# Critical learnings in digital transformation 
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-06-23
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Accelerating Digital Transformation: Lessons from ALE
Meta Description: Learn how ALE accelerated their transformation journey, leveraged data and agile practices, and navigated supply chain challenges for success.
URL: https://financedigest.com/critical-learnings-in-digital-transformationhtml

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_By_ **_Rukmini Glanard,_** _EVP Global Sales, Service and Marketing, Alcatel-Lucent Enterprise_

Digital transformation has accelerated across the world’s enterprises in the past few years and has become a matter of corporate survival, making it a top priority for boards. Organisations know that [digital transformation](https://www.financedigest.com/digital-transformation-for-the-world-of-finance-the-rise-in-collaboration-tools-and-saas-applications.html "Digital transformation for the world of finance: The rise in collaboration tools and SaaS applications ") can bring huge improvements in operational efficiency and agility if correctly implemented, keeping them competitive.

Alcatel-Lucent Enterprise has been undergoing a [digital transformation](https://www.financedigest.com/3-reasons-why-businesses-get-stuck-at-the-starting-gate-of-digital-transformation.html "3 Reasons Why Businesses Get Stuck At The Starting Gate Of Digital Transformation") journey in recent times. We’ve learned a great deal along the way about how to get it right from the point of view of a long-established business with more than 100 [years’ experience](https://www.financedigest.com/2021-the-year-of-buyer-experience.html "2021: The year of buyer experience") and innovation history. Our goal was nothing less than to move swiftly to Industry 4.0. By sharing these experiences, we believe we can help other organisations that are just embarking or that are [facing challenges](https://www.financedigest.com/under-saved-and-underprepared-women-face-challenges-saving-for-retirement.html "UNDER-SAVED AND UNDERPREPARED: WOMEN FACE CHALLENGES SAVING FOR RETIREMENT") on their own transformational journeys.

So, where should such an organisation begin, armed with only the understanding that change is essential? ALE started by creating a ‘Digital Factory’ – an overarching transformation unit with teams assigned from each department. Our main goal was to figure out which processes required a technological transition and which tools, architectures, and frameworks were required to make it happen. Additionally, our Digital Factory was in charge of the ‘how’ of the change, implementing agile working practises based on the ‘Try-Fail-Improve’ model. As a result, we were able to learn quickly as we went along. Not everything will go perfectly the first time, but with this strategy, ALE could quickly implement [lessons learned](https://www.financedigest.com/learning-the-lessons-of-the-bangladesh-bank-heist.html "LEARNING THE LESSONS OF THE BANGLADESH BANK HEIST") and find the best answers in a shorter period of time.

The fundamental tools of [digital transformation](https://www.financedigest.com/5-key-takeaways-from-the-finance-sectors-digital-transformation-revolution.html "5 Key Takeaways From the Finance Sector’s Digital Transformation Revolution") are widely available, but putting them into practice is another story. They include best practice in transformation around data, a lean approach, agility, and continuous improvement. For ALE, our ambition in putting these tools in place was to transform our order management, supply chain, purchasing and industrial operations. The data we have collected along the way is something that we’ve leveraged to make all of our processes more efficient and increase customer satisfaction and sales. We’ve also seen huge improvements in delivery accuracy, reduced stock levels, and more secure shipments for high-volume transactions at the end of each successive quarter.

When [faced with the global component shortage](https://www.financedigest.com/britain-facing-tomatoes-shortage-after-overseas-harvests-disrupted.html "Britain facing tomatoes shortage after overseas harvests disrupted"), the requirement for digitalising the supply chain wherever possible became clear. We witnessed a shift in procurement [focus from cost](https://www.financedigest.com/gms-cruise-to-focus-on-cost-cuts-as-it-ramps-up-robotaxis.html "GM’s Cruise to focus on cost cuts as it ramps up robotaxis") to continuity, and accurate forecasting became essential in successfully navigating the ongoing components shortage. We harnessed the power of IoT and AI to collect and understand [data which informed our supply chain](https://www.financedigest.com/in-the-supply-chain-clean-data-is-the-fuel-of-the-future.html "In the supply chain, clean data is the fuel of the future") decisions. [Data gathered at multiple points in the supply chain could be collated to create a network of integrated planning systems with advanced analytics](https://www.financedigest.com/data-analytics-scenario-planning-and-the-finance-department.html "Data analytics, scenario planning, and the finance department") and smart procurement and warehousing. As the situation remains challenging, [data will be key](https://www.financedigest.com/sterling-edges-lower-ahead-of-key-data.html "Sterling edges lower ahead of key data") in maintaining a handle on the situation, with regular reviews of our process to ensure it is optimised to its full potential.

Overall, [delivering a digital](https://www.financedigest.com/you-cant-get-faster-than-that-spring-statement-update-delivered-digitally-as-it-happens-with-app-driven-technology.html "‘You Can’t Get Faster Than That’ – Spring Statement Update Delivered Digitally As It Happens with App-driven technology") transformation requires a focused strategy, which includes identifying the essential pillars of transition and developing from there. At the highest level, ALE established five pillars in approaching our transformation. Let’s look at them in turn and explain why we believe they’re so important.

**1.) Blueprints**

Blueprints for success come from taking a [digital transformation](https://www.financedigest.com/redefining-the-human-touch-with-data-driven-digital-transformation.html "Redefining the human touch with data-driven digital transformation") approach, discovering what works (and what doesn’t) and then using this learning experience as an approach to replicate across departments. Blueprints are essential in ensuring success is carried over in each new stage of the [digital transformation](https://www.financedigest.com/how-digital-is-transforming-finance-in-2023.html "How Digital Is Transforming Finance in 2023").

In building a blueprint, ALE started by targeting a specific department and transforming its processes until the outcome was successful. We then took the same approach and implemented it in other departments.

**2.) Hybrid landscape**

The long-term goal of so many businesses today is to move all of their data processing to the cloud. However, making this shift in one go can be fraught with risk. The possibility of short-term disruptions to operations can be very significant – enough to have a large impact on an organisation’s operations that ultimately is felt by the customer.

To mitigate against this high risk, ALE set about [creating a hybrid landscape](https://www.financedigest.com/how-to-create-an-edible-landscape-your-neighbors-will-love.html "How to Create an Edible Landscape Your Neighbors Will Love"). We added a layer of cloud [services on top](https://www.financedigest.com/top-5-seo-services-you-need-to-succeed-in-2022.html "Top 5 SEO Services You Need To Succeed In 2022") of our on-premise communication system. This hybrid landscape allowed us flexibility to [move from one model](https://www.financedigest.com/investment-advice-moving-towards-a-new-model.html "Investment advice – moving towards a new model") to another without any major losses or failed processes. This gradual rather than sudden shift to the cloud helped ALE reduce costs and [reap the benefits](https://www.financedigest.com/can-finance-reap-the-benefits-of-the-cloud-without-compromise.html "Can finance reap the benefits of the cloud without compromise?") that the cloud’s flexibility brings.

**3.) Data management**

How data is stored and used is of the utmost importance to large businesses. Good data [management can mean](https://www.financedigest.com/senior-managers-regime-what-does-it-mean-for-the-industry.html "SENIOR MANAGERS REGIME – WHAT DOES IT MEAN FOR THE INDUSTRY?") the difference between data that is accessible and pivotal to operations and data that is simply collected and is of little use. ALE took the approach of installing a proper database to enable automation. Thanks to the analysis and merging of our databases and ongoing automation, we successfully increased our recurrent business through higher [service contract](https://www.financedigest.com/axion-swiss-bank-and-avaloq-sign-long-term-contract-for-bpo-services.html "Axion Swiss Bank and Avaloq sign long-term contract for BPO services") renewal rates, more up-sales, and higher sales conversion, all powered by better knowledge of our installed technology base. We were also able to see more accurate forecasting thanks to better-organised data.

**4.) Test and improve**

Without a test and improve framework correctly established and implemented, all businesses are at risk of making the same mistakes repeatedly as they embark on their [digital transformation](https://www.financedigest.com/making-sure-that-finservs-digital-transformation-doesnt-mean-digital-exclusion.html "Making sure that FinServ’s digital transformation doesn’t mean digital exclusion") journey. Our Digital Factory was at the centre of our effort at ALE to ensure that each iteration of our transformation built on the previous one’s [lessons learned](https://www.financedigest.com/3-investing-lessons-you-can-learn-from-still-evolving-pandemic.html "3 Investing lessons you can learn from still-evolving pandemic").

Collaboration must happen at every stage between transformed and pre-transformation departments to make the test and improve approach a success. This means making sure that skilled experts are given the freedom to transfer their skills across different teams. Fast implementation of learnings is also critical – if there’s a delay between lessons being learnt and then implemented, a [business is wasting valuable opportunities](https://www.financedigest.com/the-north-heads-south-to-mipim-en-masse-to-corner-new-real-estate-business-opportunities.html "The North heads South to MIPIM en masse to corner new real estate business opportunities") to improve. Decision-making must be equally speedy and agile too, and thorough checking of outcomes ensures that the lessons are correctly identified.

**5.) Company culture**

Finally, we come to what is undoubtedly the most important pillar of [digital transformation and one of the key](https://www.financedigest.com/world-class-finance-digital-transformation-and-analytics-based-decision-making-among-key-imperatives-for-creating-finance-agility.html "World-Class Finance: Digital Transformation and Analytics-Based Decision Making Among Key Imperatives for Creating Finance Agility") learnings for ALE as we have embarked on this process. Put simply, [digital transformation](https://www.financedigest.com/managing-the-cost-of-digital-transformation-with-saas-optimisation.html "Managing the Cost of Digital Transformation with SaaS Optimisation") can’t be forced. It can only be [successful if it takes place in the context of a change in the culture of the business](https://www.financedigest.com/why-mobile-apps-are-crucial-for-a-successful-business.html "Why Mobile Apps are Crucial for a Successful Business"). The transformation is not just digital: it is real, and building a mindset shift right across the organisation is as important to success as the [changing and upgrading of technology](https://www.financedigest.com/how-technology-has-changed-our-lives.html "How Technology has Changed Our Lives").

So many [digital transformations fail because of lack of adoption](https://www.financedigest.com/matching-digital-adoption-with-cybersecurity-in-the-financial-services-industry.html "Matching digital adoption with cybersecurity in the financial services industry"), and that adoption issue occurs because of the human factor not being fully taken into account. The [importance of getting your teams engaged by helping them understand the reasons](https://www.financedigest.com/despite-the-headwinds-investors-have-important-reasons-to-be-cheerful.html "DESPITE THE HEADWINDS, INVESTORS HAVE IMPORTANT REASONS TO BE CHEERFUL") for transformation as well as the changing processes themselves cannot be overstated.

**A journey with no shortcuts**

[Digital transformation does not take place](https://www.financedigest.com/the-evolution-of-loyalty-and-its-place-in-the-digital-age.html "THE EVOLUTION OF LOYALTY AND ITS PLACE IN THE DIGITAL AGE") overnight. For most organisations, it’s a journey that must be planned and executed with great care.

The rewards of digitalization are considerable, but so are the pitfalls if the planning stage is not meticulously executed. The imperative to stay competitive can sometimes lead to corners being cut, but at ALE we believe that detailed strategic planning is non-negotiable. Identifying the critical pillars of your transformation is essential to success, as well as ensuring that your whole organisation understands your goals, your implementation plan and the parts that they will all have to play.


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