Digital transformations are born from smart business cases

With an uncertain year ahead, businesses need to strike a delicate balance between investing in innovation, and saving up for difficult periods. Entec Si CEO Eman Al-Hillawi explores how businesses can build effective business changes that can safeguard their futures, while ensuring they successfully deliver change programmes.

As mainstream applications of quantum computing and digital twinning continue to grow, it is clear that the new year will bring a tidal wave of technological progress. In the next decade, developments in generative AI could create a near £5.5 trillion increase in global GDP, with investments in AI rising by 36% annually in the run up to 2030. 

Now, more than ever, businesses will need to be agile and embark on an ongoing change journey if they are to respond positively to technological advancements. Digital transformation is pivotal to such adaptability but is a continuous process that requires full support from senior leadership teams – this can be made possible through the construction of a compelling business case. 

Timing is everything when building a successful business case for digital transformation. Ideally, a strategy for change should only be initiated when the organisation is ready to receive it. For instance, if a workforce is not up to speed with basic cloud software, it would be premature to invest in an advanced tool that will be time-consuming to adopt. Instead, it is best to assess organisational readiness and consider whether the new digital change or solution will bring the required impact. These measures are a necessary foundation for a strong business case, establishing the practicality of the change journey before more time and resources are invested. 

When it comes to developing the contents of the business case, intelligence gathering is hugely important. Listening to the people on the ground and understanding how both their experience and the experience of the customers can be improved will help to establish the type of change needed. Early communication is essential for building a picture for change with the workforce in mind; it encourages buy-in from employees and ensures the whole organisation is accepting of the change journey. 

Workforce engagement further ensures the chosen digital solutions will meet the business’ needs and not simply cater to the preferences of senior leaders. Cost management is a fundamental part of any change process, and it is important that senior leaders understand that digital transformation takes time and does not provide the same rewards when corners are cut. It follows that harvesting intelligence will make for a stronger, more informed argument. The business case will accurately reflect the business problems or challenges that will be solved through the right digital investment, identify necessary new services and explore the opportunities that could arise from change. 

A good business case

A good business case will equally demonstrate the benefits of investment and show how these will outweigh the costs and feed into the overarching business strategy. As the guardians of the business’ vision, the senior leadership team will want to know how new technologies will drive the goals they have laid out for the business – for instance, achieving success in a new market, cutting costs or increasing demand for new services. 

To this end, it can be useful to incorporate a benefits realisation plan that maps out the value that investing in digital transformation will bring to different business areas. This should include short and longer-term benefits to ensure new technologies will facilitate business growth and evolution. The business case should determine how, throughout internal and external change, the business will continue improving the customer experience, efficiency of service and staff wellbeing.  

Senior leaders will also be looking for the tangible assets of the digital investment – will it introduce additional income or new revenue streams? With a responsibility to determine end goals for the business, and input the ingredients to achieve them, the senior leadership team ultimately desire clarity and explanation from a business case.  

Intangible assets are important when building a case for digital transformation too. While measuring how employees, end users or customers feel about change can be difficult, gauging a baseline of their opinions through staff surveys, direct engagement and customer feedback forums will help to establish where the organisation is now, and how digital investment can be tailored for the greatest impact. 

Building an advocacy cohort can help to ensure this information, and the business case, are communicated effectively to the senior leadership team. This requires a member or members of the executive team to support the case in senior leadership meetings and be responsible for framing the language of the business case in a way that senior leaders can comprehend and relate to. 

For businesses looking to initiate digital transformation in 2024, it is advisable to earmark a portion of the budget in the business case for contingency and trialling new solutions. This allows room for dealing with the unknown and experimenting with technologies to determine the solution that will bring the most benefits for the business and complements the rate of adoption. While senior leaders might be tempted to make significant, upfront investments in the exciting digital tools of the new year, it is vital that the business case communicates the importance of testing the solutions that will add real value.

As such, the business case remains a strongpoint for measured, informed decision-making. 

Businesses are under pressure to change with the times. Business cases will ensure they do so with business goals and people in mind.  

Eman Al-Hillawai is the chief executive officer of business change consultancy Entec Si.