The Retailer Summer Edition 2022

THE RE TA I L ER

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DRIVING SUSTAINABLE AND LASTING CHANGE ON YOUR DIGITAL TRANSFORMATION JOURNEY

Hugh Nightingale Principal Consultant Change Management Group

D igital transformation is broadly defined as the integration of digital technologies in all areas of a business, from creating new paths to market, to delivering better cus tomer experiences and improving operational process efficiency. Most companies’ transfor mational efforts are largely underway; thanks in part to Covid-19 and the eCommerce accel eration effect. Leading digital transformation activities has become a retail leader’s top pri ority. In fact, it is expected that digitally trans formed organisations will be contributing more than half of the global GDP in 2023. Technology Adoption It’s unquestionable that new technologies play a crucial role in the digital transformation journey - I.T. spending reached $3.9 trillion in 2020 and is expected to grow to over $4.4 trillion by next year. In retail specifically, the use of digital solutions largely powered by data, artificial intelligence, augmented reality and cloud technologies are high on the agenda – from automated warehouse operations to data-driven inventory management, customer-centric store layouts, multichannel shopping experience and beyond. However, what many companies don’t realise soon enough is that digital transformation is less of a technology step change than it is a business transformational challenge.

Making fundamental changes to your business processes and culture is often a long and difficult journey, especiallywhen you are implementing a step change to your operating model. Which is why the key principles of change management must be applied to any retail digital transfor mation journey. These principles underpin a successful delivery of both the organisational and process changes required to really embed digital across your business. Here are our 4 pillars of success: 1. Leadership Digital transformation demands fundamental and often extensive change to many, if not all, aspects of the business. Leaders must be commit ted and aligned to the entire change journey - they are the ultimate advocates for change, providing confidence from the top down that the business is taking the right steps for the future. And it doesn’t end there. They must deliver on-going ‘hands on’ support through day-to day leadership. This will help guide the business through the toughest days of the transformation – and there will be many.

the same time.” ‘‘

Top tip – Ensure the leadership skillset at the top has the right balance between strategy and operations. You must con tinue to run the business and transform at

2. Preparation & Planning Companies worldwide cite a wide range of major challenges that affect success in their pursuit of digital transformation – from skills gaps and cultural difference, to lack of clarity on strategy and alignment. What is most important is to build the foundation for sustainable change. This means starting your planning early and this time and effort will not be wasted. Careful preparation allows for a comprehensive change man agement strategy, impact assessment and for detailed plans to be put in place, increasing the chances of your transformation being successful. Your transformation journey must have direction, in that it must be aligned with the business strategy. This direction must be visible in the planning stages. The focus of change management in the planning phase is to identify what change should be delivered, why, when and to whom. A good well prepared change management strategy includes cultural transformation - changing mind sets is as important as adopting new processes.

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Technology can be implemented and offline processes moved to the cloud, but for digital capabilities to be successfully embedded across an entire business, lead ership must also accommodate the need for a cultural shift to more agile and more intelligent ways of doing business.”