What is digital transformation and what are the related leadership challenges?

1. DIGITAL
TRANSFORMATION
ATalent Management Perspective
Feb 2016 - Proprietary analysis by Stephan Montigaud – © Copyrights to respective content owners

2. Summary ■ Definitions
■ Strategic Challenges
–Change Management
–Business Model
–Technology
–Organization & Culture
■ Talent Management &
Search Perspective
2Feb 2016 - Proprietary analysis by Stephan Montigaud – © Copyrights to respective content owners

3. Definitions
DigitalTransformation
Internet ofThings (IoT)
Industrial Internet ofThings (IIoT)
■ Digital Transformation is the realignment of,
or new investment in, technology and business
models to more effectively engage digital
customers at every touchpoint in the customer
experience lifecycle (Altimeter Group)
■ The Internet ofThings (IoT) has been defined
as a global infrastructure for the information
society, enabling advanced services by
interconnecting (physical and virtual) things
based on existing and evolving interoperable
information and communication technologies.
(IoT Global Standards Initiative ITU-TY.2060
06/2012)
■ The Industrial Internet or Industrial Internet
ofThings (IIoT) is an internet of things,
machines, computers, and people, enabling
intelligent industrial operations using
advanced data analytics for transformational
business outcomes, and it is redefining the
landscape for businesses and individuals alike.
(Industrial Internet Consortium)
Feb 2016 - Proprietary analysis by Stephan Montigaud – © Copyrights to respective content owners 3
WHATHOWINB2C/B2B

4. Change
Management
Digital transformation requires
rethinking every element of how
your company does business
■ digital business models
■ digital operating models
■ digital talent and skills
■ digital traction metrics
4Feb 2016 - Proprietary analysis by Stephan Montigaud – © Copyrights to respective content owners
Source: World Economic Forum White Paper – Digital Enterprise – Jan 2016 Source: Altimeter Group – Digital Transformation Report 2014
SURVIVE DIGITAL DISRUPTION BY BECOMING A DIGITAL BUSINESS

5. Business
Model
Network Orchestrators demonstrated, on average, better
return on assets, better profit margins, better sales growth,
and better enterprise values than organizations using the
other three business models.
OpenMatters research showed that no
matter what industry a company was
operating in, they fell into one or more of
these four basic business models
5
Source: OpenMatters/Deloitte/Wharton – The Value Multiplier Research Brief 2014
Feb 2016 - Proprietary analysis by Stephan Montigaud – © Copyrights to respective content owners
BECOME NETWORK CENTRICTHROUGH DIGITALTRANSFORMATIO
P/E Ratio

6. Technology
Challenges
Technology Integration
Challenges
■ Evolving
architectures,
protocol wars and
competing standards.
■ Complexity, confusion
and integration issues
■ Security issues
■ Trust and Privacy
issues
■ Abundance of
hardware, software,
service vendors
■ Concrete use cases
and compelling value
propositions
Network centric approach requiring
transparent information flow across the
value chain through IoT/IIoT technologies
6Feb 2016 - Proprietary analysis by Stephan Montigaud – © Copyrights to respective content owners
COMPLEXTECHNOLOGY ADOPTION (IOT/IIOT) FOR A BIG IMPACT
Source: Cognizant - Designing for Manufacturing’s ‘Internet of Things’ – June 2014 Source: McKinsey Digital Raising your Digital Quotient – December 2015

7. Organizational
& Cultural
Challenges
■ It takes a new kind of talent to
implement a digital strategy;
the skills needed aren’t just
technical, and they also require
political savvy to push back
against internal resistance.
■ Company leadership must be
digitally savvy, with an
understanding of both
technology and business
issues, and employees at all
levels must be provided the
training necessary to be
comfortable adopting digital
tools. Keep in mind that
corporate culture may need to
be transformed to attract and
retain a diverse community of
employees.
■ When necessary, consider
using on-demand workers to
provide skills the internal
workforce lacks; robotics and
artificial intelligence may be
able to automate some current
job functions.
Towards ever greater speed & agility
7Feb 2016 - Proprietary analysis by Stephan Montigaud – © Copyrights to respective content owners
Source: Accenture Technology Vision 2016 Source: World Economic Forum– Digital Transformation of Industries Website
FROM PERFECT SILOSTO OPEN & COLLABORATIONS

8. Talent
Management
Perspective
■ Do you have a digitally literate leadership
team?To what extent is it
multigenerational, diverse and with
sufficient expertise in business and
technology topics?
■ Have you established appropriate training
schemes to overcome the digital skills gap
and reskill your existing employees?
■ Are your internal policies up-to-date to
allow collaboration and knowledge
sharing using social media tools?
■ To what extent can your corporate culture
cope with constant change and is it
considered attractive for millennials?
■ Is the cultural transformation visible at
every level of your organization and driven
by the CEO and leadership team?
Top 10 Skills
8Feb 2016 - Proprietary analysis by Stephan Montigaud – © Copyrights to respective content owners
Source: World Economic Forum White Paper – Digital Enterprise – Jan 2016
World Economic Forum - The Future of Jobs 2020 – Jan 2016
BUILD A HIGH-QUOTIENT DIGITALWORKFORCE

9. Talent Search
Perspective
What business model transformation ahead for
your client and what leadership challenge?
From keeping up with the pace of
digital to leading the way into the
hyper-connected world
9Feb 2016 - Proprietary analysis by Stephan Montigaud – © Copyrights to respective content owners
P/E Ratio
FINDINGTHE RIGHT LEADERS FORTHE RIGHT CHALLENGES
What new or evolving role fits your client’s digital
maturity and where to find suitable candidates?
Leadership style
Source: Gartner 2013 Source: PwC - The 2015 chief digital officer study
Source: OpenMatters/Deloitte/Wharton – The Value Multiplier Research Brief 2014

10. Thank you  World Economic Forum White Paper – Digital
Enterprise – Jan 2016
 Altimeter Group – DigitalTransformation Report
2014
 OpenMatters / Deloitte /Wharton University –The
Value Multiplier Research Brief 2014
 Cognizant - Designing for Manufacturing’s ‘Internet
ofThings’ – June 2014
 McKinsey Digital Raising your Digital Quotient –
December 2015
 Accenture TechnologyVision 2016 – Jan 2016
 World Economic Forum– DigitalTransformation of
IndustriesWebsite
 World Economic Forum -The Future of Jobs -
Employment, Skills andWorkforce Strategy for the
Fourth Industrial Revolution – Jan 2016
 PwC -The 2015 chief digital officer study
Stephan Montigaud
http://IoTexec.news
http://IoTexec.me
@SMontigaud
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