3 Value Engineering Levers to Pull For Successful Digital Evolution
Updated: Oct 20, 2021
Globally many companies have spent heavily on information technology and digital transformation but often with disappointing financial results. Yet customer demands and competitors’ responses to, digital change continue to compel businesses to accelerate their investments in technology.
So how can firms move to demonstrate quantifiable and verifiable business benefits to their executive sponsors?
What specific value drivers might they use to measure automation's impact on the business?
And how might heads of automation or business leaders better articulate the value of intelligent automation to the C-suite?
Step forward to value engineering!
At the Digital Evolution Forum, we've seen how companies use value engineering to achieve phenomenal results. If at any point in this article you want our help on what levers you might need to pull to digitise your business, you can contact an experienced member of the team.
Lever 1: Discovery and Planning Phase
Before any organisation can effectively change the direction they must first begin by understanding their current business landscape. We looked in detail just how important the discovery phase is in the guide 'The 5 most important steps to a successful digital transformation'.
Transformation leaders can do this by interviewing customers, business leaders, IT, colleagues, and a variety of representative business stakeholders. This will give you, as a business or team leader, an understanding of the current digital maturity of the landscape you're operating in as well as the key deliverables to deliver success for the short and long term.
At this first step of your value engineering journey, you need to be able to answer 10 fundamental questions. Have a think about these questions and see what answers you come up with.
What do you mean by digital transformation?
How successful is the business with or without intelligent automation today?
What hard and soft quantifiable benefits can be attributed to the intelligent automation program (e.g. $ return, customer or colleague NPS, reduced compliance risk, etc.)?
What is your organisation's business strategy and how is automation currently helping deliver those goals?
What value drivers will be positively impacted by automation e.g. revenue, reduced cost, reduced risk, improved SLAs, etc.?
What will each automation initiative deliver in terms of business KPIs and metrics?
What automation technologies or platforms will you use to deliver your program?
Are the company employees and their leaders ready for, and committed to, a program of change that will deliver a digital-first skillset, product set and mindset?
Is this a company and executive imperative?
What time frame and budget are in place to enable digital transformation to happen?
Lever 2: Execute on the strategy with massive action
Recognising the need for change is the first step in any digital evolution. However, making change happen, by acting is always required to make any digital transformation program succeed. Taking massive action on a project, whether part of digital evolution or something completely separate, can lead to fantastic results and operational excellence.
Once you are armed with a vision of what you want your business to achieve, the common language, and an understanding of digital transformation, you can start executing a strategy.
Let's look at the 8 fundamental questions that you need to ask at this step to execute a digital plan that delivers massive value.
How do you build a business case for intelligent automation and measure progress against it?
How do you ensure your ROI value models are accurate for the line of business functions you are transforming?
Who will own and execute the plan?
How do you ensure your value drivers remain aligned to your business strategy?
How do you track and measure success (e.g. sales, colleague or customer satisfaction, increased capacity and digital capability, etc.)?
Do you have the quality and quantity of data you need to be able to make value-based decisions?
What are the risks to execution and how do you plan to mitigate them?
Have you got buy-in and program alignment at every level of your organisation?
Lever 3: Optimise and Institutionalise
Having designed and delivered your digital transformation plan you now need to refine it. There are 5 fundamental questions at this step to ensure you optimise and institutionalise your value-engineered digital transformation program.
What governance will you put in place to get the right visibility & accountability for the transformation program over the long term?
How do you go from good to great (i.e. optimise)?
How do you now compare against your competition (i.e. benchmarking)?
How do you ensure the sustainability of your approach (i.e. institutionalise)?
How do we make sure the program's value outweighs its cost over the longer-term (i.e. ROI)?
What's the next step for your business?
Businesses across the world are now seeing the value of digitally transforming their processes, operations, teams, and overall business.
Building a business case for digital transformation is only the start of your journey. Digital transformation takes time and money.
To give you an idea of the amount companies are spending, Deloitte highlighted that respondents to its 2020 digital transformation study reported that on average they spent US$11.3 million on digital transformation in the past year alone. That's not small sums of money which is why having a vision and strategy for your vision is vital.
How well you design, deliver, refine and successfully institutionalise a strategically aligned digital and automation change program over the long term will be a key determiner of business success. Additionally, how well you communicate this change, as we looked at in the '3 steps to prepare your business for a successful digital evolution', is a foundational factor.
Digital and automation programs must be aligned with your organisation's business strategy. They must be engineered to deliver business value. A well planned and executive value-engineered program is the right step in the journey to delivering success.
If you need a sounding board for the questions, we've looked at above together get in touch for a chat with us today. We're keen to hear where your business currently is with its digital evolution and look at what opportunities await your team.