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Mastering the Digital Transformation
How companies develop
successful products faster.
	
  
Contents
●  Digital Transformation: Hype or real?
●  Elements of the Digital Transformation
●  Digital Transformation &
Ho...
In Germany, exports have reached record levels, economy has seen substantial growth and
so has employment. This is what ma...
Hannover: Chancellor Angela Merkel has criticized Germany’s resources in digitizing.
"We just need to go up a gear in Euro...
Search Trends   Germany
Search for „Digitale Transformation“ Search for „Internet of Things “
Search Trends   Germany
Hype Cycle for Emerging Technologies, 2014
Why is so little happening?
Speed of Innovation Increases
Faster speed of innovation
= shortened lifespan for companies
It is not the strongest of the species that survives,
nor the most intelligent that survives.
It is the one that is most a...
Lower Barriers to Entry
than Ever Before
Innovation Comes out of Nowhere
„I looked at the numbers and was speechless “
A programmer’s experiment
Duration of actual...
2003 - the company was founded
2008 - they released their first car, Tesla Roadster; 2.400
Roadsters produced so far
2012 -...
0	
  
10000	
  
20000	
  
30000	
  
40000	
  
50000	
  
60000	
  
Audi	
  A7	
   Audi	
  A8	
   Porsche	
  
Panamera	
  
P...
●  High-End-Technologies easily available
●  Software allows for fast productisation
●  Internet allows for global distrib...
Digitalisation Germany vs World
Why is so little happening?
Innovator’s Dilemma
Innovator's Dilemma Example:
Aftenposten‘s Strategy: Set up a separate entity to go after a market that was undesirable and low margin from
the perspec...
Escaping the Innovator’s Dilemma
by Excubation
•  Telekom: hub:raum
•  ProSiebenSat.1-Accelerator
•  Axel Springer: Plug’n...
20.0%	
  
25.0%	
  
30.0%	
  
35.0%	
  
40.0%	
  
45.0%	
  
50.0%	
  
55.0%	
  
60.0%	
  
2008	
   2009	
   2010	
   2011	...
Product	
  
InformaAon	
   Info	
  only	
  =	
  	
  
Pure	
  Player	
  Physical	
  	
  
Product	
  /	
  Service,	
  	
  
+...
Software is eating the world.
Marc Andreesen
“ ”
The size of the screen in an average
car today shows the importance of
software to the manufacturer.
The big screen shows ...
In addition to traditional engineers, we are mainly looking for IT specialists and software
developers. It is important fo...
Misconception:
New Product Development is Costly
Agile Development
Agile Development
60%-90% of ideas do not improve the
metrics they were intended to improve.
Ronny Kohavi
Microsoft’s General Manager Experi...
Why Lean and Agile Product Development?
80% of startups are successful with another product
than the one they initially st...
The Lean Startup Cycle
Slide	
  40	
  refa	
  grafic	
  
Minimum Viable Product
(MVP)
The Lean Startup Cycle
Lean and Agile Product Development
Check your idea with a Minimum Viable Product (MVP)
Refa	
  graphic	
  slide	
  42	
  
analog
digital Agile Software
Development
Lean
Enterprise
Levels of Digital Transformation
Lean & Agile Product
Development
Elements of the Digital Transformation
Digital Strategy
•  Digital targets
•  Digital ways to reach the targets
•  Methods...
Talent & the Digital Transformation
“An employer without sufficient Digital Competitiveness
is not the right employer for me...
In an industrial company, avoid software at your own peril . . .
A software company could disintermediate GE someday,
and ...
Product	
  
InformaAon	
   Info	
  only	
  =	
  	
  
Pure	
  Player	
  Physical	
  	
  
Product	
  /	
  Service,	
  	
  
+...
Sony tried to sell hardware
Amazon sells info and
provides the right hardware.
Google looks for more possibilities to
sell ads and to understand the user.
VW builds cars.
Do you see the analogy?
Culture eats Strategy for Lunch
Peter Drucker
“
”
The autocratic behavior of Piech represented a crisis at Volkswagen.
Global corporations that want to be successful in the...
The End
gero.lueben@ingasol.com
Managing the Digital Transformation. How companies develop successful products faster.
Managing the Digital Transformation. How companies develop successful products faster.
Managing the Digital Transformation. How companies develop successful products faster.
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Managing the Digital Transformation. How companies develop successful products faster.

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Digital is oftentimes perceived as a wave of transformational opportunities, as well as threats, that form the ecosystem in which we conduct our daily activities, work and play.

Although the term is most of the times connected with a shift in technology investment, its true implications go beyond technology and into the fields of infrastructure, company culture, leadership, as well as a change of focus on the entire customer experience.

Veröffentlicht in: Leadership & Management
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Managing the Digital Transformation. How companies develop successful products faster.

  1. 1. Mastering the Digital Transformation How companies develop successful products faster.  
  2. 2. Contents ●  Digital Transformation: Hype or real? ●  Elements of the Digital Transformation ●  Digital Transformation & How to develop successful products faster
  3. 3. In Germany, exports have reached record levels, economy has seen substantial growth and so has employment. This is what makes Germans skeptical in terms of digital revolution. At the same time, digitization has changed our life circumstances and that is where we experience a big awakening. “ ” Germany is not yet ready for the Digital Revolution
  4. 4. Hannover: Chancellor Angela Merkel has criticized Germany’s resources in digitizing. "We just need to go up a gear in Europe, just as we need to set a goal in Germany", the CDU - Politician said on Sunday at the opening of national industrial exhibition Hannover Messe. “ ” Europe and Germany Need to Catch Up with Digitalisation
  5. 5. Search Trends  Germany Search for „Digitale Transformation“ Search for „Internet of Things “
  6. 6. Search Trends  Germany
  7. 7. Hype Cycle for Emerging Technologies, 2014
  8. 8. Why is so little happening?
  9. 9. Speed of Innovation Increases
  10. 10. Faster speed of innovation = shortened lifespan for companies
  11. 11. It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change. Charles Darwin “ ”
  12. 12. Lower Barriers to Entry than Ever Before
  13. 13. Innovation Comes out of Nowhere „I looked at the numbers and was speechless “ A programmer’s experiment Duration of actual development: 6h Result: 2 Mio. App-Downloads, $72.000 Dollar Revenue + Exit- Revenue Gründerszene, 07.04.15 App name: 7 Minute Workout
  14. 14. 2003 - the company was founded 2008 - they released their first car, Tesla Roadster; 2.400 Roadsters produced so far 2012 - they released Model S 2013 - Car of the Year (German Automagazin Motor Trend); 50.000 Model S produced so far 2014 - the company reached 6.000 employees 2015 - they announced the production start for Model X Competitors Come out of Nowhere Tesla Motors Roadster Model S
  15. 15. 0   10000   20000   30000   40000   50000   60000   Audi  A7   Audi  A8   Porsche   Panamera   Phateon   BMW  7er   Tesla     Model  S   Car  ProducAon  worldwide  luxury  class       2013   2014   Competitors Come out of Nowhere Tesla Motors Tesla’s advantages over traditional automobile manufacturers: •  Does not have to develop engines, transmissions; •  Not obliged to observe emission values; •  The software is their core value, besides the batteries; it scales better on all models and is cheaper to produce. * Not shown: Mercedes S-Class
  16. 16. ●  High-End-Technologies easily available ●  Software allows for fast productisation ●  Internet allows for global distribution Lower Barriers to Entry than Ever Before
  17. 17. Digitalisation Germany vs World
  18. 18. Why is so little happening?
  19. 19. Innovator’s Dilemma
  20. 20. Innovator's Dilemma Example:
  21. 21. Aftenposten‘s Strategy: Set up a separate entity to go after a market that was undesirable and low margin from the perspective of its newspaper business. The new brand was allowed and even encouraged to cannibalise the older, higher margin parent company, Aftenposten.
  22. 22. Escaping the Innovator’s Dilemma by Excubation •  Telekom: hub:raum •  ProSiebenSat.1-Accelerator •  Axel Springer: Plug’n’Play •  Rocket Internet: ProjectA •  Scout24-Gruppe: You Is Now •  SAP Startup.Focus. •  Burda-Media: dldventures •  REWE •  Coca-Cola •  Bayer Health Care •  Allianz •  Siemens Technology Accelerator
  23. 23. 20.0%   25.0%   30.0%   35.0%   40.0%   45.0%   50.0%   55.0%   60.0%   2008   2009   2010   2011   2012   2013   2014       Germany     UK   USA   Missing Fault-Tolerance Share of 18 to 64 year old people who do not establish a company due to the fear to fail.
  24. 24. Product   InformaAon   Info  only  =     Pure  Player  Physical     Product  /  Service,     +InformaAon  
  25. 25. Software is eating the world. Marc Andreesen “ ”
  26. 26. The size of the screen in an average car today shows the importance of software to the manufacturer. The big screen shows the importance Tesla Places on software. Just like the big screen of the iPhone shows the importance of its Operating System.
  27. 27. In addition to traditional engineers, we are mainly looking for IT specialists and software developers. It is important for us to develop software ourselves.“ ” BMW Hires 8000 New Employees in 2015
  28. 28. Misconception: New Product Development is Costly
  29. 29. Agile Development
  30. 30. Agile Development
  31. 31. 60%-90% of ideas do not improve the metrics they were intended to improve. Ronny Kohavi Microsoft’s General Manager Experimentation Platform (before: Amazon's Data Mining and Personalization group) What Improves a Software Product? “ ” Research results presented by Ronny Kohavi:
  32. 32. Why Lean and Agile Product Development? 80% of startups are successful with another product than the one they initially started with.
  33. 33. The Lean Startup Cycle Slide  40  refa  grafic  
  34. 34. Minimum Viable Product (MVP) The Lean Startup Cycle
  35. 35. Lean and Agile Product Development Check your idea with a Minimum Viable Product (MVP) Refa  graphic  slide  42  
  36. 36. analog digital Agile Software Development Lean Enterprise Levels of Digital Transformation Lean & Agile Product Development
  37. 37. Elements of the Digital Transformation Digital Strategy •  Digital targets •  Digital ways to reach the targets •  Methods to implement the strategy. Lean Leadership •  Leading and enabling instead of giving orders •  Decisions are oftentimes made in teams. Digital Products •  For digital markets and customers •  Digital business models •  The user is the king – again! Agile Operations •  Fastest time to market •  Fast response to market requirements. Digital Culture •  Sharing knowledge instead of hoarding •  Cooperation instead of demarcation •  Two-way communication with customers. Digital Employees •  Love to learn •  Able to work independently •  Flexible in time, location and know-how. Digital Governance •  New targets for the company and employees •  Digital, business-relevant KPIs •  Open and continuous monitoring of all KPIs. Digital Technologies •  E.g. cloud instead of own hardware racks •  Responsive and mobile-enabled products.
  38. 38. Talent & the Digital Transformation “An employer without sufficient Digital Competitiveness is not the right employer for me.” https://www.prophet.com/about/news/552-wie-gut-meistert-ihr-arbeitgeber-den-technologischen-wandel 14% 42% 33% 11%     strongly agree tend to agree disagree strongly disagree
  39. 39. In an industrial company, avoid software at your own peril . . . A software company could disintermediate GE someday, and we're better off being paranoid about that. Jeff Immelt “ ”
  40. 40. Product   InformaAon   Info  only  =     Pure  Player  Physical     Product  /  Service,     +  InformaAon  
  41. 41. Sony tried to sell hardware Amazon sells info and provides the right hardware.
  42. 42. Google looks for more possibilities to sell ads and to understand the user. VW builds cars.
  43. 43. Do you see the analogy?
  44. 44. Culture eats Strategy for Lunch Peter Drucker “ ”
  45. 45. The autocratic behavior of Piech represented a crisis at Volkswagen. Global corporations that want to be successful in the 21st century must perform differently. Piech has recently resigned.
  46. 46. The End
  47. 47. gero.lueben@ingasol.com

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