Digital Strategy and Business Process Transformation

Session 6: Digital Strategy and Business Process Transformation

• The session focuses on digital strategy and business process transformation.
• Course coordinator is Nabila BOUKEF Ph.D., an Associate Professor specializing in information systems and digital transformation at SKEMA Business School.
• The course is a two-year Master of Science program.

Course Schedule

• Session 1: Rethinking strategy in the digital era
• Session 2: Digital strategy formulation
• Session 3: Strategy approaches and ambidexterity strategy
• Session 4: Digital platform strategies
• Session 5: Differentiation strategies and competition in the sharing economy
• Session 6: Digital strategy and business process transformation
• Session 7: Building digital capabilities and creating digital leadership
• Session 8: Digital strategy execution in practice: Fostering innovation in the digital era

Outline for This Session

• Transforming your business
• Business processes and business process management
• Process decomposition exercise
• Individual assignment
• Business process reengineering
• Practice exercise
• Teamwork assignment

Drivers of Digital Transformation

• Analyzing the new rules of the game and opportunities enabled by digital technologies.
• Creating a competitive advantage using digital technologies
• Adapting strategy with the constraints of the environment
• Creating digital growth and a sustainable competitive advantage.
• Transforming business with digital technologies.
• Transforming the processes and digital leadership.
• Investing in digital technologies to transform the organization and manage the ecosystem.

Case Study: DBS

• DBS is a case study used for analysis.
• DBS creates a competitive advantage through process changes.
• IT impacts business processes extensively.

How Digital Technologies Improve Productivity

• Efficiency: Output remains the same or increases while resource inputs decrease or stay the same.
• Effectiveness: New things and/or improved outputs compared to the past.

Transform Business for Customer Value

• Create a competitive advantage using digital technology.
• Defining clear and transformative ambition.
• Creating a competitive advantage using digital technologies.
• Creating value for customers.

Business Process and AI Use

• Using AI to enhance recruitment process speed and accuracy.
• Automating tasks like resume screening, candidate matching, and initial interviews.
• Enabling faster and better decision-making for companies.
• Companies like Hilton and Unilever have implemented AI-enhanced recruitment.

Improve Data Flow Among Activities

• Hospital management utilizes an integrated system.
• AI-integrated anamnesis-diagnosis process improves data flow and efficiency.

Improve Control of Activities

• Audi implemented AI-based crack detection in Ingolstadt and Neckarulm.

Use of Automation: Chatbots

• AI chatbots handle routine customer inquiries 24/7.
• Human agents focus on complex customer issues.

Improve Procedures: AI-Improved Fraud Detection in Banking

• AI automates complex tasks for fraud detection.
• Real-time monitoring and detection of unusual patterns/anomalies are enabled by machine learning.
• Benefits include increased speed, enhanced accuracy and precision, scalability, and proactive fraud prevention.

Business Process and Business Process Management

• Business processes are coordinated activities for business outcomes.
• Business processes may also cross functional boundaries involving various roles and parties.

Business Process Components

• Who leads the process? (Process Owner): Manages the process, responsible for achieving process goals, and highlights critical issues and solves problems.
• What is the scope? (Mission): Explains "Why does the process exist?" from a client and organization viewpoint.
• Identify process borders: Defining the start and end of the process.
• Identify inputs and outputs: Identifying suppliers and clients of the process including who uses products/services as outputs.
• Identify client needs: Interviewing customers to understand their needs and priorities, to standardize activities, and to facilitate improvements and describing the process to understand it better.

Process Decomposition Exercise (Quiz in K2)

• Working in groups, but submitting individually.
• The purpose is to do a decomposition of a travel plan quote process.

The Different Steps in Business Process Decomposition

• Write a detailed description of the process "as-is."
• Analyze process problems and identify opportunities for improvements.
• Define a new process for a competitive advantage.
• Include improvements to enhance customer experience.

Loan Process

• Sales force agent contacts insurance headquarters to request a loan for a customer.
• The clerk checks the customer's liability.
• The contracting department customizes the loan contract.
• A pricing agent determines and records the interest rate.
• A sales department agent creates a proposal.
• The proposal is sent back to the sales force agent.

Practice Process Reengineering Exercise

• Keep details simple, only model the described process, and assume that the loan is approved.
• Describe the process using numbered steps and points.
• Improve the process using digital technologies.
• Identify and list areas for improvement.
• Create a new series of numbered points for your improved process, using bold or underlines to show new or improved steps.

Conclusion

• Overview of digital transformation drivers and processes.
• Overview of end-to-end approach concepts and customer experience improvement strategies.

Graded Assignment

• Evaluation criteria for the assignments.
• The scores for each section are displayed.

What's Next?

• Outlining upcoming sessions on digital strategy, leadership, innovation and more.

What is next?:

• Questions about the next steps in the process to identify the next topics to learn after the session or course.