Understanding the how of digital transformation: part 2 – execution and implementation

This is part two of our four-part series about how digital transformation works. See the previous blog in the series here.

The successful execution and implementation of a digital transformation plan depends on robust strategies, Agile methodologies, and consistent stakeholder engagement.

This phase translates planning into action, driving the shift toward digital maturity. 

Implement Agile methodologies (and solutions) 

Agile methodologies are at the heart of transformative execution, providing a framework that emphasizes adaptability, collaboration, and iterative development.  

The key steps to implementing (digital solutions through) Agile processes include: 

• Agile framework adoption: Choose an Agile framework, such as Scrum or Kanban, that fits the organizational culture and project requirements. This allows teams to work in iterative cycles or sprints, fostering rapid development and frequent reassessment of project priorities. 

• Iterative development and testing: Break down projects into manageable tasks, aiming for incremental improvements. Focus on developing Minimum Viable Products (MVPs) to gather early feedback, allowing iterative refinement and reduced risk of project derailment. 

• Cross-functional teams: Assemble cross-functional teams that bring together diverse skill sets, including developers, designers, business strategists, and end-users. This diversity enables quicker problem-solving and encourages holistic thinking about project goals and execution challenges. (More on this further below!) 

• Continuous improvement: Post-sprint reviews and retrospectives are crucial to identify lessons learned and areas for improvement. This continuous feedback loop maintains momentum and enhances solution quality over time. 

Implement digital solutions 

As this is such an important part of digital transformation, this section could go on for several chapters and is therefore, slightly meatier. But here we want to focus on the most relevant parts for the now (2025) and give some concise tips as well. 

Artificial intelligence (AI) is evolving from a niche tool to a fundamental enterprise capability.

By 2025, organizations are expected to systematically integrate AI across multiple departments, shifting from isolated experiments to embedding it into broader business processes.  

AI is enhancing predictive analytics by forecasting trends and customer behaviors, boosting operational efficiency by streamlining workflows and automating tasks, and aiding decision-making with real-time insights for strategic planning.

As AI adoption increases, companies need to invest in workforce upskilling and develop ethical frameworks to address AI’s broader implications. 

Furthermore, low-code and no-code platforms are becoming foundational to digital transformation initiatives, allowing organizations to strike a balance between standardization and customization.

These tools enable users to design tailored workflows without needing advanced programming skills. 

Low-code/no-code platforms tackle two significant challenges: 

1. Balancing standardization with flexibility: These platforms enable companies to adopt pre-set best practices while adapting workflows to match unique business requirements. 

2. Less dependence on developers: They empower business users to manage customizations, thereby easing the workload on IT teams. 

That said, buyer beware. Low-code/no-code platforms can vary greatly in functionality. Some might only support superficial changes, like altering button colors, rather than allowing extensive workflow modifications. When considering these platforms, it’s crucial for companies to carefully evaluate their capabilities to ensure they meet specific requirements. See Calibo’s checklist to evaluate such platforms here. 

To ensure the success of a digital transformation, it’s crucial to establish effective governance and control measures.

Your organization should take responsibility for these, rather than relying on external partners. While these partners can support the process, the final accountability is yours. 

Project governance involves the comprehensive management of various workstreams—technology, people, processes, strategy, data, and architecture—to ensure they align with organizational goals.

This prevents workstreams from becoming isolated and promotes cohesion. Structures such as steering committees and project management offices provide essential oversight and accountability. 

While third-party consultants can offer frameworks for governance, your organization must lead the execution. Governance structures need to be adaptable to changes but remain focused on the project’s core objectives.  

The Calibo platform has effective governance and control measures, such as enforceable technology and workflow policy-related guardrails, to support this.

The platform has seven certifications and is also GxP compliant.  

A few tips to better implement new digital solutions:  

• Gradual change: Focus on gradual changes that align with your business’ readiness, risk tolerance, and culture. For example, when transitioning to a cloud-based ERP system, consider implementing one use case or module at a time. This pacing allows your organization to adapt more smoothly. Stay informed on new technologies but prioritize those that align with your specific needs and long-term goals.  

• Additionally, a phased approach allows for iterative learning. Each stage offers the chance to evaluate successes and identify areas for improvement, fostering momentum and confidence for lasting success. 

• Low-code/no-code platforms: Understand their capabilities to determine whether they align with your business needs.  

• Establish architecture and integration plans: Define how the new system will integrate with existing ones and determine the overall IT architecture. Consider end-to-end innovation orchestration platforms like Calibo’s that simplify integration complexity. 

• Strategic AI adoption: Focus on use cases that deliver measurable value and integrate AI into broader enterprise processes. 

• Implement strong governance and controls: Robust controls allow for progress monitoring, risk management, and efficient resource use. 

Action steps: 

• Develop a step-by-step strategy that specifies the method, the technologies to be implemented, and the roadmap for execution.  

• Assess existing digital capabilities to pinpoint areas of improvement or gaps. 

• Establish ideal digital processes and applications that align with the organization’s goals. 

• Scan the enterprise to determine whether there are any existing solution(s) which resembles the use case(s) being considered for implementation. Consider whether those solutions could be reused as is or adopted as a foundation for the new implementation to accelerate delivery. 

• Design a phased implementation roadmap outlining distinct milestones and deliverables for each stage. 

• Create a comprehensive plan for the implementation of digital processes and applications to ensure seamless execution.   

• Outline the scope, timelines, and resource needs for each initiative to provide clear direction and structure.   

• Formulate risk management strategies to tackle potential obstacles and challenges that may arise.   

• Set up a governance framework to monitor and guide the implementation process effectively.   

• Track the progress by utilizing the specified key performance indicators, and modify strategies as necessary to stay on course.   

• Hold regular team meetings to assess progress, discuss findings, and address any issues that may emerge.   

Ensure stakeholder engagement and collaboration 

The human aspect of digital transformation is often the toughest challenge. Often, companies underestimate change management, mistakenly believing people will easily adapt to new technologies.  

In reality, change is personal and often met with resistance. Therefore, engage stakeholders at all levels in the planning phase. Their insights can identify challenges and ensure alignment with priorities. For instance, frontline employees can highlight operational realities, while leadership can clarify strategic goals.  

A thoughtful plan avoids the pitfalls of cutting corners, ensuring resource constraints or delays don’t derail efforts. Realistic planning also builds trust and buy-in from stakeholders, increasing support for the project.  

Here are some tips for effective change management:  

• Map stakeholders and their involvement: Identify all relevant stakeholders (see below), ranging from top management and IT specialists to frontline employees. Engaging this broad base early helps in aligning the transformation with the organizational vision. Assess their readiness to identify resistance and required support. Then, align executives, managers, and teams for cohesive progress. 

• Establish cross-functional teams: Successful companies create cross-functional teams for digital transformation projects. So, who should you involve?  

• The CIO guides and communicates digital strategies and goals. 

• The application team oversees enterprise applications and manages new technology adoption. 

• The data team offers business insights and aligns decision-making through analytics. 

• Enterprise architects provide innovative IT tools and support business technology alignment. 

• Infrastructure and operations teams plan changes and deliver integrated services. 

• Procurement teams manage vendor selection and relationships for digital initiatives. 

• Technical teams integrate new technologies to enhance business processes. 

• Subject matter experts provide business analysis expertise and work with technical professionals and architects to ensure the business effectiveness of the digital solutions being implemented. 

• Communicate effectively: Establish a clear vision to guide and motivate the organization, as well as clear communication channels and regular update forums. Clearly identify transformation objectives and their alignment with organizational goals, along with desired outcomes and a roadmap for achieving them. Open dialogue ensures transparency, addresses misconceptions, and helps in managing expectations and resistance effectively. 

• Collaboration platforms: Utilize digital collaboration tools to enhance engagement and ensure that every stakeholder has access to relevant project information. Tools like Slack, Microsoft Teams, or Jira facilitate smooth project discussions and problem resolution. 

• Change champions: Identify change champions within teams to advocate the transformation vision and foster a culture of innovation. They play a crucial role as liaisons between different levels of the organization, boosting morale and acceptance of new digital practices. 

Action steps: 

• Create a diverse team with representatives from various departments to lead the transformation process. Select team members who possess a range of skills across areas such as IT, business, operations, and human resources, along with a strong digital orientation.  

• Allocate specific roles and responsibilities to each team member to ensure clarity and accountability. 

• Schedule consistent team meetings to share progress updates and address any challenges or obstacles encountered. 

• Recognize the stakeholders who will be affected by the digital transformation and create a strategy for their active involvement. 

• Chart stakeholders according to their level of influence and interest in the project.   

• Craft customized communication plans for each group of stakeholders to ensure effective engagement.   

• Plan frequent update meetings and feedback sessions with principal stakeholders to keep them informed and involved.   

EXAMPLE:  

• A logistics company aims to implement a new fleet management system to enhance operational efficiency and reduce costs. By leveraging Agile project management, the company prioritizes tasks and sets short-term achievable goals.  

• The project begins by forming cross-departmental teams, including IT staff, dispatchers, and drivers, to ensure the system meets diverse operational needs. 

• Through iterative sprints, the team develops a cloud-based platform for real-time fleet tracking, allowing robust route optimization. Regular feedback sessions with stakeholders result in continuous adjustments, fine-tuning the solution to accommodate changing requirements and improve user experience. 

• Leaders actively engage stakeholders through collaboration platforms, and change champions are identified to advocate for the system, offering training sessions and support to ease the transition. 

• The iterative approach leads to early releases of MVPs, allowing drivers and dispatchers to test functionalities and provide feedback on enhancements. This results in a more adaptive rollout that aligns well with operational workflows and user expectations. 

Conclusion 

Executing and implementing digital transformation initiatives demands a strategic combination of Agile practices, relentless stakeholder engagement, and collaborative toolsets.

By embracing these elements, organizations can effectively minimize risks, adapt swiftly to change, and realize transformative benefits sooner rather than later.  

The digital business methodology, with its focus on incremental and scalable improvements, provides a comprehensive roadmap for such execution, ensuring robust and sustained success in the transformation journey.