Digital Transformation will reshape your industry and significantly impact your business. The age of digital transformation rewards early adopters (and a few super-fast followers), leaving others to play catch-up and struggle to survive.  It’s vital for business leaders to have a clear understanding of Digital Transformation and the right way to approach it.  Too many companies get caught in the hype, are misled by the wrong guidance, and don’t really understand the true business value and the right approach. Let’s clear up some of the common misconceptions.

Digital Projects vs. Digital Transformation: 
Some companies mistakenly think that implementing a digital project, such as a new ERP, CRM, or financial system, is the extent of digital transformation. While those projects may provide an incremental improvement, they’re far from the full potential a digital transformation can provide.  Merely implementing a technology/system is not the same as Digital Transformation. Let’s better define Digital Projects and Digital Transformation, and take a closer look at the differences.   

• Digital Projects: Projects that reduce costs, increase speed and/or quality within the current operating model through the application of digital technologies.

• Digital Transformation: Programs that change how the business operates and business objectives are achieved, removes friction and optimizes the customer experience, and transforms the overall business model by leveraging digital technologies.

 
Technology initiatives typically take the form of either digital projects or digital transformation. These different directions deliver two very different types of results in value:

• Digital projects can produce only incremental value.
• Digital transformation can produce business-changing/market-changing value.

 
Improving the operating or business model is the key to achieving business-changing value and changing a company’s competitive position.  At the same time as a company designs and builds its digital platform, it must reengineer its operating model, including their mindset, resources model, customer experience, organizational structures, and end-to-end processes.

A recent cautionary example: 
For an example of how digital transformation affects businesses, let’s look at the retail industry. Years ago, local family-owned retail stores dominated most of the market. Then Walmart came along with their “just in time” inventory system that facilitated lower prices and an ever-growing network of stores. They looked unstoppable… but along came Amazon. Though at first it seemed like just an online bookstore, Amazon had ambitions of expansion and a well-thought-out digital transformation plan.

As a result, the once-dominant Walmart has been significantly impacted, and has closed stores across the country. In this instance, Walmart has been relegated to the role of “superfast follower.” In an effort to compete, Walmart purchased online retail startup Jet.com and revamped their leadership team to fast-track their plans to catch up to Amazon.

Amazon’s digital transformation has changed the way the retail industry works, and they’ve left big-box retail stores struggling to stay in business. All it takes is a look around the empty shopping malls and shuttered outlet malls to see the impact of digital transformation on the retail industry as a whole.   

There are similar examples in other industries, and eventually every industry will be impacted, including your industry.  

Seize the opportunity
Which role will your business play: the digital transformation market leader, or the straggler? What should you do now to make sure you are in the right market position?  
The following recommendations can help you get on the right track:

Article originally provided to and featured by the Business Bank of Texas: www.businessbankoftexas.com/business-resource-center/10-signs-that-you-need-to-evaluate-your-business-information-technology?utm_campaign=Q1%202017-%20BRC%20Business%20Owner&utm_source=hs_email&utm_medium=email&utm_content=67812255&_hsenc=p2ANqtz-_3Ijyjrn7y_qXbKbV9nfknJH98Uz-NKoASCvR6Zu4MyMrI0XUZWH_IZaqu_AzHAYsZ8-r8zfcO4AlltGdjhgkODIE6og&_hsmi=67812255

This article is the fourth and final part of a series on the technological challenges business owners face in 2018. In past articles, we’ve looked at cybersecurity measures, getting ahead of the technology skills shortage, and building agility into processes. Today we’ll look at how businesses can incorporate smart processes with technological solutions, or to put it simply: digital transformation.

In order to improve operations and deliver more value to customers, businesses need to effectively integrate the right technologies. All too often, company leaders are lulled into thinking they can maintain the status quo and continue to perform well. But recent history is full of examples of companies that fell into this mindset; by the time they finally responded, it was too late.

​Times have changed. The age of digital transformation rewards early adopters (and a few super-fast followers), leaving others to play catch-up and struggle to survive.

A recent cautionary tale
For an example of how digital transformation affects businesses, let’s look at the retail industry. Years ago, local family-owned retail stores dominated most of the market. Then Walmart came along; their “just in time” inventory system facilitated lower prices and an ever-growing network of stores. They looked unstoppable… but along came Amazon. Though at first it seemed like just an online bookstore, Amazon had ambitions of expansion and a well-thought-out digital transformation plan.
As a result, the once-dominant Walmart has been significantly impacted, and has closed stores across the country. In this instance, Walmart has been relegated to the role of “superfast follower.” In an effort to compete, Walmart purchased online retail startup Jet.com and revamped their leadership team to fast-track their plans to catch up to Amazon.
Amazon’s digital transformation has changed the way the retail industry works, and they’ve left big-box retail stores struggling to stay above water. All it takes is a look around the empty shopping malls and shuttered outlet malls to see the impact of digital transformation on the retail industry as a whole.

How to stay ahead
Which role will your business play: the digital transformation early adopter, or the straggler? What should you do now to make sure you are in the right market position?
The following recommendations should help you get on the right track:

Identify and acquire the required resources
To win the digital transformation game, you need to have the right tools and team for success. Assess your ability to execute your digital plan with the resources you currently have. Typically, the technological solutions that brought you to this point won’t be the same ones that will drive your future success.
You also need to determine whether your current internal resources can continue to run the day-to-day aspects of the business while effectively driving your digital transformation. Engage a seasoned advisor who can provide an unbiased review of your current systems, identify opportunities, and drive timely execution. Digital transformation is a new concept for most people, and many companies struggle to figure it out on their own. The right advisor can help your company avoid missteps on the road to a timely and successful outcome.

The Right Plan
Some companies mistakenly think that implementing a new ERP, CRM, or financial system is the extent of digital transformation. While those tools may be a piece of the overall plan, they’re far from the full potential a digital transformation can offer. True transformation involves internal processes, customer experience, delivery of services and products— essentially the full continuum of your business. Make sure your digital transformation leaders understand the difference and are prepared to serve as change catalysts. That means challenging traditional thinking and identifying needs, gaps, and opportunities.

Execute
Act and execute like your future is counting on it… because it is. Amazon didn’t gain their advantage in the retail industry by merely crafting a great plan; they also executed the plan in a more timely and more effective manner than their competitors. Innovation and business opportunities have a window of opportunity. Take action now, start fast, and execute to win this race.

​Market-leading companies fully leverage and optimize technology to improve their operations and deliver more value to their customers.  When your technology fails, you’re not only losing profits, you’re also losing customer confidence.  Businesses are currently in a Digital Transformation race that rewards the first movers and most agile, and leaves the others playing catch-up to survive.  Inadequate cybersecurity can expose sensitive information and put your business at risk. If it’s been a while since you’ve evaluated your company’s technology, most likely there are many issues that you’re not even aware of.

​The following are signs that it’s time for an independent review of your Information Technology (“I.T.”) organization:

1. Your business is evaluating new technology options.   Are you considering a new system or a move to the Cloud?  There are many factors, risks and issues that must be taken into consideration.  An unbiased, I.T. assessment will help evaluate the options, provide essential insight, and craft the right plan of action.
2. Lack of a comprehensive technology strategy and roadmap. 
3. I.T. costs continue to increase, but I.T. service and satisfaction declines.  There is a negative view/sentiment of I.T. within the company.
4. I.T. tends to be a Laggard instead of a Leader for your company.  In today's rapidly changing market, companies are in a Digital Transformation race. Do you have the right team to win this vital race?  Is your I.T. frequently in “fire-drill mode” and merely reacting to requests?  A technology assessment will uncover the issues and chart the course for putting your technology organization on the right path.  
5. Your systems have been hacked, or your cybersecurity readiness is unknown.  The proper cybersecurity is essential for your future, and it starts with an independent cybersecurity review.  You must proactively identify and address your risks. 
6. Frequent and/or unexplainable outages and technology emergencies.  Nagging I.T. issues are pulling time away from core business functions.
7. Lack of Agility​:  I.T, can’t keep up with the pace of your company.   It’s great that your business is growing, but the celebration won’t last long if you’re trying to expand and meet the needs of a growing market, but your technology can’t keep up.  Today’s business requires agility, and your technology organization must be able to quickly adjust to changing demands, and be capable of producing timely results.  
8. Ineffective technology governance.  Many departments have pressing technology needs.  How does your company set, manage and communicate unified technology priorities?  Does your company have data silos?  Does the information that executives receive vary by department, and/or the reports don’t paint an accurate, cohesive picture?
9. Frequent “NO” from I.T. on new requests.  Are the negative responses from I.T. due to resource constraints, inefficiencies, lack of governance, culture, attitudes, processes, or leadership?  An assessment is a great way to understand the underlying issues and turn "no" into "yes, we can".  
10. Skill set shortage.  Do you have the right technology resources?  Do you have the right leadership, the right skill sets, optimized processes, and the most effective technology organization?  

​

If you observe any of these signs, it's time for an Information Technology assessment.
Xtrii performs comprehensive, cost-effective technology assessments that are conducted by proven technology experts that have helped some of the world's best companies achieve extraordinary success.     

The following is a written transcript of an interview of Mark Johnson, Chief Executive of Xtrii, conducted by Exec Tech.  

​In addition to providing business technology guidance to companies, I’m often asked which personal technologies are the best.   As we wrap up 2017, I'm sharing my best of 2017 recommendations in this series of articles.   While many technology magazines provide their recommendations for the best technology, their opinions are typically formed in their lab and can be biased based on their advertisers and alliances.  

The Advantages:  My recommendations are not influenced by advertising, corporate sponsors or other relationships that can impact magazine recommendations .... I simple recommend the best technology.   My recommendations are based on a much larger testing environment that includes extensive hands-on experience, feedback from a very wide variety of customers and environments, 30+ years as a technology leader and global technology advisor, and leveraging feedback from a large resource pool of other global technology experts and their experiences.  
​
For this best of 2017 review, I will cover the most requested personal technologies in a series of weekly articles.  This week’s article will cover the best: 

1. Smartphone
   
2. Smartwatch
   
3. Laptop
4. Home Technology

Over the years I have used both Android and Apple phones.   I used an iPhone for many years, and three years ago I switched over to Android.  Until recently, my primary phone was an Android phone, the Samsung S7 Edge.   Experts point out that the both Android and Apple have the strengths, and I agree.   Like many technology professionals I have historically tried to avoid being on the Apple bandwagon, and liked the flexibility of Android.  I reviewed the latest offerings, including the Samsung Note 8, the Samsung Galaxy 8, LG V30, Google Pixel 2, and many others.  

But, the iPhone X just look Apple to another level, and after using the iPhone X for several months, it is without a doubt the best phone I have ever used.   The form-factor of the iPhone X feels really nice in your hand, and is well-balanced.  The Note 8, iPhone 8 and other smartphones with comparable screens feel top-heavy and awkward in your hand, and lack the “just-right” feel of the iPhone X.   The iPhone X’s Face ID works great, there is never a screen lag (like you see on Android phones), it has amazing battery life, and the best overall user experience.   Sorry Android fans, Apple created a winner, and overall the iPhone X is the best.    
​

I have used many different smartwatches, including Android Wear, Samsung Gear, FitBit and Apple.  For the past two years my preference has been the Samsung Gear S3 Classic Watch. The Samsung Gear looks great, but the battery life was terrible (it often couldn’t last a full day) and the lack of apps was very disappointing.   By far, Apple has the best selection of apps for a smartwatch, and with the Apple Watch Series 3, they finally got the hardware right.   With the Apple Series 3, I typically have more than 80% battery life available at the end of the day, and I’ve gone 3 days on a single charge.   The Series 3 also adds the cellular capability and phone number mirroring with your iPhone, which gives you the ability to leave you phone at home and still send/receive your calls and messages.  The apps, the user interface, the heart rate monitoring, and the overall experience is better on the Apple Watch.  Smartwatches will continue to evolve, but currently the Apple Series 3 is the best smartwatch. ​


​

The form factor, The Dell XPS 13 fits a 13” screen in a 11” form factor.  The amazing display is a stunning, edge-to-edge (nearly borderless, infinity display.  The size, weight, case material, aesthetics, included ports, and performance are all superior and all make the Dell XPS 13 the best overall laptop.  For those that want a 15.6” display and even more horsepower (most people don’t really need it), my recommendation is the larger Dell XPS 15.   HP has made improvements, but their awkward trackpad, and overall configuration can’t match the Dell XPS.   Lenovo, Samsung and others have too many quirks and quality issues to be a contender.  Apple has their following, but the current line of Apple laptops are disappointing, and their core components and overall value can’t match the Dell XPS. ​


​

​There are sooooo many home gadgets to consider these days.   From robots, home automation, tools, gadgets, and on and on.   But if you have to select the one that does the most for your dollar, it’s the Amazon Echo Dot.   The list price is $49.99, and right now it is on sale for just $29.99.    For that small price, you get an amazing amount of helpful functionality.   With just your voice it can do everything from play your favorite music, add items to your shopping list, order products from Amazon, turn on/off your lights, read you the weather, the news, and your calendar for the day, and many other extremely helpful tasks.   It has an ever-growing ecosystem of apps and capabilities.    Even with loud music playing, the Echo Dot can hear your voice command and is always ready to respond.   Yes, Google has a similar product, but it lags Amazon in the list of apps, integrations, and overall capabilities, and the overall experience is not yet caught up with Amazon.   Amazon also has other variations of the Echo Dot (Echo, Echo Plus, Echo Show) that have larger speakers and a larger form factor, but also a much larger price (2x to 4x higher price).   If you are looking to start building your home automation, and/or want the most bang for your buck in a useful home technology, the Amazon Echo Dot is your best purchase.   

​ 

Check back next week, for the best:
5.  Printer (personal/small business)
6. To-do list/Time Management App
7.  Home Security Camera
8.  Data storage (Cloud service, personal NAS… the best way to store your data)  

​Technology plays a key role in all businesses today.    The right technology can provide a competitive advantage and be a valuable asset for your business, and conversely, the wrong technology and/or an unsuccessful technology implementation can be devastating.   So, before you make that key technology decision, consider these key points in selecting the right technology guidance:

1. Hands-on experience with proven results:  the source of real knowledge is experience.  Avoid a career-consultant that only has theories and generic consulting templates.  Only take advice from someone that has been there, done it, and has had to live with the results. 
2. Ability to initiate a mental shift: to fully leverage technology and achieve better outcomes, often it requires a mental shift.  The organization has to change their old ways, rethink processes, and be willing to change.  The right consultant is a change catalyst to help you and the entire organization with the mental shift.
3. Unbiased:  make sure your internal advisor isn’t biased with internal agendas or personal relationship.  For external advisors, make sure they aren’t also reselling or representing the products/services you are considering, or have other incentives that can influence or bias their opinions.  
4. Uncomfortable truths and unpopular decisions: the advisor must have the courage to call a bad idea, a bad idea.   Even experienced business leaders can be prone to ignoring uncomfortable truths about your business, but the realities exist and must be addressed. 
5. Timelines:  The right advisor will help you determine the right pace and time frame.  If you drag out a technology initiative too long, the organization tends to get project fatigue and loose focus.  If you rush the process or skip vital steps, it could produce unsuccessful results.   True innovation has a “window of opportunity”… don’t miss it.      
6. Unique: Don’t follow a “generalist” that is just reusing the same generic templates from their national firm… if you follow the same generic plan that everyone else if following, where’s your differentiator or competitive advantage?  Insist on tailored guidance and unique expertise.   Your technology advisor must have the depth of understanding and applicable, extensive experience to provide the right insight and unique guidance tailored to your specific needs.  
7. Provide a real solution and overcome challenges:  While many consultants can motivate you and tell you inspiring, interesting stories, do they have the right experience, insight and leadership to help you overcome challenges and achieve the goals?  The right advisor will help you navigate challenges, and implement timely solutions that work. 
8. Clear, written roles and expectations:   Make sure their role, the deliverables and the expected outcome is clear at the outset. and spelled out in a written statement of work.