digital leadership

Task

As an individual assignment, you will choose one of the 5 examples of digital transformation listed in the last page. You will carefully research and explain its digital transformation process, making sure you address the following points:

1. Introduction to the company and the digital transformation objectives

2. Choosing the Right Digital Organization Model

3. Appointing a Chief Digital Officer. Choosing the Right Candidate for CDO.

4. Defining the standard Digital Team Roles

5. Building Digital Culture. Development and Training. Leveraging Global

6. Containing the Impact of Digital Resistors

7. Implement Enterprise-Wide Digital Governance Processes.

8. Digital Budget Approvals

9. Digital Roadmap Prioritization

10. Digital Strategic Planning

11. Digital Results Measurement

12. Digital Program Communication

13. Conclusions

The structure of your report should consist of:

· Executive Summary

· Introduction

· Analysis of the above-mentioned points 2-12

· Conclusions

· Bibliography

You will need to apply and highlight the concepts and theories learned in the course. Please follow the professor’s tips to produce a great report.

Formalities:

· Type of Report: Word

· Word count: 2.000 minimum

· Line Spacing: 1,5

· Cover, Table of Contents, References and Appendix are excluded of the total word count.

· Font: Arial 12 pts.

· Text alignment: Double Justified.

· The in-text References and the Bibliography must be in Harvard’s citation style.

· Apply the professor tips to produce a great report.

Learning Assessments

It assesses the following learning outcomes:

· understand the importance of transformative digital business leadership.

· critically evaluate success, factors and failure in digital business.

· identify the main company access to build up digital business leadership.

· apply digital strategies to detect new digital trends and opportunities.

· develop a roadmap for digital business transformation.

Rubrics

	Exceptional 90-100	Good 80-89	Fair 70-79	Marginal fail 60-69	Fail <60
Synthesys (35%)	Student selects all relevant concepts, demonstrating an excellent understanding of the task.	Student selects some key concepts, demonstrating a good understanding of the task.	Student selects a few concepts, demonstrating a fair understanding of the task although some concepts might be missing	Student fails to select relevant concepts, demonstrating insufficient understanding of the task.	Student fails to select relevant concepts, demonstrating very limited/no understanding of task.
Evaluation (35%)	Student constructs a coherent argument to present a well-justified report.	Student constructs a mostly coherent argument to present a report with some justification.	Student attempts to construct a coherent argument and present a report, although it may lack justification or demonstrate minor misunderstandings.	Student attempts to construct an argument and present a report, although it lacks justification or demonstrates misunderstandings.	Student is unable to construct an argument to present their report. Insufficient/ no justification is provided and significant misunderstandings are in evidence.
Communication (30%)	Student communicates their ideas extremely clearly and concisely, respecting the page limit.	Student communicates their ideas clearly and concisely, respecting the page limit.	Student communicates their ideas with some clarity and concision. It may be slightly over or under the page limit.	Student communicates their ideas in a somewhat unclear and unconcise way. It is over or under the page limit.	Student fails to communicate ideas clearly or concisely and excessively over or under the page limit.

5 examples of digital transformation

Adobe

· Adobe is an American software company founded in 1982. You probably used some of their flagship products: Photoshop (to edit images), Adobe Acrobat Reader (to read or edit PDF files), or Illustrator (to create vector-based illustrations).

· Back in the day, Adobe was called Adobe Systems and sold boxed software. When the 2008 crisis kicked in, the company made a risky decision to move from a license-based model to a subscription-based model. They redefined their service offering and divided it into three cloud-based solutions Creative Cloud, Document Cloud and Experience Cloud. This is how Adobe became a cloud company operating in a now so popular SaaS (software-as-a-service) model.

· In the meantime, as a part of their digital transformation, they acquired a web analytics company (Omniture) and an ecommerce platform (Magento). The company also realized that they could achieve their goals only if having the best talent. Therefore Adobe focused on making sure people are happy at the company, invested in building an employee-focused work culture, benefits, and employer branding. They also employed a data-driven operation model that helped monitor the business’ health.

· Their digital transformation happened on many levels: new business model (SaaS), new technology (cloud), redefined service packages and positioning (focusing on enterprise clients), new HR management strategy, embracing a data-driven operation model, etc. Adobe’s example proves two important facts:

1. Digital transformation can create a substantial competitive advantage for a business.

2. It has to happen across the whole organization and redefine the way of doing things for everyone.

Sonnen

· sonnen is a renewable energy B2C service provider. The company enables households connected to its network to produce, store, and share their electricity.

· sonnen’s case is particularly interesting, as it decided to embrace digital transformation because their business was growing so fast that they needed to:

· Rapidly grow the teams

· Improve the service ecosystem,

· Work on internal processes

· Deal with high volumes of traffic and data

· Face technical debt from their older products

· Comply with regulations on different markets

· And all that while providing high-level services in a competitive market.

· Between 2017 and early 2021, sonnen went through the digital transformation that was concentrated around two complementary pillars. The first one was the transition to Agile. It facilitated changes in the company structure, adjusting it to the needs of its customers, employees and the ever-changing market. The second pillar was related to the software that sonnen uses to manage its operations. The changes included improvements in the sales parts of the application and the sales process as such, as well as customer service and collaboration with partners (on both the software and process level).

· Thanks to digital transformation sonnen:

· Recorded an increase in the number of leads and clients.

· Streamlined communication process between partners and the sales team.

· Moved all communication to its internal software (rather than connecting multiple external applications from different brokers).

· Gained control and transparency over their business processes which is a solid ground for future growth.

UPS

· Logistics is definitely one of the industries that have undergone the most significant changes linked to the evolution of digital technologies. UPS is an international shipping and supply chain management company. It was founded in 1907, which makes me think that digital transformation was just another transformation on its long timeline. However, established companies tend to have more difficulties embracing digital transformation, and UPS proves it is not always true.

· Back in 2012, UPS was already relying heavily on digital technology, but this is when they started a digital transformation in logistics and operations. They had two main goals:

1. To speed up the delivery process.

2. To introduce real-time package tracking.

· In 2012 they built a fleet management tool that used machine learning to set optimal routes for delivery drivers. The system significantly increased drivers’ productivity, decreased fuel cost, and reduced carbon footprint. It is estimated that thanks to software development , UPS is saving $300M-400M yearly.

· Another example of UPS’ digital transformation activities is the introduction of multiple systems that leverage data to enhance the company’s internal operations (such as sorting packages, loading trucks, etc.).

· UPS doesn’t stop and regularly takes up new challenges related to its digital transformation. Thanks to actively embracing the change, the company has saved hundreds of millions of dollars and continues to be one of the world’s largest shipping providers.

Nike

· Nike is an American sportswear company. Sometime around 2017, they realized that while they were one of the most recognizable brands worldwide, their brand image has weakened – they were perceived as just another sportswear company.

· Having that in mind, Nike decided on a digital transformation focused on enhancing brand image and customer experience. They set 3 goals:

1. Double the innovation.

2. Double the speed to market.

3. Double direct connection points to customers.

· Nike started with a more effective use of analytics, focusing on digital consumer data. They also updated their ecommerce strategy with things such as improved UX ( user experience ) and better-adjusted membership options. Their offline activities corresponded with online marketing strategy. Nike focused on delivering a unique experience to shoppers who visited their offline stores, especially the flagship stores.

· Nike’s digital transformation activities have been multifaceted but kept the two priorities (branding and customer experience) in the centre. It helped the company to thrive during multiple lockdowns in 2020 and 2021. Nike’s stock price grew from $52 to almost $88 in two years since the transformation began.

Ikea

· Ikea is a multinational giant that designs and sells ready-to-assemble furniture and home accessories. After running an analogue business for almost 80 years and becoming one of the world’s most recognized trademarks, Ikea decided to undertake a digital transformation in 2018.

· The company decided to hire a digital expert to lead the organization through the process. In early 2018, Barbara Martin Coppola, ex-Google and Samsung advisor, joined Ikea’s team as a Chief Digital Officer.

· The scale of changes was massive and touched all facets of Ikea’s business. In this article, we take a closer look at three examples:

1. Being a retail company, Ikea focused on developing its e-commerce. Running an online shop and a traditional store are two very different things. Running both at the same time is a whole new story. It is impossible to say where one part of digital transformation ends, and another begins.

2. To adapt to the new business model, Ikea decided to transform their stores and use them also as fulfilment centres. To operate two businesses from the same space (from thousands of spaces – Ikea stores and distribution centres), they used algorithms to manage the supply chain. On top of that, they focused on developing analytics and involved them in decision-making.

3. The same customers were shopping at Ikea online and offline. To enhance customer experience and keep consistent branding across all channels, the company decided to connect in-store and online interactions with their clients. For example, one can start designing their new kitchen on Ikea’s website and come to the store later. They can connect with a remote customer meeting point in the store and be found by a store employee.

· As Barbara Martin Coppola puts it: digital needs to be embedded in every aspect of IKEA. While the company’s values stay the same, the way of doing things adapts to the changing business and lifestyle landscape.

Conclusions

· Digital transformation is about employing digital technologies to reinvent your business, for your and your customers’ benefit. It takes a fundamental shift in thinking to run it effectively, but it seems like there is not much choice left. The clients are already in the digital era, and going digital is not only about a competitive edge. It is also a survival must-have. Find out more in our article about digital transformation in practice.

· Businesses are undergoing enormous amounts of pressure due to the rapidly changing environment (VUCA) and progressive adoption of technology. Therefore, a thought-through and properly implemented digital transformation strategy may not only change one’s position in that race but also leave them with an open mind and the ground for future growth.

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