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What kind of digital pathways can business do? What can be digitized for digital transformation?

The Boston Consulting Group introduced a matrix of competencies that companies need to become digital. It includes 6 areas:

– digital business;

– digital marketing;

– digital products;

– Digital Analytics;

– digital manufacturing (industry 4.0);

– new ways of working.

Let’s take a closer look at what these are and what kind of people they need.

Digital business

This is a strategic function, which was previously handled by the Director of development, but now the focus is moving to numbers, and 3 more areas have appeared:

– digitalization and business transformation;

– digital venture investments;

– digital laboratory.

Digitalization of business is a change in the business model and the introduction of technologies into the company’s processes. As a result, operating losses should decrease, and business profitability and revenue should increase.

Digital venture investments – search for new business niches and promising start-ups to invest in. Accordingly, the quality of investments in these niches is assessed.

The digital laboratory creates promising partnerships and organizes a factory of pilot projects. The indicators are the number and success of the pilot projects launched.

Within the direction of digitalization and business transformation, the following directions can be distinguished:

– IT infrastructure and its optimization;

– production, including maintenance and repairs, industrial safety, operational analytics, automation of reporting, etc.;

– logistics and logistics;

– organizational efficiency and record keeping;

– sales and current products/services, i.e. customer service;

– economics and finance, including accounting;

– frames.

Required roles in the digital transformation team

The following list is not a record in the employment record, but a list of the roles to be performed.

– CDTO (Chief Digital Transformation Officer, or Head of Digital Transformation).

The main ideologist, who chooses the goals and direction of the movement, agrees the budget and manages the implementation of the transformation, coordinating all projects, interacting with external parties and inspiring his team.

– CA (Chief Architector, or Chief Architect).

It is responsible for the practical implementation of transformation in the form of connecting all components: business processes, applications, data warehouses, interfaces of interaction. It is not desirable for one person to combine the roles of chief architect and project manager, as their roles and responsibilities in the project are very different. The project manager is primarily the manager and the chief architect is the technician.

– CDO (Chief Data Officer, or Data Manager).

Responsible for the timely provision of the necessary data and analytics, coordinates their collection, storage and processing, forms a data processing unit.

– CTO (Chief Transformation Officer, or Digital Design and Process Manager).

Responsible for the implementation of the process approach and the design of new digital services, the study of processes, needs and customers.

Also important:

– lawyer (monitors changes, innovations and nuances of legislation, especially in the field of intellectual and data rights);

– Specialist for Interaction with External Organizations (contacts with data owners used in the project);

– information security specialist (responsible for data protection, which inevitably attract increased interest immediately after informing the external environment). In general, you should not neglect information security. As soon as you become visible on the market, there are people who want to get your data. However, do not close, because most of your data loses its value with the speed of fading banana from the store.

At the same time, it is necessary to understand that the current CIO (the head of the IT direction) is not suitable for the post of CDTO. Or it will need a long-term overhaul of its thinking and work priorities. We will address this issue in more detail in one of the following chapters.

Digital marketing

This is a function for generating digital content and managing end-to-end communication through digital channels. The main tasks are:

– the production of digital content;

– brand management in digital space and communication channels (messengers, social networks, email, etc.);

– Interact with users to collect feedback and learn preferences;

– launch of advertising campaigns.

The main roles here are:

– SMM specialist;

– MarTech specialist;

– Target Analyst;

– SEO specialist.

SMM-specialist is engaged in the promotion of business on the platforms of user content, i.e. in social networks, blogs, on educational platforms and in the framework of advertising campaigns.

MarTech specialist manages digital marketing technologies, i.e., tools that help plan, implement and automate the marketing activity of the company, measure its results and ensure continuous interaction with the audience. Now there are many tools that allow marketers to work with data and digitize routine processes.

The target scientist works with the target audience through targeted advertising.

The SEO specialist is responsible for transferring the traffic of Internet users to your resources (sites, applications).

Digital products

It’s about creating new digital products in the form of analytics services, applications.

How digital products differ from «classic»:

• communication between the user and the seller is direct, through digital channels;

• The processes involved in providing the service use modern tools – digital platforms, chat bots, machine learning, big data and the like.

The following key roles are required in this area.

1. Product Manager / Product Owner (more correctly «Product Manager») is an entrepreneur within the company who manages the product, forms requirements for it, negotiates with partners, manages its profit. It’s a key role for a digital product.

The product manager must have the following skills.

– Knowledge of psychology, market laws and subject matter

In order to create something, you need to understand the market and see its trends. This gives the ability to generate ideas and form hypotheses from them.

– Creative thinking

The ability to create is a very rare quality associated with going beyond the usual limits. Creative thinking improves the quality and quantity of ideas.

– Understanding Customer Needs

It’s not about what you’re interested in, it’s about what solves your client’s problems. This guarantees a public response, which means that the product will be used more often.

– Knowledge of IT

You can’t come up with a product without knowing what technology it’s going to be made with. Already at the stage of the project you need to know its future prospects and opportunities (transformation, expansion, integration).

– Ability to cooperate

One in a field is not a warrior. Although it often happens in startups that the product manager works as a marketer, developer, and salesman, but in the first place he is the organizer, which means he needs to be able to work in a team. In addition, it is important to build cooperation with other teams and companies. As the practice in the B2B market shows, the end customer wants to receive a comprehensive product, and the more technical partners, worked out system integrations, the higher the chance of success. Again, as practice has shown, relying on system integrators is very risky.

– Knowledge of basic product management tools and data analysis skills

No matter how smart you are, you need to own tools and be able to analyze data. It is not enough just to see data. Practice confirms that most companies suffer from neglect of analytics. Those who do not make the same mistake make better and more informed decisions.

2. UX/UI is a specialist who focuses on the development of a convenient digital product that will be comfortable and enjoyable for the customer. It manages the interfaces of your sites, applications, services: their logic, fonts, colors and so on.

One of the key competences here – knowledge of the principles of lean production. That is, the ability to organize the product interface so that the user does not have to make unnecessary moves.

Digital analytics

This is the collection and systematization of data from all channels and sources. What is known as Big Data, or big data? What it is, we will figure out later, but what kind of people are needed, is already clear. These are different analysts. Additionally, although it seems that they are all engaged in the same, they are distinguished by «specialization».

In general, they’re all data analysts. However, there are, for example, data scientists who are engaged in «science» and form mathematical models necessary for better design. The main direction of such a specialist is to predict and form new hypotheses.

Classical data analysts perform slightly more understandable tasks: collect, process, study, visualize and interpret the collected data about events that have already occurred.

Digital production (industry 4.0)

Technology, sensors, robotics, and artificial intelligence are beginning to be used in production, and some of the solutions in the pipeline are no longer human, but machine-driven. Design initially takes place in a digital environment along with the creation of digital counterparts, which inevitably leads to the discovery of new roles.

– The CAD engineer creates prototypes directly in the digital environment. In order to start production and collect operational data from them. Such a person should deeply understand mathematics, engineering and digital tools.

– The Robotics Specialist (RPA) knows how to build software robots and understands application scenarios. This is a business analyst with programming skills. A little later, we’ll look at who RPAs are, what kinds they are, what effects they have.

– Process Analytics analyzes and works in BPM-solutions (business process simulation systems), to which we will also return. The main difficulty – a large number of rules and standards to describe business processes. At the same time, ordinary people understand them with difficulty. It was therefore necessary to strike a balance between detail and accessibility for staff. And it is better to make several descriptions – one detailed for analysts and several role-playing ones that fit on sheet A4.

– The computer vision and learning specialist helps machines «see» and distinguish objects, people, animals and the world around. The machine itself will not understand what it sees – it needs to be trained. Computer vision is one of the promising areas. We will consider it below.

New ways of working

It’s about how we work and think at work. New ways of thinking are not so much about Agile’s flexible methodology and different approaches based on it as about philosophy, about leaving decision-making for creative potential.

For example, these include the use of digital tools to organize work: kanban tables, knowledge management, exchange of ideas, organization of online meetings and hybrid graphics. Also, important here is the use of digital tools for seamless communication: calendar, mail, messengers, audio calls, video meetings, task trackers.

There’s one new role – evangelist, or agile coach. Its main task is to explain that it is possible to build business processes in a different way, to work more flexibly. In essence, it should educate the organization’s employees about digital lifestyles. The more people use digital tools, the more they will understand this culture. For example, there will be no need to meet in person if you can use the Zoom service or if you dislike many Teams.