Digital Dimensions

I delivered a guest lecture for the students of the one-year Post Graduate program in Global Supply Chain Management offered by IIM Udaipur. In this talk, I focused on three dimensions of digital journey - technology, process (rather business models) and people.

1. Digital
Dimensions
Tathagat Varma
Technology Strategy and
Business Operations,
Walmart Global Tech
Doctoral Candidate (EFPM),
Indian School of Business,
Hyderabad

2. What is Digital?
Technology-centric
view: it’s all about
technology!
Customer-centric
view: it’s all about how
a company engages
with customers
Business-centric view:
it’s an entirely new way
of doing business
Organization-Centric
View: it's all about the
new way of working
Process-centric view:
it's all about being agile
and lean
Data-centric view: it's
all about how a
company uses data
Strategy-centric view:
it's all about how a
business delivers value!

3. What is Digital?
•Applying the culture, practices, processes&
technologiesof the Internet-era to respond to people’s
raised expectations. –Tom Loosemore@tomskitomski
•“The truth is that digital transformation is actually not
about adapting to new technology at all –it’s about
directing an organization to be more adaptive to
change itself.” -Lindsay Herbert. “Digital
Transformation.”

4. What’s a Digital Mindset?
“Being digital is about using data to make better and faster
decisions, devolving decision making to smaller teams, and
developing much more iterative and rapid ways of doing things.
Thinking in this way shouldn’t be limited to just a handful of
functions. It should incorporate a broad swath of how companies
operate, including creatively partnering with external companies to
extend necessary capabilities. A digital mind-set institutionalizes
cross-functional collaboration, flattens hierarchies, and builds
environments to encourage the generation of new ideas.
Incentives and metrics are developed to support such decision-
making agility."
https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/what-digital-really-means

5. Digitization, Digitalization and
Digital Transformation…
https://sloanreview.mit.edu/article/digital-transformation-on-purpose/

6. Digital Transformation fail!
•Bain: 95% either failed
to deliver or settled for
diluted performance
•Forbes: 84%
•HBR: 70%
Pic: https://dsruptr.com/2019/12/01/the-trillion-dollar-reason-fortune-500-companies-fail-at-digital-transformation/

7. Some big ones…!
•P&G (2012)
•Ford Smart Mobility (2014)
•GE Digital (2015)
•Why do they fail?

8. Digital Transformation is not about
technology!
•https://hbr.org/2019/03/digital-transformation-is-not-about-technology
•Digital transformation worked (for these organizations) because their leaders
went back to the fundamentals: they focused on changing the mindset of its
members as well as the organizational culture and processesbeforethey
decide what digital tools to use and how to use them. What the members
envision to be the future of the organizationdrovethe technology, not the
other way around.
•Lessons:
•Figure out your business strategy before you invest in anything
•Leverage insiders
•Design customer experience from the outside in
•Recognize employees’ fear of being replaced
•Bring Silicon Valley start-up culture inside

9. Why So Many High-Profile Digital
Transformations Fail?
•https://hbr.org/2018/03/why-so-many-high-profile-digital-
transformations-fail?
•No managers should view digital—or any other major
technological innovation —as their sure salvation
•Digital is not just a thing that you can you can buy and plug into
the organization
•It’s important to calibrate your digital investments to the readiness of your industry—both customers and competitors
•When things are not going so well in the existing business, the
call of a new business model can become more powerful than it
should

10. Digital Transformation Is About
Talent, Not Technology
•https://hbr.org/2020/05/digital-transformation-is-about-talent-not-technology?
•Contrary topopular belief, digital transformation is less about technology and moreabout people. You can pretty much buy any technology, but your ability to adapt to an even more digital future depends on developing the next generation of skills,closing the gapbetween talent supply and demand, and future-proofing your own and others’ potential.
•Put people first
•Focus on soft skills
•Drive change from the top
•Act on data insights
•If you can’t fail fast, make sure you succeed slowly!

11. The $900 billion reason GE, Ford and
P&G failed at digital transformation
•https://www.cnbc.com/2019/10/30/heres-why-ge-fords-digital-transformation-programs-failed-last-year.html
•Much has been written dissecting the reasons for digital transformation failure —most experts have settled on people/employees, organizational culture and leadership as weak links. But few acknowledge the real common thread: communication breakdown.
•The truth is, people aren’t the problem; it’s the organization’s failure to communicate effectively with its people that sets them up for digital transformation trouble from the start.
•Focus on the why
•Create personalized communication journey
•Create targeted multimedia experiences that reach different groups
•Communicate in context
•Use data to measure and iterate
•Become a change-ready organization

12. Why digital strategies fail?
•https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/why-digital-strategies-fail
•We find that a surprisingly large number underestimate the increasing momentum of digitization, the behavioralchanges and technology driving it, and, perhaps most of all,the scale of the disruption bearing down on them. Many companies are still locked into strategy-development processes that churn along on annual cycles. Only 8 percent of companies we surveyed recently said their current business model would remain economically viableif their industry keeps digitizing at its current course and speed.
•Pitfalls
•Fuzzy definitions
•Misunderstanding the economics of digital
•Overlooking ecosystems
•Overindexingon the ”usual suspects”
•Missing the duality of digital

14. Digital
Dimensions
•PurposeWhy
•TechnologyHow
•ProcessesWhat
•PeopleWho

15. Tech Stack
•A stratified representation of various technologies, components (such as databases, tools, etc.), programming languages and applications that go into a digital product or service such as a mobile app or a website, etc. aka Solution Stack.
•Essentially consists of a client-side front-endand a server-side back-end, which includes programming languages, frameworks, databases and servers
•Examples:
•Older ones like LAMP(Linux, Apache, MySQL, PHP/Perl/Python) or WAMP (Windows instead of Linux),and
•New ones including MEAN(MongoDB, Express.js, AngularJS, Nose.js), MERN(Same as MEAN but React instead of Angular), MEVN(Vue.jsinstead of Angular)

16. A Modern
Tech Stack
https://heap.io/topics/what-is-a-tech-stack

17. Why a Tech Stack?
LEGACY CODEDEVELOPER
TALENT
SPEED OF
DEVELOPMENT
PERFORMANCE
SECURITYSCALABILITYMAINTENANCE

18. Quite a bit of choices…!
https://ebaytech.berlin/picking-
technology-stacks-2c4e138c12c8

19. India Stack
IndiaStackis a set of APIs that
allows governments, businesses,
startupsand developers to utilise
anunique digital Infrastructure
to solve India’s hard problems
towards presence-less,
paperless, and cashless service delivery. The Open API team at
iSPIRThas been a pro-bono
partner in the development,
evolution, and evangelisation of
these APIs and systems.
https://www.indiastack.org/

20. Gartner Hype
Cycle for
Emerging
Technologies,
2020
Five Trends:
•Composite Architectures
•Algorithmic Trust
•Beyond Silicon
•Formative AI
•Digital Me
https://www.gartner.com/smarterwithgartner/5-trends-drive-the-gartner-hype-cycle-for-emerging-technologies-2020/

21. Internet
•1.75 B websites! (60% in English)
•5+ M mobile apps
•4.54 B active users (out of 7.77 B humans), 50% in Asia
•4.18 B mobile internet users!
•3.8 B active on social media consume 2.24 hrsdaily
•2.05 B shop online!
•47% global retail sales made online
•28% online sales via mobile
•$3.53 T Retail e–commerce and $2.03 T marketplaces (2019)
•Kuwait has highest internet penetration: 99.6%
•US is 3rdwith 293m, with 100% access for 18-29 age group
https://hostingfacts.com/internet-facts-stats/

22. Robotic
Process
Automation
(RPA)
Robotic Process Automation is the technology that allows anyone today to configure computer software, or a “robot” to emulate and integrate the actions of a human interacting within digital systems to execute a business process.
RPA robots utilize the user interface to capture data and manipulate applications just like humans do. They interpret, trigger responses and communicate with other systems in order to perform on a vast variety of repetitive tasks. Only substantially better: an RPA software robot never sleeps and makes zero mistakes.
https://www.uipath.com/rpa/robotic-process-automation

24. Big Data
Big datais high-volume,
high-velocity and/or high-
variety information assets
that demand cost-effective,
innovative forms of
information processing that
enable enhanced insight,
decision making, and
process automation.
(Gartner)
Pic: https://www.techentice.com/the-data-veracity-big-data/

25. Analytics
Analytics is the scientific process of discovering and communicating the meaningful patterns which can be found in data.
It is concerned with turning raw data into insight for making better decisions.
Analytics relies on the application of statistics, computer programming, and operations research in order to quantify and gain insight to the meanings of data. It is especially useful in areas which record a lot of data or information. (Technopedia)
Pic: https://blogs.gartner.com/jason-mcnellis/2019/11/05/youre-likely-investing-lot-marketing-analytics-getting-right-insights/

26. AI
•Prof John McCarthy, Father of AI: AI is the science and
engineering of making intelligent machines, especially intelligent
computer programs. It is related to the similar task of using
computers to understand human intelligence, but AI does not
have to confine itself to methods that are biologically observable.
•Machine Learning: Machine learning is concerned with building
systems that improve their performance on a task when given examples of ideal performance on the task, orimprove their
performance with repeated experience on the task.
•Deep Learningis a subfield of machine learning inspired by the
structure and function of the brain calledartificial neural
networks.
http://jmc.stanford.edu/artificial-intelligence/what-is-ai/index.html

27. Types of Learning
•In a supervised learning model, the algorithm
learns on a labeleddataset, providing an answer
key that the algorithm can use to evaluate its
accuracy on training data.
•An unsupervised model, in contrast, provides
unlabeleddata that the algorithm tries to make
sense of by extracting features and patterns on its
own.
•Semi-supervised learning takes a middle ground.
It uses a small amount of labeleddata bolstering a
larger set of unlabeleddata.
•And reinforcement learning trains an algorithm
with a reward system, providing feedback when
an artificial intelligence agent performs the best
action in a particular situation.
https://blogs.nvidia.com/blog/2018/08/02/supervised-unsupervised-learning/

28. Blockchain
•Blockchain is a system of recording
informationin a way that makes it
difficult or impossible to change, hack, or
cheat the system.
•A blockchain is essentially a digital ledger
of transactions that is duplicated and
distributed across the entire network of
computer systems on the blockchain.
Each block in the chain contains a
number oftransactions, and every time a
new transaction occurs on the blockchain,
a record of that transaction is added to
every participant’s ledger. The
decentralised database managed by
multiple participants is known as
Distributed Ledger Technology (DLT).
https://www.euromoney.com/learning/blockchain-explained/what-is-blockchain

29. Cryptocurrency
•Cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the good or service that the company provides. Think of themas you would arcade tokens or casino chips. You’ll need to exchange real currency for the cryptocurrency to access the good or service.
•Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manages and records transactions. Part of the appeal of this technology is its security.
•More than 6,700 different cryptocurrencies are traded publicly, according to CoinMarketCap.com, a market research website. And cryptocurrencies continue to proliferate, raising money through initial coin offerings, or ICOs.The total value of all cryptocurrencies on September 2, 2020 was more than $370 billion, according to CoinMarketCap, and the total value of all bitcoins, the most popular digital currency, was pegged at about $210 billion.
https://www.nerdwallet.com/blog/investing/cryptocurrency-7-things-to-know/

30. Why cryptocurrencies?
Cryptocurrencies appeal to their supporters for a variety of reasons. Here are some of the most popular:
•Supporters see cryptocurrencies such as bitcoin as the currency of the futureand are racing to buy them now, presumably before they become more valuable
•Some supporters like the fact that cryptocurrency removes central banks from managing the money supply, since over time these banks tend to reduce the value of money via inflation
•Other supporters like the technology behind cryptocurrencies, the blockchain, because it’s a decentralized processing and recording system and can be more secure than traditional payment systems
•Some speculators like cryptocurrencies because they’re going up in value and have no interest in the currencies’ long-term acceptance as a way tomove money
https://www.nerdwallet.com/blog/investing/cryptocurrency-7-things-to-know/

31. Types of Cryptocurrencies
The crypto world has come a long way since the introduction of Bitcoin –with 1,000 active cryptocurrencies on the
market and more being constantly added. However some of the big players include not only Bitcoin butalso XRP,
Ethereum, Bitcoin Cash, EOS, Litecoin, Ripple, Tether and Stellar. Even though each currency is different in its
function, development and purpose, what unites them is the underlying meaning of a cryptocurrency. Simply, this
entails a digital currency that is created and secured bycryptography,the art of writing or solving digital
codes.Though cryptocurrencies existed even before the development of Bitcoin, it is important to note that Bitcoin
was the first to be completely decentralised and therefore completely changed the crypto space.
•Altcoins: As the name suggests,Altcoinsrefers to coins that are an alternative to Bitcoin. Some Altcoins are a
close variant Bitcoin, sharing the open sourced nature of Bitcoin, whilst others create their protocol on which to
operate. However,allAltcoins have a unique blockchain upon which their transactions occur.
•Forks: If you’ve delved into the Altcoin space, you would have come across the idea ofForks.Forks represent a
split in the blockchain and allow for the Altcoins to occur. Specifically, forks can be divided into:Hard Forks.An
upgrade in the protocol thatcannotwork with older versions, including Bitcoin Cash.Soft Forks.An upgrade in
the protocol thatcanstill work with older versions, including the Bitcoin Improvement Proposal (BIP).
•Tokens: Finally, we have tokens. These are a fairly generalterm which are impacted by the context in which they
are used. As such, a token can mean:A digital asset.Including a Bitcoin or Altcoin token.A unit of
value.Including how many Bitcoins a person has, described as X Bitcoin tokens.A string of data.The transfer,
storage and creation of cryptocurrencies is done through a string of data known as tokens.A utility token.Allows
a user to access a certain product or service.
https://bitcoin.co.uk/the-four-main-types-of-cryptocurrencies/

32. Cloud
•Cloud computing is the delivery of computing services—
including servers, storage, databases, networking,
software, analytics, and intelligence—over the Internet
(“the cloud”) to offer faster innovation, flexible resources,
and economies of scale.
•You typically pay only for cloud services you use, helping
lower your operating costs, run your infrastructure more
efficiently and scale as your business needs change.
https://azure.microsoft.com/en-in/overview/what-is-cloud-computing/

33. Types of Cloud Computing
•Public cloud: Public clouds are owned and operated by a third-partycloud service
providers, which deliver their computing resources like servers and storage over the
Internet. Microsoft Azure is an example of a public cloud. With a public cloud, all
hardware, software and other supporting infrastructure is owned and managed by the
cloud provider. You access these services and manage your account using a web
browser.Learn more about the public cloud.
•Private cloud: A private cloud refers to cloud computing resources used exclusively by
a single business or organisation. A private cloud can be physically located on the
company’s on-site datacenter. Some companies also pay third-party service providers to
host their private cloud. A private cloud is one in which the services and infrastructure
are maintained on a private network.Learn more about the private cloud.
•Hybrid cloud: Hybrid clouds combine public and private clouds, bound together by
technology that allows data and applications to be shared between them. By allowing
data and applications to move between private and public clouds, a hybrid cloud gives
your business greater flexibility, more deployment options and helps optimise your
existing infrastructure, security and compliance.Learn more about the hybrid cloud.
https://azure.microsoft.com/en-in/overview/what-is-cloud-computing/

34. Types of Cloud Services
•Infrastructure as a service (IaaS): The most basic category of cloud computing services. With IaaS, you rent IT infrastructure—servers and virtual machines (VMs), storage, networks, operating systems—from a cloud provider on a pay-as-you-go basis.
•Platform as a service (PaaS): Platform as a service refers to cloud computing services that supply an on-demand environment for developing, testing, delivering and managing software applications. PaaS is designed to make it easier for developers to quickly create web or mobile apps, without worrying about setting up or managing the underlying infrastructure of servers, storage, network and databases needed for development.
•Serverless computing: Overlapping with PaaS, serverless computing focuses on building app functionality without spending time continually managing the servers and infrastructure required to do so. The cloud provider handles the setup, capacity planning and server management for you. Serverless architectures are highly scalable and event-driven, only using resources when a specific function or trigger occurs.
•Software as a service (SaaS): Software as a service is a method for delivering software applications over the Internet, on demand and typically on a subscription basis. With SaaS, cloud providers host and manage the software application and underlying infrastructure and handle any maintenance, like software upgrades and security patching. Users connect to the application over the Internet, usually with a web browser on their phone, tablet or PC.
https://azure.microsoft.com/en-in/overview/what-is-cloud-computing/

35. Internet of Things (IoT)
•The Internet of Things (IoT) describes the network of physical objects—“things”—that
are embedded with sensors, software, and other technologies for the purpose of
connecting and exchanging data with other devices and systems over the internet.
These devices range from ordinary household objects to sophisticated industrial tools.
With more than 7 billion connected IoT devices today, experts are expecting this
number to grow to 10 billion by 2020 and 22 billion by 2025. (Oracle)
•The primary difference between the Internet of Things and the Internet of Everything
are the pillars for the concepts:
•The Internet of Thingsfocuses on physical objects.
•The Internet of Everythingfocuses on four constituents: people, things, data and
processes.
•Simply put, the Internet of Things involves the interconnectivity of physical objects and
data input and output, while the Internet of Everything is a comprehensive term that
refers to the interconnectivity of various technologies, processes and people.
https://www.salesforce.com/eu/blog/2020/01/evolution-of-the-internet-of-things-and-internet-of-everything.html

36. Internet of Everything (IoE)
•The Internet of Everything is based on the idea of all-around connectivity, intelligence and cognition. Unlike computerised devices that rely on intelligent internet connections, any object can be fitted with digital features and connected to a network of other objects, people and processes, with the goal of converting information into actions for new capabilities and experiences.
•The Internet of Everything’s pillars are:
•Decentralisation: Data is processed in numerous distributed nodes, and not within a central system.
•Data input and output: External data can be stored on devices and returned to other components within the network.
•Connection to every technology in digital transformation: The Internet of Everything connects to cloud computing, artificial intelligence, big data, the Internet of Things, machine learning and other vital future technologies.
•The constituent elements of the Internet of Everything are:
•People: People offer personal insights through connected devices, such as healthcare sensors and social media, and artificialintelligence, and other technologies analyse the data to discover insights about human concerns and deliver personalised content that’s relevant to their needs.
•Things: Things encompass the Internet of Things or the physical objects with sensors that generate data and transfer it through the network.
•Data: Data from devices is raw, but once aggregated and analysed it can be used for actionable decisions and intelligent solutions.
•Processes: Processes are based on other current technology, such as social networking, machine learning and artificial intelligence to provide relevant information to a particular person. In this way, the Internet of Everything maximises the potential of big data.
•The primary components of the Internet of Everything are hardware, software and services.
https://www.salesforce.com/eu/blog/2020/01/evolution-of-the-internet-of-things-and-internet-of-everything.html

37. Mobile
•Mobile technology is technology that goes where
the user goes. It consists of portable two-way
communications devices, computing devices and
the networking technology that connects them.
•Currently, mobile technology is typified by
internet-enabled devices like smartphones, tablets
and watches. These are the latest in a progression
that includes two-way pagers, notebook
computers, mobile telephones (flip phones), GPS-
navigation devices and more.
•The communications networks that connect these
devices are loosely termed wireless technologies.
They enable mobile devices to share voice, data
and applications (mobile apps).
•Mobile technology is pervasive and growing. The
number of smartphone users has climbed beyond
3 billion¹and the global mobile workforce is
expected to reach 1.87 billion by2022.²
https://www.ibm.com/topics/mobile-technology

38. 5G is coming!
5G is the 5th generation mobile network. It is a new
global wireless standard after 1G, 2G, 3G, and 4G
networks. 5G enables a new kind of network that is
designed to connect virtually everyone and
everything together including machines, objects, and
devices.
5G wireless technology is meant to deliver higher
multi-Gbps peak data speeds,ultra low latency, more
reliability, massive network capacity, increased
availability, and a more uniform user experience to
more users. Higher performance and improved
efficiency empower new user experiences and
connects new industries.
• 5G is significantly faster than 4G
• 5G has more capacity than 4G
• 5G has significantly lower latency than 4G
• 5G is a unified platform that is more capable than 4G
• 5G uses spectrum better than 4G
https://www.qualcomm.com/invention/5g/what-is-5g

39. Projected impact of 5G
https://www.qualcomm.com/invention/5g/economy

40. Augmented Reality (AR)
Augmented reality overlays digital content and information onto the physical world —as if they’re actually therewith you, in your own space.
AR opens upnew ways for your devices to be helpful throughout your day by letting you experience digital content in the same way you experience the world.
It lets you search things visually, simply by pointing your camera at them. It can put answers right where your questions are by overlaying visual, immersive content on top of your real world.
https://arvr.google.com/ar/

41. Social Media
•Social media is a collective term for websites and
applications which focus on communication,
community-based input, interaction, content-sharing
and collaboration. Different types of social media are
normally dedicated to forums,microblogging, social
networking, social bookmarking, social curation,
andwikisare among the.
•Many individuals will use social media to stay in touch
and interact with friends and family, while others use it
to communicate with different communities. Many
businesses will use social media as a way tomarket and
promote their products. In addition, business to
consumer (B2C) websites include social components,
such as comment fields for users. Other tools have been
created to aid intracking the number of mentions and
brand perception.
•Social media has become larger and more accessible
thanks to access to mobile applications, with some
examples of social media including Twitter, Facebook,
LinkedIn. (Techtarget)

42. Virtual
Reality (VR)
Virtual reality is the
use of computer
technology to create
the effect of an
interactive three-
dimensional world in
which the objects have a sense of
spatial presence.
https://www.nas.nasa.gov/Software/VWT/vr.htmlhttps://blog.frontiersin.org/2020/02/05/to-the-frontiers-of-virtual-reality/

43. Tech Stacks
evolve!
https://chiefmartec.com/2018/01/marketing-tech-stack-evolve-time/

44. Digital Business Models
•Business Model
•Digital Business Model
•B2C
•B2B

45. What’s a Business Model?
HOW DOES A COMPANY WORK?HOW DOES IT RUN ITS
BUSINESS?
HOW DOES IT CREATE, CAPTURE
AND DELIVER VALUE?

46. All models are wrong!
All models are wrong, but some are useful! –George Box

47. Why do
we need a
Business
Model?
From: Digital Business Models –Bernd W. Wirtz, 2019

48. Evolution of Business Models
From: Digital Business Models –Bernd W. Wirtz, 2019

49. Business Plan
vs. Business
Model
https://www.businessmodelcompetition.com/general-information.html

50. Business
Model
Levels
From: Digital Business Models –Bernd W. Wirtz, 2019

51. Components
of a
Business
Model

52. Describing
a business
model
•Alexander Osterwalder
created Business Model
Canvas (BMC) as a visual
tool
•It is a simple and powerful
way to describe how a
company intends to make
money
•Nine blocks cover four
main area: customers, offer,
infrastructure and financial
viability.
https://www.123rf.com/photo_129012742_stock-vector-business-model-canvas-template-with-icons.html

53. Drivers of
Business
Model
Innovation
From: Digital Business Models –Bernd W. Wirtz, 2019

54. Stages of
Developmen
t in Digital
Business
Integration
From: Digital Business Models –Bernd W. Wirtz, 2019

55. Digital Business
Model (DBM)
Framework
•Digitization is compelling
companies to move their
business models on two
dimensions.
•They are moving from
controlled value chains to
more complex, networked
systems.
•They are moving from less
familiarity with customer
needs and life events to a
better, closer understanding
of them, resulting in better
customer engagement.
From: What’s Your Business Model? –Peter Weill and Stephanie L. Woerner

56. Ecosystem Drivers outperform!
Ecosystem driver: organizer of an ecosystem, a coordinated network of enterprises, devices, and customers to create value for all participants, which is the destination in a particular domain (such as shopping), ensuring great customer service; includes complementary and sometimes competitor products
From: What’s Your Business Model? –Peter Weill and Stephanie L. Woerner

57. Components of a Digital Business
Model
https://sloanreview.mit.edu/article/optimizing-your-digital-business-model/

58. Sources of
Competitive
Advantage in
Next-
Generation
Enterprises
From: What’s Your Business Model? –Peter Weill and Stephanie L. Woerner

59. Key
questions for
transformati
on in the
digital
economy
Threat: How strong is the digital threat to your business model?
Model: Which business model is best for your enterprise’s
future?
Advantage: What is your competitive advantage?
Connection: How will you use mobile technologies and the
internet of things (IoT) to connect and learn?
Capabilities: Are you buying options for the future and
preparing for the necessary organizational surgery?
Leadership: Do you have the leadership at all levels to make
transformation happen?
From: What’s Your Business Model? –Peter Weill and Stephanie L. Woerner

60. Digital
Business
Model
Innovation
From: Digital Business Models –Bernd W. Wirtz, 2019

61. A Businerss
Model
Innovation
Framework
From: Digital Business Models –Bernd W. Wirtz, 2019

62. B2C Digital
Business
Model:
4C-Net
From: Digital Business Models –Bernd W. Wirtz, 2019

63. Developing Hybrid Business Models
From: Digital Business Models –Bernd W. Wirtz, 2019

64. Drivers for
Developing
Hybrid
Business
Models
From: Digital Business Models –Bernd W. Wirtz, 2019

65. B2B Digital
Business
Models:
4S-Net
From: Digital Business Models –Bernd W. Wirtz, 2019

66. Assessing
Your Digital
Business
Model
https://sloanreview.mit.edu/files/2013/03/a0741a07b2.pdf

67. Success
Factors of
Digital
Business
From: Digital Business Models –Bernd W. Wirtz, 2019

68. From Pipes to Platforms…
Pipeline businesses create value by controlling a
linear series of activities—the classic value-chain
model. Inputs at one end of the chain (say, materials
from suppliers) undergo a series of steps that
transform them into an output that’s worth more:
the finished product. Apple’s handset business is
essentially a pipeline. But combine it with the App
Store, the marketplace that connects app
developers and iPhone owners, and you’ve got a
platform.
Shifts involve:
•From resource control to resource orchestration
•From internal optimization to external interaction
•From a focus on customer value to a focus on
ecosystem value

69. Network Effect
•AT&T Annual Report, 1908: “A telephone —without a connection at the other end of the line —is not even a toy or a scientific instrument. It is one of the most useless things in the world. Its value depends on the connection with the other telephone—and increases with the number of connections.”
•70%of value in tech is driven by network effect!
https://www.nfx.com/post/network-effects-manual/

70. People
Dimensions

71. Digital Organization
•Structure: What is the right organizational structure for
a digital transformation or business?
•Leadership: Which leaders should “own” digital (for
example, do I need a Chief Digital Officer)?
•Culture: What cultural mind-sets are important in a
digital transformation, and how can I build them?
•Operating model: How do I set up my teams’ operating
model to be more agile?
•Talent and skills: What digital talent do I need and how
should my HR processes be different for this population?
•Sequencing the journey: How do I get started on the
digital organizational change process? How fast should I
move? When are the most challenging phases?
https://www.mckinsey.com/business-functions/mckinsey-digital/how-we-help-clients/digital-organization

72. The
Changing
Nature of
Work

73. Changing nature of work…
If the nature of
work (“what we
work”) is
changing so
radically, could
the way we work
(“how we work”)
stay the same?

74. From Traditional to Lifelong
Learning…
https://www.researchgate.net/publication/306235068_Lifelong_learning_in_knowledge_society

75. Digital Skills
•Digital skills are defined as a range of abilities to use digital devices, communication applications,
and networks to access and manage information. They enable people to create and share digital
content, communicate and collaborate, and solve problems for effective and creative self-
fulfillmentin life, learning, work, and social activities at large.
•Entry-level digital skills, meaning basic functional skills required to make basic use of digital
devices and online applications, are widely considered a critical component of a new set of literacy
skills in the digital era, with traditional reading, writing, and numeracy skills.
•At the advanced spectrum of digital skills are the higher-level abilities that allow users to make use
of digital technologies in empowering and transformative ways such as professions in ICT. Major
digital transformations such as Artificial Intelligence (AI), machine learning, big data analytics,
change skills requirements and, in turn, impact capacity building and skills development for the
21st century digital economy.
•To thrive in the connected economy and society, digital skills must also function together with
other abilities such as strong literacy and numeracy skills, critical and innovative thinking, complex
problem solving, an ability to collaborate, and socio-emotional skills.
https://en.unesco.org/news/digital-skills-critical-jobs-and-social-inclusion

76. Lack of Digital Skills…
•When questioned, the professionals revealed the ways
in which the digital skills gap is negatively affecting their
firm’s current performance:
•decreased productivity (56%)
•inability to implement time/cost-saving technology (47%)
•less agile/adaptable (43%)
•reduced competitiveness (41%)
•lower profitability (37%)
https://www.themanufacturer.com/articles/what-are-the-digital-skills-businesses-most-lack/

77. https://www.themanufacturer.com/articles/what-are-the-digital-skills-businesses-most-lack/

78. https://www.themanufacturer.com/articles/what-are-the-digital-skills-businesses-most-lack/

79. Global
•Globally, 85% of respondents said they need digital skills in their job, but 56%
said their skills need expanding and only 29% said their skills are sufficient.
•78% of respondents in China and 70% in Bulgaria see a need to expand their
digital skills, in contrast to 42% in the USA, 42% in the UK, 43% in Germany.
•Only 32% of European respondents learned their digital skills at work or during
their studies, with 67% saying they had to teach themselves.
•83% of Indian respondents and 76% in China get up to five or more hours of
digital training each week, compared to less than 50% in Western Europe.
•In China, 53% of respondents spend between one and five hours of their own
time per week improving their skills, with 14% spending longer. In Germany,
only 35% and 6%, respectively, would do the same.
https://www.vodafone-institut.de/studies/global-study-finds-that-56-of-employees-lack-the-digital-skills-they-need-for-jobs-in-the-future/

80. India
•The People Matters report highlights that 87 percent of
companies agreed that digital skilling is important for
the future. Despite this, 65 percent of companies
admitted that they do not have a clear roadmap to this
process.

81. T-shaped
https://joannekoosg.com/2017/09/01/vs-i-vs-t-vs-x-shaped-skills/

84. Why not?
https://devopsinstitute.com/2017/11/15/from-i-shaped-to-t-shaped-why-devops-professionals-need-to-be-multi-skilled/

86. Self-organizing teams
“Self-managing and self-designing
teams...when well designed and well
led, they can be a self-correcting and
renewable collective resource, an
organizational feature that builds
rather than expends human capital.
But when they go sour, they can do real
damage both to organizations and to
people. Managers who clearly specify a
team’s authority, and who make certain
that team members understand both
the extent and the limits of their
responsibilities, go a long way toward
making the former outcome more
likely than the latter.”
Source: Leading Teams: Richard Hackman

87. …leads to High Performance
http://www.stevedenning.com/Radical-Management/most-high-performance-teams-are-self-organizing.aspx

88. Social Alignment
•Improving Social Alignment During Digital Transformation -Andrew Burton-Jones, Alicia Gilchrist, Peter Green, Michael Draheim, Communications of the ACM, September 2020,
•Social alignment among groups of stakeholders occurs when different stakeholder groups share understanding of a business outcome and commit to the outcome and the means to achieve it.
•We had a unique chance to learn answers to these questions through our involvement in a longitudinal case study of a digital transformation. The case involved the launch of one of Australia's first large-scale digital hospitals, one of the most significant organizational changes ever undertaken by an Australian health service.
https://cacm.acm.org/magazines/2020/9/246940-improving-social-alignment-during-digital-transformation/fulltext

89. Research Findings
•We found in our research that the process of achievingsocial misalignmentinvolved four phases as did the process of achievingsocial alignment.These processes were linked, such that stakeholders moved through misalignment and alignment in a non-linear fashion.
•When we studied the trajectory closely and mapped it out, we noticed improvements in the trajectory due to practices that managers adopted.
•We also noticed poor trajectories when managers enacted these practices ineffectively or not at all.
•Through analysis, we identified three practices that help improve social alignment—Ramping, Holding, and Peaking.

91. Improving Social Alignment

92. Ramping
Ramping practices accelerate alignment by getting
stakeholders to commit at a faster rate than they otherwise
would.Three practices appeared to improve Ramping. The
common idea underlying all three is that to commit early and
strongly, stakeholders had to believe the project
wascredible—that it would go ahead and succeed. There was
a long history of failed IT projects in that region, and in EMR
projects globally. No one wanted to be part of a failure.
•Creating multifunctional teams with recognized leaders
•Motivating attention to operational matters as the foundation for
innovation
•Managing not avoiding risk

93. Holding
Holding practices maintain alignment in the face of pressures to separate. Figure 2, where the second fall in the curve for HoldThisis shown iningfalls slower and shallower than the second fall in the Baseline curve. We observed three practices that facilitated Holding at the hospital. The common idea underlying all three is the transformation was nowownedby the business and the business needed to partner with IT to "bed down" and improve the system. In short, these practices gave the motivation and the structures to stay together.
•Adjusting governance structures
•Reallocating funding and resources
•Managing expectations and knowledge-sharing

94. Peaking
Peaking practices increase alignment to even higher levels. This is shown inFigure 2, where the second rise in the curve for Peaking rises higher than the corresponding rise in the Baseline curve. To achieve peaking required team members to be more able and motivated than previously. When we observed practices that facilitated Peaking, the common factor was that theyrelated to the base of the pyramidinFigure 1—connection and respect. Connection gave teams a common identity and motivation and facilitated mutual learning that enabled members to perform to even higher levels, while respect enabled staff to put differences aside, trust each other, and focus on achieving the best solution possible.
•Co-locating teams
•Getting the right people at the right time in the right roles
•Understanding the 'why?'

95. Ambidextrous Organization
•To flourish over the long run, most companies need to maintain a variety of innovation efforts. They must constantly pursueincremental innovations,small improvements in their existing products and operations that let them operate more efficiently and deliver ever greater value to customers.
•Companies also have tomakearchitectural innovations,applying technological or process advances to fundamentally change some component or element of their business.
•Finally, businesses need to come up withdiscontinuous innovations—radical advances like digital photography that profoundly alter the basis for competition in an industry, often rendering old products or ways of working obsolete
https://hbr.org/2004/04/the-ambidextrous-organization

96. Three Box Solution
In his seminal bookThe Three-Box Solution, Vijay Govindarajan offered an amazingly simple and highly effective framework for leading innovation:
•Execute the present core business at peak efficiency (Box 1)
•Avoid the inhibiting traps of past success (Box 2)
•Build a future day by day through breakthrough innovations (Box 3)
http://www.3boxsolution.com/book/

97. Open
Innovation
“In the new model of open innovation, a company commercializes both its own ideas as well as innovations from other firms and seeks ways to bring its in-house ideas to market by deploying pathways outside its current businesses. Note that the boundary between the company and its surrounding environment is porous (represented by a dashed line), enabling innovations to move more easily between the two.”
https://sloanreview.mit.edu/article/the-era-of-open-innovation/

98. Closed vs. Open Innovation
https://sloanreview.mit.edu/article/the-era-of-open-innovation/

99. Organization Design (OD)
•Organization Design sets out to answer the question, ‘What
is the best way to organize a group with a shared purpose to
get things done and achieve its strategic intent?’ The aim of
organization design is to find the optimal form for an
organization to maximize its performance. Form is much
more than structure; organizations need to be viewed
holistically with many more dimensions considered and kept
in alignment. If notenough change is made across these
dimensions the desired progress will not be made.
•Organization Design: A guide to building effective
organizations by Patricia Cichockiand Christine Irwin ?(2011)

100. Galbraith’s Star Model
Jay Galbraith developed his "Star Model™"
framework for analyzingorganizations in
the 1960s.
“The Star Model™ framework for
organization design is the foundation on
which a company bases its design choices.
The framework consists of a series of
design policies that are controllable by
management and can influence
employee behavior.
The policies are the tools with which
management must become skilled in
order to shape the decisions and
behaviorsof their organizations
effectively.”
https://www.jaygalbraith.com/images/pdfs/StarModel.pdf

101. Implications of Star Model
•The Star Model™ shows the levers that managers can
control, and as a result, can affect employee behavior. By
choosing the desired behavior, managers can influence
the organization's performance as well as its culture.
•Implications of the Star Model™:
•Organization design is more than just structure
•Different strategies lead to different organizations
•For an organization to be effective, all the policies must be
aligned with one another
https://www.jaygalbraith.com/services/star-model

102. Organization Design affects
Behavior and Culture…
“Different strategies lead to different organizations. Although this seems obvious, it has ramifications that are often overlooked. There is no one-size-fits-all organization design that all companies–regardless of their particular strategy needs–should subscribe to.”
https://www.jaygalbraith.com/images/pdfs/StarModel.pdf

103. The Reconfigurable Organization
https://www.jaygalbraith.com/component/rsfiles/download?path=whitepapers%252Freconfigurableorg.pdf

104. Holacracy
•Holacracyis a new way of structuring and running your organizationthat replaces the conventional management hierarchy. Instead of operating top-down, power is distributed throughout the organization –giving individuals and teams freedom while staying aligned to the organization’s purpose.
•HOW ARE HOLACRACY-POWERED ORGANIZATIONS DIFFERENT?
•THEY’RE PURPOSE-DRIVEN
•THEY’RE RESPONSIVE
•THEY USE EXPLICIT “RULES OF THE GAME”
•THEIR ROLES & RESPONSIBILITIES ARE TRANSPARENT
https://www.holacracy.org/explore/why-practice-holacracy

105. https://www.mountaingoatsoftware.com/blog/holacracy-and-the-search-for-agile-organization

106. Designing a Holacratic
Organization…

107. Any many many more…
•Requisite Organization
•Sociocracy
•Beyond Budgeting
•Teal Organization

108. Continuum of Leadership Behavior
https://hbr.org/1973/05/how-to-choose-a-leadership-pattern

109. Digital Culture
•Organizations that
focus on transforming
culture and building
capabilities during a
transformation are 2.5
times more likely to
succeed. (McKinsey)
https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/culture-for-a-digital-age

110. https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/culture-for-a-digital-age

111. Core Elements of a Digital Culture
A digital culture empowers people to deliver results faster.Digital organizations move faster than traditional ones, and their flatter hierarchy helps speed decision making. A digital culture serves as a code of conduct that gives employees the latitude to make judgment calls and on-the-spot decisions.
•It promotes an external, rather than an internal, orientation.
•It prizes delegation over control
•It encourages boldness over caution
•It emphasizes more action and less planning
•Itvalues collaboration more than individual effort
https://www.bcg.com/publications/2018/not-digital-transformation-without-digital-culture

112. Recap