Instead of putting their digital transformation plans on hold during the pandemic, CIOs could strategies to control costs.
The COVID-19 pandemic has accelerated digital transformation agendas for organizations at large. It has been the catalyst that has led companies to automate, strengthen security, and move to digital technologies- AI, cloud, IoT and such. However, there are several examples where organizations have failed in their digital transformation efforts and have ended up with increased costs, with no real ROI.
Here are four ways CIOs can keep a tab on costs to focus on their digital transformation efforts.
Focus on transform journeys instead of processes
Many companies conduct multiple innovative workshops with various departments and start automating their processes. However, since most of the processes are interdependent, they rarely work in silos, so while this can get the job done, the quality of work turns out to be substandard. It is important for organizations to digitally transform the entire journey of
operations, rather than each individual process, to be in a position to leverage the benefits of end to end digital transformation. It is clearly not a piecemeal process, so cannot be handled with siloed strategies.
Understanding POCs is crucial
Each company is different not only in terms of the nature of business but also in the way they evolve and function. Organizations typically get popular vendors to execute transformation projects and scale them further, but it happens quite often that a major part of such initiatives fail. Having a PoC often is the best foundation for successful implementation and partnership with the vendor, as a base for future scalability and growth.
Horizontal and Vertical scaling
For most enterprises, horizontal scaling has always been the easiest way to scale. They start with smaller server and continue adding more as per the required scale. The majority of cloud service providers offer the capability to auto-scale depending on a range of metrics which is quite helpful. But even though vertical scaling is more challenging and most companies lose money in this process, it does qualify for market success since it indicates competencies to grow in terms of processes and technology innovation.
Frugality is necessary
Lastly, it is important for organizations to build frugality into their culture. It is not about cutting corners, but the ability to optimize every resource and thinking twice before investing into anything new. Organizations globally are facing challenging times because of the current crisis.
Hence, controlling costs in all possible areas is necessary. While digital transformation is not a choice anymore, smart CIOs will move towards the successful journey while planning with the best possible resources optimized strategies for this change!