Digital Strategy and Leadership Session 7

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Questions and Answers

What capability does a digital platform provide to enhance customer interactions?

Personalization of customer engagements (correct)

Cost reduction through automation

Increased operational risks

Decentralization of business processes

Which aspect is crucial for maintaining an effective digital platform?

Strong leadership and coherence (correct)

Strong competition among users

Limited access to data

Frequent changes in technology

What defines a digital workplace according to the provided content?

A traditional workspace without digital integration

An environment that simplifies work in complex settings (correct)

A simple online collaboration tool

A physical space only for digital technologies

Which factor is important for ensuring a close IT-business relationship?

Shared understanding Signup and view all the answers

What is a potential issue with complex digital platforms?

They make changes difficult and costly Signup and view all the answers

What is a significant advantage of companies that have a strong operational backbone?

They can automate processes and enhance speed. Signup and view all the answers

Which of the following describes enterprise resource planning (ERP) systems?

They are integrated software applications spanning all organizational functions. Signup and view all the answers

What is a key feature of born-digital companies in terms of digital transformation?

They demonstrate superior analytics capabilities. Signup and view all the answers

Which statement reflects a challenge with legacy spaghetti systems?

They are associated with high costs and inefficiencies. Signup and view all the answers

Which aspect of business processes is emphasized in the discussed content?

They are highly interrelated and cross departmental boundaries. Signup and view all the answers

What limitation is associated with merely executing a digital strategy without an operational backbone?

It does not enable speed and flexibility. Signup and view all the answers

In terms of ecosystem management, what is a benefit of digital platforms for companies?

They facilitate personalization and enhance customer experience. Signup and view all the answers

Which of the following options is NOT a characteristic of a strong operational backbone?

Promotes data redundancy. Signup and view all the answers

What is an expected outcome of leveraging digital technologies in customer experience?

Enhancement of social connectivity Signup and view all the answers

Which of the following best describes a major driver of digital disruption?

Innovation within sharing economy Signup and view all the answers

What is a primary benefit of developing digital capabilities within a business?

Creation of value for customers Signup and view all the answers

How can businesses achieve competitive advantage through digital transformation?

Through differentiation and adaptive strategies Signup and view all the answers

Which aspect is crucial for managing an effective digital ecosystem?

Encouraging customer interactions for innovation Signup and view all the answers

What characterizes agile and scalable digital operations?

Flexibility to adapt to changing environments Signup and view all the answers

What role does data analytics play in digital transformation?

Facilitates better customer insight and decision-making Signup and view all the answers

What does the concept of creating a hybrid team focus on?

Integration of diverse skills and competencies Signup and view all the answers

Which factor is essential for creating a robust and flexible digital platform?

Encouraging employee empowerment Signup and view all the answers

What is a significant challenge associated with adaptive strategies in digital transformation?

Resistance to change within organizations Signup and view all the answers

What is a key characteristic of the digital platform necessary for managing customer interactions?

User-driven experience Signup and view all the answers

Which of the following initiatives aims to improve visibility of operations?

Streamline processes Signup and view all the answers

What challenge did LEGO face regarding its supply chain according to the CEO?

Difficulty in allocating components optimally Signup and view all the answers

Which aspect of LEGO’s approach to crisis management involved using an ERP system?

Controlling supply chain processes Signup and view all the answers

What does agile and scalable operations refer to in the context of LEGO’s initiatives?

Ability to adapt quickly to market changes Signup and view all the answers

What role does experimentation play in the digital platform for customer interactions?

Encouraging innovative solutions Signup and view all the answers

How does LEGO’s approach to ecosystem management impact its operations?

Enhancement of relationships with partners Signup and view all the answers

Which of the following best describes LEGO’s view of its digital transformation challenges?

Existence of silos and lack of visibility Signup and view all the answers

What is a primary goal of enhancing data sharing and analytic capabilities for LEGO?

Improving decision-making processes Signup and view all the answers

What does the loan process illustrate in terms of operations?

Integration across different departments Signup and view all the answers

Study Notes

Session 7: Building Digital Capabilities and Creating Digital Leadership

Course Coordinator: Nabila BOUKEF Ph.D, Associate Professor in Information Systems and digital transformation, SKEMA Business School
Course Type: Two-year MSc, Digital Strategy
Session Content Outline: Rethinking strategy in the digital era, Digital strategy formulation, Strategy approaches and ambidexterity, Digital platforms strategies, Differentiation strategies and competition in the sharing economy, Digital strategy and Business process transformation, Building digital capabilities and creating digital leadership, Digital strategy execution in practice: Fostering innovation in the digital era
Digital Journey Steps: Why?, What?, How?
Digital Era Strategy Rethinking Drivers: Customers, Competition, Data, Innovation, Value (according to D. Rogers framework)
Creating Sustainable Competitive Advantage: Enhance customer experience, Operational excellence, Reinventing business model – 3 options
Digital Platforms: Light in assets, importance of network effect, orchestrating relationships between producers and consumers, different risks and higher failure rates, differentiation strategy (user experience, technology, partnership)
Executing Digital Strategy: The three steps (Why?, What?, How?)
Drivers of Digital Disruption: Customers, Value, Data, Innovation, Competition
Creating Competitive Advantage: Create competitive experience, Operational excellence, Reinvent business models, Leverage existing capabilities
Strategy Approaches: Classical, Adaptive, Visionary, Shaping, Renewal
Digital Growth Methods: Switching, Self-organizing, Separation, Ecosystem (acquisition, partnership, incubator)
Transforming Business with Digital Technologies: Redesign customer experience, improve customer experience and change processes, Digital capabilities, Digital leadership
Digital Capabilities: Operational backbone (ERP system for standardization of processes, data sharing, streamlined processes, visibility of operations is crucial), Digital Platform (interaction, 24/7 availability, user experience, quick functionality, intuitive interface)
Digital Workplace Definition: Physical, cultural, and digital arrangements that simplify working life in complex, dynamic environments
Digital Workplace Dimensions: Employee connectedness (focus on digital and physical communication), Responsive leadership (focus on driving new behavioral norms and sustaining leadership, symbols)
Promoting Employee Connectedness: Overcome silos, command-and-control environment, improve physical space, invest in new ITs, collaborate through platforms
Responsive Leadership: Creativity & innovation, Knowledge sharing & collaboration, Good relationships, Well-being & happiness, Employee empowerment, Speak up
Leadership for Digital Transformation: Communicate about digital transformation, empower employees, give voice to employees, promote a learning culture that encourages experimentation
Audi Case Study: Workplace strategy, fostering employee connectedness, how leadership contributes to transforming the workplace
Novartis Case Study: Overview of the pharma industry's progress with digital transformation, digital initiatives across all parts of the business, limitations in advanced digital capabilities
Hotel Bellazur Case Study: Investment in digital technologies to interact with customers, belief in the speed of change, lack of a clear vision for how all digital initiatives will collectively create value
Digital Mastery: Different levels (Beginners, Conservative, Fashionistas, Digital masters), investment in new technologies, digital leadership, excellence at both digital capabilities and digital leadership
Digital Mastery Revenue Generation: Digital masters generate more revenue, Digital masters are more profitable, Different levels of mastery impact
Reflect and Apply (Teamwork): Assess digital mastery of Novartis and Hotel Bellazur
Core Business Processes and Legacy Systems: Traditional business functions (marketing, supply chain, finance, HR), Interrelated processes, legacy spaghetti (hard to manage, expensive, inefficient, hard to evolve), each department independently, inefficient processes, and potential inaccuracies and “rocks in the river”
Enterprise System Approach: Integrated business applications for virtually every department, process, and industry, consolidated information storage
Supporting Business Processes: Internally focused systems, support functions, processes, and decision making within an organization; new information added at every step
Three steps to digital transformation and execution: Why?, What?, How?

Digital Mastery Levels

Beginners: Initial stage of digital journey; observe and wait, digital capabilities lacking
Conservatives: Adoption of cautious approach; wary of new technologies, lack of digital leadership
Fashionists: Invest in trendy technologies but lacking digital leadership for digital transformation,
Digital Masters: Master both digital capabilities and digital leadership; excel in both dimensions.

Operational Backbone

ERP Systems: Essential for process integration, enable automation, improve process speed, and data accuracy; but isn't sufficient for enabling speed and flexibility.
Supply Chain Management (SCM) Systems: Benefits from process integration via ERP systems allowing efficiency.

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Description

Explore the critical elements of building digital capabilities and fostering digital leadership in the modern business environment. This session delves into strategies for navigating the digital landscape, emphasizing transformation, innovation, and the competitive edge required to thrive. Gain insights into effective execution of digital strategies in practice.