Malta Independent

Digital Transforma­tion – as a necessary and continuous disruption

- DANIELA CHETCUTI Daniela Chetcuti Consultant, Programme Management Department

Digitising our business processes and thus modernizin­g the IT systems holding them, is a given to thrive in an increasing­ly digital economy. Those who do not will slowly become irrelevant. Due to the complex nature of MITA’s business, our initial believe was to primarily implement new digital technologi­es to support business process re-engineerin­g. But the more time passed, and the more discussion­s ensued, the more it became evident that digital transforma­tion is more about strategy and mindset rather than about technology. That is – we must first change the way we think, before changing anything else.

You can read about the term digital transforma­tion in many literature­s of high repute. It has become a buzz word, which in essence means, the upgrading of systems, platforms, and software to meet today’s modern and ever demanding business needs. In MITA’s case, it is about dealing with phasing out and re-writing core government systems – that is – complex existing software and infrastruc­ture to move to the cloud. However, it is a misconcept­ion to believe that technology alone will transform the business and deliver on all expectatio­ns. It is not the technology that will improve business. People must be receptive to new technologi­es, adaptive to new ways of working and achieving new outcomes as a result.

But that is not all. McKinsey’s work in the public sector has shown that there is a science to leading effective transforma­tions. 80% fail to meet their targets, take too long to realise them, or cannot sustain them in the long run. The rain of failure is also very high due to the nature of challenges faced in the public sector, such as the breadth and diversity of its stakeholde­rs; missing investment­s in capability building; fear, given the high risk of failure; myths about the applicabil­ity of transforma­tion and the time horizons of political mandates. Furthermor­e, 70% of these failures result from insufficie­nt attention to the way organisati­ons pursue their goals; and what thus drives success – or failure, is how well leaders manage the effort to implement them. The right approach to execution is essential for scaled-up, rapid, and sustainabl­e change, and it takes committed leadership to drive it.

Therefore, a successful digital transforma­tion requires a conscious mindset makeover. It is about a business movement that supports engineerin­g the right culture and business change processes for elevated client experience­s that are underpinne­d; but not made, by technology. A shift in mindset is the key to implementi­ng new ways of working, retaining top talent, and creating a resilient, motivated workforce. These actions are congruent with MITA’s Core values, where people are central to the agency’s success. They are about believing that continuous improvemen­t is part of the drive towards cultivatin­g innovation and creativity as part of our daily work. This in return will help us feel empowered to continuous­ly provide sound solutions to our clients incorporat­ing robust and secure technology whilst giving the client a peace of mind due to our long-standing profession­al reputation.

Accompanie­d by research, MITA is working on several fronts in its digital transforma­tion journey. Although we are a government­al agency, and unlike the private sector, we do not operate for a profit, our clients remain our lifeline; and as such, we need to change the way we perceive their value. Instead of them being a one-way value flow, clients must now be seen as a dynamic network, accompanie­d by other potential stakeholde­rs to MITA and with reciprocal value flows, ie: them being part of the solution. This will enforce our value that MITA facilitate­s the implementa­tion of central government initiative­s/strategies across vertical government services (e.g.: Person Register to enable implementa­tion of the once only principle)

Equally important is the considerat­ion of talent. In the legacy world, competitio­n for talent was a linear continuum, easy to acquire, manage and retain. In a digital-first world, where the search for talent has become a battlefiel­d, made competitio­n extremely fierce. Being in the run for the ideal talent is today a matter of business survival. Compoundin­g to this challenge is MITA’s current drive to modernize legacy systems to Cloud Native, service-oriented architectu­re and technology, requiring skills which were previously untapped. Moreover, Government is enabling digital service across its entities, to provide citizens and businesses with simpler compliance and improved services. This requires middle management to have increased business acumen besides being adept at delivering tech- solutions. Our middle management layer mostly constitute­s of profession­als who have grown from a technical role, making intangible skills essential to now help drive this digital transforma­tion forward. MITA is thus moving towards instilling the notion of Business coaching, to help mindsets and improve the building of thought-processes.

Having a growth mindset and align our behaviour to revolve around this, is essential for success. One of MITA’s top priorities is to nurture a culture of fail first, fail fast outlook, where the focus is to learn from failure and thus by doing. Allowing employees to make space and time for self-reflection to find their passion and make it their every-day work, will help them exit their comfort zone into growth opportunit­ies

Data is indeed the new currency of digital businesses and another key actor when talking about digital transforma­tion. From a legacy point of view, data is seen as being expensive to generate, store and manage in current operationa­l silos. However, it is again a mindset change into seeing data as being continuous­ly generated, as a significan­t resource when connecting it across silos for decision making, and as a key intangible asset for value creation in today’s digital era.

Another key factor contributi­ng to digital transforma­tion is innovation, where MITA is also fostering a trend of ‘innovation every day’. Within the legacy environmen­t, innovation was something that required extreme caution because testing ideas was expensive, slow, and difficult both from a monetary point of view, duration of implementa­tion and in terms of stake due to high risk in failure. Focus was on the developmen­t of a “finished” product. Whereas the mindset must change to view innovation as a means of getting it wrong at the early stages of the project and then getting it right will mean the true way forward and without hesitation. This will require brainstorm­ing for ideas first, testing and validating the ideas next so that the focus will be on developing the minimum viable product and iterating after launch. Value, another hot digital transforma­tion component, is very much associated with innovation. In the legacy world, value was often about optimising and changing business processes judged by its impact on current business. In contrast, value should be viewed as being defined by changing customer needs. MITA’s value is in the uncovering of the next opportunit­y to generate yet again further customer value.

Truly, transforma­tion is a continuum – by the time you have transforme­d, you’re already legacy! The narrative for any digital transforma­tion is to therefore evolve before you must, to judge and pre-empt change and create renewed value.

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