Digital Leaders Blog

digital transformation (43)

While enormous resources are being spent on digital transformation programmes by the private sector, the results are underwhelming. According to estimates, this year over $1.2 trillion will be spent by companies worldwide on their digital transformation efforts and yet analysis suggests that only 1% of these efforts will actually achieve or exceed their expectations.

The Digital Enterprise: Moving from experimentation to transformation is a practical guide on how to envision, structure, and sequence successful digital transformation…

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Capgemini's recent report Understanding Digital Mastery Today is required reading for anyone invloved in leading digital transformation programmes.

You are not alone in the barriers and obstacles you face!

Based on an extenisve survey of 1,300 executives in over 750 global organisations, the research concludes that many are finding their digital transformation journeys a real struggle. Only a minority of the organisations surveyed have the digital (39%) and managerial (35%) capacities needed to make their digital transformation successful.

Worringly, there has been a significant decline in organisations' general readiness for digital transformation compared to an identical survey carried out six years…

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Leadership in a Digital Era

The changes brought about by the Internet over the last twenty years are nothing compared to what is coming over the next few years. A convergence of disruptive technologies, combined with the rapid emergence of a new generation of constantly connected, empowered customers and employees (Gen C), is threatening to reshape markets faster than at any time in history.

No industry, no organisation is immune from the threat of being disrupted; just ask your local taxi driver (Uber) or Guest House owner (Airbnb). With labour markets being transformed by artificial intelligence and automation, no individual is immune. 375 million people worldwide may have to switch occupation category by 2030 according to one study (…

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Since May of this year, we have delivered eight of our highly regarded ‘Leading Digital’ Executive Masterclasses, including two five-day programmes, four three-day programmes and twice through online delivery over a five-week period.

Senior managers representing 200 organisations, from 20+ countries, have participated. A live Interactive Polling Tool was used to provide high level insight into the State of Digital Transformation 2018 covering the Americas, Europe, the Middle East and Asia.

Key highlight findings are summarised below:

1.  To what extent is your industry, your organisation, under threat of being disrupted?

Eighty-six per cent of executives agreed that their industry/their organisation was under threat of being disrupted. Twenty-five per cent stated that ‘big bang’ disruption…

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An interesting series of short videos from McKinsey profiling the digital transformation of DBS Bank based on an interview with CIO David Gledhill.

Highly relevant to our 'Leading Digital' workshops- The Three Key Elements; Digital to the Core; Our Rallying Call: Becoming the "D" in GANDALF; Our Outcomes; A Scorecard for our Mission; Advice for Others on this Journey.

"The digital transformation of any enterprise is a herculean task requiring a willingness to embrace cultural change, the ability to immerse the entire organization in the customer journey, and a total commitment to digitize to the core. DBS Bank Chief Information Officer David Gledhill shares his insights on DBS’s digital transformation with McKinsey’s Vinayak HV, a partner in the Singapore office".

 The Three Key…

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Football fans (soccer to our North American friends) should find the two videos below to be of interest.

How Bayern Munchen uses digital technology to enhance the fan experience at the Allianz Arena.

A big thank you to 'Gunner' fan Mohammed AlGhazali from the Strathclyde Business School MBA programme (Bahrain) for showing me these during the recent Digital Leaders workshop in Abu Dhabi.

Having experienced every senior football ground in Scotland, annually for the last 50 plus years, the only thing i can add is 'if only'.

Take care.

Jim H…

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The concept of Digital Operating Advantage is one of the key issues discussed during our ‘Leading Digital’ Masterclasses.

It refers to the way in which organisations can leverage the full potential of emerging technologies to streamline internal processes and systems, improve efficiency, reduce costs, building a more collaborative, cost efficient, agile, responsive, data driven organisation, ‘fit-for-purpose’ in a digital age.

The successful deployment of an Enterprise Social Media (ESM) platform is critical in this respect as highlighted in the video below.

 

The key term above…

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Following our recent post Charting the Digital Transformation Genome, a HBR paper examines the reasons why some high profile digital transformation programmes fail based on the experiences of compaies such as GE, Lego, Nike, Procter & Gamble, Burberry, Ford and others. All case examples of heavy commitments to digital capability development which failed to meeet basic financial performance objectives.

The authors present four main reasons for failure:

First, there are a very wide range of factors that impact on a company's performance as much or even more than digital. Managers, therefore, should not view digital as a panacea.…

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According to Anthony Abbatiello, principal, Deloitte Consulting and global leader of Deloitte Leadership, $400 billion is wasted every year in failed digital transformations. Even though many companies profess to have digital strategies, they don’t fully understand what it’s actually going to take or haven’t pinpointed what they want the business to look like.

There’s also an element of “executive tourism” as senior managers see things they like in Silicon Valley and seek to cut-and-paste them into their own organizations.

So, they embark on “random acts of digital” rather than create a cohesive strategy. They invest in digital technology and are disappointed when the expected massive change (and returns) don’t appear.

Despite such failure rates, digital transformation can be successful. But, it’s going to take a mind-set…

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Digital native companies have captured value from established businesses because of their innovative use and development of technologies, business models and customer experiences.

According to a recent study by McKinsey, however, an overlooked element in the success of these companies has been their use of next-generation operating models defined as:

"The continual effort to improve end-to-end customer journeys and business processes by applying advanced technologies and sophisticated operational methods in an integrated manner. The combination typically results in, or is built around, a business model that is new to the industry and allows the company to move, adapt, and scale quickly."

By applying next-generation operating models, traditional companies can…

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MIT have recently published their Top 20 Sloan Management Review articles of 2017.

Not surprisingly, articles on digital strategy, transformation, AI and data analytics dominate the most popular reads. 

The Top 20 are listed below (click link to access each article): 

The Jobs That Artificial Intelligence Will Create

Reshaping Business With Artificial Intelligence

Analytics as a Source of Business Innovation…

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The 8 Types of Company Culture


Our previous blog post argued that people, organisation and culture NOT technology have become the main barriers to successful digital transformation. Many digital change initiatives faiI because of an over-emphasis on technology at the expense of people.

In the interesting video below, researchers from Harvard Business School present eight types of organisational culture with implications for digital change. management. Please click on the image to view the video.…

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The third annual State of Digital Transformation Report (2017), by Brian Solis, provides an interesting overview of the extent to which organisations are investing in digital strategies, initiatives and operational models.

While a growing number of businesses are currently investing in innovation strategies to uncover new growth opportunities, most companies are not responding fast enough to keep pace with the pervasive changes taking place in consumer buying behaviour.

In many of the companies surveyed, there is a lack of digital leadership and purpose with most struggling with the technological and human challenges of Digital Transformation (DT).

The pace of innovation, in response to the rising expectations of constantly connected customers, is being held back by poor digital literacy, together with a short-term focus on costs rather…

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Interesting from the Harvard Business Review.

"Across industries and across countries, a small number of superstar firms are pulling away from the competition. They’re more productive, more profitable, more innovative, and they pay better.

But why are these companies doing so well? Are they out-competing their rivals, or are they using their size and influence to avoid competition altogether?

One answer to that first question shows up in study after study: superstar firms are succeeding in large part due to information technology."

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A useful reading list addition for the Digital Leadership workshops we run.

The Digital Transformation Playbook: Rethink Your Business for the Digital Age (Columbia Business School Publishing) 5 Apr 2016 by David L. Rogers.

The book is structure around 'Five Domains of Digital Transformation' as summarised in the extracts below: 

Customers - Digital technologies change how we connect and create value with our customers. We may have grown up in a world in which companies broadcast messages and shipped products to customers. But today the relationship is much more two-way. Buying behaviour, whether…

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Does your Board of Directors grasp how disruptive technologies are reshaping your industry?

Are they driving and supporting your CEO in achieving digital transformation, leveraging the full potential of emerging technologies for building an efficient, agile, fast moving and responsive organisation fit-for-purpose in a digital era?  

Alternatively, is your Board sitting back watching as born-digital companies reinvent your industry? Are they playing safe, watching your organisation's slow decline into obsolescence?

A recent Harvard Business Review article argues that Boards must recognise the unstoppable digital forces at play in your industry, driving your CEO to reinvent the business while you still have the resources to do so.

To avoid becoming the Kodak of your industry, five key actions your Board should be taking now…

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An interesting article, by Don Hinchcliffe, summarises the radical changes taking place in the 'learning' industry as a consequence of the digital and social media revolutions.

Digital, according to the author, can take learning in powerful, new and unexpected directions, fundamentally changing how we find knowledge and share information.  

The traditional approach to learning is still the norm in many cases, including the world of corporate education, with passive learners sitting in a classroom consuming pre-packaged content in bulk presented formally by an educator.

However, with the typical person…

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In preparation for the MBA Digital Leadership workshops in Abu Dhabi and Bahrain, the following links will be useful.

Background

How Digital Disrupts Operations, Business Processes and Customer Experiences

Worldwide Spend on Digital Transformation Technologies to Reach $1.2 Trillion in 2017; $2 Trillion by 2020

The Utility Industry: Top Ten Transformation…

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In our last post (Which Countries are Leading Digital), we highlighted evidence from several studies showing that the UK was falling behind many of our international competitors in a number of key measures of digital readiness.

One of these studies was the 2016 Digital Economy and Society Index (DESI) published by the EU. While the UK remained above the EU average in key measures such as connectivity, digital skills and the integration of digital technology, we were growing at a slower rate than the average. The Nordic countries of Denmark, Sweden and Finland, together with the Netherlands were leading the way, while…

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Yesterday, i read an article which appeared to leak a preview of the long-awaited National Digital Strategy for Scotland (updated).

I really do hope that i am 'jumping the gun' here but the article did raise alarm bells for me.

Based on comments from a Government spokesperson, it appears that the updated strategy will focus on four main areas - a commitment to data sharing; collaboration across the public sector; the appointment of a Digital Leader; and industry, academia, government collaboration on the digital agenda.  

Is that it? Is that our National Digital Strategy? …

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