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    Digital Business Transformation 2023 Lecture 10

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    4 views17 pages

    Digital Business Transformation 2023 Lecture 10

    Uploaded by

    sohaibwasiq
    11

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 17

    Lecture 10 Transformation in practice

    Plan
    • Schedule of technology implementation
    • Transformation journey
    • Transformation in different industries
    • Examples of successful and unsuccessful transformations
    «Schedule» of technology implementation

    *
    *

    21 examples of further technological


    changes that will have far reaching
    impacts on human health, the Source:Deep Shift. Technology Tipping Points
    and Societal Impact. Global Agenda Council
    environment, global commerce and on the future of SW and society. 2015
    international relations (World Economic Forum)
    2
    «Explanation» of technologies
    • Implantable Technologies: The first implantable • The Connected Home: Over 50% of internet traffic
    mobile phone available commercially delivered to homes for appliances and devices (not
    for entertainment or communication)
    • Our Digital Presence: 80% of people with a digital
    presence on the internet • Smart Cities: The first city with more than 50,000
    • Vision as the New Interface: 10% of reading inhabitants and no traffic lights
    glasses connected to the internet
    • Big Data for Decisions: The first government to
    • Wearable Internet: 10% of people wearing clothes replace its census with big-data sources
    * connected to the internet
    • Driverless Cars: Driverless cars equaling 10% of all
    • Ubiquitous Computing: 90% of the population with
    regular access to the internet
    * cars on US roads

    • Artificial Intelligence and Decision-Making: The


    • A Supercomputer in Your Pocket: 90% of the first Artificial Intelligence (AI) machine on a corporate
    population using smartphones board of directors
    • Storage for All: 90% of people having unlimited and • AI and White-Collar Jobs: 30% of corporate audits
    free (advertising-supported) storage
    performed by AI
    • The Internet of and for Things: 1 trillion sensors
    connected to the internet

    3
    «Explanation» of technologies
    • Robotics and Services: The first robotic pharmacist • 3D Printing and Human Health: The first transplant
    in the US of a 3D-printed liver

    • Bitcoin and the Blockchain: 10% of global gross • Printing and Consumer Products: 5% of consumer
    domestic product (GDP) stored on blockchain products printed in 3D
    technology

    • The Sharing Economy: Globally more trips/journeys


    * via car sharing than in private cars

    • Governments and the Blockchain: Tax collected


    for the first time by a government via a blockchain

    • 3D Printing and Manufacturing: The first 3D-


    printed car in production

    4
    Transformation in different industries

    Investments into digital transformation

    Leadership capabilities to drive transformation


    5 Source: Capgemini Consulting, MIT
    Transformation in different industries

    6 Source: Capgemini Consulting, MIT


    Gartner hype cycles
    2023

    Source: https://www.gartner.com/en/articles/
    what-s-new-in-the-2023-gartner-hype-cycle-for-emerging-technologies
    7
    Transformation journey

    8
    Leaders vs Laggards
    • Right choice of implemented technologies
    • Focus on results
    • Go “step by step” and test intermediate results
    • Align innovations with every part of the company
    • Mind the security
    • “People-first” approach. Modify Standard operating procedures
    • Don’t get comfortable

    9
    Digital maturity and financial performance

    Revenue generation Market valuation

    10 Capgemini Consulting: Statistics on 184 public companies


    Successes and failures of digital transformation
    General Electric

    Netflix

    Rolls Royce

    IKEA

    Nike

    Iridium
    11
    General Electric
    One of the first big companies started Digital transformation
    • Digital transformation was announced in 2012
    • GE Digital for SW development was created
    • Decision to develop Predix platform
    • $4B was invested in digital transformation
    • Plan: become a leader in SW development (enter top 20) in 2017 GE stock

    Goals were not achieved


    • CEO had to leave the company
    • Stock: capitalization dropped from
    $300B (2016) to $70 (2018)
    • Revenue dropped two times
    • Most of the digital transformation plans
    were cancelled in 2018
    12
    General Electric
    Reasons of failure - technical:
    • Digital platform Predix experienced permanent problems
    – Acquired third party platform (ServiceMax) failed to adapt to new goals
    • Mistakes with predictive analytics methods and integration methodology
    • Platform integration problems
    Reasons of failure – business related:
    • Slow and painful adoption of the platform by customers
    • Too general offering of products and services
    • Too much investments into digital transformation without adequate return

    13
    Netflix
    Video about Netflix digital transformation, see Lecture 5
    • Big number of innovations since 1997
    – DVD format
    – Subscription as a revenue model
    – Online delivery of content (streaming) Netflix stock
    – Availability of the content on all possible devices
    – Content creation (vertical integration)
    – Video recommendation algorithms
    • Always one step ahead of all competitors

    14
    Rolls Royce
    • New business model (example from Lecture 5)
    • Product-based model changed to service-based model
    • Significant improvement in effectiveness by using big data analytics

    15
    IKEA
    While I don’t think that IKEA’s core business model will shift
    away from retail any time soon, it has made a number of savvy
    moves to acquire and invest in cutting-edge digital tech that
    stand its business in very good stead for the future.
    Bernard Marr, Forbes

    • Consistent innovation
    – TaskRabbit acquisition
    – Applications with augmented reality
    – Smart home products

    https://youtu.be/L23JPc9h3nc

    9 min
    16
    Next Lecture

    Look at Coursera course


    https://www.coursera.org/learn/bcg-uva-darden-digital-transformation
    • Watch videos of week 4 (~ 150 min)
    • How to proceed with digital transformation
    • Strategy driven by digital
    • Transformation of the existing business
    • Digital extension of a business
    • Enablers of transformation
    • People
    • Data and Analytics
    • Technology
    • Partnership

    17

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