Successful digital transformation needs to be lean
New technologies have made it possible to digitize many processes within organizations. For some years now, we have seen enormous efforts by companies in practically every sector not to “miss the boat” of digital transformation. Now, the ingredient of the moment seems to be AI (Artificial Intelligence) These are new artifacts of organizational realities that we need to learn to deal with, as they will be increasingly present in our work routines.
However, far from simply investing in more technology and new tools, what we call “lean digital transformation” is, in fact, a strategic journey that requires perceptions and decisions quite different from those traditionally observed, both “inside” and “outside” the company. We cannot waste opportunities to achieve great leaps in performance using technology as a lever.
It is not unusual to come across digital transformation initiatives that reinforce or even increase the difficulties that existed “before digital” because the change is managed carelessly, poorly planned and poorly communicated. In other words, keeping essentially the same processes, methods and mindsets as before. To avoid this, the journey needs to be triggered by a careful reorganization of macroprocesses, which will be the foundation for a truly lean digital transformation.
For a transformation of this nature to take place and generate the expected results, it is necessary to understand that the journey demands changes in mindsets, behaviors and attitudes, as well as clear definitions of purpose and the use of “right-sized” technology. It is not an easy change, much less a natural one. Substantial technological disruptions have an impact on relationships of communication, power and authority. Therefore, we must accept that there will inevitably be obstacles, “organizational forces” that will become barriers to progress.;
Closely connected to the organization's strategy, the challenge requires foreseeing and deeply understanding the potential “traps” that may stand in the way. We need to reflect on this so that digital transformation is not just another “coat of varnish” that will protect, maintain and reinforce old practices and problems.
Such obstacles vary according to the type of business, the size of the organization and the sector of the economy in which it operates. However, it is possible to observe, in general, five major challenges when seeking a deeper digital transformation at the organizational level. In the face of all of them, if we manage to incorporate the lean way of thinking, acting and managing, we can tremendously boost our efforts and save enormous sums of resources.
1 - Cultural resistance
As microsocial structures, companies develop specific cultures formed by practices, habits, behaviors and values, which are reinforced, shaped and perpetuated over time. The problem is that a digital transformation inevitably requires changes in several dimensions of the organizational culture, if not all of them. And we know that people who are used to and comfortable with certain practices will tend to resist.
For digital transformation not to be seen as a “threat”, specific countermeasures are needed. One of them, for example, may be a “nemawashi“, an expression of Japanese origin, part of the lean vocabulary, which suggests a careful and structured communication process that seeks prior consensus and sufficient alignment before any practical effort or initiative begins.
For this, it is necessary to clearly understand the characteristics of the current culture being dealt with and the specific gaps in relation to the desired new cultural reality. You do not change a culture, you shape it. Practices must change so that the culture gradually takes on new contours. Believing that better results can be achieved while maintaining the practices associated with the traditional culture is an evident incongruity.;
This presupposes developing a structured communication and awareness effort at the different levels of the organization before the transformation begins. So that people clearly understand the role they will play in the journey and how the changes will affect their day-to-day work. Transparency is a critical element, because “undeclared truths” are quickly perceived and can act as powerful forces of friction.
2 – Lack of knowledge and capabilities
A deeper digital transformation will not only require new processes, structures or technologies, but also people equipped with new knowledge and trained to understand and deal with the new reality.;
These new competencies range from a conceptual and practical understanding of what a truly lean digital transformation means. And also new specific knowledge about tools, both from the lean system and those related to new technologies, such as artificial intelligence, cybersecurity, data intelligence, among others.
It is not enough just to know how to implement new technologies; one must also know how to connect them to the organization's capability to generate new channels of innovation and business models better suited to the competitive context. Always starting from a deeper knowledge of the organization's capabilities, results and medium- and long-term objectives.
Thus, the company needs to understand, fundamentally, how to generate new knowledge in order to then be able to implement and conduct its digital transformation strategy the lean way, going beyond the “inertial” adoption of more and more technology.;
To do so, it is necessary to invest in capability building, training and the development of mentors (internal and external) who can support, in practice, the assimilation of the necessary skills, from lean to technology, so that digital transformation does not founder for a critical lack of intellectual capital. This evolution needs to happen from the leadership to the front lines, reaching every level of the organization.
3 – “Financial” focus
Every business needs financial results and adequate returns on its investments. The question is the time needed for the results to happen and the “means” that will be used to achieve them. Most of the time, we need to adopt a medium- and long-term perspective.
It is not uncommon to see companies that start their digital transformation, obtain the first results and think they are enough or that they are not scalable. This is a mistake, because the transformation may take time to take off. And premature interruptions cause quite significant damage.;
Thus, we must avoid short-term thinking and understand that the lean digital journey, when well thought out and executed, will deliver its best and most sustainable results over the medium and long term. Quick wins are possible and desirable, but they need to be associated with structured efforts connected to the real strategic needs of the business.
A financial focus is not wrong. The trap is to believe blindly in the numbers and leave behind the premises that involve deeper changes, related to people, to their relationship with work, and to the way of managing and leading.;
We need to clearly perceive the expectations and problems faced by our customers, so that we are able to develop new business models and more innovative or even disruptive ways of producing and delivering value. That is what can create the real competitive advantages needed to make possible better rates of return on invested capital, the longevity of the organization and sustainable economic success.
4 - Technical and operational obstacles
From a lean perspective, improving management does not mean having to have more and new technologies. Sometimes, by correctly applying lean concepts and practices, it is possible to “fix” processes and increase the capacity to create and deliver value while keeping existing technological levels. However, in certain situations, more ambitious steps need to be taken and new levels of digitalization become necessary.
As a result, technical and operational obstacles may emerge, because a new technology sometimes requires laborious integration with existing platforms or even the “retirement” of outdated structures, demanding a new “digital architecture”, usually very different from the one that existed before.;
In these cases, too, this integration must be carried out the lean way, avoiding overlaps, redundancies or rework, typical of superficially planned initiatives disconnected from the real challenges of transformation. In addition, it is also necessary to consider the challenge of ensuring the “scalability” of the new solutions as efforts progress.;
New technologies generally have high implementation costs. However, if they are the result of a truly lean strategy, they tend to be “tailor-made”, without unnecessary expenditure, and “just in time”, without overloading cash needs and in line with the capacity of people and the organization to “absorb” new developments. Without this strategic cadence, we can throw away a lot of money along with a lot of people's time.;
Another common trap here is to believe that new knowledge needs to be concentrated in a single unit, functional area or sector of the organization. Developing an innovation mindset aimed at continuous improvement at all levels, exploring the new and not simply refining routines, is essential for the organization not only to grow systemically, but to reinforce its capacity to generate resources sustainably over time.
5 - Digital security
In most cases, a lean digital transformation will tend to generate more and better “data and facts” about the performance of all the processes that take place in the organization. If they are reliable, data and facts can be, from a lean perspective, one of a company's main treasures, as they can be used to help us evolve, solve problems, and create and deliver more value to customers.;
However, it is necessary to think about information security, because depending on the type of product, audience and information handled, this can represent significant risks and potential losses, both for the business and for its reputation. The new laws protecting the right to privacy are comprehensive and require attention. Data is the “heart” of any digital transformation. Consequently, ensuring the correct and secure use of this asset is fundamental. And thinking about this type of problem before it occurs is also the result of a lean approach.
These five types of concerns reported here, which become challenges to be overcome in order to truly achieve a lean digital transformation, are not the only ones; they may have variants and require even deeper reflection. It is up to each of us, then, to consider these dimensions of the digital transformation journey even before it begins, in order to foresee the obstacles and manage the lean way to mitigate them.
Lean digital transformation is becoming, every day, more imperative for the survival and prosperity of organizations. The challenges are numerous and complex. It is about exploring the new, but in a rational way, with our “feet on the ground”. This is not easy to do, because we need to recognize our limitations and respect the pace at which individuals and teams can absorb change. It is necessary to have a clear vision of the future, but also of our real capabilities to bring about effective change.;
Thus, organizations must adopt a holistic approach, considering digital transformation not just as an “IT project”, but as a broad and comprehensive strategic initiative that requires involvement, collaboration and commitment at all levels of the organization. Only in this way will we be able to fully and sustainably explore the enormous potential of digital ecosystems.
With lean digital consulting, your company embarks on a collaborative and sustainable journey to make the most of technology, eliminate waste and accelerate value delivery, always prioritizing the customer experience. Visit the page and learn more!
