DIGITAL

CHAPTER TRANSFORMATI
ON
1 DRIVERS OF
CHANGE

https://www.youtube.com/watch?
v=508CR1fd8ws
BACKGROUND
1. The world is changing rapidly ,
organizations need to adapt to
survive.

2. Transformation is an essential
and inevitable process of business
evolution , requiring hard decisions
about the allocation of limited
resources.

3. Assembling the right team of

people is primary to success , The
technology is secondary.
 • Schwertner (2017)
• “the application of technology to build new business
models, processes, software and systems that result in
more profitable revenue, greater competitive advantage,
and higher efficiency.”
WHAT IS DIGITAL •
TRANSFORMATION • Deloitte (2018)
? • “Digital transformation is the use of technology to
radically improve the performance or reach of an
organization. In a digitally transformed business, digital
technologies enable improved processes, engaged
talent, and new business models.”
•
• Bloomberg (2018)
• “Digital transformation requires the organization to deal
better with change overall, essentially making change a
core competency as the enterprise becomes customer-
driven end-to-end. Such agility will facilitate ongoing
digitalization initiatives but should not be confused with
them.”
 • European Commission (2019)
• “Digital transformation is characterized by a fusion of advanced
technologies and the integration of physical and digital systems, the
predominance of innovative business models and new processes,
and the creation of smart products and services.”

WHAT IS DIGITAL • OECD (2018)

TRANSFORMATION • “Digital transformation refers to the economic and societal effects of

digitization and digitalization. Digitization is the conversion of analog
? data and processes into a machine-readable format. Digitalizationis
the use of digital technologies and data as well as their
interconnection which results in new or changes to existing
activities.”

• Ismail,Khater, and Zaki (2017)

• [Digital transformation is a]“process through which companies
converge multiple new digital technologies, enhanced with
ubiquitous connectivity, with the intention of reaching superior per-
formance and sustained competitive advantage, by transforming
multiple business dimensions ,including the business model, the
customer experience (comprising digitally enabled products and
services)and operations (comprising processes and decision-
making), and simultaneously impacting people (including skills talent
and culture) and networks (including the entire value system).”
 It can be concluded that digital
transformation is a process related
to the transformation of
technology, organization,
digitalization, which requires
WHAT IS DIGITAL companies to change
TRANSFORMATION ? business/operational activities
that have been carried out so far
through business model
innovations that produce new
products, services and customer
experiences so as to increase
efficiency. , profitability and
competitive advantage of the
company.
 • 1. digitized all of your business
processes ?

QUICK PASS- •2. Are you collecting data from all

your business processes ?
FAIL
QUESTIONS •3. Are you analyzing the Data you
collect ?

•4. Are optimizing your processes

based on insights generated by your
analysis of the data ?

•If all of your answer is “No” for all

of these questions , you have to
consider your organization a
candidate for digital disruption
 Millenials don’t want to talk with
sales team.
They want to have a conversation
MILLENIALS with your websites.

-Adam Morris , CEO of Redstage-

They are constantly communicating

via text and Social Media , They are
avid users of Collaboration platforms
like Slack , Ringcentral Glip ,
Snapchat , Instragram , Fuze ,
ChatBlazer , Workplace , Skype, etc
 BRASS RING or
BLACK HOLE ?
The Majority of Transformation
projects fail to meet expectation. A
survey by McKinsey revealed only
26% of respondents said their
transformational efforts were “very
or Completely” successful.

The Digital transformation can be the

ring that keep you riding merrily on
the carousel. Or it can be a black hole
that drains your resources and ends
your career.
 1. Digital Masters see
DIGITAL technology as a way to
change the way they do
CAPABILITIES business
a. Customer engagements
b. Internal Operations
c. Business Model

2. Digital Masters know where

and how to
invest in the digital
opportunity
 To these companies, new
DIGITAL technologies such
CAPABILITIES as social media, mobility, and
analytics are not goals to attain
or signals
to send their customers and
investors.

These technologies are tools to

get closer to customers,
empower their employees, and
transform their
internal business processes.
 1. Committed Leadership

2. Strong Top Down leadership

a. Setting direction, building momentum, and ensuring that
the company follows
through.
b. Leaders created a clear and broad vision of the future,
started some critical initiatives,

LEADERSHIP and then engaged their employees to build out the vision
over time.
c. The leaders stayed involved throughout the transformation
CAPABILITIES to make the case
for change, to drive the change forward, and to redirect
activities and behaviors that
went against the vision.
d. Top-down leadership does mean strong governance and
coordination.

3. Make sure all people in all activities are on the same page.
 All Digital Masters find ways to build a
LEADERSHIP clear vision of a radically different
future, engage their employees in the
CAPABILITIES goal, foster strong bonds between
technical and businesspeople, and
steer the course through strong
governance.
DIGITAL MASTERY
LEVEL OF 1. BEGINNERS
a. At the start of the digital journey. Many of them
adopt a wait-and-see strategy, trying to gain certainty

DIGITAL
before they act.
b.Some believe the digital pportunity is right for other
industries, but not for theirs.
c.Others lack the leadership to make something

MASTERY happen. As a result, Beginners have only basic digital

capabilities.
d Lag behind their competitors on multiple measures
of financial performance Many Beginners use
regulation or privacy as an excuse for inaction.

2. FASHIONISTAS
a. Not waiting to act , buy every new digital bauble
b. flaunt their technological trendiness but don’t
change what’s behind the veneer.
c. Lack strong digital leadership and governance,
they waste much of what they spend. They need to
reverse what they’ve done so that they can integrate
and scale their capabilities.
 3. CONSERVATIVES
a. Opposite of Fashionista , Have useful
digital leadership capabilities , excess
prudence prevents these firms from building

LEVEL OF strong digital capabilities.

b. The leader of the companies focus on
ensuring that every digital investment is

DIGITAL
carefully considered and strongly
coordinated.
c. This caution can be useful, especially

MASTERY
in highly regulated industries such as health
care and financial services. But it can also
create a governance trap
that focuses more on controls and rules
than making progress.
Conservatives find it hard to mobilize top
management—and the rest of the
organization—to see the bigger prize that
digital transformation can bring.

4. DIGITAL MASTERS
a. know how and where to invest
b. Their leaders are committed to guiding
the company powerfully into the digital
future.
c. Already exploiding their digital
advantage to build superior competitive
positions in the industry Digital Masters
have overcome the difficulties that
MECHANICS OF TRANSFORMATION

Several events that will happened as a Mechanism of Digital transformation :

1. Several questions arise ; Why are we doing this ? , Why are we transforming
these processes and disrupting our traditional ways of operating ? , Why are
we Changing ?
2. Some people are exhilarated by change , but most people find it upsetting.
as a leader , you need to accept this fact.
3. Primary responsibilities is managing their fears and allaying their suspicions
that your transformational effort will make their lives more difficult or result
in the elimination of their jobs.
4. Prepare your People :
a. Walk them slowly and carefully through the steps
b. Encourage them to ask questions
c. give rewards for offering ideas and suggestions for making the
transformation process go more smoothly and efficiently.
 LEVELS OF
TRANSFORMATION

1. Transformation focuses on
upgrading and streamlining
foundational technologies and
Infrastructures

2. Transformation improves the

efficiency and throughput of
standard operations and
processes

3. Transformation helps the

organization create and enable
new business models.
 DARQ STACK
D (DLT) , Distributed Ledger Technology
is a digital system for recording the transaction of
assets in which the transactions and their details are
recorded in multiple places at the same time. ... A
distributed ledger can be used to record static data,
such as a registry, and dynamic data, such as financial
transactions.

AI (Artificial Intelligence)
The simulation of human intelligence in
machines that are programmed to think like humans
and mimic their actions.
 DARQ STACK
EXTENDED REALITY (XR)
is a universal term inclusive to immersive learning
technologies virtual reality (VR), augmented reality (AR),
and mixed reality (MR). ... Augmented Reality — AR
training adds interactive, digital elements to a live, real-
world environment through a phone, tablet, or headset.

QUANTUM COMPUTING (QC)

Quantum computing could change the world. It could
transform medicine, break encryption and revolutionise
communications and artificial intelligence. Companies
like IBM, Microsoft and Google are racing to build reliable
quantum computers.
 IoT (Internet of Things)

Describes as :

The network of physical objects, so known as, "things" that are embedded with
sensors, software, and other technologies that is used for the purpose of
connecting and exchanging data with other devices and systems over the Internet.

Enabling the rapid development of :

Smart homes , Smart Schools , Smart power Grids , Smart Roads , Smart Towns ,
Smart cities , Smart regions , and even Smart Nations.