1. © Operational Excellence Consulting
DIGITAL
TRANSFORMATION
Step-By-Step Implementation Guide
© Operational Excellence Consulting. All rights reserved.

2. © Operational Excellence Consulting
This presentation is specially targeted at organizational leaders
who are interested in using digital to gain competitive advantage.
What this guide will focus is not technology implementation, but a
company-wide approach to digital transformation.
This document provides step-by-step practical guidance for
leaders of most industries to digitally transform their
organizations by showing where to invest in digital capabilities
and how to lead the transformation.
The digital transformation framework presented consists of four
key phases and twelve detailed steps and practical tips for
leaders to fundamentally improve business performance.
ABOUT THIS DOCUMENT
2
NOTE: This is a PARTIAL PREVIEW.
To download the complete presentation, please
visit: https://www.oeconsulting.com.sg

3. © Operational Excellence Consulting
LEARNING OBJECTIVES
3
Acquire knowledge and
the key concepts of digital
transformation
Conduct a self-
assessment of your
digital mastery
Describe the digital
transformation framework,
phases and step-by-step
process

4. © Operational Excellence Consulting 4
CONTENTS
INTRODUCTION & KEY
CONCEPTS OF DIGITAL
TRANSFORMATION
01
DIGITAL
TRANSFORMATION
FRAMEWORK, PHASES
& STEP-BY-STEP
PROCESS
02
DITIAL MASTERY
SELF-ASSESSMENT
03

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THE ERA OF DIGITAL DARWINISM — WHERE TECHNOLOGY & SOCIETY
ARE EVOLVING FASTER THAN BUSINESSES CAN NATURALLY ADAPT
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Customers are
increasingly in control
of the relationship
CUSTOMER
RELATIONSHIP
Digital devices change
the ways customer
transact and buy
DIGITAL
TECHNOLOGY
Bring expectations of
“the best” to all their
customer experiences
CUSTOMER
EXPERIENCE
Source: Adapted from Hinshaw & Kasanoff, 2012

6. © Operational Excellence Consulting
Companies now are increasingly inclined
toward altering their business models to
accommodate the changing customer
demands.
DRIVEN BY TECHNOLOGY, DIGITAL IS THE NEW WAY OF THINKING AND
DOING THINGS
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7. © Operational Excellence Consulting
“
To be clear, digital transformation
is not a series of generational
changes in information technology
or simply the migration of a
company’s processes, data and
information onto a digital platform.”
BRIAN SOLIS
7
Altimeter Group

8. © Operational Excellence Consulting
WHAT STRATEGIES CAN ORGANIZATIONS APPLY TO PREPARE FOR THE
LOOMING DIGITAL TSUNAMI?
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DIGITAL
TSUNAMI
Traditional
business
Source: Adapted from Lewrick et al., 2018

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DIGITAL TRANSFORMATION DEFINED
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“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

10. © Operational Excellence Consulting
COMPANIES THAT HAVE SUCCEEDED IN DIGITAL TRANSFORMATION
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Before Digital Transformation:
Lagging stock prices and
increased competition.
What Changed: Moved focus
from traditional software to
cloud-based system for personal
and enterprise use.
After Digital Transformation:
Became 3rd company to achieve
$1 trillion market cap in 2019.
Before Digital Transformation:
Sluggish and outdated-looking
shoes and athletic clothing.
What Changed: Direct selling to
customers, partnership with
Amazon and using consumer
data to connect with customers.
After Digital Transformation:
Revenue increased by $5.6
billion from 2017 to 2019.
Before Digital Transformation:
Set up only as a hardware store.
What Changed: Combined
physical and online shopping to
create seamless experience
across channels and use of data
to better understand customers.
After Digital Transformation:
Revenue grew from $93 billion
to $110 billion within 2 years.

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CHARTING THE PATH OF DIGITAL TRANSFORMATION STARTS WITH A
SHARED VISION
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Today’s Culture
Tomorrow’s Culture
Strategy
Values

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“
We go mission first, then
focus on the pieces we need
and go deep on them, and
be committed to them.”
MARK ZUCKERBERG
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To achieve this goal, organizational leaders
require two key skills – digital capabilities
and leadership capabilities.
TRANSFORMING THE CUSTOMER EXPERIENCE IS THE HEART OF
DIGITAL TRANSFORMATION

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THE DNA OF DIGITAL MASTERS
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DIGITAL
CAPABILITIES
LEADERSHIP
CAPABILITIES
+
Digital Masters excel in two critical dimensions: the what of technology
(digital capabilities) and the how of leading change (leadership capabilities).

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WHAT IS YOUR LEVEL OF DIGITAL MASTERY?
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Source: Adapted from Westerman et al.
Digital
Capability
Beginners
§ Management skeptical of the business
value of advanced digital technologies
§ May carry out some experimentation
§ Immature digital culture
Leadership Capability
Conservatives
§ Overarching digital vision exists, but may
be underdeveloped
§ Few advanced digital features, though
traditional digital capabilities may be mature
§ Strong digital governance across silos
§ Taking active steps to build digital skills and
culture
Fashionistas
§ Many advanced digital features (such as
social, mobile) in silos
§ No overarching vision
§ Underdeveloped coordination
§ Digital culture may exist in silos
Digital Masters
§ Strong overarching digital vision
§ Good governance
§ Many digital initiatives generating business
value in measurable ways
§ Strong digital culture

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SEAMLESSLY MESH YOUR DIGITAL & PHYSICAL EXPERIENCE IN NEW
WAYS TO CREATE A COMPELLING CUSTOMER EXPEREINCE
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Delivering these omni-channel
experiences requires
envisioning and implementing
change across both front-end
and operational processes.
Call Center
Social
Retailer
e-Commerce
Web Portal
Mobile
Kiosk
Web Chat
OMNI-
CHANNEL

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OPERATIONAL PARADOXES OF THE PREDIGITAL AGE
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Innovating
Controlling
Empowering
Standardizing
Unleashing
Orchestrating
Consider how each of the six levers may help you improve operations. If you can’t
address both sides of a paradox at once, start with standardization or control.
This may open up possibilities to address other levers.

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REINVENTING BUSINESS MODELS
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Monitor the symptoms
that drive business model
change in your industry
Constantly challenge your
business model with your
top team
Consider whether it is
time to replace products
and services with newer
versions if your present
offerings are under digital
threats
Consider how you might
transform your industry
before others do it
Consider reconfiguring
your delivery model by
connecting your
products, services, and
data in innovative ways to
create extra value
Consider creating brand-
new digital businesses
using your core skills and
assets
Experiment and iterate
your new business model
ideas
Consider reinforcing your
presence in your current
market by rethinking your
value proposition to meet
new needs

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COMMITTED LEADERSHIP IS THE LEVER THAT TURNS TECHNOLOGY
INTO TRANSFORMATION
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Executives in every Digital Master steered the
transformation through strong top-down
leadership: setting direction, building momentum,
and ensuring that the company follows through.
Source: Adapted from Westerman et al.

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CRAFTING YOUR DIGITAL VISION
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Identify bottlenecks or
headaches – in your
company and in your
customers – that resulted
from the limits of old
technologies
Familiarize yourself with
new digital practices that
can be an opportunity or
a threat to your industry
and company
Craft a compelling and
transformative digital
vision
Consider which of your
strategic assets will
remain valuable in the
digital era
Make your digital vision
specific enough to give
employees a clear
direction, while giving
them the flexibility to
build on it
Ensure that the vision
specifies both intent and
outcome
Constantly be looking to
extend your vision using
the capabilities you have
created

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Source: Adapted from Westerman et al., 2014
THE 4 KEY PHASES OF A DIGITAL TRANSFORMATION JOURNEY
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FRAMING THE
DIGITAL
CHALLENGE
SUSTAINING
THE DIGITAL
TRANSITION
FOCUSING
INVESTMENT
MOBILIZING
THE
ORGANIZATION
Build awareness of digital
opportunities and threats. Know
your starting point, and assess
your digital maturity. Craft a vision,
and ensure that your top team is
aligned around it.
Translate your vision into an
actionable roadmap. Build cross-
silo governance structures. Put in
place the funding for your
transformation.
Build the necessary foundational
skills. Align reward structures to
overcome traditional
organizational barriers. Monitor
and measure the progress of the
transformation, and iterate when
necessary.
Send unambiguous signals about
your ambitions and the change
needed now. Build momentum
and engage the workforce. Set
new behaviors and start evolving
the organization toward a more
innovative culture.

22. © Operational Excellence Consulting
Source: Adapted from Westerman et al., 2014
THE 12 STEPS FOR STEERING
THE COURSE OF A DIGITAL
TRANSFORMATION JOURNEY
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Mobilize Focus
Sustain Frame
Build
awareness
Know your
starting point
Craft a vision and
align top team
Translate your
vision
into action
Build your
governance
Fund
the
transformation
Signal
your
ambitions
Earn the right
to engage
Set new
behaviors and
evolve culture
Build foundation
skills
Align
incentives and
rewards
Measure,
monitor and
iterate
Mobilize Focus
Sustain Frame

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DIGITAL TRANSFORMATION PROCESS – PHASE 1 OVERVIEW
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Phase 1: Framing the Digital Challenge
1 2 3
Build awareness Know your starting point Craft a vision and align top team
1.1 Put digital transformation at the top
of your agenda now
1.2 Understand the scale and pace of
the digital impact
1.3. Make the awareness process
experiential
1.4. Build a coalition of believers
2.1 Assess your digital mastery
2.2 Chart your transformation journey
2.3 Assess your strategic assets
2.4. Challenge your business model
3.1 Craft your transformation vision
3.2 Align your top team

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DIGITAL TRANSFORMATION PROCESS – PHASE 3 OVERVIEW
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Phase 3: Mobilizing the Organization
7 8 9
Signal your ambitions Earn the right to engage
Set new behaviors and evolve
culture
7.1 Send signals
7.2 Explain benefits clearly
7.3 Use all available communication
channels
8.1 Walk the talk
8.2 Co-create your transformation
8.3 Identify your digital champions
8.4 Identify quick wins
9.1. Make visible changes to work
practices
9.2 Encourage adoption, not deployment
9.3 Learn to fail
9.4. Institutionalize new work practices

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PHASE 1 – FRAMING THE DIGITAL CHALLENGE
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Building awareness
§ Do top leaders in your
organization understand
the potential threats and
opportunities from digital
technologies and the need
for transformation?
Defining your starting
point
Creating a shared
vision
§ How mature are your
digital competencies, and
which current strategic
assets will help you to
excel?
§ Have you digitally
challenged your current
business model?
§ Have you aligned your top
leadership team around a
vision of the company’s
digital future?

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“
Do not quench your
inspiration and your
imagination; do not become
the slave of your model.”
VINCENT VAN GOGH
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● Engage senior leaders in the debate about the implications of digital technologies for your
current and future business
● As the most senior leader in the organization, the CEO is responsible for ensuring that the
framing phase is successful
● You need to ensure that other leaders in your organization visualize the profound change
at hand and understand the business possibilities that technology can already enable today
● Look to practical examples of companies and industries that have been helped or hurt by
digital change
STEP 1 – BUILD AWARENESS
Step 1.1 – Put digital transformation at the top of your agenda now

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STEP 4 – TRANSLATE YOUR VISION INTO ACTION
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● Translate your digital vision into top-down strategic goals that point to what an achieved
vision would look like
● Articulate top-level goals only; specific KPIs will come later, once you have a detailed
program
● The goals that you are trying to achieve must be balanced – they should not just be about
financials, but should also be expressed in terms of customer experience and operations
as well as the organizational capabilities you need to build
● This strategic scorecard will provide a basic template for your entire digital transformation
efforts, and will also provide a point of reference with which to navigate your digital
transformation
Step 4.1 – Define what good looks like

29. © Operational Excellence Consulting
HOW WELL IS YOUR ORGANIZATION BUILDING LEADERSHIP
CAPABILITIES? (1/2)
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Answer each question, using a scale from 1 to 7, where 1 = strongly disagree; 4 = neutral; and 7 =
strongly agree, and then total your digital capability score.
Score
1 Senior executives have a transformative vision of the digital future of our company.
2 Senior executives and middle managers share a common vision of digital transformation.
3 There are possibilities for everyone in the company to take part in the conversation around digital
transformation.
4 The company is promoting the necessary culture changes for digital transformation.
5 The company is investing in the necessary digital skills.
(Continued on next slide)

30. © Operational Excellence Consulting
Operational Excellence Consulting is a management
training and consulting firm that assists organizations
in improving business performance and effectiveness.
Based in Singapore, the firm’s mission is to create
business value for organizations through innovative
design and operational excellence management
training and consulting solutions. For more
information, please visit www.oeconsulting.com.sg
ABOUT OPERATIONAL EXCELLENCE CONSULTING
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