Creating Purpose-based Value with Digital Transformation

Most organizations have a mission statement. The mission is normally focused on the purpose of the organization. It answers the question, “Why does this organization exist?” It provides the motivation for the employees and stakeholders of the organization.

You may be thinking to yourself, ‘What does this have to do with digital transformation?” The answer is that your organization’s purpose provides the motivation for your digital transformation. Digital transformation can enable an organization to greatly magnify its ability to achieve the purpose or mission.

Digital transformation has two core components, the application of digital technologies and the transformation of products and processes to new or unique level of performance and achievement. Each is powerful in its own right. Upgrading existing products and processes with digital technologies will lead to faster, stronger, or more accurate performance. Your organization is still doing the same thing, just doing it better. You can also transform an organization with new products, processes, personnel, and culture that are not digitally enabled.  That can reposition your organization in the competitive landscape, but it does not revolutionize or create an entire industry.

Digital transformation will do both. It helps your organization be faster, stronger, and more accurate. It also creates entirely new industries and entirely new ways of operating. That is why the purpose becomes so important. It is easy to fall in love with the technology or to implement change for change’s sake. The mission or purpose focuses the transformation.

An organization with a great mission or purpose can use digital transformation as an enabler. But an organization can also transform its mission to take advantage of the new horizons that are opened to it through digital transformation. Instead of being confined to a small geographic area, it can reach the world. Instead of being restricted to only a handful of customers or clients it can scale and grow exponentially.  Added to this is the attribute of the mission that goes beyond a profit motive. Today’s cultures place a priority on societal and environmental issues and initiatives. Many people today are searching for meaning in their professional life and the organization’s mission or purpose is a consideration when seeking employment. The mission or purpose provides motivation. However, the employees, members and stakeholders also need to believe the mission is achievable. The application of digital transformation can clear the way to achieve what was previously viewed as a “mission impossible.”  

The principle of creating purpose-based value will direct and focus your digital transformation. If you would like to lean more about digital transformation, join my network and follow me. I will be providing updates regularly and will soon have a book available covering practical ways to move your organization forward along the path of digital transformation.