Digital is changing our world,
Quickly and irreversibly
(Chapter 1)
What is a digital transformation?
* Digital players conquer and disrupt all industries.
* Digitization is relevant for all industries—Only scale
and speed will vary.
* New business models follow a classic pattern.
* Consumer behavior has dramatically changed in
recent years.
Established market definitions don’t
apply anymore
Innovations arise at industry boundaries
Blurring boundaries between B2B and B2C become B2B2C
Managing channel conflicts
Software and analytics competencies becoming increasingly important
The battle for digital talent
The pace of change is increasing
exponentially
“Today, everyone expects continuous, linear development in technical
advances, but the future will surprise us far more dramatically than most
observers believe. Very few understand what it will mean for the pace of
change to accelerate even faster.”
- Ray Kurzweil, Google director of engineering -
Those who turn a blind eye to digital
risk failure and extinction
World first digital camera - 1975
Conclusion
Digitization requires
fundamental renewal :
Digital @ Scale
(Chapter 2)
The concept for a successful transformation into
a digital company is based on the answer of
these questions
Why?
WHY ? Things are going well, so why do
we need to change?
Answer : regardless how well positioned a company, if the
management underestimates the potential for change (digitization ) it
runs ultimate risk
Creating a Sense of Urgency: The Key
Challenge
Determining the Nature of the Change
Requirements
Identifying Barriers to Change Early
Identifying Relevant Assets and Setting the
Aspiration Level
WHAT? What does digitization mean for my
company, and what priorities are derived
To answer this question, it is helpful to build three
stage structure that can be used to prioritize the
strategic and operational tasks
Building New Ecosystems
Developing Business Architecture
Strengthening the Foundation
HOW? How do I manage the tasks
resulting from a digital transformation?
Create a Plan
Ramping Up the Digital Company
Consistent Scaling
Cargo cults don’t work
Conclusion
Everything depends on the CEO and Top
Management
Case : the digital transformation of GE
Again, the fate of the traditional companies
depends on the attitude of the CEO, will he or
she recognize the signs
Why? The clock is ticking
(Chapter 3)
“Big is nothing, you can still die out”
Sense of
urgency
Type of Barriers
change to
change
Key questions
for
management
Ambition Relevant
assets
How urgent is Digitization?
The CEO must
shape this
Observation
moment of
enlightenment
and make it
intuitively clear
experiences
meetings
We act, we learn, we get better (Jeffey Immelt)
Taking leadership in hand
• “not relevant to us”
• “we’ve done that for a
long time anyway”
• owner, employee
active investor
Benchmarking to assess starting position
Actively
creating an Allowing
Assessing
Anticipating ecosystem of room for a Intend to
what we
the impact partners, digital spin off
customers, can do
and suppliers
strategy
Defined a
Prioritizing and
allocating feasible
Consideration Using best capital, talent, time scale
Reflect the force with talent and
management
and
capacity meaningful
KPIs
Experiencing digital live
Sampling digital at a hackathon
Motto = build, test, refine
Mobilizing your employees to uncover weakness
“Better that we find our weaknesses than
Bosch motto : allow others to.”
Determining the kind of change required
Those Who Know the Roadblocks
Overcome Them More Easily
Efficient organizations often slow down the necessary
change
The best and most efficient managers who stand in the
way of the project.
Obstacles
Deep-rooted mind-sets and working methods in
functional silos
“At least 40% of all businesses will die in the next 10 years . . . if they don’t figure out
how to change their entire company to accommodate new technologies.” (John
Chambers)
Identifying relevant assets
It’s about “We don’t just
recognizing where program apps, but
First and foremost,
the new technology build solutions
it’s about the core of
can help the around our products
the business the
company the most, that our customers
benefit to the
and how it will help should desire,”
customer.
to renew the (Bosch CEO Volkmar
company Denner)
The relevant assets :
Powerful brand
Strong customer relationship
Extensive installed base
Deep customer insights
Emotional ties
Determining the Aspiration Level for the
Transformation
Identify and
communicate:
The management : clear about the objective of the
transformation, and formulate it articulately
The managers : must then consider and describe the scope and
impact of the changes.
Team : the aim must be communicated to the team and at the
same time creating enthusiasm and enjoyment for the upcoming
work
Conclusion
Digitization is changing every function in the company
New ecosystems are breaking down boundaries across all industries,
from automotive → banking, retail → construction, and bringing in
competition between competitors that previously had nothing to do
with each other.
Conclusion
