Successful Digital Transformation E-Book

Marc Beijen

• Herausgeber: Van Haren Publishing
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 173

Veröffentlichungsjahr: 2021

Beschreibung

This book is, as indicated by the subtitle, intended in the first place for executives and managers. But actually its is essential reading for all who are faced with digital transformation. It offers a valuable reflection on knowledge developed and experience accumulated in daily practice, focusing on the approach to contemporary digital business challenges. Written in understandable language and with a powerful, logical structure, it has become a very accessible book that remains fascinating from beginning to end. It teaches you to understand topics that matter such as the need for digital transformation, the connection with business strategy and the essential differences in starting positions between organizations. What to do next is made concrete and practical by identifying five necessary digital breakthroughs and working them out into clear goals, which should be included in the change cycle as part of your digital strategy. The phase model presented includes three distinct steps - from product focus in the first phase to customer orientation in the second phase, followed by a third phase in which the customer is at the center. The book describes what is required to take these steps - the checklist that is included provides organizations with direction. This helps in setting up a strategy and developing an effective roadmap for organizations to transform. “The book 'Successful Digital Transformation' reads like a modern fairy tale. It's clever how the essence of the field of digital transformation is captured in barely 100 pages. But the theme has also been made very practical, the underlying topics (such as data management, enterprise architecture, change management) have been tied together and explained in a comprehensible way. I think the book fills a great need, because many books and articles on this topic are either full of buzzwords that are not further described, or lapse into academic jargon that is incomprehensible to the average reader. This book sits nicely between academia and practice, without falling into compromises.” – Frank Harmsen - Associate Professor of Digital Transformation, Maastricht University

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Successful Digital Transformation

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Colofon

Title:

Successful Digital Transformation

Subtitle:

A survival guide for managers and executives

Author:

Marc M. Beijen

Publisher:

Van Haren Publishing, ’s-Hertogenbosch – NL,www.vanharen.net.

ISBN Hard copy:

978 94 018 0771 5

ISBN eBook (pdf):

978 94 018 0772 2

ISBN ePUB:

978 94 018 0773 9

Edition:

First edition, first impression, June 2021

Lay out and DTP:

Coco Bookmedia, Amersfoort - NL

Copyright:

© Van Haren Publishing and M.M. Beijen, 2020, 2021

For further information on Van Haren Publishing, e-mail to: [email protected].

Copyright:

All rights reserved. No part of this publication may be reproduced in any form by print, photo print, microfilm or any other means without written permission by the publisher.

Although this publication has been composed with most care, neither author nor publisher can accept any liability for damage caused by possible errors and/or incompleteness in this publication.

Contents

PREFACE BY ERIK BEULEN

PREFACE BY MARCO KEIM

RECOMMENDATIONS

1  DIGITAL REVOLUTION IN THE 21ST CENTURY

1.1 Challenges facing organizations

1.2 Assignment for managers and executives

1.3 Drivers for change

2  DIGITAL TRANSFORMATION IN PERSPECTIVE

2.1 Phase model for digital transformation

2.2 Not one but two digital transformations?

2.3 Five digital breakthroughs

3  DIGITAL STRATEGY AS A STARTING POINT

3.1 Elements of a digital strategy

3.2 Framework for business transformation

3.3 Digital breakthroughs projected onto the framework

4  DIGITAL BREAKTHROUGH 1: DATA-DRIVEN ORGANIZATION

4.1 Why is data so important?

4.2 Problems and challenges with data

4.3 What does a data-driven organization look like?

4.4 How to become a data-driven organization?

5  DIGITAL BREAKTHROUGH 2: SMART, DIGITAL PROCESSES

5.1 Why are smart, digital processes so important?

5.2 Problems and challenges with smart, digital processes

5.3 What does it take for smart, digital processes?

5.4 How to become a digital, process-oriented organization?

6  DIGITAL BREAKTHROUGH 3: BRILLIANT CUSTOMER EXPERIENCE

6.1 Why is a brilliant customer experience so important?

6.2 Problems and challenges with customer experience

6.3 What do you need to achieve a brilliant customer experience?

6.4 How do you develop a brilliant customer experience?

7  DIGITAL BREAKTHROUGH 4: AGILE AND RESILIENT ORGANIZATION

7.1 Why is an agile and resilient organization so important?

7.2 Problems and challenges in IT processes and controls

7.3 What do you need to become an agile and resilient organization?

7.4 How to become agile and resilient?

8  DIGITAL BREAKTHROUGH 5: DIGITAL BUSINESS MODELS

8.1 Why are digital business models so important?

8.2 Problems and challenges with digital business models

8.3 What do you need to set up a digital business model?

8.4 How to develop a digital business model?

9  MOVING SUCCESSFULLY FROM DIGITAL STRATEGY TO EXECUTION

9.1 Digital strategy as part of the change cycle

9.2 Prioritizing: an initial ranking

9.3 Eight core principles for successful change

9.4 Finally: and now?

LITERATURE LIST

EPILOGUE

ABOUT THE AUTHOR

Preface by Erik Beulen

Professor of Information Management, Tilburg University; Academic Director Executive Master Information Management, TIAS School for Business and Society

Successful digital transformation is still a major challenge for many organizations. Markets are in a state of flux, technological capabilities and compliance requirements are greater than ever. In these dynamics, organizations must digitally transform. I see insufficiently innovative use of IT among many. After all, it is essential for organizations to continually renew themselves. Executing a strategy once chosen is no longer enough; continuous adoption of innovation is necessary for survival. Emerging technologies such as artificial intelligence, blockchain, internet of things and robotics can be deployed by your organization but also by your competitors. Therefore, focus on adapting the DNA - continuously and radically adapt your organization, processes and ways of working.

This book elaborates on successful digital transformation using a phase model and five digital breakthroughs that can be used in the development of a business strategy to realize ambitions. The phase model presented includes three distinct steps - from product focus in the first phase to customer orientation in the second phase, followed by a third phase in which the customer is at the center. The book describes what is required to take these steps - the checklist that is included provides organizations with direction. This helps in setting up a strategy and developing an effective roadmap for organizations to transform.

However, they will have to ask themselves whether there is enough time to transform sequentially. For many organizations, it is five to twelve and the question is whether there is still time to accelerate by initially focusing only on the no-regret choices. A parallel transformation, skipping the step to the second stage, is sometimes the only option to avoid being pushed out of the market by digital competitors. A risky scenario but sometimes you just must follow through and trust intuition. Leave the drafting of a strategy for what it is.

In addition, the five digital breakthroughs are elaborated. The first, data-driven organization, is the most important. Together with the fourth breakthrough, an agile and resilient organization, these are, in my opinion, the basis for the other three breakthroughs. Much has been said about agile working, although most organizations have not made enough progress in adopting it. Data remains the Achilles heel for many digital transformations - data quality is inadequate, master data management is a concern, and volumes of available data are growing exponentially. So, try to make your organization data driven. By focusing on data, it becomes possible to effectively engage in the introduction of new business models (breakthrough 5), customer experience (breakthrough 3) and improving business processes (breakthrough 2).

Good luck with digital transformation!

Erik Beulen

Preface by Marco Keim

CEO Aegon International and member of the Management Board of Aegon N.V.

It is impossible to imagine today’s business without IT. Ten years ago, as an executive, you could say that your focus was limited to the business and the IT department ensured that it was adequately supported; today, this is unthinkable. IT is an integral part of the business for every director, board member or manager. It is no longer a choice; it has become a given! At all levels, from C-level to operations, you need to understand what is going on. As a director, board member or manager, you don’t have to be an expert, of course not, but you do have to constantly ask yourself what contribution IT can make to your business and ensure, together with the IT department, that this value is actually achieved. You may now feel a threshold for taking this on. Where should you start, what is important and what is not, as there are so many terms and buzzwords. Where do you get the right information from, how do you make it applicable, who is going to help you?

The author of this book, Marc Beijen, is uniquely positioned to show you the way in this comprehensive matter. I have known Marc for more than 20 years and have enjoyed working with him on a regular basis. From my first years as a young manager, he has shown me the way in, what is for me, the still unknown world of IT and business architecture. Marc’s strength is that he not only knows everything about the latest techniques and developments, but that he also translates this into realistic, pragmatic, working solutions and added value for my organization. Marc makes complexity accessible and understandable for non-IT people like me and is, therefore, the ideal author for this book.

Successful Digital Transformation - A survival guide for executives and managers is a valuable reflection on knowledge developed and experience accumulated in daily practice, focusing on the approach to contemporary digital business challenges. Written in understandable language and with a powerful, logical structure, it has become a very accessible book that remains fascinating from beginning to end. It teaches you to understand topics that matter such as the need for digital transformation, the connection with business strategy and the essential differences in starting positions between organizations. What to do next is made concrete and practical by identifying five necessary digital breakthroughs and working them out into clear goals, which should be included in the change cycle as part of your digital strategy.

I read this book with great attention and pleasure. It makes you aware of the need for further digitalization to stay in business. It makes you think about how you can make the difference with modern information technology and gain a decisive competitive advantage. Topics that every manager and executive must deal with and, therefore, a book that every manager and executive should read in my opinion. Take your time to allow all the rich and valuable information to sink in. For example, don’t read it all at once but rather chapter by chapter. Let the content sink in and place it in the context of your business before you go any further. This will help you provide the right direction for your business transformation.

Marco Keim

Recommendations

“The book ‘Successful Digital Transformation’ reads like a modern fairy tale. It’s clever how the essence of the field of digital transformation is captured in barely 100 pages. But the theme has also been made very practical, the underlying topics (such as data management, enterprise architecture, change management) have been tied together and explained in a comprehensible way. I think the book fills a great need, because many books and articles on this topic are either full of buzzwords that are not further described, or lapse into academic jargon that is incomprehensible to the average reader. This book sits nicely between academia and practice, without falling into compromises.”

– Frank Harmsen - Associate Professor of Digital Transformation,

Maastricht University

“I enjoyed reading Marc Beijen’s ’survival guide’ to digital transformation. To me it read like a digital cookbook! It is not easy to make a good dish from a huge variety of ingredients. A good cook must not only know the flavors and preparation of the ingredients. But also understand which ones go together. And which ones don’t. In addition, a good cook knows the required preparation time and thus understands that sometimes he must work on the dessert while also working on the entrée. Marc has managed to help with this complexity. All the ingredients are in there. From technology & data to business models & organization. Including the three different phases in which to work (usually simultaneously). This book thus guarantees a lot of inspiration and cooking pleasure in the digital kitchen; both for the cook himself and for the visitor who expects a delicious three-course menu.”

– Sjoerd Blüm, CIO – Schiphol Airport

“Marc Beijen takes a big step with this latest book by adopting the need for digital transformation as a compelling guiding theme. A trigger that comes mainly from outside the organization, not so much from its own needs or capabilities. Alignment is dead! It’s all hands-on deck. But then ... how? Marc takes the usually recalcitrant starting situation (organization, skills, legacy systems, etc.) that hinders a transformation into account in his approach. The digital strategy is transformed into a manageable, integral, transformation calendar. I commend this survival guide to every manager who has to bring such a transformation to a successful end. I also commend this to the supervisors in these ever-faster changing organizations.”

– Eric Sluis, who was CIO of Achmea Insurance / holds various supervisory directorships at financial institutions

“Much is written about digital transformation. Very few companies succeed in transforming the business model based on digital technology. With this book Marc Beijen has succeeded in reducing digital transformation to its essence. Marc describes the digital breakthroughs in a clear and understandable way. This makes it a reference book, a guide and a source of inspiration at the same time for anyone who leads an organization or is responsible for digitalization or ICT.”

– Erik Hietkamp, CIO / Director IT DAS Rechtsbijstand

”Nicely written book and interesting frameworks that are closely linked to the practical insights I gain every day.”

– Martijn Ollefers,

Head of Digital Transformation for Allianz Benelux

“It is a beautiful book that is easy to read. It contains extremely useful advice and tools for anyone who is working on the digital transformation of their own organization or wants to start one. Digital transformation is a broad task that touches on people, process and technology - in that order. The book describes this strikingly, as well as the tasks and change areas that play a role in this and the importance of a well-thought-out transformation vision and strategy. The realization of that vision and strategy remains, precisely because of the often-radical nature of the change, ultimately the major task for every organization. In practice, digital transformation often turns out to be a bumpy road, with unexpected turns, necessary accelerations, beautiful views and, alongside the successes, also the necessary disappointments. Precisely at such times it is important to have a clear, well thought-out course. This book provides a number of very valuable ingredients.”

– Arnoud van Petersen,

CIO Cyber Security Center

“Marc Beijen demonstrates great expertise and experience. In a clear and convenient way, the coherence between the latest insights in the areas of digital strategies, business models and processes, emerging IT trends and change management aspects is presented. The practical examples help executives and managers to make the translation to their organization.”

– Albert de Bree, IT Director Rotterdam School of Management,

Erasmus University

”A beautiful compilation that is insightfully articulated. Written from practice, of which I was allowed to be a part.”

– Peter van Wijk,

Change & Program Director Aegon, The Netherlands

”The coherence of complex digital changes is made manageable in this book for strategy formation and execution. Understandable and necessary for every manager.”

– Rob Heerkens,

Member of the Board of Pension Fund PGB

“After reading this book you know what to do to digitally transform your organization. It’s an easy read and the active writing style makes it possible to quickly see the steps you need to take in this complex subject.”

– Gert van der Kooij,

Chief Digital Officer Hoogheemraadschap van Rijnland

“I find it very relatable; the book gives a good overview of the current issues with concrete suggestions for a successful digital transformation. You can get started with it in practice in no time.”

– Henriette Setz, Director of Operations - Essent

“The book is a kind of Swiss Army knife in which relevant digital developments are sketched and then practical models, approaches and tips are provided on how to deal with this in your organization.”

– Arie van Burgel, CEO of Univé South Netherlands

“Digital transformation can no longer be ignored. Both in the way we work and how we shape the world in these challenging times. But to realize this potential, a different view of your organization is needed. This book makes this complex task tangible, with concrete methods and solutions for taking steps. This makes it a good basis for any organization going through this transformation.”

– Erik Oostwegel, CEO Royal HaskoningDHV

1 Digital revolution in the 21st century

∎ 1.1 CHALLENGES FACING ORGANIZATIONS

The world is changing rapidly. Organizations from all sectors are facing enormous challenges. Whether it’s retail, healthcare, financial services, transportation or government, radical changes are occurring everywhere. The needs and behavior of consumers are fundamentally changing. They demand faster response times, transparency, excellent value for money and 24-hour service. Customers are increasingly organizing themselves, becoming more assertive and less loyal to suppliers and service providers. And customers want to be sure that doing business is safe.

New organizations are appearing on the market with new business models, positioning themselves ahead of the original service provider in customer contact. They steal your customer contact and push you into a supplier role with marginal revenues. Your position as the original service provider is lost forever! How will you respond to all this?

At the same time, technological advances are accelerating at a dizzying rate for organizations. This in turn raises new questions. What gives value to customers, employees, society and shareholders? What should you keep doing and what should you say goodbye to? What opportunities are you going to take advantage of in terms of market approach, business models, efficiencies and technology? What choices do you need to make?

The speed of change in society and technology means that organizations need to dramatically increase their flexibility, resilience and pace. An agile way of working certainly contributes to this but more is needed. The biggest obstacles for corporates, who have been in the market for a long time, are legacy problems. Not only of outdated systems and technology but also of associated processes, organization, practices, even culture. How do you ensure that this legacy does not block your strategy? How do you create overview and insight into which measures you need to take; which projects can continue or where you need to take drastic action?

The Greek philosopher Heraclitus proclaimed it long ago: panta rhei. This means, “everything is in motion,” freely translated, “change is the only constant.” This requires a trade-off between renovation and improvement of the existing, often side-by-side. So, renovate with the store open. How do you ensure that your organization smoothly transitions to the intended situation? In such a way that customers do not experience any negative effects and the organization retains control? And do you ever reach that intended situation, or is it an ongoing journey to Utopia?

∎ 1.2 ASSIGNMENT FOR MANAGERS AND EXECUTIVES

In today’s society, digitization is an important factor to stay in business. More than ever, organizations will have to think and make choices about how digitization can create and contribute value to product offerings, services, chain collaboration and business operations. Optimal use of modern information technology can make the difference between decisive competitive advantage, survival and loss. In addition to focusing on the short term, one must also look to the future: what structural changes can you expect and how do you respond to them? Which (new) technology offers value to stakeholders? What opportunities do you seize in market approach, efficiency improvement and technology? Is what you want feasible? And how should you organize digital innovation?

Dependence on digital technology is increasing daily. If online banking is not available, the world quickly comes to a standstill. A failed ERP implementation can mean the end of your business. Developing digital channels too late can result in your customers switching to competitors. Investments in digital technology are, therefore, a significant part of the budget. Digital innovation is no longer a priority, it is a necessity. So, it requires structural attention from, and control by, managers. Every manager and director must therefore have the necessary knowledge, insight and decisiveness regarding digital technology. You can’t leave this to specialists in your organization, or outsource it to a supplier or consultant.

Managers and executives need to know and understand the world of robotics, IoT, big data, blockchain, machine learning and artificial intelligence. Make the right choices from a sharp view of market developments, technological possibilities and business perspective. And having a clear picture of how to organize and manage this transition successfully. This is called digital transformation: an integral business transformation in which digital technology plays a dominant role. The goal is to create an agile organization and to use the opportunities, possibilities and expectations of digital technology in the utilization of data, the optimization of processes and with the focus on the customer. Digital transformation starts with the formulation of a resistant and successful digital strategy, a strategy in which digital technology is the main driver of change.

Literature on digital transformation has appeared with regularity in recent years. Often with promises and (often recurring) success stories about disruptive business models, for example in tourism (Airbnb, Booking.com