How to measure the success of digital transformation?
Digital transformation is a complex and inevitable journey for any organization seeking to stay relevant and competitive. To define the success of this process, it is crucial to establish clear indicators from the beginning, which allow to evaluate whether the implemented strategies generate the expected results. Peter Sundegard, research vice president at Gartner, suggests some key questions to define these indicators:
- How quickly is change being implemented within the organization?
- Have barriers between different departments been eliminated?
- How is the integration between digital and overall strategy?
- How is the process of hiring human talent?
- Do the people involved feel it as a continuously growing project?
- Are the company's culture and values consistent with what the team is doing?
Answering these questions will help organizations keep their finger on the pulse of their transformation and make adjustments when necessary.
How has BBVA Mexico experienced its digital transformation process?
The case of BBVA in Mexico is a telling example of how a large organization can carry out a successful digital transformation. According to Hugo Nájera, general director of business development, the greatest success was to embark on this path organically but ambitiously. The benefits obtained are palpable, improving the speed of development of new customer experiences and achieving significant economic gains.
What have been BBVA's successes and failures?
BBVA's successes have been highlighted by its flexible and adaptable approach; by allowing it to fail quickly and cheaply, they have been able to correct course efficiently. This has resulted in a more agile, customer-centric organization with a focus on experiences rather than specific products. This change is a demonstration of how organizational values can enhance technological change.
On the other hand, although they have had several missteps, the learning from these has been a cornerstone in their ability to correct mistakes quickly and not deviate from their initial purpose of creating opportunities for all.
What impact has it had on your results?
The impact has been tangible, with 80% of revenue growth directly attributed to digital sales over the past two years. This growth is exemplified by the 32-point increase in revenues, 26 of which are the result of digital transformation. Before, economic growth depended on increasing staff or launching new products; now, digital products are much more accessible, at the click of a cell phone.
What technologies and strategies do you use?
BBVA Mexico has incorporated a variety of technologies to advance its digital transformation. They use cloud processing, service architectures, open platforms, and new programming languages for applications. In addition, they are beginning to explore emerging technologies such as Blockchain.
What is their approach to consumers?
BBVA has adapted its strategy to consumers through a clear digital vision, using SEO, SEM and display techniques in social networks. They use machine learning to develop new business rules, enabling a more localized and timely product offering. This is the basis on which they build their artificial intelligence, which gives them a competitive advantage by predicting and satisfying their customers' needs.
What recommendations does Hugo Nájera offer managers?
Hugo Nájera emphasizes that the effects of technology on consumer behavior and the way products and services are offered should not be underestimated. He also warns that digital transformation has a profound impact on ways of working and organizational culture. Without proper planning in these areas, true transformation and its potential benefits may not materialize. Managers must be prepared to lead with a clear vision and strategic focus.
We encourage you to reflect on other cases of digital transformation in your environment and share your experiences and observations. Digital transformation is a global community of continuous learning, where every story and idea contributes to joint growth.
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