Digital transformation for chiefs and owners. Volume 2. Systems thinking. Dzhimsher Chelidze

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      – Evaluate a company: what industry and its potential, what product, what technology lies at the core, and how often will have to implement projects, what markets.

      – Assess available technologies and resources, including digital ones.

      – Choose a structure and describe for each unit and position 4—6 key functions, target product, required competencies (professional, personal) and, where possible, available resources.

      – Describe the main business processes, starting with the VAD-approach. Here you need to see the main stages of product creation, understand which of the participants in the process creates value and what.

      – Assess: Do all these people and units create value? Where are the losses? What can be abandoned with digital technology or outsourced? If you only build a company, it will provide minimal costs, and if you transform, you will release resources to priorities.

      Another recommendation: When goals are achieved or after the introduction and mastery of new technologies, revise your organization. structure. Or make it a rule every 6 to 12 months.

      With regard to business processes, I can make the following recommendations:

      – initially make a VAD-scheme throughout the company;

      – prepare a process registry (first, second and third level processes, process owner, process participants);

      – then take advantage of product management and system restriction theory to select priority business processes;

      – it is also important to describe those business processes that are stable and are the best practice for others. Or, conversely, useful description of problematic business processes;

      – does not need to describe every business process, only those tasks that are either standard or carry risks for business;

      – begin to describe processes with approaches that you understand and who will use them;

      – describe business processes so that they fit on one sheet A4 if you want to start the process, and in the notation BPMN if you want to analyse and optimize the process. Additionally, only after optimization do IDEF to deal with automation;

      – describe the processes and prepare instructions or memos as if all the employees will leave tomorrow, and the replacement will come fools or 8-year-old children.

      At the beginning of the book, I said that digital transformation should be your strategic goal, and therefore, this role should have a place in the organizational structure. Simply put, someone has to be responsible.

      In general, I believe it is necessary to proceed from:

      – your scale and availability of resources;

      – the current level of digitalization and readiness;

      – the limitations of the system (which will be discussed in the next chapter), global goals (to overcome the crisis, to ensure growth conditions, active growth) and objectives (to restore order, create new products, improve product supply).

      There are many variations, and therefore, and possible structures. That is, to begin with, you need to pass a diagnosis. It is as with health: before treatment, it is better to undergo an examination and make a diagnosis, from which there will be a plan of treatment or recovery. But given that digitalization and digital transformation are strategic tasks, and the price of error may be too high, it should always be its driver.

      If you are an entrepreneur or owner of a small business, it is better to find an experienced mentor who will help you to manage this direction, giving to outsource only some tasks on automation and software implementation. You can also find a team from the outside that deals with digitalization and turn-key digital transformation, with all the skills and necessary experience. The second option suits medium-sized businesses. But in any case, you have to understand automation, digitalization and digital transformation at least on a basic level.

      If your business has grown from small to medium, in connection with which there are signs of chaos and lack of work with data, then you need to restore order and eliminate losses (in the chapter on thrifty production talk about this concept), remove internal restrictions, CDO 1.0 and 2.0 in data management. To do this, it is better to give the role of the leader of digitization to the operating director.

      If the problem is a weak food supply, then this function should be given to the commercial director. In this case, it should be remembered that in any case to oversee this task as strategically important will be the director and/or the owner.

      In any case, it is necessary to organize comprehensive training for a commercial or operational director. If digitalization is the responsibility of the Business Director, it will be commercially calibrated and aimed at increasing sales, which means that it will generate additional resources rather than processes and introduce a conditional electronic workflow just because it is necessary (by the way, the EDO can really bring huge benefits and eliminate just internal chaos and costs).

      Well, if you’re a top corporate manager with resources, it’s best to have a separate division led by a CDTO (Digital Transformation Manager), which will build the methodology of the system approach and act as a centre of expertise in digital technology, processes, project management, product development. The team should necessarily include: a process specialist / business analyst (better couple), a data specialist, system analyst/architect, an IS specialist (to this we will dedicate the next book), a portfolio manager (if you train the staff, one is enough, if not, the project manager to each unit). If you put them in different units, these people will have to build horizontal links and matrix interactions. And this is longer and suitable only for mature companies, with respect in communications. If the company is less mature, it will result in an increase in the time. A weak system requires centralized control.

      Key, I strongly advise against giving the digitalization and digital transformation function to the Director of Information Technology. After all, a rather limited number of IT directors can engage in process re-engineering (which is the core of transformation), approaches to project implementation, product development, has a customer focus, including to the employees of their company. For them, such concepts as UX|UI design of solutions and processes are distant.

      It is necessary to pay attention to the IT departments themselves – to describe their structure and processes. Otherwise, with the increase in the number of IT tools, they will stop coping. You will either have to inflate their numbers, and they will become less organized (people will not understand who is doing what, there will be no training and commissioning processes). And/or everything will work randomly, especially technical support. And this is a direct way to discredit digitalization.

      As a result, the main advantage of working with business processes and organizational structure – the opportunity to abandon expensive professionals, including IT developers. You will be able to focus on the selection of analysts (business and system) and trainees, who will grow under your company, and who will be 2—3 times cheaper than experienced experts. At the same time, it will be easier to manage them. At the same time, it will be easier to manage them, and the return from IT is higher, the cost is lower. You will also be able to build your work with data: what data is generated by the company, what is needed, who and why, and work with data is key in all digitization and digital transformation.

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