8/10/2023

Digital Transformation
PROF SANJIVA SHANKAR DUBEY
Adjunct professor , IIM Lucknow, BIMTECH, SPJain Dubai
and Singapore , FMS Delhi university
Former IBM Asia Pacific Delivery Executive

Definition :

Digital Business Transformation is

Organizational Change through
the use of Digital Technologies
and Business Models to Improve
Performance.

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Digital Transformation

 Digital transformation is a journey striving towards

continuous optimization across processes, divisions and
the business ecosystem of a hyper-connected age .

 Building right bridges between front end and back

office, data from ‘things’ and decisions, people, teams,
technologies, various players in ecosystems etc is key to
success.
 (source : https://www.i-scoop.eu/digital-transformation/)

Three Questions

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Strategy

 A digital transformation strategy aims to create the capabilities of

fully leveraging the possibilities and opportunities of new
technologies and their impact faster, better and in more innovative
way in the future.
 A digital transformation journey needs a staged approach with a
clear roadmap, involving a variety of stakeholders, beyond silos
and internal/external limitations.

 This roadmap takes into account that end goals will continue to
move as digital transformation de facto is an ongoing journey, as is
change and digital innovation.

Digital transformation and hyper-

connectedness

 Emerging Technologies (Cloud, Big Data, advanced analytics, artificial intelligence,

machine learning and mobile/mobility ,IoT etc) are
 1) enablers of digital transformation
 2) causes of digital transformation needs (impact behavior of consumers or reshape
entire industries
 3) accelerators of innovation and transformation.
 Key is to focus on the edges such as Customer and customer experience, partners,
stakeholders, the last mile of processes.

 Disruption often sit and occur at these edges and are key for digital transformation.

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Re imagines

Strategy Technology

Drives

Fig 2.1 Business and Strategy

Fourth Industrial Revolution

Fourth Industrial
revolution 2000
Third Industrial Emerging
revolution 1900s Technology
Computers Cyber Physical
Second industrial
systems
revolution 1800s Digitization
First Industrial Electricity
revolution 1700s
Mass production
Steam energy
Mechanization

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Evolutionary Revolutionary Transformative Disruptive

Business
Business Scope Eco System
Redefinition
Innovation

Business Model
Degree of Transformations

innovation

Business
Process Innovation
Integration

Automation

Benefits to Firm

Fig 2.2 Application of Technology for Transformation

Digital Transformation Cube

Kaizen continuous
improvement process Digital Transformation
100X
1000X
Process Digitalization
Process

Improvement
10 X 100X
Chaotic
Automation
Hidden cube is BAU Automation or
Frustration Digitization
X 10 X
Technology

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Innovate
Business Model
(how you make
Develop Digital money)
Culture Re Structure the
corporations
(what you value)
(how you are
organized)

Digital
Transformation Rejuvenate People
Transform Products Kaleidoscope (how they work)
and services

Reorient IT Reinvent Processes

Capability (how you do things)

Digital business transformation areas

Business activities/functions: marketing, operations, human resources, administration, customer

service, etc.
Business processes: business process optimization and business process automation
Business models: how businesses function, from the go-to-market approach and value proposition
/ make money and effectively transforms its core business
Business ecosystems: the networks of partners and stakeholders, using data and actionable
intelligence as innovation assets.
Business asset management: increasingly, on less ‘tangible’ assets such as information and
customers experience
Organizational culture, clear customer-centric, agile and hyper-aware due to digital maturity,
leadership, knowledge worker silos and so forth. E,g IT and OT work together
Ecosystem and partnership models, co-opetive, collaborative, co-creating creating new business
ecosystem approaches, leading to new business models and revenue sources.
Customer, worker and partner approaches. Digital transformation puts people and strategy before
technology. customer-centricity, user experience worker empowerment, new workplace models,
changing channel partner dynamics etc.

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Digital Transformation is aimed at

Customer Operational Business

Experience excellence Model

• Ease of Innovation • EOI : Moderately

Easy difficult • EOI: very difficult
• Impact on Revenue • Impact on Cost • Impact on Revenue and
largely largely Cost
• Driver : Market • Driver : Internal • Driver : Market forces
forces forces

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Dynasens in Outpatient Care

Five steps of an effective digital

transformation process

 1. Assess the current state what is happening within the organization and in the market that is
calling for a digital transformation. successful way to approach the digital transformation process
is to think of new technology as a tool to achieve a greater strategic goal
 2. Set the budget and identify the right technology
 3. Plan out training The most cost-effective and efficient mode of training is digital training that
enables contextual learning. With real-time navigational prompts and on-screen guidance, users
can learn to use new software while actually completing tasks.
 4. Create an open feedback culture Open communication is a key ingredient in successful
change management. Manager and employee feedback is crucial to the success of the digital
transformation process.
 5. 5. Keep the process open ended Even after implementation, digital transformation is an
ongoing process. Because many technologies are based in the cloud, updates come frequently
and automatically.

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Digital Transformation 4.0

Strategy 4.0

Innovation 4.0

Enterprise 4.0

Business Model 4.0

Nine Emerging Technology

Society 4.0

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