Tracing the contours of digital transformation, Part Three

In Part One of this series, I laid out what I see as one of the biggest challenges facing museums in the early 21st century; how to transform themselves into postdigital museums. In Part Two,  we looked at what the MIT/Deloitte report  discovered that digitally mature organizations have in common. Getting there, though, is another thing. What we need is a good roadmap that can help us get from here to there. We’ll look at a couple more reports in this post, and then get into the wicked problem of trying to synthesize.

Putting the pieces together

CC-BY 2.0 image by Flickr user Kevin Dooley

A recent McKinsey Digital Labs report called “Six building blocks for creating a high-performing digital enterprise” covers similar ground to the MIT/Deloitte report, and is focused on providing executives with a structure to frame digital transformation efforts.

“Since digital touches so many parts of an organization, any large digital program requires unprecedented coordination of people, processes, and technologies.”

They posit six major building blocks to becoming a high-performing digital enterprise:

Strategy and innovation
“The best digital strategies don’t rely on past analyses, but instead start fresh and carve out a vision based on where they believe value is likely to shift over the next three to five years.”

The customer decision journey
“With so much data available, companies can become much more precise in their outreach to customers. By combining deep data analysis and ethnographic research, digital leaders can identify high-value microsegments… Understanding how these customers make decisions… allows digital leaders to tailor their approaches.”

Process automation
“Digitizing processes has less to do with technology and more with how companies approach development… This is more than just automating an existing process. Becoming digital often requires reinventing the entire business process to cut out steps altogether or reduce the number of documents required.”

Organization
“Successful incumbents become agile by simplifying. They let structure follow strategy and align the organization around their customer objectives with a focus on fast, project-based structures owned by working groups comprising different sets of expertise, from research to marketing to finance.”

Technology
“[T]oday’s fluid marketplace requires technology that can drive innovation, automation, and personalization much more quickly. So, the best are moving to a two-speed IT model that enables rapid development of customer-facing programs while evolving core systems designed for stability and high-quality data management more slowly.”

Data and analytics
“Companies that make extensive use of customer analytics see a 126 percent profit improvement over competitors. [They] are adept at deciding which data to use…, focusing the analytics on delivering on goals with clear and useful insights, and having the right capabilities and processes in place act on them. That requires people with the right kinds of skills—particularly “translators” who can articulate business goals and use cases with respect to analytics requirements and turn data output into business insights.”

Notice that “technology” is near the bottom of the list.

Getting there (more) quickly

“Speed lights 2” CC-BY 2.0 image by Flickr user jones hanopol

The second recent McKinsey Digital Labs report is titled “Finding the speed to innovate” and provides some good advice on getting from here to there. Though aimed specifically at software companies, many of the lessons apply to museums, especially as they become more and more digitally influenced. Like the MIT/Deloitte report, the McKinsey authors agree that digital transformation is not about technology. As they see it, digital transformation is “a change program requiring an updated culture”.

Their key advices to companies are:

  1. Be clear about the change, and set high aspirations.
  2. Create incentives that are aligned with business outcomes.
  3. Create a ‘single team’ mind-set.
  4. Build a continuous-improvement and data-driven culture.
  5. Build the right capabilities.

Sure, all of those are pretty self-evident, standard “don’t do dumb things” consultant speak. What resonated for me in the report was the stages they identified that organizations go through on their way to becoming digitally transformed.

“In our experience, the companies that are implementing these… approaches most successfully have… adopted a more deliberate approach… —simplify, scale, and sustain—as well as the cultural changes required to reap the most value from these lean approaches.”

Stage 1: Simplify

“Companies need to create a “single source of truth” for all software: one repository for storing, versioning, and tracking all source code. The mainline version of code can then be accessed quickly and reliably.”

Ah, the “single source of truth”! Here we are back at the idea in my Museum Full Stack post; the notion that digital repositories need to be central to the core operation of the business, or in museums’ case, not just a repository accessible only to highly-trained specialists.

Stage 2: Scale

“It can be a long and expensive task to scale up and build out fully automated IT systems that have a mix of modern and legacy technologies. Focusing on the highest-value automation opportunities is the most productive way forward.”

Getting past the one-off model of innovation (“Let’s make an app!” “VR!”) and looking at innovating at scale the way the Brooklyn Museum, Cooper Hewitt, and others have been doing requires a ton of support of all stripes; financial, administrative, spiritual. 

Stage 3: Sustain

“While companies can often gear up to change their software-development processes in one big burst, this all-hands-on-deck approach is rarely sustainable—hence the appeal of continuous delivery. However, the pursuit of continuous delivery needs to be easy for staffers to follow and ingrained in the culture to maintain its value.”

This may be the biggest pain point for museums of the three stages. The notion of continuous delivery (lots of small releases all the time, instead of “all hands on deck” make something ginormous once in a while, model) is what my startup guy, Scrumaster brother would call an “anti pattern”. Creating a sustainable business model that encourages a postdigital workflow will be no mean feat, but I’m confident can be done. 

What I glean from these three reports is that A) There’s a lot of overlap, which gives me confidence that what they’re reporting actually exists and isn’t just consultant-ese, and B) The culture shift needed for a museum to become postdigital will not be easy or trivial.

And then…?

Aurora bridge CC-BY-NC-ND 2.0 image by Flickr user Ryan Healy

Getting from the comfortable here-and-now to the as-yet-unknown is scary, no doubt. It’ll be all too easy to go wrong, make costly mistakes, or not get all the way there.  In my experience, the vast majority of museums, even those that are at the forefront of doing things differently and experimenting with digital technologies still do so from a position of protecting and privileging the status quo, and fencing off “digital” as a way of managing the turmoil it can cause, and frankly, as a way of kicking the can down the road a little further. This is a classic example of wanting to delay having your pain, and I fear that it will have consequences down the road for museums that do so.

So now that we have lots of ideas of what the end state and phasing might look like, next we’ll take a look at what a digital transformation plan might look like.

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