Over the past two years, the Digital Transformation project has succeeded in raising awareness on the impact of digitalization on business and society and built significant momentum across 220+ engaged partner organizations. Executives now recognize digital as a topic of strategic institutional priority which fundamentally disrupts how they conduct business, rewrites rules of engagement and collaboration, redefines customer relationships, and sets a new context for policy and regulation within and across sectors. There is an increasing desire and feeling of urgency among leaders to embrace digitalization, to better understand the implications, and to transform the enterprise to respond to the new reality. However, a large gap exists between this willingness to adapt and the understanding of how to realize this. The proposed project on Enabling the Digital Enterprise seeks to close the gap between partner organizations' digital strategic intent and the uncertainty surrounding its execution. On the journey to become a digital enterprise, companies across sectors go through waves of development in which they have to take key decisions. These waves can be categorized into three interrelated areas: ones affecting the demand side of companies, the supply side, and the business models. The critical decision points include the following:
- Business model: How do companies adapt their business models in light of the new digital reality? Areas of analysis include which new business models exist for organizations to embrace digital (e.g., investing, incubation)? How do partnership models change in a digital world? How do innovative market entrants with new business models affect incumbents? How can incumbents avoid being disrupted by the newcomers? What are practical ways to embark on the digital journey?
- Demand: How are consumption patterns changing due to digital, and how can businesses adapt their service offering? Critical insights include how product-centric organizations (asset-heavy) become service-focused businesses (asset-light)? How to move from products and services to experiences? How to hyper-personalize these experiences? What are the implications of customers no longer requiring ownership of an asset, but merely wanting access to it (transport, housing, etc.)?
- Supply: How can companies respond to the new digital reality? Questions to address include: How to bring leadership into the digital age? How is it affecting organizations’ operating models and ways of working? How are decision-making processes affected? Critical talent needs to be identified, attracted, developed and retained. How to do so, and transform the organizational culture in the process? Which digital metrics for success to pursue?
Based on the analysis of best-practice case studies from globally recognized digital leaders for each of these waves, the project will identify critical decision points and create practical tools and recommendations companies can use to adapt to the new digital context. Better understanding these dimensions is critical to our partner organizations’ successfully navigating their digital journey. The case studies will be taken from a diverse set of partners, across industries of differing digital maturity and geographies. The following cases have been partially identified together with different Heads of Industry, and will be further refined early on in the project. Suggestions of possible case studies include New York Times and/or Naspers (new business model), Michelin and Monsanto (products to experiences), GE (adapted operating model), MasterCard (educating leadership), Kaiser Permanente (digital talent), and Klöckner (transforming organizational culture).