Overview of Digital Transformation Flashcards
What is digital transformation?
Introducing and embedding digital technologies, e.g., blockchain, augmented reality & virtual reality, big data, IOT, AI, ML etc., into business processes
Why is digital transformation important? 5 Points
- Competitiveness - Customer are using it to enhance their business processes as well as customer contact and engagement.
- It can be thought of as if digital customer engagement is competing with price/product/quality and fit for purpose.
- Marketing: PPP - Price, Place and Promotion in marketing
- Business process improvement / efficiency and effectiveness
- For business it is IT enabled digital capabilities (NB innovation)
Which were the Industrial Revolutions?
1st: Steam Engine - Transport / Manufacturing
2nd: Electricity - Mass production, assembly lines.
3rd: Computers, and Internet and computer technologies
4rd: Digital: Customer engagement, Knowledge, decentralization, business process transformation, digital services, business models and products
What is very important to consider and work alongside Digital Transformation
Change management & Organizational change. Managing the internal and external customers.
Driving awareness, acceptance and adoption
What is Consumerization
Consumerization is the reorientation of product and service designs to focus on the end user as an individual consumer, in contrast with an earlier era of only organization-oriented offerings. Technologies whose first commercialization was at the inter-organization level thus have potential for later consumerization
Name the 6 steps in the Digital Transformation Roadmap / Cycle
- Business-as-Usual
- Increased Awareness and Initial Activity (experimentation in small areas.)
- Intentional Experimentation - Leadership endorsed and bold activities for organizational experimentation, innovation and learning.
- Strategic Embrace - Cross group and function alignment to uncover and leverage the synergies and insights
- Converged - Digital Transformation leadership team owning the strategy and implementation across the organization.
- Innovative and Adaptive Organization - Digital transformation is fully embraced and implemented in all business functions. Culture acceptance of always transforming, experimenting, innovating.
Technology Hype / Adoption Pattern - Name the 5 Phases
- Innovators - First 2.5% (Not too concerned about the technology failure, they want to be first and try new things. Risk takers, they have the resources and desire to try new things, even with risk of failure)
- Early Adopters - 13.5%. (Selective about technology, but also influencers for the early adopters)
- -The big scary chasm in adoption - Marketing big drive to cross this chasm in order for these early adopters to fully influence the early majority. This is the major obstacle / adoption milestone to achieve. - Early Majority - 34% (Take their time, but would like to follow the people who have already embraced the technology)
Upward up to end of phase 3
(Peak of the curve - between 3 and 4)
Downward from end of phase 3
- Later Majority - 34% (Adoption due to pure pressure, environmental norms or then a necessities. They feel the majority of technology issues / flaws / problems resolved and lower risk to adoption)
- Laggards - 16% (Make decisions based on past experience, only feel change is necessary to remain in business or then economically constraint for adoption)
What is a good source to follow for knowing in which part of the hype and or adoption cycle certain technologies in the industry are?
Gartner’s Hype Cycle
How can IT be a competitive advantage re. Digital?
The agility and capabilities of IT greatly influences how new technologies, processes and application thereof can be experimented, innovated and ultimately implemented and improved. These IT capabilities and building a learning organization greatly impacts competitiveness and the effective / efficient adoption of these changes to remain competitive.
Measuring the organization’s IT maturity level - describe and name a good source
Maturity models - Garnet and MIT IT Capability Maturity Model.
Stages:
1. Awareness: Awareness of chaotic state, aware something needs to be done. Capabilities are unstable. Success depends on individual technical heroes.
2. Committed: IT more process oriented. Repeatable tasks and success depends on the adherence to the process. Stable plateau - keeping lights on
3. Proactive: IT is reorganized and maturing. Tipping point is reached
4. Service Aligned: Highly efficient internal services and service provider. Offering stable portfolio of optimized services to customers.
5. Business Partner: IT is fully trusted, embraced and part of business. IT is seen as part of the value chain. Often IT becomes the orchestrator for change for business
