Making digital transformation transparent through simulation modelling
Predicting the concrete impact of a digital transformation on an organisation is a complex challenge. The starting point is often a plan that guides initiatives to achieve organisational goals. But how does this transformation affect our operational efficiency? What bottlenecks arise during implementation? And perhaps the most important question: ‘What does it deliver for the organisation?’ While these questions can be answered in abstract terms (e.g.: ‘more efficient processes’), it is more difficult to substantiate such claims with specific results. We often see in practice that simulation models are an effective but rarely chosen solution for this. These models make it possible to test and analyse in advance, enabling organizations to be better prepared for the implementation of a digital transformation.
What are simulation models
Simulation models are virtual representations of reality, such as a process or organisation. They make it possible to implement changes, analyse their impact and evaluate different scenarios without any real-life implications. The purpose of simulation models is to better understand systems and complex interactions and identify bottlenecks. For example, within a healthcare institution, data from past years and the organisation's expertise can be used to create a virtual representation of the departments and, among other things, their use of shared capacity. Through this model, policy adjustments can be tested, identifying the expected effects on the organisation and the care process.
Creating support among stakeholders
A major challenge in digital transformation is the lack of stakeholder support due to for example uncertainty about outcomes and costs. This uncertainty leads to complex issues, the clarification of which can delay the decision-making process. Therefore, it is essential to engage stakeholders from the start and provide them with clear, data-driven insights, for which simulation models can support.
First, simulation models help to better understand complex processes and the interdependencies within digital strategy. When rolling out a new planning system in a healthcare institution, a simulation model can help by providing insight into the interactions between processes, staff and departments. This allows for predictions of where resistance may arise, due to an increase in workload or changes in workflows. These insights enable targeted measures to be taken, ensuring a smoother rollout process.
In addition, the strength of simulation models also lies in the ability to evaluate different ‘what-if’ scenarios. This allows stakeholders' concerns to be incorporated directly into scenario analyses. Thus, their confidence in the solution can be increased by turning abstract ideas into measurable outcomes.
System dependencies
Cross-departmental processes often cover multiple IT systems, making it difficult to estimate what the full impact of a digital transformation will be. For example, when a department in a healthcare institution receives more patients than its capacity allows, this can impact the capacity of other departments. Simulation models can assist by providing insights into the variation in demand between departments and how this can be better aligned, enabling more efficient use of resources. They can create an overview of processes, systems and interdependencies. It allows organisations to better understand how changes feed through to other departments, and more department-specific interests and constraints to be included in the design process.
Deploying resources
Within digital transformations, it is essential to carefully weigh how resources are deployed, as the effort required is often significant. This always creates a balance between maximising value and minimising costs. A simulation model helps identify the added value that can be created by deploying extra resources, such as an increase in manpower or server capacity. It enables organisations to calculate different scenarios and analyse how various resource allocations affect the outcomes. This gives policymakers and managers the insights needed to set priorities and make informed choices that align with the organisation's strategic goals.
Conclusion
Simulation models provide a valuable tool for gaining insights into the impact of digital transformations. By creating digital representations of processes and systems, these models help to better understand complex interactions and dependencies. They enhance stakeholder support by addressing their concerns through various scenario analyses and improve the efficient allocation of resources. This enables organisations to make informed choices to achieve successful implementation of their digital strategy.
Are you curious how simulation models can help your organisation reduce uncertainty and be better prepared for digital transformation? Or how they can provide insights into the impact of strategic choices for better decision-making? Get in touch with us! Our experts are ready to help you with a tailored approach that matches your goals.
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