Introduction about LEGO - Lego is a Danish toy company that is known for its iconic plastic bricks that

can be assembled to create various structures and designs. The company was founded in 1932 by Ole
Kirk Christiansen and has since become one of the world's largest toy manufacturers. The name
"Lego" is derived from the Danish words "leg godt," which means "play well."

Lego's core product is the Lego brick, which is made from plastic and has a unique interlocking design
that allows it to be connected to other bricks. This simple design has made Lego bricks incredibly
versatile and has allowed users to create a wide variety of structures, from simple buildings to
intricate models of famous landmarks.

Over the years, Lego has expanded its product line to include a wide variety of sets and themes,
including licensed products based on popular movies and TV shows. The company has also
developed digital products, including video games and mobile apps.

Lego has always had a strong focus on education and creativity, and its products are designed to help
children develop important skills such as problem-solving, spatial awareness, and fine motor skills.
The company has also been involved in various philanthropic and social responsibility initiatives,
including partnerships with organizations such as UNICEF and the World Wildlife Fund.

Today, Lego continues to be a beloved brand around the world, with a strong focus on innovation,
sustainability, and engaging with its customers through both physical and digital experiences.

Q1. Why have they gone for digital transformation? What are the benefits?

Lego went for digital transformation for a number of reasons, including:

Meeting changing customer demands: As technology has advanced, customers have come to expect
more personalized and engaging experiences. By going through digital transformation, Lego aimed to
create new ways of engaging with its customers and provide them with the experiences they desire.
Expanding its reach: Lego wanted to expand its customer base beyond traditional brick-and-mortar
stores. By embracing digital technologies, Lego could reach a global audience and offer its products
in new ways.

Improving efficiency and reducing costs: Digital transformation can help streamline business
processes, reduce costs, and improve efficiency. For Lego, this meant adopting new technologies to
automate processes and increase productivity.

Staying competitive: Many of Lego's competitors were already adopting digital technologies to
improve their operations and engage with customers. To remain competitive, Lego had to embrace
digital transformation as well.

Overall, Lego's digital transformation allowed the company to create new products and services,
improve customer experiences, and streamline its operations. This has helped Lego remain relevant
and competitive in an increasingly digital world.

Q2. What technology/tools have they used?

a. Is the right technology backbone in place to support the transformation?

Lego has invested heavily in developing the technology backbone necessary to support its digital
transformation efforts. The company has implemented a number of technologies and systems to
support its various digital initiatives, including:

Cloud Computing: Lego has moved much of its IT infrastructure to the cloud, allowing for greater
scalability and flexibility in supporting its digital products and services.

Agile Development: Lego has adopted an agile development methodology to support its digital
initiatives. This approach allows the company to rapidly develop and iterate on new products and
services, while maintaining a high level of quality.

Data Analytics: Lego has invested in data analytics and artificial intelligence (AI) technologies to
better understand its customers and improve its products and services. This includes analyzing
customer data to identify trends and patterns, as well as using AI to develop more personalized
experiences.
Digital Design Tools: Lego has developed a number of digital design tools to support its product
development process. These tools allow designers to create and test new products digitally, before
physical prototypes are created.

Mobile Technology: Lego has developed a number of mobile apps to support its digital initiatives.
These apps allow users to access digital versions of Lego products, as well as create and share their
own designs.

Overall, Lego has made significant investments in developing the technology backbone necessary to
support its digital transformation efforts. By leveraging cloud computing, agile development
methodologies, data analytics, digital design tools, and mobile technology, the company has been
able to create new and innovative products and services that integrate physical and digital elements.

b. If the technology backbone is not in place, what is the plan to get there? – don’t think this
is necessary

Lego has made significant investments in its technology infrastructure in recent years, including the
development of a new digital backbone that can support its digital transformation efforts. However,
if the technology backbone is not yet in place, Lego's plan to get there may involve a number of
steps, including:

Conducting a technology assessment: Lego may need to conduct an assessment of its current
technology infrastructure to identify any gaps or areas that need improvement. This assessment
could help to identify the specific technologies or systems that need to be put in place in order to
support the company's digital transformation initiatives.

Developing a roadmap: Once the technology assessment has been completed, Lego can develop a
roadmap outlining the steps that need to be taken to implement the new technology backbone. This
roadmap should include specific milestones and timelines for each stage of the process, as well as
details on the resources and budget required.

Identifying and allocating resources: Lego will need to identify the resources that will be required to
implement the new technology backbone, including personnel, equipment, and funding. This may
involve hiring new staff with the necessary technical skills, or partnering with external vendors or
service providers to support the implementation process.

Testing and implementation: Once the new technology backbone has been developed and tested, it
will need to be implemented throughout the organization. This process may involve training
employees on how to use the new systems and processes, as well as making any necessary changes
to existing workflows and procedures.
Overall, developing a new technology backbone can be a complex and time-consuming process, and
will require a significant investment of resources and effort. However, Lego has already
demonstrated its commitment to digital transformation, and has made significant progress in this
area in recent years, which suggests that the company has the vision and resources necessary to
successfully implement a new technology backbone if required.

c. Which new projects can be launched initially on the new backbone to demonstrate value rapidly?

There are several new projects that Lego could launch initially on its new technology backbone to
demonstrate value rapidly. Here are a few examples:

Enhanced Digital Building Instructions: Lego could create an enhanced digital version of its building
instructions that provides step-by-step guidance to customers using a mobile app. This app could
include 3D models, animations, and augmented reality (AR) features to make the building process
more engaging and interactive.

Personalized Product Recommendations: Lego could use data analytics and AI to develop
personalized product recommendations for its customers. By analyzing customer data, Lego could
identify which products and themes are most popular among different segments of its customer
base, and use this information to suggest new products that are likely to be of interest.

Interactive In-Store Displays: Lego could use AR and other digital technologies to create interactive
in-store displays that allow customers to see digital versions of products and play games using their
mobile devices. These displays could also provide more information about the products and help
customers make purchasing decisions.

Social Media Engagement: Lego could create new social media campaigns that encourage customers
to share their own Lego creations and participate in online contests and challenges. This would help
build a stronger community of Lego enthusiasts and generate buzz around new products and
initiatives.

Digital Games and Experiences: Lego could continue to develop new digital games and experiences
that complement its physical products. These games could be designed to teach coding, robotics, and
other STEM skills, and could be marketed to parents and educators as educational tools.

Launching projects like these would allow Lego to demonstrate the value of its new technology
backbone and showcase the benefits of its digital transformation initiatives. By creating new and
innovative products and services that integrate physical and digital elements, Lego can continue to
engage with its customers and maintain its position as a leader in the toy industry.
d. Are the people in the organization ready for this change?

In general, it can be challenging to get everyone in an organization on board with a digital

transformation, as people often have different levels of comfort and experience with new
technologies. However, based on the steps Lego has taken, it appears that the company has been
proactive in addressing this challenge.

Lego has made a concerted effort to involve its employees in the digital transformation process and
to provide them with the training and support they need to be successful. For example, the company
has implemented an agile development methodology, which involves cross-functional teams working
collaboratively and iteratively to develop new products and services. This approach requires a high
level of communication and collaboration, and helps to break down silos between different parts of
the organization.

Lego has also invested in training and development programs to help its employees develop the
digital skills they need to be successful in their roles. For example, the company has created a Digital
Academy that provides training in areas like data analytics, digital marketing, and software
development. The Digital Academy is open to all Lego employees, and is designed to help them stay
up-to-date with the latest digital trends and technologies.

In addition, Lego has worked closely with its customers to better understand their needs and
preferences, and has used this information to inform its digital transformation initiatives. By putting
the needs of its customers at the center of its digital transformation efforts, Lego has been able to
create new products and services that are more likely to be successful in the market.

Overall, while there may be some individuals within the organization who are resistant to change,
Lego appears to have taken a proactive and collaborative approach to its digital transformation, and
has made significant efforts to ensure that its employees are prepared and supported throughout the
process.

Q3. How have they led this digital transformation?

Lego has been a leader in digital transformation in the toy industry, and has embraced a number of
innovative technologies and strategies to enhance its business. Some examples of how Lego has led
the digital transformation include:

Digital Products: Lego has developed a number of digital products to complement its physical brick-
based products. These include mobile apps, video games, and a digital design platform that allows
users to create and share virtual Lego models.
Social Media: Lego has a strong presence on social media platforms such as YouTube, Twitter, and
Instagram. The company has used these platforms to engage with its customers and build a
community of Lego enthusiasts.

3D Printing: Lego has experimented with 3D printing technology, allowing customers to create
custom Lego pieces or modify existing ones.

Robotics: Lego has created a line of educational robotics kits that use Lego bricks and programming
software to teach kids about coding and robotics.

Augmented Reality: Lego has embraced augmented reality, which allows users to bring virtual Lego
models to life using a smartphone or tablet. The company has also experimented with AR in its retail
stores, creating interactive experiences that allow customers to see virtual models in the real world.

Overall, Lego has been proactive in embracing digital technologies and integrating them into its
products and services. By doing so, the company has been able to offer customers new and engaging
experiences, while remaining true to its core values of creativity and innovation.

Q4. What is the biggest obstacle in Digital Transformation that they have faced?

Lego faced a number of obstacles in its digital transformation efforts, including:

Cultural Resistance: Like many companies, Lego faced resistance from some employees who were
hesitant to embrace new technologies and ways of working. This resistance can make it difficult to
implement digital transformation initiatives, particularly in large organizations.

Technical Challenges: Lego's products are based on physical bricks, which can make it difficult to
integrate digital technologies. For example, creating digital versions of physical sets requires careful
planning and design to ensure that the digital models accurately represent the physical ones.

Security and Privacy Concerns: As Lego has expanded into digital products and services, it has had to
address issues related to data security and privacy. This can be particularly challenging when working
with young users and their parents, who may have concerns about their personal information being
collected and stored.
Competition: As more companies have embraced digital technologies, Lego has faced increased
competition from new entrants into the toy industry, as well as from established companies that
have developed their own digital products.

Cost: Digital transformation can be expensive, particularly for a large organization like Lego. Investing
in new technologies and processes can require significant financial resources, and it can be difficult
to justify the cost without clear benefits and returns on investment.

Despite these challenges, Lego has been able to successfully navigate the digital transformation
process by focusing on customer needs, working closely with its employees, and developing
innovative products and services that integrate physical and digital elements.

Future of dts in lego

The future of digital transformation in Lego is likely to be focused on continued innovation and the
development of new technologies and processes to drive the company's growth and
competitiveness. Here are some possible directions that Lego's digital transformation could take in
the future:

Integration of Augmented and Virtual Reality: Lego has already experimented with augmented and
virtual reality technology, such as its Lego Hidden Side app, which allows users to see and interact
with digital versions of Lego sets. In the future, Lego could potentially integrate AR and VR
technology more fully into its products, allowing users to build and play with Lego sets in entirely
new ways.

Expansion of e-commerce: Lego has already invested heavily in e-commerce in recent years, and this
trend is likely to continue in the future. The company may seek to expand its online sales channels,
such as through partnerships with online retailers or the development of its own online marketplace.

Digitalization of supply chain: Digitalizing Lego's supply chain could help the company improve
efficiency and reduce costs by using data analytics and automation to optimize logistics, inventory
management, and production processes.

Continued investment in data analytics and artificial intelligence: Lego has already made significant
investments in data analytics and artificial intelligence, which have helped the company to improve
its product design, marketing, and customer engagement. In the future, Lego could continue to
leverage these technologies to gain insights and competitive advantages in various areas of its
business.

Development of new digital products and services: In addition to using digital technologies to
enhance its existing products, Lego could also develop entirely new digital products and services that
complement its core business. For example, the company could develop educational apps or games
that teach children about STEM subjects, or offer digital subscriptions to access exclusive Lego
content or services.

Overall, the future of digital transformation in Lego is likely to be dynamic and innovative, as the
company continues to explore new technologies and strategies to drive growth and maintain its
position as a leader in the toy industry.