How to Develop a DX Plan in Three Months　Part 6: The Design Phase 🌹

Digital Transformation (DX) refers to the fundamental reinvention of business models and operational processes through digital technology.

For example, Hitachi has successfully implemented DX in its railway operations by leveraging AI and IoT to analyze operational data, optimizing both train scheduling and maintenance processes.

Key Impact:

✔ Enhanced Operational Stability – Predictive analytics enables the early detection of potential failures and delays, significantly improving the reliability of railway services.
✔ Cost Reduction & Improved Customer Satisfaction – Streamlining maintenance and scheduling has minimized unnecessary expenses while enhancing the passenger experience.

Using chatGPT asking what is the significant DX reference cases?

In this installment of “How to Build a DX Plan in Three Months,” we move beyond the Analysis Phase and focus on the Design Phase, where we architect the future-state business processes that will drive transformation. 🎈

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⏩ What Is a Business Transformation Strategy?

Organizations often face existential challenges such as:

• Losing ground to competitors

• Declining customer orders

• Dwindling sales of core products

To address these, businesses must rethink their structure, processes, and operations—a strategic effort we call Business Transformation Planning.

The diagram below illustrates a three-month transformation roadmap. In this article, we focus on the six key steps of the Design Phase, highlighted in red.

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⏩ Key Takeaways from the Analysis Phase

In the Analysis Phase, the following activities were completed:

✅ Current State Analysis
✅ Root Cause Identification
✅ Vision Definition & Key Challenges (What) and Transformation Hypotheses (How)
✅ Hypothesis Testing Through Stakeholder Interviews
✅ Validation of Findings
✅ Alignment of Values with Key Department Heads

From these efforts, two key deliverables emerged as inputs to the Design Phase:

✅ Transformation Priorities – Which elements need to shift from current state (As-Is) to future state (To-Be) based on hypothesis validation?
✅ Quick Hits – High-impact, low-effort reforms that can deliver tangible results within six months.

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⏩ The Five-Step Design Phase

The Design Phase consists of five critical steps, each with distinct deliverables:

1. Designing the To-Be Process

To bring transformation priorities to life, we define how existing workflows should evolve from their current state to an optimized, customer-centric process.

2. Investment and Risk Analysis

Every transformation initiative requires investment. Additionally, process modifications may introduce unintended risks. A structured assessment is necessary to mitigate potential disruptions and ensure ROI-driven decision-making.

3. Designing the Operational Framework & Enablers

Transformation extends beyond process changes—it requires organizational enablers that reinforce new ways of working. Examples include:

• Governance frameworks

• Performance measurement systems

• Cross-functional collaboration models

■ Define new roles and responsibilities
■ Build new organization
■ Collect data, using such as ioT
■ Design new IT Information System

4. Defining IT System Requirements

To ensure the To-Be process operates effectively, the supporting IT infrastructure must be well-defined.
Modern DX strategies increasingly leverage:

• Packaged solutions

• No-code/low-code platforms

• External IT expertise for solution design

5. Quick Hits: Demonstrating Early Wins

Transformation efforts often take several years. However, business conditions evolve, leadership changes, and organizational inertia sets in.
To sustain momentum, it is crucial to deliver tangible successes within six months, even through simple solutions like Excel-based pilots, before full-scale IT deployment.

6. Execution Planning

For each transformation priority, the team collaboratively defines:

• Target outcomes

• Realistic implementation timelines

• A structured roadmap with quarterly checkpoints

By systematically executing these five steps, organizations gain clarity on required activities, investment costs, and associated risks.

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⏩ The Role of Leadership Alignment

Throughout these five steps, continuous engagement with key department heads is essential. Leadership discussions should address:

• Why are these transformation priorities necessary?

• How will day-to-day operations change post-implementation?

• What is the role of department heads in driving execution?

This alignment of values is crucial to embedding the transformation vision across the organization.

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⏩ Summary

This article explored the Design Phase—the second half of the Business Transformation Planning process.

Many professionals will, at some point, lead or participate in organizational change efforts aimed at enhancing customer satisfaction, optimizing operations, or driving corporate transformation.

Perhaps you are already questioning the status quo and seeking opportunities for meaningful change.

When that time comes, harnessing collective intelligence to design transformation priorities and ensuring successful execution will be critical.

The Design Phase is where strategy meets execution—ensuring that business reforms move from concept to reality.

If you find yourself leading a business transformation initiative, let this serve as a blueprint for designing, aligning, and executing a successful DX strategy. 🚀