advantage and even the necessity of “failing fast.” This is particularly true in the area of vaccine development. Vaccines usually take anywhere between 2 and 5 years or longer to develop, test, manufacture, and distribute. There are many reasons for this. Before being approved for manufacturing, vaccines typically go through many phases from animal trials to extensive testing on a variety of different human demographics.[ii] What, then, makes epidemiologists think that a Covid-19 vaccine can be made to fail fast and come to a successful conclusion? Here are some examples of how this is being done.


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  • One of the best examples of failing fast is by concurrently developing vaccines at the same time manufacturing and distribution channels for that vaccine are created. For this to work, several things are necessary. Industry and scientific leaders, regulators, and others, groups who do not always work well together have to do just that. And they have to share rather than withhold information–internationally.
  • Traditional thinking in vaccine development was that the creation, manufacturing, and distribution of that vaccine happened sequentially rather than concurrently. There was too much financial risk in thinking about manufacturing and distribution before the vaccine went through all the trials and was approved. Since most vaccines never make it to human trials, let along through all the trials to approval, why incur the huge cost to manufacture and distribute something that was going to get thrown away? That’s different with Covid-19.

Failing fast requires organizations to assume risk that was not thought possible in the past when it was too great a cost to develop these channels before vaccine approval. According to Dr. Fauci, this concurrent development can shave many months off the time that it typically takes to develop vaccines.[iii] Because of the need for speed and financial benefit, this kind of unprecedented international collaboration has begun.[iv]

  • Partnering with other organizations to develop the same vaccine. This is what’s happening in the development of the Covid-19 vaccine. Unlike vaccine development in the past, many organizations are working together on the same vaccine in order to speed up development and approval.[v]
  • Using AI to study the disease’s mutation patterns. This new coronavirus probably mutated from animals to humans and continues to mutate. Most of these mutations appear to be minor, but new evidence suggests that newer mutations help the virus better penetrate the body[vi]. Trials need to take these mutations into account and AI speeds up this process.
  • Using AI to determine what an infected cell looks like. AI can look at the many and complex cell attributes by looking at the problem holistically and predicting which potential vaccines are most likely to succeed in clinical trials. Humans are not good at understanding what a sick cell looks like.

All these fail-fast measures require strategic and innovative thinking, strong executive leadership, and a commitment to work collaboratively rather than competitively. But in a world-wide pandemic, failing fast and failing often is exactly what’s needed.

 

[i] Forbes, Sunnie Giles, 4/30/18, https://www.forbes.com/sites/sunniegiles/2018/04/30/how-to-fail-faster-and-why-you-should/#758c5b92c177

[ii] Rob Grenfell & Trevor Drew, The Conversation, February 17, 2020, https://www.sciencealert.com/who-says-a-coronavirus-vaccine-is-18-months-away

[iii] https://www.npr.org/2020/06/24/882678364/dr-fauci-discusses-recent-covid-19-spikes-in-several-states

[iv]World Economic Forum, Charlotte Edmond, May 14, 2020., https://www.weforum.org/agenda/2020/05/coronavirus-covid-19-vaccine-industry/World

iIbid.

[vi] https://www.washingtonpost.com/science/2020/06/29/coronavirus-mutation-science/?arc404=true, Sara Kaplan and Achenback, June 29, 2020.

For Healthcare Providers: Staying Agile with IT in Accelerating Times

With the current COVID-19 pandemic, the practice of working remotely and implementing applications that limit in-person interaction is the new norm.

Hospitals and health systems are at the forefront of this global crisis, and many are struggling with managing the IT infrastructural challenges created by the sudden massive demand for remote technology.

Many health providers have made the decision to replace traditional office visits and other in-person services with telemedicine to limit the spread of the virus. While these shifts have created immediate solutions for business operations, are the organizations really prepared for bandwidth and other IT challenges coming in the long run? We’re all entering an “uncharted new territory” filled with uncertainties because of the pandemic, and it’s important leadership teams view this as the early stages of technologically ramping up so they don’t make the mistake of misunderstanding their IT needs and priorities.

As we’re seeing first-hand, conditions in a market or sector can turn on a dime, and your decision-making must be able to do the same thing. Management teams should use an agile methodology when entering an IT situation that is rapidly changing, like the current landscape, as this approach is sensitive and highly adaptive at every step of the project process, producing effective solutions that evolve as the situation does. The agile approach includes continuous iterations, reflections and multiple deliveries, allowing companies to quickly adapt to ever-changing business needs while providing an innovative framework.

As health organizations continue to be challenged to provide continuity of care and the same high quality of service while keeping clinicians safe and healthy, we anticipate IT issues arising in numerous areas, including:


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  • Bandwidth: As more employees try to log on to the office network from the outside, and as more patients turn to remote options to screen for the virus, will you be ready to handle this surge in users?
  • Security: Do you have FMA or other security measures in place? Having your employees work remotely without a secure infrastructure or the necessary governance can increase your risk of cyber attacks.
  • Cybersecurity: With a surge in the number of external users, the risk of phishing emails and other issues related to privacy and security surges, too. What measures have you taken to ensure that your employees and your patients are both protected?
  • Infrastructure Capacity: Do you have enough licenses to support your remote workers? Can your hardware support the additional load? Do you have a robust virtual desktop environment?
  • Support: Do you have the governance and capabilities to support all your remote workers, helping them diagnose problems, test their network, and remotely manage their devices?
  • Projects: Are all projects on hold as your staff deals with supporting your remote employees? Are you now rushing to purchase laptops and upgrade hardware? Don’t let these tasks get you off track of your long-term goals and projects.

The agile mindset can help and empower healthcare providers to succeed not only during today’s uncertain times, but also as needs continue to evolve post-pandemic. Though everything is in flux, the effort to still be proactive in response to IT should always remain a top consideration.

The AGILE approach in project management

Whether you are a project manager or involved in the field of project management, you must have heard or applied the Agile method.

If it is the case, the subject of this article will seem familiar to you. If you are not familiar with the subject, don’t panic! This article will explain this approach to you in a simple way so that you can tame it.

Are you ready? Then let’s do it!

The Agile approach

When talking about project management it is common to think about planning. This is indeed an essential point in traditional project management methods. It is often said that 20% of the project’s time should be devoted to planning and that project that is not sufficiently planned is more likely to fail. On this point the Agile method differs. According to the Agile approach, too much planning in the long term would be counterproductive. Especially since a project generally never goes as planned. Imagine planning a vacation for a month an unexpected event disrupts everything, or even makes the planning obsolete. Frustrating, isn’t it?

The second major difference is in the reasoning. In an Agile approach the reasoning is more in relation to the product than to the project. The goal is to deliver the most accomplished product as close as possible to the customer’s expectations. With the Agile methodology, the place given to the customer is not the same as in traditional project management because the project team maintains a close collaboration with the customer. In a traditional project management approach, the customer is mainly involved at the beginning of the project when he gives his expectation and at the end, when the product is delivered. In an Agile approach there is an ongoing relationship with the customer in the development of the product. He is involved from the beginning to the end of the project and is in direct contact with the collaborators of the project. Customer satisfaction must be the first concern of the team.

Another element of differentiation is the special concern for communication. Indeed, face-to-face interactions are preferred to other means of communication. This allows a better transmission of information between the different parties and therefore, more efficiency.

Finally, unlike traditional project management methods, the Agile approach accepts the unexpected as well as requests for changes encountered along the way. This is one of the main principles of this method: constructive changes must be accepted, even if they arrive late in the project or at the end. They represent an added value that will bring the product closer to the customer’s expectations.

The Agile way of working

Let us now look at how it works in a little more detail.

At the start of the project, the project team meets with the customer to discuss their expectations regarding the product and the specifics to be brought to the table. The goal is to understand what the customer wants to achieve and to determine the tasks to be carried out.

From there the project will be broken down into several short-term cycles called iterations. The project team sets a first objective to achieve for the first iteration. Behind this objective is a set of tasks to be accomplished. These tasks are selected in order of priority in the product development. The team then launches directly the development by self-organizing itself to gain even more efficiency.

Once the first objective has been reached, a first version of the product is ready to be presented to the client. Of course, the product is only partially realized, but it is already in working order. At the end of each iteration a new version of the product is presented, either with new features or with improvements. This way of working allows to progress step by step in an empirical way, to reduce the risks linked to the project and to have a feedback from the customer throughout the development. The customer gives feedback on what has been achieved, he can also ask for changes to be made or make some adjustments if necessary. The project team also meets following every iteration to look back on what has been done to improve the product for the next iteration. The Agile method is a race for efficiency.

Operating by iterations has another advantage. It makes it possible to put the product into production, even partially finished, in order to collect first opinions and feedbacks from users. Because the opinion of users is essential in the design of a product, this way of proceeding makes it possible to best meet their expectations.

Another specificity of this method is that it is possible to stop the project at any time. If at the end of an iteration the product is suitable for the customer, it is possible to stop the project development and deliver the product definitively. In this case if there are no financial means to continue the project, the product will not be completed but will still be functional in a partially finished version.

Project management tools compatible with the Agile approach

To accompany you in your Agile approach, web-based project management software such as Gouti are available. A tool like Gouti offers you a way to be in direct contact with the customers of your projects but also a method to be able to fix your projects on the short term as well as on the long term and an efficient and flexible way to manage your changes.


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PMTimes June10 20 1

Project agility

Illustration of Agility in Project Management

An example is better than a long speech, let’s illustrate roughly (I insist on roughly) the Agile approach through an example that will speak to everyone: the design of a classroom.

  • During the product meeting, the client explains that he wants a square classroom, with a door, 20 tables, 20 chairs, a chalkboard, carpet on the floor, 10 lamps on the ceiling and a light switch.
  • The project team meets. The priority is to deliver the classroom structure at the end of the first iteration. The first iteration begins, and all four walls are installed. A door is added, then the lamps, the switch and finally the carpet. It took three weeks. The classroom is presented to the client, he is satisfied with the result and adds that he would like to have four windows in the room.
  • The project team gets together, and the second iteration begins, the goal is now to install the windows and set up the room. The team starts by installing the windows, then they set up the board, the 20 tables and 20 chairs. Two weeks later, once the iteration is completed, the classroom is presented to the client again. Finally, the chalkboard no longer suits him, he would like to replace it with a felt board. On top of that he would like to add 10 tables and 10 chairs because there will be more students than expected in the room.
  • The team meets again, one of the skills of one of the team members has not been well exploited, they could have been more efficient on the installation of the tables. For the third iteration this skill will be highlighted. The goal this time is to add 10 tables, 10 chairs and replace the current table with a felt board. Once this is done the objective is achieved and the room is presented to the client. The client is satisfied, and the room can start welcoming students, nevertheless he would still like to add a video projector with a projection screen…

The project will go on and on until the final validation of the product.

The advantages

Compared to traditional project management methods, the Agile approach has several advantages that makes it attractive.

One of the most important is the flexibility brought to project management. By following iterations, the project team becomes more responsive to unforeseen events and change requests. This reduces risks as the project progresses step by step. It also allows the quality and reliability of the product to be enhanced by additions and improvements made gradually and according to feedback from the customer and users.

Iteration operation provides several additional benefits for the customer. He has continuous visibility on the project and can request adjustments and changes along the way before final delivery. He can also decide to put the product into production before it is completely finalized, because even if some specific features or functionalities are not yet present, it can already be used. By making the product available to users before it is fully completed, he can get feedbacks for possible additions or simple adjustments of the product.

A final advantage is the cost control. By moving forward step by step, it is easier to follow the evolution of your budget throughout the project. However, the Agile method is not necessarily the best when it comes to staying within a budget.

Disadvantages

Since Agile is based on planning by very short-term objectives and opens the door to requests for change, it is not the safest approach when a certain budget has to be followed. At the beginning of the project a provisional budget can be evaluated but it will vary throughout the life of the project. With each request for change or new addition desired the budget will change. This is a fact that can be unpredictable.

Another disadvantage can be the importance given to the customer. The fact that the client must be available and involved throughout the project can be problematic because they might not always be available.

Also, the emphasis on interaction and direct communication rather than written documentation can be a problem. Direct communication usually takes more time and means that the collaborators must be there in person to communicate which can sometimes be difficult or even impossible.

To summarize

This new approach to project management greatly differs from more traditional methods. It proposes a more autonomous and collaborative organization, with a focus on interactions and the human factor. The skills of each team member are used to the best of their abilities in order to become more and more efficient in the realization of a project.

The main preoccupation is refocused towards the satisfaction of both the client and the users, with a concern for reliability and quality.