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Let's not put the cart before the horse!

The ability to effectively and efficiently digitize an organization’s value stream is unquestionably a source of future competitive advantage. Revisiting processes from an improvement or innovation perspective is a much more valuable tool than simple task automation. Still, this is not only about tools: focusing on optimizing the process rather shall come first, not the tool that will deliver it.

Operating models, skills, organizational structures and roles need to be redesigned to match the reinvented processes. Developing the required capability and establishing the required mind-set throughout the organization should be a top priority for top management.

It is time to go digital!

The impact of a digital transformation on your business is holistic, in that it impacts every aspect of your operation. The processes side of it is of course important, but it has to include also people and their culture, skills and work capacity...

Companies often focus too much on tools

In order to be successful and overcome typical barriers, companies need to ensure that lean principles are well integrated into their digital transformation efforts.

Companies must:

  1. Select the right building blocks based on their specific value creation potential. This requires a broad and profound knowledge of state-of-the-art technologies.

  2. Use lean principles to radically simplify the value stream

  3. Avoid digital shortcuts, as they typically fail or lead to disappointing or unsustainable results

  4. Start developing a lean digital capability, which will form the basis for a long-term and sustainable competitive advantage. This implies a cultural change in the organization and requires top-management attention.

Completing these 4 actions will allow companies to achieve radical shifts in performance levels by combining digital and lean.

The conclusion is simple

It is time to go digital – and this means that lean principles are more needed than ever before to help transformation efforts succeed.

Extract from our webinar "Processes & Digitization" - Apr. 2020

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