Why Leveraging Technology Partners is Essential in Building Successful Digital Ecosystems
Eric Cheung, Group Transformation Director, Tricor Group
Eric Cheung, Group Transformation Director, Tricor Group
Businesses are under pressure. It may feel like the fast-forward button has been pushed, and they have limited time to complete their digital transformation efforts. And it’s not just the pandemic that is forcing the issue; companies are also increasingly aware that the adoption of technology is more than just a way to reduce costs. It’s now a vital aspect of their entire organization. There is, however, a solution – find the right technology partners.
The Key Digital Transformation Barrier – A Lack of CapabilitiesResearch has identified a major cause behind unsuccessful digital transformations as a lack of capabilities. Companies find themselves unable to bridge the gap between relatively straightforward small-scale projects and introducing bigger changes across the organization.
Take a sportswear brand, for example, that wanted to give customers the option of personalized athletic shoes with a quick turnaround time. When it ramped up its operations, the firm discovered that the new technologies required could not sync with existing processes, and the company had to eventually close the facility.
A proven solution was offered – look outside to close the gapsThe Benefits of Using Partnerships to Drive Innovation Successful digital transformations are all about scale. Technology is always evolving, so staying ahead of the game is difficult even for companies which specialize in these technologies, it’s even harder for those in entirely unrelated fields. Achieving scale requires speed, something many of the largest tech companies today have realized. Trying to achieve digital transformations alone without the benefit of specialist technology partners – the “lone wolf” mentality – is a slow and inefficient strategy.
If firms can’t keep up the pace on their own, it’s time to call on outside help. By using the skills of technology partners, companies are offered three benefits:
• Specific expertise • Improved time to market • Agility(since these partners can be classed as a variable, rather than a fixed cost) Technology partners can be an integral part of a company’s “digital ecosystem” – an interconnected group of resources (both internal and external) that are all working toward shared objectives. They can also make all the difference between a successful digital transformation effort and one that fails. Choosing the right one is crucial. Here are four guidelines that companies can use for the selection process.
At the top of the list sits the specific capabilities of the prospective technology partner. Do they have a proven track record of successfully delivering digital transformation projects? While this will have to be assessed on a case-by-case basis, it is worth keeping in mind a dangerous myth: every tech vendor is automatically an expert in digital transformation. They’re not. A vendor may have helped other clients create new digital experiences, but it does not automatically make them an expert in digital business transformation. Companies should hold back from selecting the first supplier and do their research. It’s beneficial to look for real-world case studies that are relevant to a firm’s specific needs.
Analyzing CompatibilityA technology partner may be capable, but will their solution be compatible with a company’s existing systems? Organizations should look at factors such as integration standards and request a “roadmap” for how the partner plans to harmonize its solution with their own architecture. This will provide more clarity and save a lot of effort down the line.
Evaluating ProcessesAfter capabilities and compatibility comes process. Digital transformation is not a “plug and play” operation. It is often an ongoing process, where every stage of development will likely provide new feedback that will be used to remove any roadblocks.
Companies must be aware of how the partner handles periods of uncertainty. Will they only stick to preestablished procedures, or are they flexible enough to go the extra mile – even if it lies outside their standard processes?
Conducting Upfront Due DiligenceWith the pressures of the pandemic forcing companies toward rapid digital transformation, businesses risk rushing through the due diligence process and selecting the first technology partner that comes along.
This is a mistake. Using the services of technology partners is a recipe for successful digital transformations. Selecting the appropriate partner is vital to the entire effort, and companies should not skimp on process. The opposite is the case – they should be even stricter.
Businesses should ensure that each member of the partnership brings equal value to the table. This is not to be confused with similar expertise. Each partner should have differing areas of specialisation that can combine to create synergy – one could have deep industry expertise, while another may possess a cutting-edge technology platform, and another a robust database for analytics. The goal here can be summarised in a common saying – the whole should be greater than the sum of its parts.
Realism RequiredDigital transformation is powerful, but there is a risk that businesses could see it as an idealistic vision of the future – especially with the term having reached “buzzword” status. Given the amount of operational effort required, companies must embrace realism first. Overestimating their internal capabilities and believing it would be quicker to do everything themselves would be an error that will only do themselves a disservice.
Our economy is built on the principle of comparative advantage, and the same should apply here. Engaging specialist technology partners – while keeping in mind the above guidelines – is the most efficient way forward toward a successful digital transformation.
