BY STEPHAN DAMHORST
Digitalization is the business driver for companies to safeguard their businesses. However, a great percent of the digitalization projects have or are failing after spending fortunes in activities targeting digitalization.
According to a survey done by FUJITSU, one in three organizations have cancelled their digital projects, while a quarter has suffered a cost of up to €555,000 (Sh65.3 million) in digital failed projects. On another hand, some organizations are experiencing great success and are already enjoying the benefits. What seems to be the problem? 74% of businesses also admit that they do not have a digital strategy overseeing their digital project.
A proven strategy, however, is essential for the success of business digitalization. In this article we will be discussing some of the proven methods in successful business digitalization; Technology Scouting and Design Thinking.
The benefits of technology scouting
One, the organization is able to identify its needs as a whole, as well as per department and find technology that addresses these needs.
An organization can also gain a competitive advantage by identifying gaps in the market that have not yet been tapped into and be the first to enter into that market by finding technology that closes these gaps.
An organization can be able to compete effectively by keeping up with the growing trends in digitalization.
And lastly, competent technology scouts will go to all lengths seeking suitable technology and be able to see new opportunities, contrary to going only for technology that has already been tested in the market.
The Process of Technology Scouting
The first step in technology scouting is for the scouting team to define why the organization is conducting the process. The team should sit down with the different stakeholders in the organization as well as department heads, to identify and agree on the objective that needs to be met. The team should be aligned along the same goals in order to avoid conflicting objectives. If an external scout team has been hired then the organization should select an internal team that is spearheading the process.
The second step is defining the technologies that will best suit the said objectives. This should not only be a general view but a clear layout of the specific functions that the technology should meet.
Elements to consider in the scouting process
The agility within the organization – The scout team evaluates the organization’s ability to integrate new technology, both as an organization and in the different departments. The team observes specific departments that can handle technical change at that particular time as well as their agility. This may be dependent on the projects that the departments are already involved in, as well as the characteristic of their personnel. In relation to the strengths and weaknesses of the organization, the scouts select the best-suited technology.
The technical requirements – These will largely depend on the time frame that the team is working with. The team defines the time-frame that the technology is going to be used around; is the technology intended to meet a short-term goal, is it for trying out new and future markets or is it intended to meet evolving product opportunities?
The third and probably the most challenging step is the process of finding the technology. The scout not only needs to find a technology but be able to recognize an opportunity that will be beneficial for the business. As stated earlier a scouting professional can be beneficial here. The team may scout for the technology through various channels like the Internet, earlier established connections through past deals or even from technology experts.
In the last step, the organization has already acquired the technology and is now in the process of closing the deal. The organization should be careful to select a team that is well conversant with the different fields that will be involved in the agreement. A team should also monitor the running of the technology once it has been acquired, for development and to avoid problems that could be encountered in the future.
Design Thinking
Design thinking, on the other hand, is the process by which one seeks to understand a consumer, question assumptions that have already been made and redefine seen and unseen problems so that different solutions are given.
The study of the method of design thinking began in the 1950s and 1960s by individuals from different professions, first, as a science and then into a way of thinking. It then evolved through the years and in the 1980s and 1990s, Stanford University started teaching it as a creative action method. Afterwards, design thinking was adapted for the purposes of business by David M Kelley, the founder of IDEO, the first design consultancy. It has since been introduced and redefined to fit into different industries.
Design thinking is beneficial in seeking out solutions for problems that have not yet been defined, as well as ones that may have been wrongly defined in businesses.
Consider Afriscout, a phone application that is used by pastoralists in Kenya, Ethiopia and Tanzania to seek out and access areas with pasture and water. The application contains maps that have been illustrated as they are defined by the communities. The data is also continually updated with the help of satellite. The project by PCI, a USA based, non-profit organization, included the testing and development of the technology’s prototypes for several years; this practice is similar to the design thinking process as discussed below.
Benefits of Design Thinking
It is focused on creating solutions for a business and not on the problem. For instance, as mentioned in the example above, technology was used to create a solution for a problem faced by pastoralists in search of pasture, thereby reducing the mortality rate of livestock.
Secondly, since it has an evolving and continuous nature, problems are redefined and fresh ideas made, enabling innovation and invention of new technology for businesses.
There are different levels of design thinking as taught in Stanford University. The different phases, however, do not have to be conducted in a particular order. They include:
- Empathy
In this step, the design team empathizes with the consumer. They learn about them and make a collection of the attempts that have been made to solve the same problem.
- Define
In this step, the needs, as well as the problems of the consumer are defined and redefined based on the information that was collected in the empathy phase.
- Ideate
This phase involves the generation of ideas that can serve the defined needs while questioning the present assumptions. In fact, design thinking does not give room for assumptions.
- Prototype
The prototype is generally a representation of the generated and redefined ideas. The ideas generated after testing (discussed below), can also be combined and the prototype improved.
- Testing
The solutions given for the problems are tested in this phase, in relation to the objectives that need to be met. The end user is then asked for feedback and if necessary, changes made in accordance with the feedback.
Technology scouting and design thinking are some of the proven methods available that can enable companies to digitalize their businesses successfully. These methods identify needs, organizational and market gaps, amidst encouraging innovation. In addition, both methods can be used together in business digitalization; first, by applying the design thinking method in understanding consumers and redefining problems and solutions; then scouting for technology that fits the solutions identified, which can then be developed and tested through the use of prototypes to meet its needs.
