Some ideas to involve the whole organisation in a digital transformation journey.

1. The Bricks of Digital Transformation
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2. The Bricks of Digital Transformation - by Giorgio Borgonovo
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About Me
My name is Giorgio Borgonovo.
I am a Knowledge Engineer and Business
Coach.
I help companies to design, develop, manage
and promote tools, processes and strategies to
foster collaboration, knowledge sharing,
innovation and creativity.
As a knowledge engineer I’m helping
companies to foster innovation, develop new
tools and procedures to share knowledge,
ideas and experience using different channels
and media, to make people able to browse
new ideas, sharing them, discussing them and
choosing the best.
As a business coach I'm helping companies to
redefine their strategy to win in a continuously
changing world, identifying their priorities and
how to use the digital technologies to improve
performance and deliver better services and
products.
 +39 348 80 67 955
 borgonovo@tavernadelleidee.it
 www.tavernadelleidee.it
 linkedin.com/in/gborgonovo

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Introduction
Shaping ideas
Axis of Digital Transformation
Bits and Atoms
Value: Brand and Capital
Traditional and Digital Modes
Examples of Digital Maps
Hacking Digital Transformation
Digital Transformation on
Business Model Canvas
Bricks on Axis
Conclusions
Table of Contents

4. Introduction

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Bits and Atoms
The LEGO Group wants to embrace a digital
transformation to be more attractive and exciting. To
this purpose it must undertake some initiatives to
mix atoms and bits harmonically and create a new
kind of experience for its stakeholders, the builders
of tomorrow.
This document provides a general overview of the
Digital Transformation path connecting the brand
with the environment in which it lives and grows.
The LEGO Group can get ideas from it, however a
tailored plan and strategy can be defined after a
deeper understanding of the LEGO Group culture,
strategies and undertaken initiatives.
Leveraging digitalisation
We consider digitalisation as a way to make our
core business – the physical LEGO play – even
more attractive and exciting. To do this, we will
leverage digitalisation over a broad range of
topics – e.g. integrating physical and digital
play, e-commerce, marketing and our
business/enterprise system.
The LEGO Group - A short presentation 2015

6. Digital Transformation Axis

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Hacking Digital Transformation
We often refer to three elements that contribute to
create a company's value: people, processes and
technology.
People are the individuals who, in some way,
benefit from the performance of the company or
actively help create it.
Processes are the structured activities through
which performance is created, making it consistent,
measurable and somehow independent from who
performs it.
Technology is the enabling element and it
influences and supports how relationships between
processes and people work.
How these elements are managed, inside and
outside the company, determines the way capital
and brand are built. In order to make the company
grow and prosper a perfect balance must be found
between these elements.
In the next pages I have jotted down some ideas to
involve the whole organisation in a digital
transformation journey.

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1
2
Consider the 3 axes of an organisation: People,
Processes and Technology
3x
PEOPLE PROCESSES TECHNOLOGY
1x 1x 1x
They differ when inside or outside the
organisation.

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3 4
We can call the external axis Customers,
Relationship and Products/Services and the
internal axis Collaborators, Organisation and
Tools
6x
The axis are oriented (directrixes) towards the
centre, the core of the company.
6x
Directrixes

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Companies keep inside and outside separated
with what we can call “control filter”.
The control filter is used by companies (often
unawares) to state their competitive advantage,
to retain clients and to attract new ones.
control filter

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Traditional companies keep their control filter
as broad as possible.
The more distant the dichotomous positions
are, the greater traditional companies
perceive their own value. They think their
value depends on how much they are able
to create and maintain the gap between
inside and outside.
How a company organises itself internally is
very different from how it establishes
relationships outside (possibly one-way,
broadcast). Collaborators/Employees have
no contacts with externals if not expected by
their role. Products&Services are
completely (jealously) created inside the
company and proposed to external clients.
Tools used internally are designed to be only
functional inside.
Dichotomous positions
PEOPLE: Customers-Collaborators
PROCESSES: Relationships-Organisation
TECHNOLOGY: Products&Services-Tools

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In “digital companies” the poles of the
internal/external dichotomous tend to get
closer. In ideal digital transformation they
coincide, whereas in real digital companies
the filter is small but still exists.
Digital companies aim to maximise
transparency and proximity with the
environment in which they are immersed.
They take advantage of both internal and
external assets to create new value;
reducing the control filter makes them more
effective thanks to new connections.

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Digital companies create a large community,
connecting inside and outside, that is a strong
base of relationships sustaining the brand and
its activities.
Traditional companies keep external and internal
separated because this way they have, or they
think they have, a better control, but they are
less flexible towards changes.

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Value: Brand and Capital
Brand lives and
develops in the
minds of
customers. It is
the idea people
have of the
company and of
its products.
Capital resides
and develops
within the
company and
its ecosystem. It
is the economic
evaluation of
whatever
actively
participates in
creating and
maintaining the
company's
value.
The value of a company is the result of balanced interaction between its internal and external actions which
all contribute in terms of capital and brand.
Capital is the sum of all tangible and intangible assets resulting from coherent interactions between
people, processes and technology to create economic value.
Brand is the company capacity to create and maintain long term relationships with customers and to
exchange value based on the identity of its products.

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Traditional and Digital Modes
Next pages show examples of traditional and digital
modes used to draw company directrixes. They
don't consider all the elements and aspects, but
provide a general guide to understand the difference
between the traditional and digital modes.
A description of what the two modes look like is
helpful to understand the map and to try to position
the company in the directrixes space.
Once positioned it is possible to see if there are
areas where the company is better and what can be
done to improve and therefore be able to design a
road map.

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Customers
In a traditional company
clients are those who buy
products in shops.
In a digital company
customers are all those
people who interact in
some way with them.
Customers also interact
with open communities
regarding the brand, its
products and services.
Often they get access to
the production line.
Traditional Digital
Indicators:
● Customer Experience
● Customer Satisfaction
● Brand Testimonials/Referrals
● Customer Success Management
● Corporate Social Responsibility

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Collaborators
Traditional organisation
employees only interact
with the boss who is
responsible for work
progress. They have no
initiative. They give good
results because of their
number.
Training on the job only.
Recruitment is based on
recommendation and c.v.
The digital organisation is
horizontal, collaborators
are entrepreneurs,
oriented by the mission
and vision. Best results
because of their capacity
to collaborate and share
knowledge.
They are part of a
community around the
brand.
Recruitment is done within
this community.
The digital organisation
works on collaborators
happiness.
Traditional Digital
Indicators:
● HR Maturity
● Corporate Culture
● Talent Acquisition & Retention
● Inclusion & Diversity
● Career Planning

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Channels and Relationships
Traditional organisations
have a few touchpoints
and the communication is
broadcasted mainly
through advertising.
Digital organisations have
multichannel relationships
that adapt to customer
preferences (time,
channel, place of the
relationship).
Customer community
channels run parallel to the
official channels helping to
communicate the brand.
Traditional Digital
Indicators:
● Accessibility
● Community
● Customer Interaction
● Omni-channel

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Organisation
Traditional organisations
have linear and sequential
processes, focused on
production.
Input resources are all
owned by the company.
Digital organisations have
processes focused on
creating a great experience.
Big Data is largely used to
anticipate stakeholders
(both internal and external)
necessities.
Most of the input resources
are from outside the
company.
Traditional Digital
Enablers:
● Company Certification
● Knowledge Transfer
● Beyond Budgeting
● Frameworks
● Smart Working

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Products & Services
Products are production
oriented and not client
oriented.
There are no links between
different products (sets).
More physical products
than services.
Digital pushes services
instead of products.
Products are designed
with customers.
Frameworks of products
and services connected
by open standards.
Often the company does
not own the delivered
products and services.
Traditional Digital
Indicators:
● Customisation
● Platform/Framework
● Ecosystem interoperability
● Social Network
● Prediction Market

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Tools
Manual tools, designed
only for the specific task
and company, developed
and used only inside it.
Digital organisation shares
its tools and the
production platform with
customers.
Tools are based on open
standards, with API and
well designed UX.
Virtualisation of systems,
cloud, wearable devices.
AI, etc.
Traditional Digital
Indicators:
● UX, API
● (Enterprise) Social Network
● Device Policy
● Accessibility
● Back End e Front End integration

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Examples of Digital Maps
In the previous pages the axes of transformation
have been defined and now we want to understand
how to use this map.
Some examples of companies in their digital
transformation route can be seen in the next few
pages.
Since a perfect digital strategy does not exist for
anyone, the extremes of the axes must be defined
by each company based on what they, or their
industry, consider the minimum to the optimum.
This map can change over time because of the
actions undertaken by the company itself and its
market.
If the company pays attention to all the areas at the
same time and in the same way its growth is more
substantial instead of focusing, often following the
market trends, on one or few specific areas.

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Digital Marketing Strategy
This is a typical example of an enterprise at the
beginning of its digital transition. The first area of
action is usually marketing, with all the connected
tactics such as social media presence, content
marketing, improving of relationships, etc.
However, digital marketing alone is not enough,
more should be done, particularly inside, because
changing inside structure changes everything.

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Facing out Strategy
Here is an example of a company who is
managing their external environment, but
forgetting to manage the internal aspects as well.
Collaborators are not involved in the company
improvements therefore could feel uncomfortable.
Tools are not updated and soon this gap will
make it difficult to maintain production capacity at
the expected quality and rate.
Something has been done on the Organisation
axes therefore, if they listen to feedback, they can
adequately adapt the other areas.

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Equilibrated Transformation Strategy
Here a full digital transformation is not yet complete,
however this company is well balanced and is doing
a good job in all areas.
Their strategy should be to continue the transition
trying to stay focused on all the aspects.

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Digital Transformation Strategy
Here is a company following a good digital
transformation process, the control filter is small
and all the areas have been adequately
managed.
New ideas for improvement will arise thanks to the
involvement of people, internally and externally,
both through the organisation and relationships.

28. Shaping Ideas

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Bricks on Axes
It is now time to explore how all these concepts can
blend together and be useful for the LEGO Group.
What do the internal and external axes represent for
the LEGO Group? Who are its customers and
collaborators? What are the relationships and the
organisation processes? What products and tools is
it using?
If we find answers to these questions It's possible to
see how they are linked together and how they can
mutually interact and strengthen. It is also possible
to understand which of the factors should be
eliminated or reduced and which factors should be
raised or created to adopt a winning strategy.

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Digital Vision
What is the LEGO Group's value?
What is its competitive advance?
What is the LEGO Group's digital
vision in a digital world?

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Customers
Why are they customers? What make
them happy?
What are they talking about? How can
LEGO engage customers? How can
LEGO create a neverending experience?
How can LEGO create connections
between them?
Is there any customer or customer
segment which can become a partner?
AFOLs
Parents
Teachers
Business people
...
Kids (2-5 years old)
Juniors (6-12)
Teenagers (13-18)
...

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Products & Services
Duplo
Lego Sets themes
Lego Technic and
Lego Mindstorm
Board games
...
Lego videogames
Ideas
Film
Serious play
...
How can the LEGO Group create customised
products or services for each
customer/stakeholder or segment?
How can the LEGO Group share the
production line with customers?

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Channels and Relationships
Traditional
Stores and Parks
Call Center
Brochure
Product
Agents
TV and Cinema
Branded Digital
Digital content
Company website
Mobile and Tablet
External Digital
Web
Social Networks
How can customers get in touch between themselves?
Where do customers want to interact?
How can physical and virtual enforce each other?
How is the LEGO Group listening to its customers? How
is it replying to them? How is it talking to them?
How is the LEGO Group reacting to feedback and
inputs?
Are there new channels the LEGO Group can use to
engage them?

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Collaborators
Product development
Marketing
HR
Operations
Business enabling
Retailers
...
Can the LEGO Group employees
be contacted by customers?
Can customers become (external
or internal) collaborators?
How do collaborators interact
each other?
Where do they find inspiration?
How do they learn and share
knowledge?
How is LEGO culture spread?
What makes collaborators happy?

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Does the LEGO Group anticipate
customer needs? (i.e. using Big Data)
Can the LEGO Group create
personalized journey for both customers
and collaborators?
Is the LEGO Group using external assets
and resources effectively?
Is the LEGO Group creating a “platfirm”?
Organisation
Creating new Sets
Producing Sets
Selling Sets
Procurement
Training
...
Platfirm is a plug-and-play
business and organising model
that openly allows digitally-
networked beneficiaries to co-
create and exchange value.

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Tools
CAD & PLM software suite
Stereolithography machine
Lego Digital Designer
Moulding line
Back end and Front end tools
Intranet & ESN
...
Is the LEGO Group sharing its internal tools with
external stakeholders to enable their creativity, to
allow cocreation?
Is the LEGO Group creating a framework
connecting inside and outside?
Is the LEGO Group considering user experience
in developing internal tools? Is it creating open
API? Is it using open standards?
Is the LEGO Group creating tools easy to scale
and further develop?

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Conclusions
In this document we have seen how important is to
consider all the internal and external components
when planning the digital transformation. A scheme
to organise those components and a way to
describe the present status and the vision have
been presented along with some questions to begin
a discussion.
This document illustrates the elements of a
comprehensive digital strategy that must be created
in the LEGO Group overall strategy and vision, in its
culture and in other initiatives.
It'll be a real pleasure for me to discuss the LEGO
Group digital transformation plans further and to
explore how I could contribute with it.
Sincerely,

38. Giorgio Borgonovo
 +39 348 80 67 955
 borgonovo@tavernadelleidee.it
 www.tavernadelleidee.it
 linkedin.com/in/gborgonovo
LEGO©, the LEGO logo, the Minifigures,
MINDSTORMS and LEGOLAND are
trademarks of the LEGO Group.
All rights reserved.