Article Type: Data Science, Innovation
Published: August 21, 2023
Reading Time: 4 minutes
This article examines the critical factors that determine digital transformation success, analyzing insights from a Harvard Business Review case study. Despite advances in data collection capabilities, 70% of digital transformations fail. Understanding the cultural and organizational elements that drive success is essential for companies undertaking digital transformation initiatives.
Despite how far data collection has come, 70% of digital transformations fail according to BCG research.
The Harvard Business Review article "What Does It Actually Take to Build a Data-Driven Culture?" by Mai B. AlOwaish and Thomas C. Redman presents key takeaways from a case study on digital transformation.
If Peter Drucker is right that culture eats strategy for breakfast, then there are important lessons in this case study that can help organizations understand what a culture capable of transformation looks like.
The CEO in the case study suggested the transformation focus on data quality before anything else. In the words of the author, "Nothing is more basic than quality. Bad data is the norm."
Data scientists commonly acknowledge that 50-80% of their time is spent on data wrangling and data cleansing. This reality exists because bad data is pervasive across organizations.
Bad data and bad data architecture create multiple negative consequences:
Kognitiv invests equally in new product development and critical foundation layers, including:
Clean and well-organized data is the most important raw material for engaging customers and prospects with one-to-one experiences that drive business growth.
The transformation in the case study started when new blood in the form of a Chief Data & Innovation Officer was brought into the company. Without new talent bringing in new ideas and setting new expectations, organizations struggle to grow and change as quickly as needed.
The case highlights the central role played by the company's people and culture team to make data-led initiatives interesting, rewarding and fun through:
This approach fosters buy-in, collaboration and encouragement company-wide.
Kognitiv's journey has mirrored this approach by:
The case study describes how the authors created an ambassador program to evangelize data-led initiatives, then developed a "Data 101 Program" to help everyone in the company understand:
This expanded awareness created an environment for collaboration and innovation that propelled the business forward.
After restructuring leadership and bringing in new talent in key roles, Kognitiv:
One piece missing in the case study is commentary on how to establish a rhythm of innovation. Whether a company is catching up or innovating at the forefront, velocity is key.
Whether implementing process improvements or software releases, teams must establish how they:
This rhythm dictates transformation success and contribution to a company's bottom line.
Without establishing a regular rhythm of innovation, even companies that successfully transform might find themselves falling behind again.
Kognitiv provides AI/ML-powered solutions for customer loyalty and engagement, including:
Email: [email protected]
LinkedIn: Kognitiv Corporation