Why You Need a Digital Transformation Framework

What is a Digital Transformation Framework?

Think of a digital transformation framework as a detailed guide that helps your organization adapt to today’s world by introducing digital technology in every area of your work. It helps you understand where your business currently stands, what technology it needs, and how to apply this technology in your circumstances. The overall goal is to make complex changes easier to handle. (Of course, you will face difficulties and issues along the way, but the good news is that you will know how to resolve them.)

The framework covers everything from choosing the right technology to training employees and improving the customer experience. Most importantly, it makes it more likely that the transformation will be a success.

To learn about the latest digital transformation trends, read our other articles, Digital Transformation: Embracing the Future of Business in 2024 and 7 Steps to Build a Digital Transformation Roadmap in 2024.

What are the Objectives of a Digital Transformation Framework?

1. Increasing operational efficiency

You know very well that simplifying processes will save time and cut costs. The question is how to achieve this, and the answer is tools that automate routine tasks and improve team collaboration.

2. Driving revenue growth

For this, you need to increase sales. How? By reaching new customers through digital channels and strong online marketing.

3. Improving customer experience

In other words, making interactions easy and enjoyable for customers. This includes designing user-friendly websites, providing quick and helpful support, and personalizing communication.

4. Building brand awareness

You can achieve this goal by connecting with your audience. To make your brand stand out, you need engaging content and consistent messaging across all platforms. Sidenote: it doesn’t need to be a lot of content; it should be the right content, and the digital transformation network allows you to define the scope as well.

How to Create a Digital Transformation Framework?

There isn’t a universal digital transformation framework that works without issues for every organization. But you can start with some basic steps and adapt them to your needs and plans:

1. Define your mission

Ask yourself, “What do I want from the digital transformation? Is it to improve efficiency, retain or gain more customers, increase revenue, or maybe all of the above?” Once you have the answers, review these goals to see if and how they align with your general business strategy.

2. Engage everyone

Ensure all company stakeholders are aligned on the digital transformation goals and clearly understand their roles. In this setup, project management acts as the central coordinator. Meanwhile, change management addresses employees' concerns, as some may feel uneasy about new technologies or worry about job security and added responsibilities.

3. Review your current technology

What are your organization’s current tools, systems, and processes? What works, and what doesn’t?

4. Find opportunities for improvement

Once you have clarity on your status quo, the next step is to discover areas where digital tools would be most effective. In parallel, research vendors and see if and how one solution can address multiple challenges.

5. Create a roadmap

Plan out your transformation journey in phases and set specific goals, milestones, and timelines for each. The more detailed the roadmap, the better. Keeping the process organized spares you a lot of effort and, importantly, makes it easier to measure progress. Don’t forget to leave room to review and adjust as needed.

6. Choose the right technology

Invest in the right tools from the start. To choose the necessary cloud platforms, data management systems, cybersecurity measures, etc., it’s always better to consult with professionals. You don’t want unpleasant surprises because of initial mistakes, right?

7. Train and reskill employees

Great tools won’t add value if employees don’t know how to use them. Instead of rehiring, partner with your team to train and reskill them so they can fully leverage new digital tools.

8. Encourage innovation

Digital transformation needs a culture that supports innovation and continuous learning. Encourage employees to explore new technologies, give feedback, and share ideas. The best improvement suggestions often come from those using the tools every day.

9. Stay flexible

Keep in mind that things will never be the same; you will always have to adapt to changing internal and external conditions. Being ready to make quick adjustments as needed is part of the digital transformation journey. This is a process, not a one-time project.

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We have just described the detailed plan of digital transformation, which you can also narrow down to the 4C’s: calculate, construct, cultivate, carry out. You can find out more in our earlier article, The 4 C’s of the Digital Transformation Process.

Types of Digital Transformation Frameworks

Now, let’s look at some of the proven digital transformation frameworks employed by top companies.

McKinsey

McKinsey initially used a 4-part framework called the "4Ds," which stand for discovery, design, delivery, and de-risking. Recently, they updated this model to highlight three core drivers of successful digital transformations: data, design, and distribution. McKinsey also developed another strategy called the "Six Building Blocks for Crafting a High-Performing Digital Enterprise." The key advantage of this approach is that it gives you a clear foundation for planning and managing large-scale digital changes. The six building blocks look like this:

1. Strategy and innovation: Think of long-term value and growth as guiding lights when setting your digital initiatives alongside business goals. Controlled experimentation can be your secret weapon here, helping you uncover new opportunities and keep improving.
2. Customer design journey: Understanding each stage of your customer’s decision-making process lets you design interactions that resonate with them. And building touchpoints strengthens the customer experience, fostering loyalty and trust along the way.
3. Process automation: With automation, you can boost efficiency and allow teams to focus on higher-value tasks. For that, apply agile methodologies that will let you streamline workflows and respond quickly to changes in the business environment.
4. Organization: You need flexible, collaborative processes that adapt quickly to market changes. The best way to achieve this is to foster teamwork 
and innovation.
5. Technology: Implement a two-speed IT model—maintaining stable core systems while allowing for rapid innovation. This approach supports daily operations on the one hand and enables quick deployment of new digital solutions on the other.
6. Data and analytics: Customer analytics provide actionable insights and help you better serve and engage customers. With these insights, you can make data-driven decisions that enhance personalization and support 
business development.

Gartner

Unlike McKinsey, Gartner’s approach pays less attention to the consumer experience. Instead, it prioritizes strong leadership as a necessary foundation for any successful change, which is basically in line with traditional change management principles. Gartner’s Six-Step Digital Transformation Framework consists of the following stages:

1. Establishing a common mindset among leadership: Bringing leaders onto the same page is the basis of success. When everyone’s mindset and understanding align, it sets the stage for true progress.
2. Appointing effective leaders: Strong leaders are the ones who can drive the transformation and guide teams through change.
3. Creating a digital business center of excellence (COE): A dedicated COE becomes a central hub that leads digital initiatives and sets best practices.
4. Defining a digital strategy: A proactive strategy not only addresses new market opportunities but also prepares you for potential threats and issues.
5. Building digital expertise and acquiring talent: Bringing on talented people with digital skills helps you turn your plans into action.
6. Organizing boot camps and other learning programs: Providing your employees with essential digital business knowledge helps them build confidence and a deeper understanding of digital business.

Accenture

Accenture’s framework stresses the combination of vision, integration, governance, and talent. The company recommends the following approach:

1. Regard digital transformation as a business transformation: Focus on the customer and identify friction points in all areas: management, operations, marketing, sales, etc.
2. Build a strategy and set up for change: Develop a clear vision and create a dedicated transformation team (transformation office) to get all stakeholders on the same page.
3. Break down barriers: To break silos, it’s necessary to encourage cross-functional collaboration and build better communication between departments and specialists.
4. Strengthen partnerships: According to Accenture’s study, 89% of tech companies are seeking opportunities to build partner ecosystems. These partnerships can provide you with the necessary resources without investing the money you need for operations.
5. Adopt an agile approach: Foster a culture of experimentation and encourage innovative ideas. Remember, your success is made possible by talented people.
6. Fund digital transformation as an investment: Assess digital opportunities and needs in the customer journey and select a challenge that aligns with your investment goals and expected return. This way, your business will be able to self-fund innovation and maximize technology investments.

Boston Consulting Group

Boston Consulting Group’s (BCG) approach to digital transformation breaks the process down into three main phases:

1. Short-term wins: Digital transformation can take time, so BCG suggests starting with quick, short-term projects that bring fast results. These small wins help you gain confidence and, moreover, provide funds to support larger, long-term transformation efforts. They also show early progress to company boards and shareholders.
2. Medium-term plans: This phase begins the real transformation across the organization. The focus here is on improving the ways you deliver products and services to customers. To achieve this objective, you need to define your customers and the right products and services for each category.
3. Long-term sustainability and transformation: For digital transformation to last, you need a culture change. In this culture, the main values are constant innovation and creativity. Think of ways to make your employees feel motivated, empowered, and rewarded for their contributions.
4. Strengthen partnerships: According to Accenture’s study, 89% of tech companies are seeking opportunities to build partner ecosystems. These partnerships can provide you with the necessary resources without investing the money you need for operations.

As you can see, all these digital transformation frameworks have common features, the most important being alignment with business goals, improving customer experience, and fostering adaptability. Instead of relying on a single framework, you can create a custom approach by blending the best elements. Our favorites are McKinsey’s clear structure, Accenture’s cross-functional approach to innovation and collaboration, and BCG’s phased strategy for balancing quick wins with long-term goals. Together, these elements provide a solid foundation for a resilient and customer-centered transformation strategy.

You can learn more about the audience-centered approach in our article, Why Apply Human-Centric Design in Your Digital Transformation Strategy?

What Makes a Good Digital Transformation Strategy?

To sum it up, an effective digital transformation strategy framework should:

• Be specifically designed for digital transformation, not just an update of an old consulting framework.
• Consider the entire organization and how it needs to adapt to compete in the digital world. Focusing only on IT or enterprise architecture is a mistake that has resulted in failed transformation efforts for many companies.
• Use multi-functional platforms instead of spreadsheets.
• Make decisions based on data, data analytics, and predictive models.
• Allow flexibility in the decision-making process, operations, and across all levels of the organization.

That said, strategy should remain key in all your undertakings. Here, we’d like to quote one of our favorite books, The Art of Action: How Leaders Close the Gaps between Plans, Actions, and Results by Stephen Bungay:

“Your boss has asked you to drive from Chicago to Oskaloosa, Iowa, a journey of 317 miles. He’s prepared a budget for you with clear metrics. You can spend no more than $16 on gas, you must arrive in 5 hours and 37 minutes and you can’t drive over 60 miles an hour. But no one has a map with a route to Oskaloosa, and you don’t know whether you’ll run into a snowstorm on the way. Ludicrous? 
No more so than the way many companies translated their strategic plans 
into operations.”

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How Can Flexy Global Help with Your Digital Transformation Framework?

Flexy Global offers more than just technology solutions. With a startup mindset and agile methodologies, our team achieves in months what might take others years. We focus on rapid software development, moving quickly from initial MVP and testing to fully developed digital products.

We provide an end-to-end digital transformation framework that supports all key areas of digital transformation, with a strong emphasis on UX design. In this article, we've already discussed the importance of human-centered design and exceptional user experience, and here are some statistics to back it up. According to a Forrester study, every dollar invested in UX brings back $100—that’s an impressive 9900% ROI. So, with an ROI like this, can you think of a better place to invest to maximize your returns?

• Strategic roadmapping: Together with you, we create a transformation roadmap that breaks down large-scale goals into manageable and measurable stages.
• Technology selection and implementation: Flexy Global’s expert consultants assist with choosing and implementing the right tools, so you won’t get overwhelmed with the technical decisions.
• Employee training and change management: As we have explained above, upskilling your workforce is a fundamental part of digital transformation. We are happy to tailor training programs to your employees, considering their current skills and the distribution of tasks within your organization.
• Continuous optimization and innovation: Flexy Global was founded as a digital business, and having been more than 15 years on the market, we have gone through various stages of transformation. We have tested and implemented dozens of emerging and established technologies in our company and our clients' businesses. We know how to learn and adapt; that’s why we are always there for you, helping you with ongoing innovation.