DIGITAL
TRANSFORMATION
People, Organization & Change

LEARNING OBJECTIVES
2
Acquire knowledge on the
principles and key
concepts of digital
transformation
Identify the pitfalls to
avoid and define the
critical success factors of
digital transformation
Understand the soft
aspects of Digital
Transformation – people,
organization and change
management
NOTE: This is a PARTIAL PREVIEW.
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CONTENTS
3
INTRODUCTION &
KEY CONCEPTS
ORGANIZATIONAL
IMPACT
CHANGE
MANAGEMENT
GUIDELINES
PITFALLS &
CRITICAL
SUCCESS FACTORS
01 040302

WHAT BROUGHT US HERE TODAY
4
THE ORGANIZATION
§ Different understanding of digital
transformation among stakeholders
§ Employees fear of being replaced
as a result of digital transformation
§ Legacy IT infrastructure lacks
efficiency
§ Organizational resistance to
change
THE EXTERNAL ENVIRONMENT
§ Digital transformation is being
adopted by companies across most
industries
§ Digitalization is no longer a choice
but a necessity
§ Omni-channel is a prerequisite for
great customer experience
§ Customers expect value and
seamless experience

SOME STATISTICS ON DIGITAL TRANSFORMATION
5
Companies have already
adopted a digital-first
strategy or plan to do so
Consumers will pay more
for great experience
Shoppers use more than
one channel during their
shopping journey
Digital transformations fail,
most often due to
resistance from employees
Companies are actually
experience-led
Employees said their
company’s leadership
doesn’t know what to do
with digital transformation
89% 67% 73%
70% 31% 20%
Source: Forbes

6
DIGITAL TRANSFORMATION IS NOT ABOUT TECHNOLOGY
Most digital technologies provide possibilities
for efficiency gains and customer intimacy.
But if people lack the right mindset to change
and the current organizational practices are
flawed, Digital Transformation will fail.

MYTHS OF DIGITAL TRANSFORMATION
7
Digital Transformation
applies only to B2C
companies
1
Digital Transformation
is just for online
businesses
2
Only Millennials are
more willing to use
Digital services
3
Digital Transformation
is relevant only in
developed markets
4
Digital Transformation
is only about Digital,
not IT
5
Digital Transformation
and Digitization are
the same things
6

MARTEC’S LAW:
TECHNOLOGY CHANGES
EXPONENTIALLY,
ORGANIZATIONS CHANGE
LOGARITHMICALLY
8
Technology changes
exponentially
Organizations change
logarithmically
Technology management
is deciding which
changes are adopted
?
?
Source: Scott Brinker

SOFT SKILLS ARE ESSENTIAL TO ENSURE DIGITAL TRANSFORMATION
MANAGEMENT
9
Employees must change
how they approach their
work, leverage data, and
use new digital tools
BEHAVIORAL CHANGE
Employees need to
embrace the idea that
digital tools will help them
to be more productive
MINDSET SHIFT
Leaders set expectations
and lead by example
LEADERSHIP SUPPORT

DIGITAL TRANSFORMATION DEFINED
10
“Digital transformation marks a radical rethinking
of how an organization uses technology, people
and processes to fundamentally change business
performance.”
George Westerman
MIT principal research scientist and author of Leading Digital: Turning
Technology Into Business Transformation

FIVE KEY DIGITAL TECHNOLOGIES TRANSFORMAING INDUSTRY &
COMMERCE
11
BLOCKCHAIN CLOUD ARTIFICIAL
INTELLIGENCE
INTERNET OF
THINGS
CYBERSECURITY
Blockchain allows the
secure sharing of
business processes
between companies
and partners in an
encrypted manner
The state of being
protected against the
criminal or
unauthorized use of
electronic data, or the
measures taken to
achieve this
The interconnection
via the Internet of
computing devices
embedded in
everyday objects,
enabling them to
send and receive
data
Artificial intelligence
is the simulation of
human intelligence
processes by
machines, especially
computer systems
Cloud computing
means storing and
accessing data and
programs over the
Internet instead of the
local server or user’s
computer hard drive
AI

12
Customers don’t think in isolated
experiences. They think in terms of
the end-to-end experience journey.
DIGITAL TRANSFORMATION IS A JOURNEY, NOT A GOAL

“You’ve got to start with the
customer experience and
work back toward the
technology – not the other
way around.”
STEVE JOBS
13

BENEFITS OF DIGITAL TRANSFORMATION
14
Thriving culture of
innovation
Improved customer
journey
Greater competitive
advantage
Increased internal
collaboration
More empowered
workforce
Improved efficiency Deeper data
analysis
Increased customer
conversions and
loyalty

A SOLID CULTURAL FOUNDATION IS ESSENTIAL TO ENSURE DIGITAL
TRANSFORMATION MANAGEMENT
15
Role Modeling
Alignment &
Communications
Execution FocusSkill Building
Skill building approach
to develop company-
wide capabilities that
meet unique technical
requirements of the
organization
Role modeling
culture where leaders
consistently adopt
and demonstrate the
new behaviors
Communications that
cascade the change
story to every level of
the organization
Formal systems and
structures to ensure
processes and targets
reinforce to the desired
changes and
behaviors

WHAT IS THE IMPACT ON THE ROLE OF MANAGEMENT?
16
In hierarchies, managers were needed to:
§ Supply difficult-to-find intelligence
§ Pass information up and down the
hierarchy
§ Convey accumulated learning and
culture of organization
In a digitally-transformed organization:
§ Managers need to be retrained as “orchestra”
leaders or as frontline employees
§ Reward systems need to reflect equal value
of “work” as well as “management”
§ Job reductions are best planned well in
advance
§ “Blockers” must be handled

MARKETING & IT HAVE TREMENDOUS ABILITY TO IMPACT CUSTOMER
EXPERIENCE THROUGH COLLABORATION & CHANGE
17
Marketing defines the
vision of the company
and value proposition
for the customers.
IT touches and enables
every part of the
business and is the
ultimate orchestrator of
change.
Marketing IT

UNDERSTAND WHY PEOPLE FEAR CHANGE
18
Lack of belief in effectiveness
or reality of change
Systems
& Processes
Behavior
Attitude
Culture
The way we act
The way we think
Start by changing work
processes and systems

UNDERSTAND WHY PEOPLE FEAR CHANGE
19
Insecurity
“What is happening and what will happen to my job?”
Digital Transformation answers:
§ Segment the audience
§ Communicate clearly using 4 P’s of: Purpose,
Process, Progress and Problems
§ Communicate using multiple channels and
multiple voices
§ Be honest: this in itself may be an indication
that profound change is taking place

● It is key to understand and
leverage is the rate and pace
at which people adapt to
change
● Focus time and efforts on the
middle / late enrollers. Don’t
waste time on Slugs / Die
Hards. You won’t persuade
them in 100 days!
● Let the Initiators & Early
Enrollers help you promote
the change
UNDERSTANDING RESPONSES TO CHANGE
20
Source: The Atlanta Consulting Group, Inc.
THE ENROLLMENT CURVE

PREPARE & COACH CHANGE LEADERS
21
Stage 1 2 3 4
State Status quo Disruption Exploration Rebuilding
Reaction Shock, Denial Anger, Fear Acceptance Commitment
Positive
Negative
Impact
Source: Elisabeth Kubler-Ross
The Change Curve

THE 9 BUILDING BLOCKS OF A BUINSESS MODEL CANVAS HELP TO
ALIGN ACTIVITES TO CREATE VALUE FOR CUSTOMERS
22
Key
Partners
Key
Activities
Value
Proposition
Customer
Segments
Key
Resources
Cost Structure Revenue Streams
Customer
Relationships
Channels
Source: Strategyzer
Business Model Canvas

A SYSTEMATIC APPROACH TO MANAGING CHANGE ENSURES
GREATER BUY-IN & SUPPORT FOR DIGITAL TRANSFORMATION
23
Analyze Current
Situation
Plan & Launch
Program
Monitor
Progress
Evaluate
Effectiveness
§ Identify reason for
change
§ Assess readiness for
change
§ Assess impact of
change
§ Identify gaps
§ Gather feedback
§ Define change
strategy
§ Set up change
infrastructure
§ Create awareness
and get buy-in
§ Develop and
communicate plans
§ Develop skills
§ Launch pilot project
§ Monitor change
process
§ Overcome resistance
to change
§ Assess behavioral
changes
§ Measure
effectiveness
§ Provide support
§ Review results
§ Share success
stories
§ Provide follow up
support
§ Reward and
recognize
1 2 3 4
Change Management Process

TEN SOURCES OF TEAM CONFLICT THAT IMPEDE DIGITAL
TRANSFORMATION SUCCESS
24
● Roles
● Goals
● Procedures
● Resources
● Personalities
● Information
● Structure
● Value/norms
● Communications
● Turf Issues

DESCRIPTION OF TUCKMAN’S MODEL OF TEAM DEVELOPMENT STAGES
25
Source: Bruce W. Tuckman
Forming
§ Team members
meet each other
§ Team members
learn about the
task
§ All team members
learn what their
roles will be
Storming Norming Performing
§ Team members
learn how to work
together
§ Team members
learn about other
member’s abilities
§ Leader focuses the
team
§ Team starts to
work and act
together
§ Roles evolve into
helping the team
succeed
§ Team members
are more likely to
express opinions
§ Team members
work hard toward
goal
§ Members are
flexible and help
each other
§ Leader’s role is
blurred – everyone
is focused
1 2 3 4

SZPEKMAN’S COMMUNICATION FRAMEWORK PROVIDES A HOLISTIC
APPROACH TO MANAGING CHANGE COMMUNICATIONS
26Source: Andy Szpekman
Szpekman’s Communication Framework
Communication
Leadership
Measures
Structure/Process
Rewards
Knowledge/Skill Emphasis
Competency models
Hiring processes
Orientation programs
Training and development
Feedback and coaching
Talent planning
Performance management
360 degree feedback
Employee surveys
Performance metrics and
benchmarks
Communication plans
Print and electronic media
Face-to-face communication
Compensation plans
Benefits
Recognition programs
Promotions
Organization structure
Career paths
Policies and procedures
Roles and responsibilities
Tools and support
Vision and strategy
Agenda items
Questions
Praise
Resources
Assignments
Symbolic behavior MANAGERS

THE CONSCIOUS COMPETENCE LEARNING MODEL RELATES TO THE
PSYCHOLOGICAL STATES INVOLVED IN SKILL DEVELOPMENT
27
Incompetent Competent
Competence
Consciousness
UnconsciousConscious
Unconscious
Incompetence
Unconscious
Competence
Conscious
Competence
Conscious
Incompetence
Source: Noel Burch (Gordon Training International)
The Conscious Competence Learning Model

“Insanity is doing the same
thing, over and over again,
but expecting different
results.”
ALBERT EINSTEIN
28

10 PITFALLS OF DIGITAL TRANSFORMATION
29
1. No business strategy
2. Not knowing what digital
transformation is
3. No leadership commitment
4. No stakeholder analysis
5. No risk management
6. No internal communication
7. Not having the right people
8. Not investing in cultural change
9. No collaboration with other
business functions
10. No ownership of the digital
transformation project

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