Digital transformation means a paradigm shift to new ways of doing business. How can digitized solutions advance your business model?

1. Digital Transformation and its
effect on industry & humanity
Episode 2: What about my business?

2. What is digital transformation?

3. The world as we know it is under great pressure
by recent technological developments.
This asks for new truths, new laws, new metaphysics
and a whole new way of doing business.
The paradigm shift from the old ways into the new is
what we call Digital Transformation.

4. Digital transformation is not just about
technology, it’s about the way you do business.
Google, Tesla and other non-traditional companies
are highly digitized and shaping the future.
It’s not a revolution but an evolution with
revolutionary consequences for both business and society.
What not?

5. First, let’s look at a bit of history
If you read Episode 1, this part might be a rerun.

6. The first Industrial
Revolution brought us
mechanical production
by means of water and
steam power.
This is the 4th industrial (r)evolution
The second gave
us mass production
through electrical
power.
The third Industrial
Revolution was the digital
revolution, wherein
production was further
automated through the
use of electronic and IT
systems.
Today, we are at the
threshold of the fourth
Industrial Revolution.

7. This 4th revolution introduces Industry 4.0
Industry 4.0 is the combination of the Internet of Things (IoT)
technology and traditional industry and it has 2 core elements.
That’s why we talk about Industry 4.0
One is the Internet of Things
and cyber-physical systems such
as sensors that can collect data
that can be useful for you
business intelligence.
Two is the evolution in the
processing and analytics of big
data so that systems can work
through huge sets of data and
produce valuable insights.

8. Digital transformation

9. Digital transformation came in waves…
First affected was the music industry, photography and video-rental
Next up were television, tourism, recruitment, magazines and newspapers
And now it’s time for retail, healthcare, monetary systems, education,…
and many others to digitize.
Waves of Transformation

10. First there were platforms like Napster killing the traditional music industry but they were on
the verge of illegality. Now we have Spotify that challenges the whole idea of owning music
and makes most of our old music players obsolete.
Secondly the way we travel and plan our trips changed irreversibly by peer-reviewed platforms
like Booking.com, but also Air BnB which taps in on a whole new market of sleeping
accommodations around the globe.
As we enter the third wave our financial and monetary system gets pressured by alternatives
such as Bitcoin but also the entry of blockchain technology in general and much more.
Waves of Transformationexample

11. What about your sector, will you be in the next wave?
How will digital technology change the way you do business?
What about you?

12. Why should you transform?
Well why should you?
Digital transformation is a means to create added value.
It does this for example through enhanced consumer
experience, increased operational efficiency and new
business opportunities innovation.

13. Consumer Experience
Take a look at the evolution in consumer experience:
The growth of digital channels and devices gives consumers greater
access to information and the means for better communication
and collaboration. With this the consumer can demand radical
shifts in business processes, service and policies.
It is vital that brands use this new consumer power in their
advantage and find ways to strengthen the mutual relationship. It
is through differentiation, transparency and consumer involvement
that organizations can benefit from this evolution.
And digitization can help to achieve this.

14. 3D printing Philips x Twikit
What is it?
You can design your own razor at home
What’s in it for the customer?
Customization of your razor increases consumer
delight and involvement.
What is the benefit for the company?
An efficient way to learn about consumer preferences
and keep sample production and stock costs low
example

15. Parcify
What is it?
Your packages are always delivered to Parcify, they
come looking for you wherever you are to hand over
the goods on a moment that suits you best.
What’s in it for the customer?
Your location is not important for the delivery of your
online orders, while you go to work or friends your
packages just follows wherever you go.
What is the benefit for the company?
It answers to an existing problem that emerges from
the combination between e-commerce and 9-5
mentality, therefore it gets high demand and revenue
example

16. Higher consumer power also has an impact on business processes:
Users want intuitive interfaces, around-the-clock availability, real-time
fulfillment, personalized treatment… standards are higher than ever.
To meet these high consumer expectations, companies can accelerate
the digitization of their business processes.
Operational processes

17. This doesn’t mean simply automating an existing process. Companies can
go as far as to reinvent the entire business process. This includes cutting
the number of steps to go to market, reduce the number of documents
and policies & develop automated decision-making by algorithms.
In addition, replacing paper and manual processes with software allows
businesses to automatically collect data that can be mined to better
understand process performance, cost drivers and causes of risk.
Companies can harvest the advantages of Big Data.
Operational processes

18. Tesla
What is it?
The maintenance of your car can be done by
(Remote) Software updates.
What’s in it for the customer?
No hassle, no expensive maintenance at the local car
dealer, always up to date and in sync with Tesla
standards
What is the benefit for the company?
The company controls all products even after they are
sold and keeps a close contact with consumer and
product.
example

19. Beyond the improvement of business processes, digital
transformation can go as far as replacing your old business
model with a new one.
We believe it can require no less than the creation of enhanced
or new business models, new operating models, new ways of
interacting with consumers and new ways of selling to be part
of tomorrow’s business landscape.
Therefore organizations need to decide whether they can
enhance or transform their existing business models, or whether
they need to invent new ones.
Creating new business models

20. Shift to radical convenience: Uber
What is it?
Performs better than existing taxi companies due to
technology.
What’s in it for the customer?
It’s like owning a car without all the sucky, expensive
parts.
What is the benefit for the company?
They have an enormous client base and impact, the
big money still needs to start rolling in.
example

21. Patients like me
What is it?
Data-based peer-to-peer business model/ Online
data-sharing platform
What’s in it for the customer?
It allows members to input real-world data on their
conditions and place their experiences in context and
see what treatments have helped other patients like
them.
What is the benefit for the company?
Thanks to huge visitor reach advertising income is very
high. They also sell patient data to pharmaceuticals
and research facilities.
example

22. But don’t think of digital transformation as a goal.
Not even connected objects, the Internet of Things or
Big Data are goals.
But information, creating added value and keeping your
business viable in the future are goals. If you want to
achieve these goals you might want to digitize.

23. Digitization generates a lot of wanted side-effects:
Employees in digitally advanced companies report a 50% higher
well-being at work.
Mature digital organized companies are characterized by a
flexible, less hierarchical culture where employees enjoy a real
autonomy and the possibility to express their creativity. Digitally
mature companies grew revenue at 6 times
the rate of their less mature counterparts. *
* source: Roland Berger (Google Europe) assessed the digital maturity of companies in France
linked with 3 dimensions: equipment, practices and use, organisation and skills.
Wanted side-effects

24. But how do you go about it then?

25. Digital technology needs to be at the core of your
company, it’s not a ‘nice to have’ or an add-on. It affects
your sales, marketing, communication, service and
support, HR, IT, Operations, R&D
And more…

26. And also

27. Increase your companies digital iQ, put a Tech-nerd in the board.

28. And don’t forget…

29. Adopt a mentality of Digital-first:
If a problem occurs, always look for a digital solution first.

30. Digitization is a change even greater than the internet. Exponential
technology advances, greater consumer power and increased
competition mean all industries face the threat of commoditization.
“The winners will act now, and build a strategic advantage that
leaves their counterparts wondering what happened.”*
*Ernst & Young; “The digitization of everything” http://www.ey.com/Publication/vwLUAssets/The_digitisation_of_everything
_-_How_organisations_must_adapt_to_changing_consumer_behaviour/$FILE/EY_Digitisation_of_everything.pdf

31. Next up:
Episode 3: An introduction into Artificial Intelligence