Digital Transformation Challenges

Digital Transformation

• Organizations can change rapidly in times of crisis, as seen in the last couple of years.
• Digital transformation is not about technology, but about strategy, leadership, and new ways of thinking.

Challenges of Digital Transformation

• 70% of companies attempting digital transformation fail, according to major international consulting firms.
• Failure to drive change is unsustainable due to the ongoing digital revolution.

Barriers to Digital Transformation

• Lack of a shared vision for change within an organization.
• Lack of clear growth priorities guiding digital transformation efforts.
• Lack of experimentation and sticking to old habits of planning and benchmarking.
• Lack of flexibility in governance and applying traditional management processes to new opportunities.
• Failure to update technology, talent, and company culture to adapt to the digital era.

Digital Transformation Roadmap

• Five steps to drive real, meaningful change in an organization:
  • Define a shared vision for change.
  • (Remaining steps not specified in the provided text)### Digital Transformation Roadmap
• The imperative to have a shared Vision is crucial, which answers questions like "Where is our world going as a business?" and "What role will we play in that future landscape?"
• A shared Vision has four critical components:
  • Understanding the future landscape
  • Unique right to win
  • Case for change (impact on the world and business results)
  • Business results expected

Picking Strategic Priorities

• Digital transformation is not just about technology, but about strategy
• Focus on customer needs, not the latest products and shiny objects
• Examples of companies that have successfully transformed:
  • Disney: becoming a direct-to-consumer company with a focus on individual relationships
  • MasterCard: solving cyber security needs, harnessing retail transactional data, and providing financial inclusion

Experimentation

• Adopt a mindset of humility and experimentation
• Use tools like the problem opportunity Matrix to find and prioritize problems that matter
• Validate new Ventures through four stages:
  1. Problem validation
  2. Solution validation
  3. Product validation
  4. Business validation
• Examples of companies that have successfully experimented:
  • Walmart: testing different approaches to online grocery purchase and finding success with Walmart+
  • CNN: failing to validate their digital business model and wasting $300 million

Governance

• Governance encompasses oversight, funding, people, metrics, and compliance
• Rethink governance to empower teams to drive change
• Examples of companies that have successfully rethought governance:
  • New York Times: using different governance models for new revenue streams like cooking and gaming
  • Amazon: using two-Pizza teams that are small, multifunctional, autonomous, and accountable

Capabilities

• Grow technology talent and culture to be a digital business
• Three things needed:
  1. Digital technology architecture, data assets, and I.T. governance
  2. Digital talent managed throughout the entire Talent life cycle
  3. Digital-ready culture that is data-driven, collaborative, risk-taking, and customer-obsessed
• Examples of companies that have successfully grown capabilities:
  • Volkswagen: grappling with being a car company or a tech company
  • Amazon: constantly looking to their leadership principles and using processes to support them, such as the no PowerPoint rule

Digital Transformation Truths

• Digital transformation is not about technology, but about business and the customer
• Digital transformation cannot happen top-down, but must be a bottom-up change that engages people at every level
• Digital transformation is not a project, but a continuous Journey that requires ongoing adaptation to change

Digital Transformation

• Organizations can change rapidly in times of crisis, such as during the last couple of years.
• Digital transformation is not about technology, but about strategy, leadership, and new ways of thinking.

Challenges of Digital Transformation

• 70% of companies attempting digital transformation fail, according to major international consulting firms.
• Failure to drive change is unsustainable due to the ongoing digital revolution.

Barriers to Digital Transformation

• Lack of a shared vision for change within an organization.
• Lack of clear growth priorities guiding digital transformation efforts.
• Inadequate experimentation and sticking to old habits of planning and benchmarking.
• Inflexibility in governance and applying traditional management processes to new opportunities.
• Failure to update technology, talent, and company culture to adapt to the digital era.

Digital Transformation Roadmap

• Five steps to drive real, meaningful change in an organization:
• A shared vision is crucial, answering questions like "Where is our world going as a business?" and "What role will we play in that future landscape?"
• A shared vision has four critical components:
  • Understanding the future landscape.
  • Unique right to win.
  • Case for change (impact on the world and business results).
  • Business results expected.

Picking Strategic Priorities

• Digital transformation is not just about technology, but about strategy.
• Focus on customer needs, not the latest products and shiny objects.
• Examples of successful companies:
  • Disney: becoming a direct-to-consumer company with a focus on individual relationships.
  • MasterCard: solving cyber security needs, harnessing retail transactional data, and providing financial inclusion.

Experimentation

• Adopt a mindset of humility and experimentation.
• Use tools like the problem opportunity Matrix to find and prioritize problems that matter.
• Validate new ventures through four stages:
  • Problem validation.
  • Solution validation.
  • Product validation.
  • Business validation.
• Examples of successful companies:
  • Walmart: testing different approaches to online grocery purchase and finding success with Walmart+.
  • CNN: failing to validate their digital business model and wasting $300 million.

Governance

• Governance encompasses oversight, funding, people, metrics, and compliance.
• Rethink governance to empower teams to drive change.
• Examples of successful companies:
  • New York Times: using different governance models for new revenue streams like cooking and gaming.
  • Amazon: using two-Pizza teams that are small, multifunctional, autonomous, and accountable.

Capabilities

• Grow technology talent and culture to be a digital business.
• Three things needed:
  • Digital technology architecture, data assets, and I.T. governance.
  • Digital talent managed throughout the entire Talent life cycle.
  • Digital-ready culture that is data-driven, collaborative, risk-taking, and customer-obsessed.
• Examples of successful companies:
  • Volkswagen: grappling with being a car company or a tech company.
  • Amazon: constantly looking to their leadership principles and using processes to support them, such as the no PowerPoint rule.

Digital Transformation Truths

• Digital transformation is not about technology, but about business and the customer.
• Digital transformation cannot happen top-down, but must be a bottom-up change that engages people at every level.
• Digital transformation is not a project, but a continuous Journey that requires ongoing adaptation to change.