7. Gartnerspeak!
Digitization is the process of changing from analog to
digital form, also known as digital enablement. Said another
way, digitization takes an analog process and changes it to
a digital form without any different-in-kind changes to the
process itself.
Digitalization is the use of digital technologies to change a
business model and provide new revenue and value-
producing opportunities; it is the process of moving to a
digital business.
Digital business transformation is the process of
exploiting digital technologies and supporting capabilities to
create a robust new digital business model.
8. Drivers of Digital Transformation
Digital business is built on new computing
infrastructure – the pillars of mobile, cloud,
Big Data, and analytics – accelerated by
the Internet of Things (IoT), advances in
machine learning, and innovations like
blockchain. These disruptive technologies
are giving companies the ability to
radically change business models, and
create new products and services.
https://www.sap.com/india/trends/digital-business.html
11. Customers
From To
Customers as mass market Customers as dynamic network
Communications are broadcast to
customer
Communications are two-way
Firm is the key influencer Customers are the key influencer
Marketing to persuade purchase
Marketing to inspire purchase, loyalty,
advocacy
One-way value flows Reciprocal value flows
Economics of (firm) scale Economics of (customer) value
12. Competition
From To
Competition within defined industries Competition across fluid industries
Clear distinction between partners and
rivals
Blurred distinction between partners and
rivals
Competition is a zero-sum game Competitors cooperate in key areas
Key assets are held inside the firm Key assets reside in outside networks
Products with unique features and benefits
Platforms with partners who exchange
value
A few dominant competitors per category
Winner-take-all due to network effects
13. Data
From To
Data is expensive to generate in firms
Data is continuously generated
everywhere
Challenge of data is storing and managing
it
Challenge of data is turning it into
valuable information
Firms make use only of structured data
Unstructured data is increasingly usable
and valuable
Data is managed in operational silos
Value of data is in connecting it across
silos
Data is a tool for optimizing processes
Data is a key intangible asset for value
creation
14. Innovation
From To
Decisions made based on intuition and
seniority
Decisions made based on testing and
validating
Testing ideas is expensive, slow and difficult Testing ideas is cheap, fast and easy
Experiments conducted infrequently, by
experts
Experiments conducted constantly, by
everyone
Challenge of innovation is to find the right
solution
Challenge of innovation is to solve the right
problem
Failure is avoided at all cost Failures are learned from, early and cheaply
Focus is on the “finished” product Focus is on MVPs and iteration after launch
15. Value
From To
Value proposition defined by industry
Value proposition defined by changing
customer needs
Execute your current value proposition
Uncover the next opportunity for customer
value
Optimize your business model as long as
possible
Evolve before you must, to stay ahead of
the curve
Judge change by how it impacts your
current business
Judge change by how it could create your
next business
Market success allows for complacency “Only the paranoid survive”
16. Amplifying Agility Effectiveness
• Tech is only a means: Customers don’t really care how great your
new tech is!
• Digital isn’t about IT alone: Digital Transformation is pan-
enterprise, and not just IT teams
• Be agile, don’t do Agile: “Agile” in software teams is necessary but
not sufficient at business scale
• Adaptive mindset over Fixed frameworks: True agility requires
creating an adaptive mindset
• Beauty is in the eyes of the beholder: Customers value their
experiences over your methods, tools and infra!