How to Reduce the Complexities of Change In Digital Transformation

How to Reduce the Complexities of Change In Digital Transformation

Why do digital transformations experience more failure and face more peril than companies anticipate? Why do they take far longer than anticipated? With apologies to Einstein, I believe we can understand the answers to these questions by viewing them through the lens of “GUT” – (General Unified Theory) of digital transformation – and how many related factors intertwine to increase complexity and complicate change. I’ll explain those factors in this blog and discuss how to navigate them so your company can minimize the perils of change and end up with a beneficial economic model.

The GUT Components

Imagine GUT as a wheel with the spokes of the wheel identifying the major components that must change in digital transformation, as follows:

1. Purpose, Vision and Mind-set. Put another way, these elements represent what your company tries to do. The purpose is what you want to achieve. The vision and mind-set are how you try to achieve it.

2. Talent Model. This component comprises the people your organization requires to administer and drive what you’re trying to achieve.

3. Technology. The main feature in this component is the digital platform that enables the activities involved in delivering your purpose.

4. Economics Model. The economics are the cost of your operations. This component relates to what you charge for the service you offer, your market share or your cost-benefit analysis.

5. Controls. This component is the governance your company puts in place to control regulatory requirements affecting your activities. It would include, for instance, how you ensure your digital platform complies with the GDPR privacy issue and other processes around security issues. Metrics are an example of these controls.

Those “wheel spokes” are the components that exist in any operating model. The General Unified Theory (GUT) says all five components are interrelated. The interrelated nature causes enormous changes in the rest of the components.

This article originally appeared on forbes.com To read the full article, click here.

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