Digital is changing our world,

Quickly and irreversibly

(Chapter 1)
What is a digital transformation?
* Digital players conquer and disrupt all industries.

* Digitization is relevant for all industries—Only scale

and speed will vary.

* New business models follow a classic pattern.

* Consumer behavior has dramatically changed in

recent years.
 Established market definitions don’t
apply anymore

 Innovations arise at industry boundaries

 Blurring boundaries between B2B and B2C become B2B2C
 Managing channel conflicts
 Software and analytics competencies becoming increasingly important
 The battle for digital talent
 The pace of change is increasing
exponentially

“Today, everyone expects continuous, linear development in technical

advances, but the future will surprise us far more dramatically than most
observers believe. Very few understand what it will mean for the pace of
change to accelerate even faster.”

- Ray Kurzweil, Google director of engineering -

Those who turn a blind eye to digital
risk failure and extinction
World first digital camera - 1975
Conclusion
Digitization requires
fundamental renewal :
Digital @ Scale
(Chapter 2)
The concept for a successful transformation into
a digital company is based on the answer of
these questions

Why?
WHY ? Things are going well, so why do
we need to change?

Answer : regardless how well positioned a company, if the

management underestimates the potential for change (digitization ) it
runs ultimate risk
Creating a Sense of Urgency: The Key
Challenge
Determining the Nature of the Change
Requirements
Identifying Barriers to Change Early
Identifying Relevant Assets and Setting the
Aspiration Level
WHAT? What does digitization mean for my
company, and what priorities are derived

To answer this question, it is helpful to build three

stage structure that can be used to prioritize the
strategic and operational tasks
Building New Ecosystems
Developing Business Architecture
Strengthening the Foundation
HOW? How do I manage the tasks
resulting from a digital transformation?
Create a Plan
Ramping Up the Digital Company
Consistent Scaling
Cargo cults don’t work
Conclusion

Everything depends on the CEO and Top

Management
Case : the digital transformation of GE
Again, the fate of the traditional companies
depends on the attitude of the CEO, will he or
she recognize the signs
Why? The clock is ticking

(Chapter 3)
 “Big is nothing, you can still die out”

Sense of
urgency

Type of Barriers
change to
change

Key questions
for
management

Ambition Relevant
assets
 How urgent is Digitization?

The CEO must

shape this
Observation
moment of
enlightenment
and make it
intuitively clear

experiences

meetings

We act, we learn, we get better (Jeffey Immelt)

Taking leadership in hand

• “not relevant to us”

• “we’ve done that for a
long time anyway”

• owner, employee
active investor
 Benchmarking to assess starting position

Actively
creating an Allowing
Assessing
Anticipating ecosystem of room for a Intend to
what we
the impact partners, digital spin off
customers, can do
and suppliers
strategy

Defined a
Prioritizing and
allocating feasible
Consideration Using best capital, talent, time scale
Reflect the force with talent and
management
and
capacity meaningful
KPIs
Experiencing digital live
Sampling digital at a hackathon

Motto = build, test, refine

Mobilizing your employees to uncover weakness

“Better that we find our weaknesses than

Bosch motto : allow others to.”
Determining the kind of change required
 Those Who Know the Roadblocks
Overcome Them More Easily

Efficient organizations often slow down the necessary

change

The best and most efficient managers who stand in the

way of the project.
Obstacles

Deep-rooted mind-sets and working methods in

functional silos

“At least 40% of all businesses will die in the next 10 years . . . if they don’t figure out
how to change their entire company to accommodate new technologies.” (John
Chambers)
 Identifying relevant assets

It’s about “We don’t just

recognizing where program apps, but
First and foremost,
the new technology build solutions
it’s about the core of
can help the around our products
the business the
company the most, that our customers
benefit to the
and how it will help should desire,”
customer.
to renew the (Bosch CEO Volkmar
company Denner)
The relevant assets :

Powerful brand

Strong customer relationship

Extensive installed base

Deep customer insights

Emotional ties
Determining the Aspiration Level for the
Transformation
Identify and
communicate:

The management : clear about the objective of the

transformation, and formulate it articulately

The managers : must then consider and describe the scope and
impact of the changes.

Team : the aim must be communicated to the team and at the

same time creating enthusiasm and enjoyment for the upcoming
work
 Conclusion

Digitization is changing every function in the company

New ecosystems are breaking down boundaries across all industries,

from automotive → banking, retail → construction, and bringing in
competition between competitors that previously had nothing to do
with each other.
Conclusion