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Paul.Gromball@tmg-muenchen.de1June 2016
Creating the
learning Enterprise
Discussion Paper
Leading
Digital Teams
Building the Platform Organizations
Situation:
Smart Products & Smart Service create new value for customers
Smart Products Smart ServicesCustomer
Hardware
Software/
User Interface
Networking/Data/AI
Smart Products Smart Services
+
The emerging Digital Business Architecture
3
Challenge:
The “proliferation” of Smart Products reduces profits which shifts the
fundamental constraint for growth to the Smart Service “production”
Source:Kim, Chan et al: Blue Ocean Strategy, Harvard Business School, 2015
Base: 150 global companies in 30 industries
Initiatives
Revenue Impact
The Profit and growth consequences of Smart Service Bottleneck
Profit Impact
Smart Product Initiatives Smart Service Initiatives
86 % 14 %
62 % 38 %
39 % 61 %
Bottleneck
4
Solution:
Companies need an efficient & adaptive Organization to meet the
challenges of Smart Products and Smart Services
3
Build an efficient & adaptive Organization
Fast changing and
inter-connected market environment
Business Sphere of Activity
Smart Products Smart ServicesCustomer1 2
Reshape
the portfolio
Sustain innovation
in R&D
5
Digital Leadership Framework
Digital Leadership balances Efficiency with Adaptability
Management-
driven hierarchy
Digital Team Platform
Leadership driven network
Smart Products Smart Services
Mastering the
Slide Control
Digital Leadership
as…
Typical Digital Team areas:
• High degree of creative work
• Global business areas
• Cross-boundary work
• Large basic processes
• Areas with knowledge gaps
Efficiency & Excellence Adaptability & Innovation
6
The Digital Team Activity Sphere
Customer Opportunities and cross-functional Use Cases are
the focus of Digital Team Value-Creation
A) Customers with opportunities B) Cross-functional Use Cases
Project
Management
Innovation
Management
Business
Process
Management
Topic –
specific
Networks
Expert
Networks
Information
Management
Stakeholder
Management
Management
& Reporting
Councils,
Boards,
Committees
Smart
Products
Smart
Services
Customer
Reshape
the portfolio
• sustaining Leadership
• building competitive Position
• exploring strategic Options
Sustain innovation
in R&D
• Strengthen Pipeline
• R&D 2.0 Model
• R&D Collaborations
The Digital Team Live Cycle
Building the Digital Team Organization in Waves
7
Customer Opportunities
& Use Cases
Building
& Operating
Creating the Digital Team Platform
The Value Ecosystem
8
Job
Sub-Jobs
Workstreams
Tasks
Community
Integrator
On-boarding
Launch
Adapt
Optimize
DIGITAL DESIGN
PLATFORM
Designing Primary Activities Managing Support Activities
Team of Teams
Primary Activities of Digital Team : Four connected Levels
9
The Digital Team of Teams Structure
1) Job-to-be-done Sphere
2) Sub-Job
3)WorkStream
4)Task
Digital
Team
Lead Link
Rep Link
DIGITAL DESIGN PLATFORM
Roles
Support Activities for Digital Teams: Governance
10
The Digital Team of Teams Governance
Governance:
Weekly
Activation
Sessions
Doing Work
in clear
roles
Sensing
Tension
as Challenges
or opportunities
I) Empowered
Execution
to act on tensions
II) Joint Consciousness
on achieving the goals
Job-to-be-done
DIGITAL DESIGN PLATFORM
Tension drives progress
Community
Integrator
Community Integration is empowered by the Cloud
11
Community Integration as a Service
DIGITAL PLATFORM
Online-Learning Phase 1: Tuning-in
PLAYBOOKS
Phase 2: Primary Activities Phase 3: Support Activities
Community: Digital Team of Teams
Repository of repeatable best practices and re-usable components
Community
Integrator
12
Digital Teams take Friction out of Smart Service Co-Creation
The Smart Service Network: The Platform
• High adaptability/agility for Customer Signals
• Joint Consciousness of pet owners need
• Mastering Complexity of dynamic value creation
• Network Effects are key growth driver
• Controlled Platform Access for Firm & Customer
• Knowledge/Benchmark Exchange is enabled
• Unity-of-Effort across boundaries
• Global BI synergies for local but common themes
Digitally
Engage Customers
Value Creation: Periphery Value Creation: CustomerValue Creation: Center
Enabling the
Periphery Teams
Smart Talents: Community Integrator
Phase I Phase II
Transformed Value Creation: The Platform Business Model
Smart Service Platform
VALUE UNIT
Touch Points
Enabling the
Center Team
VALUE UNIT
Services
Company Company
Patient
13
The Digital Team Difference
Freeing Resources for value-creating Activities and Growth
Resources
(costs,emailtime..)
Cooperation
Structured Organization
Digital Teams
The Effect on Business Performance
Digital
Transformation
Time-Reduction
30 -50%
Speed
Fast Responses
Reduction of
non-value added expenses
25 -30%
Efficiency
Work Productivity
Additional Value-Creation
by Cooperation between “Boxes”
20 -25%
Growth
Collective Creativity
Limits of Growth: Knowledge Resources
Growth Effect
Source: Morieux, Yves: Six Simple Rules

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The Digital Team Platform

  • 1. Paul.Gromball@tmg-muenchen.de1June 2016 Creating the learning Enterprise Discussion Paper Leading Digital Teams Building the Platform Organizations
  • 2. Situation: Smart Products & Smart Service create new value for customers Smart Products Smart ServicesCustomer Hardware Software/ User Interface Networking/Data/AI Smart Products Smart Services + The emerging Digital Business Architecture
  • 3. 3 Challenge: The “proliferation” of Smart Products reduces profits which shifts the fundamental constraint for growth to the Smart Service “production” Source:Kim, Chan et al: Blue Ocean Strategy, Harvard Business School, 2015 Base: 150 global companies in 30 industries Initiatives Revenue Impact The Profit and growth consequences of Smart Service Bottleneck Profit Impact Smart Product Initiatives Smart Service Initiatives 86 % 14 % 62 % 38 % 39 % 61 % Bottleneck
  • 4. 4 Solution: Companies need an efficient & adaptive Organization to meet the challenges of Smart Products and Smart Services 3 Build an efficient & adaptive Organization Fast changing and inter-connected market environment Business Sphere of Activity Smart Products Smart ServicesCustomer1 2 Reshape the portfolio Sustain innovation in R&D
  • 5. 5 Digital Leadership Framework Digital Leadership balances Efficiency with Adaptability Management- driven hierarchy Digital Team Platform Leadership driven network Smart Products Smart Services Mastering the Slide Control Digital Leadership as… Typical Digital Team areas: • High degree of creative work • Global business areas • Cross-boundary work • Large basic processes • Areas with knowledge gaps Efficiency & Excellence Adaptability & Innovation
  • 6. 6 The Digital Team Activity Sphere Customer Opportunities and cross-functional Use Cases are the focus of Digital Team Value-Creation A) Customers with opportunities B) Cross-functional Use Cases Project Management Innovation Management Business Process Management Topic – specific Networks Expert Networks Information Management Stakeholder Management Management & Reporting Councils, Boards, Committees Smart Products Smart Services Customer Reshape the portfolio • sustaining Leadership • building competitive Position • exploring strategic Options Sustain innovation in R&D • Strengthen Pipeline • R&D 2.0 Model • R&D Collaborations
  • 7. The Digital Team Live Cycle Building the Digital Team Organization in Waves 7 Customer Opportunities & Use Cases Building & Operating
  • 8. Creating the Digital Team Platform The Value Ecosystem 8 Job Sub-Jobs Workstreams Tasks Community Integrator On-boarding Launch Adapt Optimize DIGITAL DESIGN PLATFORM Designing Primary Activities Managing Support Activities Team of Teams
  • 9. Primary Activities of Digital Team : Four connected Levels 9 The Digital Team of Teams Structure 1) Job-to-be-done Sphere 2) Sub-Job 3)WorkStream 4)Task Digital Team Lead Link Rep Link DIGITAL DESIGN PLATFORM Roles
  • 10. Support Activities for Digital Teams: Governance 10 The Digital Team of Teams Governance Governance: Weekly Activation Sessions Doing Work in clear roles Sensing Tension as Challenges or opportunities I) Empowered Execution to act on tensions II) Joint Consciousness on achieving the goals Job-to-be-done DIGITAL DESIGN PLATFORM Tension drives progress Community Integrator
  • 11. Community Integration is empowered by the Cloud 11 Community Integration as a Service DIGITAL PLATFORM Online-Learning Phase 1: Tuning-in PLAYBOOKS Phase 2: Primary Activities Phase 3: Support Activities Community: Digital Team of Teams Repository of repeatable best practices and re-usable components Community Integrator
  • 12. 12 Digital Teams take Friction out of Smart Service Co-Creation The Smart Service Network: The Platform • High adaptability/agility for Customer Signals • Joint Consciousness of pet owners need • Mastering Complexity of dynamic value creation • Network Effects are key growth driver • Controlled Platform Access for Firm & Customer • Knowledge/Benchmark Exchange is enabled • Unity-of-Effort across boundaries • Global BI synergies for local but common themes Digitally Engage Customers Value Creation: Periphery Value Creation: CustomerValue Creation: Center Enabling the Periphery Teams Smart Talents: Community Integrator Phase I Phase II Transformed Value Creation: The Platform Business Model Smart Service Platform VALUE UNIT Touch Points Enabling the Center Team VALUE UNIT Services Company Company Patient
  • 13. 13 The Digital Team Difference Freeing Resources for value-creating Activities and Growth Resources (costs,emailtime..) Cooperation Structured Organization Digital Teams The Effect on Business Performance Digital Transformation Time-Reduction 30 -50% Speed Fast Responses Reduction of non-value added expenses 25 -30% Efficiency Work Productivity Additional Value-Creation by Cooperation between “Boxes” 20 -25% Growth Collective Creativity Limits of Growth: Knowledge Resources Growth Effect Source: Morieux, Yves: Six Simple Rules