At the DevOn Summit on 14 April, Martin Vodegel and I spoke about Digital Transformation. What it is, what it consists of, but also what it’s not. Spoiler alert: a Digital Transformation is NOT the same as an Agile plus DevOps transformation. But the benefits of an Agile Transformation can definitely enable the digital capabilities, on a people, process and technology level.
The Digital Transformation Roadmap
First our view on the Digital Transformation and its roadmap—a recap. Digital disrupters are fast and scale easily, using technologies like Big data and analytics, IoT, Connected devices, AI, et cetera. Digital disruptors that use new technology deliver three types of customer value: cost value, experience value or platform value. Delivering a combination of these three types of value can also create massive disruption in the market.*
The way an organization delivers value impacts its business model. A business model typically doesn’t change overnight, but it can be used to depict strategic organizational change. The business model describes the rationale of how an organization creates, delivers and captures value.
Digital masters are able to disrupt or adequately respond to disruptors in the market. Because they realize they need to develop their business models accordingly. Therefore they shape a roadmap that will enable them to carve out new business models, achieved by deploying a combination of capabilities on each step of this roadmap.
Roadmap capabilities on a strategic course.
Capabilities that are leveraged to change the business model are typically defined and elaborated on a more tactical level. That’s also the level where you can see the impact and benefits of the Agile and DevOps transformations.
Agile and DevOps as enablers for Digital
The benefits of an Agile Transformation can definitely enable the digital capabilities, on a people, process and technology level. From a process point of view governance is improved regarding Business – IT alignment. Also, there’s more focus on value steering based on an integrated Business and IT backlog. From the People point of view we’re talking about a new organizational structure, a culture of continuous improvement and continuous learning, and connecting the people (more) to the voice of the customer. Regarding technology, there’s the increase of the speed and frequency of delivery (CD). But you also see the results of investments in an improved technical infrastructure.
Your Agile and DevOps transformation have in any case this in common with the Digital Transformation: they do not build capabilities in isolation. When establishing the next steps on your Digital journey, you can build on your Agile and DevOps capabilities. For instance by improving your innovation capabilities, customer experience and business processes. Or any combination that’s most beneficial to your organization at this point. Which combination do you choose?
Want to learn more about Digital Transformations in general? Now’s the opportunity to join our training.
If you like to discuss the Digital Transformation with peers and our consultants, we’re happy to invite you to one of our Digital Transformation Awareness sessions.
*Source: Digital Vortex—Loucks, Macaulay, Noronha and Wade.