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Digital Transformation

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Digital Transformation

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Digital Transformation - Rethink The Business in The Digital Age

Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers.
It's also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure.

www.heruwijayanto.com

Digital Transformation - Rethink The Business in The Digital Age

Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers.
It's also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure.

www.heruwijayanto.com

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Digital Transformation

  1. 1. Rethink the business in the digital age Heru Wijayanto, MM. MBA. M.MT - www.heruwijayanto.com
  2. 2. Heru Wijayanto Aripradono Co-Founder and Operations Manager SociopreneurID – (www.sociopreneur.id) Subject Matter Expert Haruka Edu – (www.harukaedu.com) Researcher – BRI Microfinance Center Mentor Bank Indonesia Innovation – Bank Indonesia Change Program Lecture – Universitas Internasional Batam S.Kom. (Information Engineering, STTS), M.M. (International Business Management, IEU Surabaya), MBA. (International Business Management, IMI Belgium), M.MT (Information Technology Management, ITS Surabaya) HP / WA. 0817-525-5879 – heru@sociopreneur.id / heru.wijayanto@uib.ac.id Scholarship and Award – Tourism Surabaya GIS, IMI Scholarship Antwerp, Indonesia Vocational Education Research, Blended Learning DAAD Germany Speakers and Judges – Ubral Shaper US YES Speaker, Social Entrepreneurship Speaker, STUCO (Indonesia Student Competition) siheyu siheyu Heru Wijayanto https://www.linkedin.com/in/heruwijayanto/ www.heruwijayanto.com
  3. 3. Source : www.bdo.com The exponential growth of productivity, information sharing, mobility, and collaboration is reshaping the business world faster and more pervasively than any other time in history. The World Has Changed
  4. 4. Netflix: Entertainment just for you – where you want it, when you want it Source: World Economic Forum/Bain & Company
  5. 5. Source : www.bdo.com As the lifespan of businesses continue to shrink, there are a number of reasons why your organization will want to undergo Digital Transformation, but by far the most likely reason is that you don’t have any other choice. It’s survival!
  6. 6. Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. It's also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure. DIGITAL TRANSFORMATION
  7. 7. The Challenge of DIGITAL TRANSFORMATION How does a business started before the Internet adapt to grow in the digital age ?
  8. 8. History Of Kodak
  9. 9. Industri Musik Indonesia (CD)
  10. 10. Source : www.hipwee.com
  11. 11. Top 5 Traffic (Online News and Media) Indonesia Source : www.similarweb.com
  12. 12. “Digital Transformation Is Not About Technology -- David L. Rogers (The Digital Transformation Playbook) It is about strategy and new ways of thinking”
  13. 13. Digital transformation closes the gap between what digital customers already expect and what analog businesses actually deliver. “ Digital transformation is the changes associated with the application of digital technology in all aspects of human society, “ [Digital transformation] involves a change in leadership, different thinking, the encouragement of innovation and new business models, incorporating digitisation of assets and an increased use of technology to improve the experience of your organisation’s employees, customers, suppliers, partners and stakeholders. “ Source : https://enterprisersproject.com/
  14. 14. Source: World Economic Forum/Bain & Company Digital Technologies Are Disrupting Traditional Organizations And Work
  15. 15. Customers From passive targets... to dynamic networks
  16. 16. Customers Mass Market Model Customer Network Model Customers are passive and are considered in aggregate. Current and potential customers have access to a wide variety of digital platforms that allow them to interact, publish, broadcast, and innovate— and thereby shape brands, reputations, and markets. Customers are just as likely to connect with and influence each other.
  17. 17. Source: We Are Social 2020
  18. 18. Changing Behavior of Payment Transaction The use of cheque and BG continues to decrease while the card use tend to increase over the years Source: Bank Indonesia
  19. 19. Changing Behavior of Payment Transaction The use of non-cash payment instrument has increased over the last 10 years Source: Bank Indonesia
  20. 20. Trends in Payment System Technological innovations bring changes in payment system landscape Source: Bank Indonesia
  21. 21. Trends in Payment System
  22. 22. Competition From symmetric... to asymmetric From products... to platforms
  23. 23. Competition: Changes in Strategic Assumptions from the Analog to the Digital Age From To Competition within defined industries Competition across fluid industries Clear distinctions between partners and rivals Blurred distinctions between partners and rivals Competition is a zero-sum game Competitors cooperate in key areas Key assets are held inside the firm Key assets reside in outside networks Products with unique features and benefits Platforms with partners who exchange value A few dominant competitors per category Winner-takes-all due to network effects
  24. 24. Data From silos... to strategic asset
  25. 25. Data: Changes in Strategic Assumptions from the Analog to the Digital Age From To Data is expensive to generate in firm Data is continuously generated everywhere Challenge of data is storing and managing it Challenge of data is turning it into valuable information Firms make use only of structured data Unstructured data is increasingly usable and valuable Data is managed in operational silos Value of data is in connecting it across silos Data is a tool for optimizing processes Data is a key intangible asset for value creation
  26. 26. New technologies make data- enabled learning much more powerful than the customer insights produced in the past.
  27. 27. NetFlix “House of Cards” is one of the first major test cases of this Big Data-driven creative strategy. For almost a year, Netflix executives have told us that their detailed knowledge of Netflix subscriber viewing preferences clinched their decision to license a remake of the popular and critically well regarded 1990 BBC miniseries. Netflix’s data indicated that the same subscribers who loved the original BBC production also gobbled down movies starring Kevin Spacey or directed by David Fincher. Therefore, concluded Netflix executives, a remake of the BBC drama with Spacey and Fincher attached was a no-brainer, to the point that the company committed $100 million for two 13-episode seasons.
  28. 28. NetFlix
  29. 29. https://www.youtube.com/watch?v=pSBgUP-k594
  30. 30. Innovation From top-down planning... to experimentation
  31. 31. Innovation: Changes in Strategic Assumptions from the Analog to the Digital Age From To Decisions made based on intuition and seniority Decisions made based on testing and validating Testing ideas is expensive, slow, and difficult Testing ideas is cheap, fast, and easy Experiments conducted infrequently, by experts Experiments conducted constantly, by everyone Challenge of innovation is to find the right solution Challenge of innovation is to solve the right problem Failure is avoided at all cost Failures are learned from, early and cheaply Focus is on the “finished” product Focus is on minimum viable prototypes and iteration after launch
  32. 32. Value From defending... to adapting
  33. 33. Value: Changes in Strategic Assumptions from the Analog to the Digital Age From To Value proposition defined by industry Value proposition defined by changing customer needs Execute your current value proposition Uncover the next opportunity for customer value Optimize your business model as long as possible Evolve before you must, to stay ahead of the curve Judge change by how it impacts your current business Judge change by how it could create your next business Market success allows for complacency “Only the paranoid survive”
  34. 34. Metropolitan Museum of Art – New York • Founded in 1870, the Metropolitan Museum of Art has long been one of New York’s top tourist attractions. • With over 6 million annual visits, it is far from in decline. • But the museum is keenly aware that its audience’s lives are changing dramatically due to the digital revolution in media and com- munications.
  35. 35. A Fresh Digital Face for The Met
  36. 36. Metropolitan Museum of Art – New York
  37. 37. https://www.metmuseum.org/
  38. 38. Tokopedia
  39. 39. Traveloka
  40. 40. Source: David Rogers
  41. 41. Digital transformation is not about technology. ...it is about STRATEGY, LEADERSHIP, and new ways of THINKING
  42. 42. Heru Wijayanto, MM., MBA., M.MT (heru.Wijayanto@uib.ac.id) siheyu siheyu Heru Wijayanto https://www.linkedin.com/in/heruwijayanto/

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