The power of pilots and prototypes for digital change

7 minutes  
Written by: Netwealth
Date: 04 October 2024

When it comes to digital transformation, it’s important to dedicate appropriate planning and resources to implementation. In this article based on our 2024 AdviceTech research, we look at the steps involved in rolling out technology successfully.

 

Key takeaways:

  • Digital transformation needs proper planning and resources for success.

  • AdviceTech Stars excel in implementing new technologies effectively.

  • Learn from IDEO and Dyson's successful prototypes and pilots.

“The best big idea is only going to be as good as its implementation. ”
- Jay Samit, author of the bestselling book Disrupt You!

This is something advice firms should bear in mind when it comes to the rollout of any digital project. Firms need to build the right culture, have leadership and staff on board, and develop a solid strategy, which will mean nothing without a plan for implementation.

Netwealth’s 2024 AdviceTech Research identified a group of firms we classify as AdviceTech Stars due to their greater digital maturity. We found there are six attributes that these firms do better than others when it comes to rolling out new technology and executing IT projects.

The first is that some AdviceTech Stars have a formal change process in place for digital and IT initiatives. The second, and perhaps more important, is that they allocate adequate time and resources to implementing technology changes (six in 10 Stars do this).

 

6 attributes that AdviceTech Stars do better than others when it comes to rolling out new technology and executing IT projects

 

Create prototypes and run pilots

The third characteristic of digitally mature organisations is that they run pilots of new technologies before rolling them out to the entire business (six in 10 Stars say they do this).

Design and innovation firm IDEO is behind some of the world’s most famous inventions, such as the computer mouse. One of their secrets is running pilots and prototypes. The same goes for James Dyson, inventor of the Dyson vacuum cleaner, which reportedly had over 5,000 prototypes.

IDEO[1] provides us some tips for creating a successful prototype or pilot:

  1. Only prototype what matters. The point is to spend a little to learn a lot, so figure out what elements are necessary for potential users to test.
  2. Use visual instructions to help people understand how the prototype works, and what is expected of the user.
  3. Factor in the before and after. When designing a pilot or prototype service, consider the user experience not just at the moment, but before and after. It’s important to remember you’re not the only thing on a user’s mind. For example, a prototype for guests checking into a hotel, will consider everything that has happened before and will happen after, such as being jetlagged or weary from travel, and what activities they plan after.
  4. Measure every step of the client journey. For example, IDEO mentions a project they worked on to create a lobby for a hotel chain. To test their design, they used a network of cameras and sensors and used these metrics to gauge how well they were meeting needs at every stage of the journey.
  5. Involve users and employees. Designing prototype or pilots should be done collaboratively, especially including the staff who will be delivering the service to clients. This helps not only give depth to ideas, but ensures staff buy into your vision.


Example: Building a prototype for an online fact-find

It is very common for people to provide their data online to companies like Google, Uber or Menulog. Yet, according to Netwealth’s 2024 AdviceTech research, less than half of advice practices use online tools to collect fact-find information, to potentially reduce customer friction and improve efficiency.

Here’s one way to run a prototype and set up an experiment for an online fact-find and data collection tool:

  1. Set up an account with an online survey tool such as Typeform or SurveyMonkey
  2. Create two fact-find surveys – one short and the other more detailed
  3. Send them out to 10 clients – half to each
  4. Prior to the initial meeting, review the responses and use this information in the meeting
  5. Ask the person how they felt about providing that information online, what they found easy or hard, and what other information they would have been willing to provide.

An online fact-find prototype like this would only take a day or so to set up – but it has great benefits and will help the firm make an informed decision on whether the long or short form is better before rolling it out to all prospects.

Measure and reward successful implementation

Goal clarity, measurement, and rewards are the final features of how a digitally mature organisation rolls out any IT project.

Before a digital project begins, clearly communicate its goals to staff (six in 10 Stars do this). This might be the business drivers for the project, the time and cost expectations, how it is expected to impact clients, and so on.

Once a project is completed, measure the success of the technology changes, as well as recognise and reward staff when tech projects are successfully implemented (over 50 per cent of Stars do both of these steps).

For example, when machinery manufacturer John Deere announced a new vision and operation model aimed integrating smart technology into its products, the company leveraged the John Deere fellows program to power implementation. This program recognises individual employees who contribute to its transformation efforts, and since 2020, twenty-five fellow awards have been handed out.

John Deere is a clear example of an organisation that understands the importance of rewarding its staff, and while advice firms do not necessarily have to go to these lengths, it should spark ideas about how to implement some form of recognition.

There’s plenty we can learn from AdviceTech Stars when it comes to implementing IT projects, from creating prototypes to measuring success (or failure), to rewarding implementation