Digital transformation ـ Setting the pace.pdf

This presentation explores the concept of pacing in digital transformation, emphasizing how organizations can strategically balance speed, readiness, and sustainability to ensure successful implementation. It analyzes the interplay between strategy, leadership, and organizational culture in determining transformation outcomes. The content discusses varying levels of digital maturity across industries, the role of digital recoupling in aligning business strategy with technological advancement, and the socio-cultural dimensions of transformation. By integrating theoretical perspectives with practical frameworks, the presentation provides evidence-based guidelines for managing the pace of digital transformation to enhance competitiveness, resilience, and long-term organizational growth.

1. Created by
Rawan Alharbi
1
Digital transformation: setting the pace
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2. Articles
Authors Title Published date Sourcing Citation
1 Louise B. Kringelum,
Casper Gamborg
Holm, Jens Holmgren,
Ole Friis , Katrine Freja
Jensen
Digital transformation: strategy comes first to lay the
groundwork
2023 Emerald 12
2 Johan Magnusson,
Viktor Elliot , Johan
Hagberg
Digital transformation: why companies
resist what they need for
sustained performance
2021 Emerald 59
3 Ted Saarikko, Ulrika
H. Westergren, Tomas
Blomquist
Digital transformation: Five
recommendations for the digitally
conscious firm
2020 Elsevier 742
2
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3. Agenda
3
Abstract
Introduction
Digital Transformation: Setting the Pace
Varied Speeds of Digital Maturity
The Role of Strategy in Accelerating or Hindering Pace
Strategies for Digital Recoupling
Recognizing Transformation as a Sociocultural Process
Guidelines for Building a Digitally Aware Business
Recommendations to Control the Pace of Digital Transformation
Example
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4. Abstract
4
In the face of rapid technological advancement, businesses must not only embrace digital transformation but
also control the pace at which it unfolds. This presentation explores how strategic leadership, organizational
readiness, and cultural adaptability intersect to determine the success and speed of transformation efforts. By
analyzing key industry examples, digital maturity levels, and practical strategies for digital recoupling, the
discussion emphasizes the need for a synchronized, agile approach that balances innovation with sustainable
growth. Ultimately, setting the right pace is a critical determinant of competitive advantage in the digital age.
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5. Introduction
5
Digital transformation has evolved from being a competitive edge to a business imperative. As technologies
continue to reshape industries, organizations are compelled to respond swiftly and strategically. The question is
no longer whether to transform, but how fast it can be done. This presentation investigates the concept of
“pace” in digital transformation: how organizations plan, manage, and scale their digital initiatives in alignment
with their strategic goals. We explore the varying levels of digital maturity across industries, and the enablers
that accelerate meaningful change, highlighting how leadership, culture, and structural readiness shape
transformation outcomes.
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6. Digital Transformation: Setting the Pace
❑Transformative change is a prerequisite for every
business hoping to keep pace with the technological
advancements of the modern world. The more pertinent
issue is no longer whether a transformation is needed,
but rather how swiftly it can be executed. To ensure
successful outcomes, companies must select the
strategies and approaches with precision. With growing
competition, disturbance in achieving swiftness to
efficiency ratio for balance during transformation
activities becomes increasingly critical to compete and
sustain in the market in the future. Here, “pace”
describes the rate at which an organization executes,
administers, or scales up their digital processes. Factors
such as strategic fit, organizational climate, and
leadership choices significantly influence how well and
how fast a company can adapt to evolving opportunities
and challenges [1].
6
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7. 7
Varied Speeds of Digital Maturity
❑The paths of the digital transformation journeys vary greatly depending on:
▪Industry Context: Sectors such as finance and telecommunications are usually more advanced in
their digital capabilities, whereas sectors like construction and utilities tend to be late adopters.
▪Organizational Readiness: Organizations can be categorized from “beginners” (low digital
intensity and low transformation) to “digirati” (high digital intensity and transformation).
➢This variation suggests that adjusting the pace of change must be considered in relation to the
organization's capability, external market pressure, and strategic vision [1].
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8. 8
The Role of Strategy in Accelerating or Hindering Pace
❑The organizations that procrastinate on adoption of DT tend to follow what is popularly known as Strategy
Zero, the strategy where organizations do nothing and stick to the status quo. This leads to valuable
opportunities being missed, weak competitor advantage and even fundamental risk. For example, the
downfalls of Kodak and Blockbuster.
❑The firms that set the pace intentionally recognize that digital transformation requires:
➢Strategic orchestration (not just isolated innovation).
➢Resource reallocation (investing in data, infrastructure, and talent).
➢Leadership commitment.
➢Organizational agility [1].
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9. 9
❑Reflectiveness
▪Individuals regularly question the status quo and are empowered to play devil’s advocate.
▪Encourages continuous internal critique, preventing complacency and groupthink [1].
Strategies for Digital Recoupling
❑Openness
▪Organizations accept difficult truths from external stakeholders (consultants, researchers,
boards).
▪Formal mechanisms like external advisory boards and open seminars are used to sustain a
culture of listening and adaptation.
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10. 10
Strategies for Digital Recoupling…
❑Proactiveness
▪Organizations lower bureaucratic barriers, accelerate pilot programs, and create
experimental spaces.
▪Allows for rapid iteration, faster data access, and quicker learning loops.
❑Committedness
▪Transformation is made a shared responsibility across roles and departments.
▪Cross-functional teams and staff restructuring help create collective accountability
and distributed ownership [1].
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11. 11
Recognizing Transformation as a Socio-cultural Process
❑Digital transformation is more than just using new technologies. It encompasses changing an
organization’s culture, competencies, and structures. This requires the gradual development of
new competencies in alignment with the transformation processes being set in pace alongside
the business strategy. Unfortunately, most organizations incorrectly perceive transformation as a
one-off occurrence, which results in superficial changes needing pre-designed “upgrades” that
derail progress [2].
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12. 12
Guidelines for Building a Digitally Aware Business
1. Start small and build on firsthand benefits
•Refrain from committing to big technology expenditures if they bring no immediate value.
•Achieve early successes and through simplicity, such as using snow sensors for buildings.
•Data should be treated as a reusable commodity where capacity can be built gradually.
2. Team up and create competitive advantage from brand recognition
•Work with knowledgeable SME’s or tech-focused startups to increase their agility.
•Reliable firms offer trust and scale, while their smaller competitors offer innovation and speed.
•Partnerships are important in mitigating risk and reducing the time needed to market digital
services.
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13. 13
Guidelines for Building a Digitally Aware Business…
3. Engage in standardization efforts
•Lack of interoperability or shared standards manifests fragmentation as a primary barrier.
•Firms are encouraged to participate in developing industry standards to shape interfaces of the
future.
•Standards are not simply technical; they are strategic resources.
4. Take responsibility for data ownership and ethics
•Ethics in data usage is crucial for the organizational longevity.
•Firm boundaries regarding data collection, usage, and ownership must be set.
•Many technology firms choose not to maintain control of sensitive information to reduce potential
legal and reputationalrisks.
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14. 14
Guidelines for Building a Digitally Aware Business…
5. Own the change and ensure
•Top-down control facilitates change, but whole-organization buy-in is vital for actual
implementation.
•A distinctive goal, initiative, and digitally receptive organizational culture are critical.
•Technical advancement and change is slow if not deliberately and directly addressed alongside
cultural stagnation [2].
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15. 15
Recommendations to Control the Pace of Digital
Transformation
In the context of strategy communication, early-stage acceleration highly depends on the effectiveness of
communication itself. Leaders need to clearly articulate the vision to ensure that buy-in is achieved and
resistance is minimized, as well as in breaking down strategic ambitions into actionable goals at the
department level. Continued two-way communication helps manage ambiguity and change fatigue burnout,
as it allows for ongoing conversation. In the absence of communication or when the communication is
clouded, obfuscation and fragmentation nonetheless arise which jeopardizes progress and impede successful
implementation.
1. Discuss and Communicate the Vision and Strategy
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16. 16
Recommendations to Control the Pace of Digital
Transformation…
2. Align Resources and Activities with Strategy
The alignment of critical resources such as IT, personnel, capital, and time with the digital strategy is
fundamental in achieving a rapid and responsive pace. Heightened pace is enabled by fluid reallocation of
budget and staff, as well as the alignment of IT systems with human processes. Leaders must be willing to
dynamically change structures and job functions as the strategy shifts, showcasing organizational agility
which is the central focus of the article.
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17. 17
Recommendations to Control the Pace of Digital
Transformation…
3. Develop Competencies Across All Levels
Without sufficient skills and digital literacy, it can be difficult or impossible to further progress through
the stages of digitization. Employees need to be confident and feel empowered; middle managers need
to be able to execute strategy; and top leaders need to advocate for and protect digital initiatives. It
means funding upskilling programs, forming multi-disciplinary teams designed to remove silos, and
fostering an organizational culture built on learning, experimentation, and adaptability.
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18. 18
Recommendations to Control the Pace of Digital
Transformation…
4. Ensure Operational Improvements and Efficiency
In order to not disturb current operational activities, leaders should manage the speed of digital change
carefully. Companies need to integrate digital change with continuous improvement frameworks and
directly connect changes to increases in productivity in order to achieve meaningful results. This will
enhance the chances of transformation becoming an ongoing process that is fully assimilated into the core
business strategy, instead of an isolated or ephemeral project.
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19. 19
Recommendations to Control the Pace of Digital
Transformation…
5. Focus on Customer/User Orientation
Often change is accelerated due to external reasons like customer expectation to have digital access,
instant interactions, and tailored services. To keep up with the pace, fast-moving companies depend
on insight from data in order to fine-tune and adapt their strategies to fulfill customer demand.
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20. 20
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21. 21
Microsoft Azure Market Share & Growth (2024)
➢Market Share: Azure captured 24% of the global cloud
infrastructure market in Q1 2024, positioning it as the second-
largest provider after AWS (31%) and ahead of Google Cloud
(11%).
➢Revenue Growth: Microsoft’s Intelligent Cloud segment,
encompassing Azure and other services, achieved a 17.7%
year-over-year revenue increase, totaling $96.2 billion in
2023.
➢Customer Base: Azure’s customer base expanded by 14.2%
from 2023 to 2024, reaching nearly 350,000 businesses.
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➢Primary Markets: The highest concentration of
Azure customers is in Europe, the Middle East, and
Africa (EMEA), and North America, with over
130,000 buyers in each region.
➢Global Infrastructure: Microsoft operates over 60
global data center regions, more than any other cloud
provider, supporting its expansive customer base.
Regional Distribution
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23. 23
❑Company Size Growth:
➢Startups: Fastest-growing segment with a 23% year-over-year
increase.
➢Enterprise: Added 310 new customers, significantly impacting
revenue despite a lower growth rate compared to startups.
❑Spending Tiers:
➢78% of Azure customers spend less than $1,000 per month.
➢The Internet sector has the most Azure buyers (64) spending
over $100,000 monthly.
Customer Segmentation & Spending
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24. 24
Multi-Cloud Usage
➢Exclusive Usage: Approximately 64% of Azure
customers use Azure exclusively.
➢Multi-Cloud Strategies: Around 36% combine
Azure with other providers like AWS or Google
Cloud.
➢Strategic Partnerships: Microsoft expanded its
partnership with Oracle, introducing Oracle
Database@Azure, enhancing multi-cloud
capabilities [4].
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25. Conclusion
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26. References
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1.Magnusson, J., Elliot, V., & Hagberg, J. (2022). Digital transformation: why companies resist what they need for sustained
performance. Journal of Business Strategy, 43(5), 316-322.
2.Saarikko, T., Westergren, U. H., & Blomquist, T. (2020). Digital transformation: Five recommendations for the digitally
conscious firm.Business horizons,63(6), 825-839.
3.Kringelum, L. B., Holm, C. G., Holmgren, J., Friis, O., & Jensen, K. F. (2024). Digital transformation: strategy comes first
to lay the groundwork.Journal of Business Strategy, (ahead-of-print).
4.HG Insights. (2025, February 11).Microsoft Azure Market Share & Buyer Landscape
Report.https://hginsights.com/blog/microsoft-azure-market-share-report?utm_source=chatgpt.com
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27. 27
Thank you
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