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In the rapidly evolving landscape of digital transformation, the struggle to meet targets is evident, with 81% of board directors feeling their companies fall short. CEOs, constituting two-thirds of the leadership, express a desire for increased technology integration within business units—an essence of democratization. Familiarity with the term ‘democratization of technology’ is crucial, as it emerges as a pivotal topic in the coming years.
Democratization of digital delivery dismantles barriers, empowering various business functions to create technology. The emphasis is on production, from the simplest tasks to the most intricate solutions. This approach yields significant advantages, with CIOs performing 50% better, and C-suite members doubling their chances of optimal returns on digital investments.
While democratization is already underway, challenges persist. Notably, 80% of C-suite peers acknowledge digital leadership as their responsibility but grapple with effective execution. Some companies face pitfalls due to a lack of intentional democratization efforts.
A cautionary tale involves a leading EMEA company with 10,000 employees. Initially fostering 1,000 business technologists, chaos ensued within months, leading to a reduction to 200. The lesson here is clear: democratization must be intentional and designed strategically. So, how can organizations succeed in democratizing digital delivery?
Establish Clear Organizing Units:
Business Technologists: Individuals in finance, marketing, supply chain, and HR capable of producing technology.
Fusion Teams: Multidisciplinary groups comprising IT and business personnel co-responsible for technology production.
Manage Interdependencies:
Identify potential chaos by creating a clear structure for interdependencies.
Appoint individuals to oversee interdependencies within product categories, ensuring consistency and avoiding duplications.
Mitigate Risks at the Edges:
Utilize a color-coding mechanism to assess risks and allocate responsibilities accordingly.
Leverage IT expertise in high-risk scenarios to ensure a balanced approach.
Leverage Communities of Practice:
Establish groups focused on specific technologies, such as low-code programming, to facilitate knowledge sharing.
Engage Gen Z employees in these communities to enhance digital skills across the organization.
Embed Controls in Platforms:
Automate cybersecurity, data privacy, and compliance controls within business platforms.
Ensure seamless integration to minimize potential issues arising from decentralized technology production.
Focus on Digital Skills:
Prioritize improving digital skills over creating a digital mindset.
Correlate proficiency in using digital technologies with the development of a digital mindset.
Align with Business Outcomes:
Connect democratization efforts with specific business outcomes to gain support from C-suite members.
Develop metrics for success at various levels, ensuring alignment with organizational goals.
Decide New Capabilities:
Collaborate with the C-suite to decide which capabilities each business function should contribute.
Establish decision rights for content creation, funding, and other critical aspects.
Use Communities of Practice for Scaling:
Scale governance rules and best practices through communities of practice.
Leverage shared experiences to establish and reinforce democratization norms.
Create an Infinite Loop for Continuous Improvement:
Maintain an infinite loop to revisit and enhance elements based on evolving needs.
Democratization becomes a habit, enabling organizations to skip certain stages as success becomes evident.
By following this comprehensive blueprint, organizations can strategically and successfully democratize digital delivery, reaping the full benefits of technology production across diverse business functions. The key lies in intentional design, continuous improvement, and a collaborative approach to digital transformation.