Chapter 6 Flashcards
What are some methodologies applicable to digital transformation?
Business Process Reengineering (BPR)
Business Transformation Management Method (BTM²) SAP
Enterprise Strategic Analysis and Transformation ESAT (MIT)
BCG methodology
The Digital transformation Compass
What is Business Process Reengineering (BPR)?
Business Process Reengineering (BPR) is a methodology for redesigning and improving business processes with the goal of achieving significant improvements in efficiency, effectiveness, and competitiveness. BPR typically involves analyzing existing business processes, identifying opportunities for improvement, and redesigning processes to better align with business objectives and customer needs.
What is the Business Transformation Management Method (BTM²) SAP?
It is a methodology developed by SAP for managing complex business transformations.
The BTM² framework provides a comprehensive approach to managing transformation projects, including the development of a transformation strategy, the implementation of process improvements, and the management of organizational change.
What is Enterprise Strategic Analysis and Transformation (ESAT)
It is a methodology developed by MIT for managing large-scale digital transformation initiatives. ESAT provides a framework for analyzing and redesigning business processes, developing a transformation strategy, and managing organizational change.
What is the BCG methodology?
The BCG methodology provides a comprehensive approach to digital transformation that includes the development of a transformation strategy, the identification of new business models, and the implementation of digital capabilities.
What is The Digital Transformation Compass?
The Digital Transformation Compass is a methodology developed by Arthur D. Little for managing digital transformation initiatives. The Digital Transformation Compass provides a framework for assessing an organization’s digital maturity, developing a digital strategy, and implementing digital capabilities.
What are some differences of these digital transformation methodologies?
BPR focuses specifically on business process improvement, while other methodologies like BTM² and ESAT have a broader scope that includes organizational change management.
The BCG methodology places a particular emphasis on identifying new business models, while the other methodologies focus more broadly on developing a digital strategy.
The Digital Transformation Compass includes a framework for assessing an organization’s digital maturity, while the other methodologies do not have this explicit focus.
What are the five building blocks of Digital Transformation according to Ross, Beath & Mocker ?
- Operational Backbone
- Shared customer Insights
- Digital Platform
- Accountability Framework
- External Developer Platform
Digitization vs Digital
Digitization refers to the process of converting analog data or processes into a digital format. For example, scanning a paper document and converting it into a digital file is a process of digitization. Similarly, replacing a manual process with a computerized system is also a form of digitization.
Digital” refers to the use of digital technology to transform how businesses operate and create value. It involves leveraging data, analytics, and other digital tools to drive innovation, improve customer experiences, and increase operational efficiency. Digital can encompass everything from digitization to the creation of entirely new digital business models.
What is the matrix of change?
The matrix of change is a framework that helps organizations plan and implement digital transformation initiatives. It consists of four steps that guide organizations through the process of identifying, prioritizing, and implementing digital transformation initiatives.
What are the four steps to build a matrix of change?
Step 1 - Identify Critical Processes: Managers should first list their existing goals, businesspractices, and ways of creating value for consumers.
Step 2 - Identify System Interactions: After describing existing practices, the team creates ahorizontal triangular matrix to identify complementaryandcompeting practices. Complementary processes reinforce oneanother whereas competing processes
Step 3 - Identify Transition Interactions: Next, the team constructs the Transition Matrix – a squarematrix combining the horizontal and vertical matrices whichhelps determine the degree of difficulty in shifting from existingto target practices.
Step 4 - Score the existing complementarities: The triangular grid to the lower left provides a space for you toindicate whether these existing processes are complementary orcompeting. Define Complementary processes (+) and Competing practices (-).”
