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Digital Transformation

A new course on digital transformation is set to be launched by online platform Coursera. It will have two broad components within the pedagogy. One will be the pace of this transformation and the kinds of opportunities it presents to various businesses. The other will be ways to leverage such transformation for business benefits for various kinds of organizations. BCG is the lead knowledge partner in this, providing inputs on digitizing core processes, use of technology and framing the appropriate corporate strategy. Market disruptions will be studied along with the pros and cons of using such digital tools. The key trainers for this course will be Michael Lenox, Sonja Rueger, Ching Fong Ong and ArmaneDannouni.

Source:https://www.coursera.org/learn/bcg-uva-darden-digital-transformation?linkId=48760885

Uploaded Date:12 March 2018

Surprisingly for its industry, Queensland based Q Super has proven to be a leader in innovative approaches towards managing and leveraging pension funds. It remains a leading financial player in Austrlia since the days of its former head Rosemary Vilgan. Its present CEO Michael Pennisihas presided over a period of major restructuring and digital transformation. The frontline services were improved so that service standards did not slag off. The operating model was changed with significant investment towards staff corporate training so that the existing people can use technology to their favor. Both traditional “waterfall” means as well as modern agile methods have been included in this people transformation process. Customers have thus been saved from long queues at the centres. Public enterprises all over have and will face similar hurdles, but theycan be negotiated with equal ease as Q Super has done.

Source:https://www.strategy-business.com/article/Overcoming-Challenges-during-a-Major-Transformation?gko=a0c48&utm_campaign=QSuperTwitter&utm_medium=social&utm_source=Twitter

Uploaded Date:12 March 2018

Digital transformation has been much misunderstood. Most are getting fixated by the technology on offer but few are understanding the changing industry dynamics or the way in which the fundamentals of economics are being altered. That is why so many digital transformation initiatives are failing. The first pitfall causing this is the lack of clear definitions on digital transformation. Most think it is merely an upgrade on existing IT functions. But by most estimates, by the year 20205, there will be twenty-billion odd digitally connected devices generating enormous quantities of data warehousing enabling the information mining and the derived business analytics functions to be highly accurate. The basic fundamentals of economics have also been challenged as concepts of profit, rent and capital investment have gone out of the window, confounding many a decision maker. This is causing major concern to industry incumbents, seeing their margins sliced off. Crowd opinions now matter more than that of experts. A study by McKinsey has also shown how the digital world encourages a winner-takes-all ecosystem. First movers and a few of the superfast followers tend to hoard up market revenues. Instead of focusing on the activities of rivals, companies in the digital age need to align their structures to leverage platforms such as Amazon, Apple Pay, Tencent or Alibaba. More than half of the world’s top twelve companies for example are such ecosystems. Another error on the part of chief executives is the failure to recognize the dark horses, by instead focusing almost solely on the usual suspects. The digital shifts in the B2B segment are oft ignored for the more obvious customer facing segment, yet equally crucial. An aspect of digital not well understood is that it operates on multiple levels, so a matrix structure ought to be created to make sense of any situation such as possible disruptions.

Source:https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/why-digital-strategies-fail?cid=other-eml-nsl-mkq-mck-oth-1802&hlkid=46696854e4f64b7fb338bd8b6984cce5&hctky=2657824&hdpid=cf69bc13-2f25-43e6-8c6d-793294bbe44e

Uploaded Date:12 March 2018

Unsurprisingly, in the ongoing digital age, tech firms have a substantial advantage. Just to cite some figures, a decade back, there was only one tech firm among the top ten, but today seven of the ten largest are those to do with technology. This figure is further skewed on metrics that point towards the future. At the Fortune Future 50 for instance, more than half of the top twenty-five and three-fourths of the next twenty-five are tech companies. Digital natives have cut swathes into profit margins of traditional industries. Thus, even the non-tech firms have started digitizing in a big way in or der to future-proof themselves. This is to satisfy the twin aims of automating supply chains and innovating by developing digital products or service offerings. This has spawned autonomous systems enabled with learning advantages to leverage platforms, business analytics, data sources, artificial intelligence among others. These systems can outdo traditional systems in learning terms. In turn, that has led to the proliferation of data warehousing operations that can provide curated, personalized services for customer segments. The Triple-Loop Learning model has harnessed the power of three processes- experimentation, modulation and shaping. The mindset of industry incumbents needs to veer towards these newer processes, such as by creating integrated learning systems. Far from snatching away human jobs, digitization seeks to ensure that people perform high-level creative tasks. The complex and unpredictable biological model of running organizations needs to be adopted away from the traditional top-down approach.

Source:https://www.bcg.com/publications/2018/reinventing-enterprise-digitally.aspx

Uploaded Date:01 March 2018

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