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It is possible to digitize one of four models.

– Informal model

Someone at the company is doing the numbers for some reason. For example, the department of repair or maintenance began to implement digital tools and did it successfully. The downside is that the model does not cover the whole organization and the full potential of technology, but for many companies it becomes the starting point.

– Centralized model

The head of the organization or board of directors understands that digital technology and digitalization are very important for the company. They hire the CDTO, assign it a large unit, empower it – and it digitalizes the company.

The vast majority of companies in Russia are at this stage with an IT or Transformation Director at the head.

The advantage is that you can coordinate the movement and work of the whole organization.

Minus is the speed. The bigger the company, the more regulations, rules, restrictions, the more communication you need to conduct inside the company to launch a pilot project. After all, there is also resistance, as many leaders do not need this digitalization. As a result, companies invest in technology, and business customers simply ignore new tools, they impose them.

I participated in the project on this model and I can say that if the curator at the head of such a project does not have the necessary competencies, it can bury the whole project. Of course, in the reports everything will be shown beautifully – we can report like nowhere else. However, if you go down to the level of those who work «in the fields», you will understand how much money is wasted. The project in which I was involved, with a total budget of more than 1 billion rubles became my personal pain, forcing to learn from the mistakes of the curator. Additionally, communication with colleagues on the floor shows that such a model often only increases the time frame and budgets.

– Distributed model

Each division has its own digital office, which determines its own solutions and services.

In this case, the CDTO functionality is crushed and embedded into the existing structure so that these small offices start transforming their units from within. Then each division has its own «small» head or leader in numbers, and the big director of the number becomes unnecessary and leaves the company, because all can develop their own competencies. It’s a new culture.

Plus is the speed of deployment and how fast the changes are coming.

Minus – duplication of costs. Often such teams begin to push elbows, in terms of the cost of the whole organization they are not very effective, constantly «invent bicycles», and they always have something to optimize.

– Hybrid model

It’s that all small digital offices need a focal point. His task is to build uniform rules of work, development, to form processes and tools, to develop a common strategy, so that local offices already use his knowledge. It becomes a methodological centre and coordinates all the centres so that they work towards a common goal and are synchronized with the strategy.

As an analogy you can take the company Google, which develops its «market place». Developers do not create apps from scratch, and use many proprietary ready-made applications from Google. For example, if you want to use maps in your app, you take ready-made maps from Google.

If you want to do local digitization, you need to understand the level of organizational development of your company. If you have a centralized organizational environment with a large digital block, you can assume that there will be problems with speed. If you have a distributed environment, there will be a problem with duplication and unnecessary costs to develop your products.

Always keep your structure in mind – this will protect you from irrelevant actions.