On our portal we talk a lot about how to carry out digitalization and digital transformation. But there are 2 important issues that we want to cover:
what to teach people;
how to carry out digitalization, what to do at each stage.
Digitalization: what to teach people
Competencies of digital transformation team members
As a final chapter, I would like to talk about competencies. No digital transformation is possible without staff competencies. We have already talked about the virtualization of competencies. But what to teach?
In the first book we already touched on the competency matrix from RANEPA for members of the digital transformation team (CDTO, CDO, CA, etc.)
Let's take a closer look at what our colleagues from RANEPA came up with
BLOCK I – Personal competencies
Focus on results
Customer centricity
Communication skills
Emotional intellect
Creativity
Criticality
BLOCK II – Professional competencies in the field of digital development
Digital development management
Development of organizational culture
Management tools
Data management and use
Application of digital technologies
IT infrastructure development
At the same time, each competency has 4 levels:
There is no demonstration of competence or behavior opposite to the target predominates (0 points)
Competence is demonstrated at a basic level. The assessee knows and applies some tools and methods, but this competency is not his strong point. It is recommended to focus on its development (1 point)
Competence is expressed at a sufficient level, most characteristics and indicators are the strengths of the person being assessed and are positive in nature, negative manifestations are at a minimum level. However, certain elements of competence require development (2 points)
Competence is demonstrated to an excellent level and is clearly a strength of the assessee. The overwhelming number of characteristics and indicators are positive. The assessee demonstrates compliance with the characteristics and indicators of competence. Able to convey the knowledge and skills necessary to develop this competency in others (3 points)
Interesting and complex, isn't it? But what to do with other managers, for example, the chief engineer, the treasurer? What about ordinary specialists, who are subject to changes, but from whom there is no need to turn them into digital experts? What competencies do they need?
Competencies for other employees
Rating scale
We also suggest using a 4-level scale, but with a different gradation:
• 0 points - no competence;
• 1 point - competence is demonstrated at a basic level. The employee knows and uses basic tools, but this is not his strong point;
• 2 points - competence is expressed at a sufficient level. The employee demonstrates expert knowledge and mastery of the tool. Can solve complex problems, participate in projects, adapt the tool to the organization’s tasks. However, he cannot be an expert of the competence center and explain it to others simply, without complex terminology;
• 3 points - competence is demonstrated at an excellent level and is the employee’s strength. An employee can be an expert in a competency center and solve atypical problems using a tool/competency. In addition, the employee is able to convey knowledge and skills to others, in simple and accessible language, with analysis using practical examples.
Personal competencies
Willingness to learn new things – digitalization and digital transformation are associated with change and the application of new tools.
Result-oriented - it is important not only to master technologies, but also to understand what results they can lead to, how this can be useful to the organization.
Customer-centricity is the introduction of digital technologies without a focus on the client, both external and internal (yes, our colleagues who use our results are also clients), a waste of time and resources.
Emotional intelligence – digitalization and digital transformation are associated with change, and as we discussed earlier, this leads to resistance. The ability to understand the nature of fear and resistance is one of the keys to success.
Creativity - the ability to formulate non-standard ideas, move away from traditional thinking patterns, quickly find a way out of difficult situations, using unconventional approaches - sometimes allows you to build entire business processes on free tools and services.
Criticality - in digital there is also a lot of hype and empty, as in any other direction. Yes, risk tolerance in digital is necessary, but critical assessment is also necessary.
Problem solving - digitalization without software failures, equipment failures, conflicts is impossible, and you need to be able to solve these problems: localize and identify the problem, formulate it, identify the causes of its occurrence, prepare ideas for solutions, choose the best and act. This competency might not be highlighted separately, since lean manufacturing has 7 steps to practically solve problems with 5W1H and 5 whys, but lean manufacturing is rarely associated with problem solving.
Digital competencies
Data science and analytics
Skills in working with information: collecting, assessing the reliability and analyzing information, structuring data and making decisions based on them, working with normative and reference information.
Example: it is necessary to understand a new direction; prepare an analytical report for management; distrust of loud headlines and unverified sources.
Digital erudition
Understanding of modern digital technologies (Internet of things, blockchain, artificial intelligence, etc.) and types of IT systems: operating mechanisms, pros and cons, their purposes. Knowledge of industry trends and leaders, the ability to evaluate their experience and take into account mistakes.
Example: correctly understand where blockchain is needed and where it is not? Why is the Internet of Things important? Why are neural networks demanding of “clean data”. Who is the leader in the application of, for example, artificial intelligence and what projects they are implementing.”
Security in the digital world
The ability to assess the risks of social engineering (collecting information about you in order to gain trust later in a conversation) and online fraud. Knowledge of basic tactics and techniques of attacks on people and organizations, the ability to identify and counter them.
Example: distrust of calls from the “bank” about a loan application; calls from relatives in trouble; a minimum amount of personal information on the Internet: who you are, where you work, what was the name of your first dog, etc.
Organization of interaction in the digital world
Using modern tools to organize collaboration and communication.
Example: using online boards to distribute tasks within a project; Create accessible mind maps to visualize and collaborate on ideas.
Digital content production
Skill in creating, structuring and editing digital content (working with graphic editors, presentations, text) and working with copyrights on the Internet.
Example: Preparing presentations and flowcharts to promote new ideas and allow everything to be visually explained on 1 sheet, instead of a 15-page explanatory note.
Systems approach tools
Lean
Project and product management
Systems Constraint Theory
Communication Management
Implementation of changes, management of motivation and PR
Regular management practices
Reading and describing business processes
Working with strategy and organizational structures
Competency Matrix
We propose to divide people into the following groups:
Owner, General Director (CEO), Deputy General Directors (CEO-1), heads of areas/departments (CEO-2)
Middle management (heads of departments), which oversees digital projects and the implementation of changes
Middle management who are not involved in digital projects
Informal leaders who do not have high positions, but influence the team (it is important to explain to them what and why, recruit them and minimize resistance)
Specialists involved in digital projects
Regular employees
Below is a competency matrix
This matrix does not cover the topic of information security, without which no digitalization and digital transformation is possible. But we will devote another article to her.
Road map
Unfortunately, there cannot be a universal solution or roadmap, but let’s simulate the situation for a typical organization of 100-500 people.
Stage 1. Preparation
The purpose of this stage is to determine the current level and prepare for digitalization, implement the first IT solutions
What need to do:
conduct diagnostics, including the digital maturity of people and the type of culture in the organization. We studied this issue in detail in the first book;
identify restrictions (external and internal, material and not) that do not allow the organization to grow, and determine where to focus efforts first (increasing efficiency, improving product offerings);
identify stakeholders within the company, their attitudes and interests, psychotypes of key employees, determine tactics for interaction with key stakeholders;
collect “complaints” from leaders of areas and understand their reasons at the system level, structure them;
study the experience of industry leaders (where they are going, what new services they offer);
determine the target model (where we are going), including the organizational structure;
select and prioritize digital technologies and IT systems for implementation;
prepare an answer to the question “why” for ordinary employees and an explanation of why they will not be fired;
prepare programs and training plans for employees, memos;
conduct mass training in the basics of digital literacy and working with data, with regulatory and reference information;
conduct training on building information security (a detailed roadmap is described in the next book);
describe the VAD diagram of the organization, the catalog of processes and in detail the key / problematic ones that need to be digitized first and second;
conduct an inventory of the data that the company generates and that managers need to make decisions (what data is needed, who exactly, to make what decisions), determine the target IT architecture for storing and processing data;
consolidate digitalization as a strategic objective and include it in OKR goals;
identify potential leaders and supporters of digitalization;
select suppliers of IT systems and digital solutions and formulate a budget for digitalization;
implement BPM (business process management system) and IT services for organizing collaboration, meetings, and communication;
automate typical and routine tasks that cannot be abandoned;
ultimately develop a digitalization strategy with the current state and roadmap..
Necessary tools of a systematic approach
theory of systems constraints;
lean algorithm;
project and product management;
implementation of changes;
digital technologies and data management, cybersecurity;
process management;
communication management;
strategy and metrics.
Duration: 6-12 months
Stage 2. Introduction of technologies
The goal is the introduction of IT systems and digital technologies that will give the greatest effect at minimal cost.
What need to do:
before digitalization and automation of processes, optimize them according to the principles of lean production;
develop new local regulations, rules, instructions, regulations based on the results of the implementation and piloting of new IT systems and digital technologies;
introduce IT systems and digital technologies of first and second priority;
build work with data (storage, collection rules, security) and business analytics, decision-making based on data;
adaptation of the company's organizational structure;
training digital leaders in the tools of a systematic approach and their public encouragement;
launch digitalization “from below”, through collecting ideas and suggestions from line employees (Kaizen), encouraging digital experiments, testing hypotheses;
build a project culture by maintaining project documentation for implemented IT systems and digital technologies, documenting all changes and automated algorithms;
systematic PR;
support the organization's top officials, including through their use of digital technologies and solutions, and not through formal speeches about the importance;
build an information security function.
Necessary tools of a systematic approach:
Lean;
project management;
theory of constraints;
communication management;
implementation of changes;
digital technologies, data management and cybersecurity;
business process management.
Duration – 1.5 – 3 years.
Stage 3. Consolidation of changes and commercialization
The goal is to consolidate the changes achieved and launch/develop/change the product offering.
What need to do:
continue optimization, digitalization and automation of support processes;
approve new rules, instructions and regulations, consolidate them with new metrics (KPI) and regular management practices;
introduce IT systems and digital technologies of the third priority;
move on to searching for new sources of profit - creating new products, services and business models;
further develop business analytics and employee competencies, introduce predictive analytics, create your own support and decision-making systems;
create your own competence center;
financially and publicly encourage innovators and supporters of digitalization.
Necessary tools of a systematic approach:
Lean;
product management;
internal and external communication
metrics and business processes;
implementation of changes and motivation management;
Duration – 1-2 years.
Total from 3 to 6 years.
IT systems and digital technologies of 1st, 2nd and 3rd priority
The roadmap lists IT systems and digital technologies from priority one to priority three. I'll try again to do a little standardization and share the author's vision. Naturally, the company's industry is key here. For example, for a manufacturing company a WMS system will be a top priority, but for a logistics company it will be a priority.
First priority IT systems:
CRM (customer relationship management);
ERP (resource management);
BPM (Business Process Management)
IDM (access rights management);
Electronic document management;
PIM (product information management, relevant for companies working with marketplaces);
BI (business intelligence);
WMS (warehouse logistics management, relevant for logistics companies);
MDM (regulatory and reference information management, usually 1C is used);
SCADA (dispatching and equipment control);
collaboration solutions, task trackers, meetings (Bitrix, Trello, etc.)
key information security systems (more details in another article).
Second priority IT systems:
decision support systems and digital advisors
EAM (repair management);
MES/APS (production management and planning);
PLM/PDM (product/product information management);
DLP (information leakage prevention);
SRM (purchasing management) and SCM (supply chain management).
IT systems of third priority
WMS;
PIM;
other systems.
Digital technologies of first priority:
internet of things and wireless communications;
clouds;
data warehouse/lake;
big data (BigData) and analytics;
robotic process automation (RPA);
3D printing (for industrial companies that have problems with the supply of spare parts);
machine vision (for hazardous industries)
RFID identification.
Digital technologies of second priority:
digital twins;
neural networks;
machine vision.
Digital technologies of the third priority:
augmented and virtual reality (AR & VR);
5G;
blockchain and smart contracts;
3D printing;
digital platforms.
We recommend focusing on packaged solutions. This way you will save time and money. And most importantly, you will understand your needs and be able to formulate clear technical specifications for custom development over time. The ability to formulate a clear request is key during custom development, otherwise the budget and deadlines will be exceeded by 2-3 times, and the benefits will be questionable.