The Role of CEOs in the Successful Digital Transformation

Digital transformation has become a core component of enterprise success in the modern era

Nowadays, almost everyone is familiar with the term 'digital transformation'. However, digital transformation is not simply about putting up some computers with internet connections. It is actually so much more than that. Digital transformation is the process of using digital technologies to create new and modify business processes, culture, and customer experiences to meet changing business and market requirements. This reimagining of business in the digital age is digital transformation. It transcends traditional roles like sales, marketing, and customer service. Instead, digital transformation begins and ends with how you think about, and engage with, customers. As companies move from paper to spreadsheets to smart applications for managing their business, they have the chance to reimagine how they would do business. 

The Role of CEO

Digital transformation can result in a completely different company and for this reason, it is imperative that the CEO becomes the driving force behind it. Team leads and the CIO will be able to make decisions for their departments, but strong guidance from the top is needed to help the process along, get buy-in from all stakeholders, and allocate the correct funding and resources. For the implementation of a successful digital transformation strategy, the CEO will also need to define the roles and responsibilities of those people in leadership positions. If this is not articulated clearly, it could lead to several issues, including execution gaps and infighting, which will weaken the overall program.

Appointing Suitable Experts for the Transformation

The CEO needs to become the company champion for digital transformation. Publicly displaying buy-in will not only encourage people working within the organization to get on board, but it will also show all external stakeholders that the CEO, and therefore the whole company, is truly committed to transforming the company to fit modern times. By giving full support to the journey, CEOs will embed themselves in the knowledge of how the business strategy will change and what tweaks or major modifications need to be made to the company business model. They will then be able to communicate clearly to employees and be able to answer questions. 

Putting up Funds

It will cost money and time to digitally transform any company – big or small – effectively, and teams will need to have access to funding and resources they normally do not. The role of the CEO here is to free up investment and allocate accordingly. When assigning roles and responsibilities to business leaders, the CEO will also need to talk about realistic financial models to prevent leaders from becoming detractors if they lose funding for their initiatives. Clear priorities should be set early in the digital transformation program by the CEO so that all business leaders and employees are aligned on what needs to happen first. The CEO will also need to free up people from different departments to leave their current jobs and dedicate all their time to the digital transformation program. This will probably entail removing top performers who are important to achieving short-term business objectives. The CEO will have to articulate why these people are better suited elsewhere to help the company accomplish long-term goals.

Troubleshooting the Challenges

Digital transformation programs essentially change management programs, and as such, come with the same obstacles – many people resist change, and others want to change things too quickly. The CEO will need to step in and make sure that the chosen transformation leadership team is regularly meeting with all members at every level of the company to openly discuss how the program is going and give employees the opportunity to raise any problems or complaints. It is important for the CEO to be seen to be a part of some of these discussions and to be a part of the team that helps to resolve these issues.

Establishing a Proper ERP

An enterprise resource planning (ERP) system, often regarded as something that just runs in the background, is a fantastic business management tool for a CEO to have a birds-eye view of what is going on in the company and to identify the gaps in the business where exponential value can be added. By implementing a future-fit ERP solution, organizations can easily incorporate new, emerging technologies such as machine learning, artificial intelligence (AI), and Digital Citizens, into their operations. This will not only make the digitalization process easier but also open the door to greater efficiencies and growth as well as expose opportunities to innovate. Using an ERP system means greater and more efficient controls. This ensures the CEO has accurate and real-time information and assists management to maintain a firm grip on operations.

C-suite and ERP Support for the Digital Strategy

The ERP dashboard gives the CEO a consolidated and comprehensive quick and easy reference of where their business is currently standing with drill-down capabilities. For a digital transformation journey to be effective, CEOs need to react to challenges fast and effortlessly and an ERP system provides the critical information needed to do this. Stats such as weekly sales, employee performance, and inventory levels, are all examples of items quickly available, showing real-time growth or changes in the business.