Digital Transformation.pdf

Digital Transformation Masterclass by Code.Hub

1. Digital
Transformation

2. 2
•What is DX and why it is needed
•Current Business Environment
•Examples of Successful DX
•Technologies for DX
•Tools for DX
•DX Framework (what to transform)
•DX Roadmap (how to transform)
•Measuring DX
•Common Challenges for DX
Agenda

3. Why Digital Transformation
is needed

4. 4
Market leader in photography
Invented the digital camera -1975
$3B Income, 15K Employees -1990
Bankruptcy in 2001

5. 5
Case Study:Kodak
What went wrong in the case of Kodak?
•Did not appreciate the pace of disruption
•Focused on evolution but competition on revolution
•Too much invested in traditional photography
•Tried to be perfect instead of being first
•Did not appreciate what customers really wanted

6. 6
Best Mobile Phone Brand in 1998
Nokia 1100 best-selling phone -2003
$4B Profits in 1999
Sold to Microsoft
in 2013

7. 7
Case Study:Nokia
What went wrong in the case of Nokia?
•Did not appreciate the pace of disruption
•Focused on evolution but competition on revolution
•Tried to be perfect instead of being first
•Did not appreciate what customers really wanted

8. 8
Business Disruption Examples
Newspapers the web
Phones Apple
DVDs Streaming
Books Amazon
Photography mobile phones
Retail Online shopping
Music sales YouTube, Spotify
Television Netflix
Automotive industry Tesla
Airbnb Hospitality
What do all these disruptors
have in common?
They are ALL digitaldisruptors

9. Current
Business Environment

10. 10
Current Business Environment:
Lean and Agile Practices
Optimize the whole
•Make continuous improvements in a business operation
•Remove ineffective practices and unprofitable products
Eliminate waste
•Waste is anything that adds more cost but does not return more profit
Deliver fast value to customer
Assure quality at the source
•Correct mistakes when they occur
Create knowledge

11. 11
Current Business Environment:
Social Responsibility
Customer choice criteria are not just product-focused
Serve interests other than that of shareholders
•Responsibility to employees
•Responsibility to consumers
Must protect the interests of the society
•Comply to ethics
•Comply to legislation
Do not damage the environment
•Do not waste resources
•Adopt eco-friendly technologies

12. 12
Current Business Environment:
Innovation
Companies that don’t produce new products and
services do not look relevant.
Business differentiation
•Standing out from the pack ensures the business can survive
the flooding of the market.
Customers know that requesting extreme services is
normal
•There will always be a company which offers whatever is
asked for.
Innovation should be a top priority for companies
•Requires investments in time, resources, changing the ways
of thinking

13. 13
The S-Curve of Technological Innovation
Innovation has a shorter lifecycle.
The S-Curve of Technologies and
Operating Models based on them.
Sooner or later, all technologies
become obsolete
•In the past, “sooner” was a 1-2
decades, and “later” was much
longer.
•Today “sooner” is 3-5 years .

14. 14
In Summary:why DX is imperative
Customers want everything, they want it now,
and they can instantly see who else has got it.
New companies appear in short spaces of time
and disrupt the business area.
Employees see the progress taking place
elsewhere and may feel trapped in a legacy
environment.
Any type of waste raises the cost for no good
reason and puts the company in a disadvantage.
Innovation is so rapid that if the company is not
up-to-date, it appears outdated.
“It’s not the strongest of the
species that survives, nor
the most intelligent;
but the one
most responsive to change”.
Charles Darwin
“Change is the law of life.
And those who look only to
the past or present are
certain to miss the future”.
John F Kennedy

15. What is
Digital Transformation

16. 16

17. 17

18. 18
Digital Transformation: DX
Many definitions exist.
Digital transformation is the integrationof digital technology
into all areasof a business, fundamentallychanging howyou
operate and deliver value to customers. It's also a cultural change
that requires organizations to continually challengethe status
quo, experiment, and get comfortable with failure.
So:
digitize everything with a purpose,
and always ask how to improve
enterprisersproject.com

19. 19
Terminology:
Common Misconceptions
the process of converting
information from a physical
format to digital one.
improving processes by leveraging
digital technologies and digitized data
implementing a series of technological and
human changes to restructure the existing
business models, thereby leading to new
opportunities and values for the company
Example:

20. 20
Digital Transformation Benefits
Improved efficiency
and productivity
Improved decision
making
Improved customer
satisfaction
Increased agility
and innovation
Better employee
engagement/culture
Reduced costs and
increased profits

21. Examples of Successful
Digital Transformation Projects

22. 22
DX Example: Starbucks
Deep Brew:an AI platform that is used for continuous innovation
and provide a world-class experience for coffee lovers
•It can is used to find the best locations for its new restaurants.
•AI tool analyzes data (e.g. population, income levels, traffic, competitors, etc.)
•After analysis, the tool can create forecast revenues, profits, etc.
•Alsoconnected with the Starbucks Rewards
loyalty program which provides a “radically
personalized” experience
•AI analyzes preferences, purchase history,
ordering habits, even weather, etc.
•Starbucks app or on the drive-thru menu can present
customers with thoughtful, personalized choices

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DX Example: IKEA
Redefined DIY
•Acquired TaskRabbit
•home delivery and furniture assembly
•service added valuable new data streams of customer
info the company could use to develop new products
and target its advertising and services more effectively
to digital natives
IKEA Place
•An augmented reality tool
•enables you virtually "place" IKEA products in
your space

24. 24
DX Example: LEGO
LEGO was on the verge of bankruptcy in
2004. They embarked on a massive digital
transformation program aimed at diversifying
their revenue streams
•invested in movies
•invested in mobile applications and games that
blended the physical and digital worlds
•Example: offered a 3D design platform (Digital
Designer platform)
•involve LEGO Fans in the design of company's
future products

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DX Example: NIKE
Nike, felt they were starting to become sluggish and outdated.
•focused on more powerful data analytics
•created stronger digital marketing campaigns (story telling)
•updated e-commerce strategy (direct customer sales and personalization)
•implemented a number of digital technologies
•Nike Fit App
•scans your feet, measures their full shape, and
determines perfect fit shoes
•Nike+ App
•feedback on their performance, expert advice
from professional athletes
•special pricing and promotions on Nike purchases
•Nike uses customer data to provide targeted
promotions and rewards

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DX Example: Domino’s
The pizza chain evolved from near bankruptcy
into one of the most advanced companies in the
restaurant business
•Personalization
•build your own pizza –give it a name
•Various ordering techniques
•website, mobile, smartwatch, smart TV, SMS, Twitter etc.
•Fast ordering
•place an order while waiting at stoplight (20 secs)
•customers can save orders they get most frequently
•Real-time Tracking
•helps customers know when the order will arrive

27. Technologies for
Digital Transformation

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DX Technologies:Cloud Technologies
The distribution of on-demand computing
services, such as applications, storage, and
processing power, through the Internet
It is considered a key DX technology.
Ιt provides:
•higher flexibility and mobility
•enhanced security
•cost efficiency
•increased scalability and agility

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DX Technologies:Internet of Things
The interconnection via the Internet of
devices embedded in everyday objects,
enabling them to send and receive data
•Devices acquire real-world data via sensors
•Connect to the cloud to transmit data and/or
receive commands
•Data is stored in cloud and analyzed to create
insights which are presented to user
•Command the “things” to perform specific tasks
based on insights
IoTis regarded as one of the most important DX technologies

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IoT Categories
Consumer IoT products (smart)
Smart cities

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IIoTManufacturing Use Cases
Flexibility in Automation
•Production Line Customization/Configuration
•Flexible integration of new tech (e.g. 3D print)
Predictive Maintenance
•Big data analytics over multiple sensor data
•Automatic estimation of RUL (remaining useful life)
•Maintenance at best optimal time
•Reduced downtime, increased safety

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IIoTManufacturing Use Cases
Zero Defect Manufacturing
•Data collection from production line and
supply chain
•Main goal: why a defect/error happened
•Proactive handling of errors and defects
Supply Chain Optimization
•Flexibility across the supply chain
•track location, movement, ETA; monitor storage or
container conditions of products/materials; locate
storage product in storage, etc.

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DX Technologies:Big Data Analytics
Big Data is a term that describes collections of data that are too large
or complex to be analyzed using traditional means
•Sources of data: business processes, application logs, networks, social media,
sensors, mobile devices etc.
Big data analytics can processhugeand diverseamounts of data to
extract the right info for a particular business to help them model
their strategies and take relevant/better decisions
Real World Big Data Examples
•discovering consumer shopping habits
•finding new customer leads
•monitoring health conditions from data from wearables
•predictive inventory ordering

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DX Technologies:AI and Machine Learning
AI, the field dedicated to making machines smart.
Machine learning is a division of AI that allows systems to learn and
improve from experience.
Machine Learning algorithms help the systems to identify patterns in a
given data and make predictions.
Machine Learning Applications:
•Image and video recognition
•Sentiment Analysis
•Voice Recognition
•Product Recommendation –Example: NetFlix

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DX Technologies:Robotic Process Automation
Technology that employs bots to automate business processes
that are rule-based, structured and repetitive.
RPA:
•reduces costs
•prevents human error
•takes the burden of performing mundane tasks and helps employees
focus on work that demands their expertise
Examples:
•Call center operations
•Help desk
•Onboarding employees

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DX Technologies:Augmented Reality
AR offers virtual elements as an overlay
to the real world in real time.
It provides more seamless connections
between the real world, the computer
world, and the human world.
Not to be confused with Virtual Reality
•produces an entirely computer-generated
simulation of an alternate world at any time
(e.g. the Matrix)
Exciting potential in the future of
gaming, marketing, e-commerce,
education and many other fields

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DX Technologies:Digital Twin
Like AR, digital twins reduce the gap
between physical and digital worlds
A digital copyof a physical object or
process that uses real-world data to
create simulations that can predict
how a product or process will perform
Benefits of a digital twin differ
depending when and where it is used.
Examples:
•manufacturing, energy systems,
healthcare, hotels etc.

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DX Technologies: the top
Cloud
Technology
IoT
Augmented
Reality
Big Data
AI and
Machine Learning
Robotic Process
Automation
Digital
Twin
Mobile
Social Media

39. 39

40. Tools for
Digital Transformation

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DX Tools:Cloud Storage
•Cloud storage solutions are crucial for companies looking for
superior information management.
•Advantages of cloud storage:
•cost efficiency
•increased scalability
•increased accessibility
•enhanced security
•Examples:
•MS OneDrive, Google Drive, Dropbox

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DX Tools:Collaboration Tools
•Work has become more agileand more collaborative.
•A digital workplace is required to unite content, people and
applications on a single platform.
•It’s impossible to ignore cloud solutionsas the right answer.
•Examples:
•Microsoft Office 365 (Word, Excel, Teams, Outlook, OneDrive etc.)
•Google Workspace (Gmail, Docs, Drive, Calendar etc.)

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DX Tools:Communication Tools
•Good communication is a prerequisite for
the successof any company as it impacts
productivity.
•Old solutions (email) don’t cut it any longer.
•Communication platformscentralizeall
important information and provide a single
source of truth.
•Examples:
•Instant messaging: MS Teams, Slack
•Enterprise social networks: Yammer, Jostle

44. 44
DX Tools:Project Management Tools
•Successful project management means greater
efficiency.
•Important to have the right digital project
management tooland ensurethe tool is
widely adopted.
•It will lead to more productive employees,
successful projects and happy customers.
•Examples of well-known project management
solutions:
•Jira, Trello, Asana, Monday

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DX Tools:Content Management Tools
•Most companies use a solution in the form of a
Content Management System(CMS).
•Examples: WordPress, Drupal, Joomla, Prestashop
•A regular CMS offers a way to:
•1) store data, 2) interface for CRUD, 3) display data
•The problem: content can be distributed to
multiple channels (omni-channel) and a
seamless customer experienceis needed
•Channels: website, mobile, smart watch, smart TV, VR
glasses, airport huge screen, car screen etc.
•Solution: Headless CMS. It offers:
•1) store data, 2) interface for CRUD
•Examples: Contentful, Strapi, Contentstack

46. 46
DX Tools:SCM, CRM, ERP Tools
SCM CRM ERP
Main focus:supply chain management customer relationships complete business solution
Benefits
•improved visibility of the
product lifecycle
•forecasting and trending
•process automation
•seamless deliveries/
returns
•increase sales
•improves customer
satisfaction
•prioritizes customers
•manages loyalty programs
•customer support
•gain business insights,
planning, forecasting
•streamline processes
•enhances productivity
•improves collaboration
•reduces human error
Who uses it Anyone in the SC Front-end(sales, marketing)Back-end(accounting, HR)
Whois it forManufacturers, retailers
Practically every business, no
matter size or scope
Practically every business, no
matter size or scope
Software: Does not cover other areasDoes not cover other areasScalable and customizable
Example SAPSCM, Oracle CSM SalesForce,Zoho, Apptivo
Oracle Netsuite
SAPBusinessOne

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DX Tools:Business Intelligence Tools
•Data-driven decision making is increasingly becoming the norm in
modern enterprises.
•Business Intelligence (BI) is an umbrella term that refers to
processes, methods and SW used to collect, store and analyze data
from business operations and activities.
•Big Data Tools:
•Store large amounts of unstructured data and process them to create insights
•Examples: Hadoop, Spark, Hive, Presto, Cassandra
•Business Intelligence Tools:
•Enables businesses to collate, analyze and visualize data
•Examples: Microsoft Power BI, Tableau, Qlik

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DX Tools:Digital Adoption Platforms
•Complex and unfamiliar software can cause negative effects, such as
user burnout, dissatisfaction, and poor performance.
•A relatively new software segment that helps employees learn any
application while they do their job. DAPs promote digital adoption.
•Benefits:
•Reduced onboarding time
•Reduced burden on IT support
•Deeper insight into what works, what doesn’t, and why
•Lowered user resistance to new software technology
•Increased user satisfaction and higher morale
•Examples: Pendo, WalkMe, Whatfix, Appcues

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50. What
to Transform

51. 51
What to Transform: Business Processes
A business process is a structured set of activities that produce a result.
•Manufacturing: order processing, production line, quality assurance, maintenance
•Finance & Accounting: invoicing, billing, payroll, budgeting, expense management
•Human resources: hiring and onboarding, performance management, L&D
Processes should be carefully designed and continually optimized to be
effectiveand efficient.
Process transformations address a specific area of the businessor have
a specific objective.
•e.g. improve customer experience, reduce cost, increase quality etc.

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What to Transform: Business Processes
Well-managed processes convert revenue into profit.
Rethinking of ways things are done.
Questions to address:
•What are the core processesthat we perform in our company?
•Which ones can be automated? How can they be automated?
•How are/can the processes be interconnected?
•How can we use collected data help improve these processes?
•How can we manage across ‘silos’?
Core Process Automation Connected Operations Data-driven Decisions

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What to Transform: Business Processes
Problems with silos
Jargon to indicate ‘how a group works’
•a group is said to be ‘working in a silo’ when its
members find themselves working in a disconnected
manner from other groups
Problems with silos
•bottlenecks
•slow handoffs
•miscommunication
•tooling mismatches
•delivery errors
•excess rework
•conflict (usually the finger-pointing type)

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What to Transform: Employee Experience
Employee experience is the overall emotional encounterof the
employee through every aspect of their journey in a company.
The main drivers for employee experience include:
•Having access to the right tools and tech to fulfill their jobs
•Being given the opportunitiesfor career development and training
•Getting involvedin corporate social responsibility initiatives
•Having a fair degree of flexibilityin their work and a customized
workspace

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What to Transform: Employee Experience
Employees can be either the greatest inhibitors or the greatest
enablers of transformation success.
Companies have begun to focus on the employee experience as
intently as they do on the customer experience
•employees learning additional
skillsto be better equipped to
do their job
•required as digitalization adds
further business ability in
existing domains
•employees learning anew set
of skillsin order to perform a
different job
•will be required as automation
and digitalization takes over
repetitive tasks
•how digital technologies can
augment employee productivity
and performance
•enabling people to work faster,
smarter, and more safely
Up-Skilling Re-Skilling Augmentation

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What to Transform: Domain
New technologies are redefining products/services providing
opportunities to unlock whole new businessesbeyond currently
served markets.
Examples:
•Amazon (online retailer):
•added its own streaming platform (Amazon Prime)
•added Amazon Web Services (AWS), now world’s largest cloud infrastructure
•Microsoft did the same

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What to Transform: Business Model
•Some companies are pursuing digital technologies to transform
traditional business models.
•Business model transformations are aimed at the fundamental
building blocks of how value is delivered in the industry.
•Examples:
•Netflix' reinvention of video distribution
•Apple's reinvention of music delivery (I-Tunes)

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What to Transform: Customer Experience
Customer experience (CX): customers’ holistic perception of their
experience with your business or brand
•the result of every interaction a customer has with your business
•everything you do impacts customers’ perception
CX is the ultimate battleground for many
companies.CX is actually the key to success.
Customer Network Model
Mass-Market Model
Awareness
Consideration
Preference
Action
Loyalty
Advocacy

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What to Transform: Customer Experience
The focus on customers has not radically changed but the
elements needed to create compelling experiences have changed.
Compelling experiences are easy to recognizebut they are quite
hard to design/deliver.
Creating compelling experiences requires:
•equal measures of empathic creativity and technological prowess
•customer intelligence: integrating customer data across silos and
understanding customer behavior
•creating emotional connections (engagement) with the customers

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What to Transform: Digital Platform
The foundation for DX is a well-structured digital platform
•In other words, the technology transformation
Core
Platform
A strong foundation for
operational and transactional
systems that power a company’s
key processes.
Externally Facing
Platform
Data
Platform
Performing intense analytics
and building/testing algorithms,
without disrupting the
company’s operational systems.
Powers the websites, apps, and
other processes that connect to
customers and ecosystem
partners.
DIGITAL PLATFORM

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What to Transform: Digital Platform
Issues to consider
Making use of a new technology is a very complex process:
•need to understand how a technology can be used to contribute to a
transformational opportunity
•need to adapt that technology to the specific needs of the business
•need to integrate it with existing systems
In addition, company’s data may not up to basic standards.
•data quality attributes:
•accuracy, completeness, consistency, reliability, up-to-date etc.
•poor quality data can lead to transaction processing problems, operational
chaos, inaccurate analytics, etc.
•a company needs to determine their data quality levels

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Summary
Customer
Experience
Employee
Experience
Digital
Platform
Business
Processes
Business
Model
Domain
What to
Transform

63. How
to Transform

64. 64
Digital Transformation:
Different Companies, Different Needs
DX begins with the current state
•the current state is substantially different for every company
•each company has different customers, partners, and employees
•each company has different maturity level with digital technologies
DX means different things to different companies
•main idea: increasingly apply technology across the company to
improve operational success

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Level of Digital Maturity:
Different for each company

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Digital Transformation: Key starting point
A company:
•should NOTask “what is digital transformation?”
•but “what does Digital Transformation mean to us?”

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Digital Transformation:
A journey, not a destination
DX is an ongoing process –a journey
•change is the only constant !
•DX is a never-ending process
“How long will the Digital Transformation take?” is a valid question
for certain stakeholders.
•depends on the company and scope of the transformation
•surely DX doesn’t happen quickly
•surely it is a must to create a timeline, plan, measure, review etc.
•surely DX is performed incrementally

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Roadmap for Digital Transformation
Guides/roadmaps with 3 steps, 5 steps, 9 steps, 3.141529 steps
Strategic Steps for Digital Transformation:
Vision. Align on the ‘why’:
Prepare for culture change:
Go ‘digital’ gradually:
Map out the ‘tech’:
Measure DX progress:
What do you want to become? Identify the business needs/goals and built
DX strategy based on them. Company long term strategy is important.
Maybe the most important step. If there is no culture change, there can
never be a digital transformation.
Start small but strategic. DX will not happen overnight. Furthermore, it is
a journey, not a destination.
Map out the technology implementation. Replace existing infrastructure
with new technologies.
Continuously measure the progress and success of DX efforts and refine
accordingly.

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Digital Transformation: Changing Culture
or…

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Digital Transformation: Change of Culture
Change in: organizational capability, structure, way of thinking
•leadership (that’s where DX starts), hierarchy, team organization,
teamwork, ways of working, customer relationship etc.
•Without attention to such critical cultural requirements:
•“new technology” + “old operations” = “expensive old operations”
“The thing that’s transforming is not the technology.
It’s the technology that is transforming you.”

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Digital Transformation: Change of Culture
Develop digital DNA
•empowering people to work in new ways
•get rid of the ‘old way of doing things’ –introduce agility
•always remember that the gravitation towards technology contrasts the
human side of change.
Roles/responsibilities will be expected to change
•build capabilities for the workforce of the future
Implementation of ‘change management methods’ is required

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Effective Change/Transformation
M. Lippitt(1987), “The Managing Complex Change Model”

73. Measuring the Success
of Digital Transformation

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Digital Transformation: Measuring Success
The necessity of DX is becoming clearer all the time.
For a company’s DX efforts to be deemed successful, there is the
need to assess several key performance indicators.
An effective DX is NOT a box companies can check.
•It’s an ongoing processthat requires constant evaluation & adjustment.
How can a company measure success of DX efforts?
•Each company will have its own wayof measuring success.

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Digital Transformation: Measuring Success
How to measure the success/progress of DX?
•Set the goals: What do you want to achieve? What are the objectives?
•Choose a variety of metrics that align with each of the goals.
•Anticipate unintended impacts (change always has a learning curve)

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DX: Goals –Metrics Example

77. Common Challenges
and Key Issues
in Digital Transformation

78. 78
Digital Transformation: Common Challenges
Employee pushback –resistance to change
•it is hard to change the corporate culture (ways of working) and to inspire
employees to embrace change
No clear strategy/vision and lack of leadership
Limited access to required technical expertise
Organizational structure gets in the way (large companies)
Lack of initiative (small companies)
Limited budget (mostly for smaller companies)

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Digital Transformation: Some Key Issues
Technology changes fast, organizations change slow (Martec’slaw)
•People matter more than ever: excite them, enable them, listen to them
The mostcommon mistake is that companies focus on the
technologycomponent of a digital transformation framework.
•DX is less of a digital problem than a transformation problem.
•It is less of a technology problem, than a leadership problem.

80. Why did you attend
DX today?

81. 81
DX: What it means for you at this point
You will definitely be part of DX at
some point. Hopefully you have a:
•clearer picture of what it entails
•understand the many advantages that DX
offers to you as professionals
Realize that:
•change is the only constant
•lifelong learning skills are vital
•No matter your profession/field, you will
have to either upskill or reskill

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My 1
st
wish to you: I hope you learn to …
Realize there is no box
DON’Tthink-out-of-the-box

83. Thank you
for your attention
Questions?Thoughts? Ideas?