COURSEWARE ITIL® 4 Leader Digital and IT Strategy (DITS) Courseware Eel Managing Professional Teer} Deo (Via miusen Professional (MP) Leader (SL) —Colophon Title: ‘Author: Publisher: ISBN Hard Copy: Edition: Design Copyright: ITIL® 4 Leader Digital and IT Strategy (DITS) Courseware Van Haren Learning Solutions Van Haren Publishing, ‘s-Hertogenbosch 978 94 018 07319 Second edition, first print, March 2021 Van Haren Publishing, ‘s-Hertogenbosch Van Haren Publishing 2021 For further information about Van Haren Publishing please e-mail us at: info@vanharen.net or visit our website: www.vanharen.net All rights reserved. No part of this publication may be reproduced, distributed, stored in a data processing system or Published in any form by print, photocopy or any other means whatsoever without the prior written Consent of the authors and publisher. Copyright protected. Use is for Single Users eniy va a VHP Approved License. For Information and printed versions please see wow.vanharen.netTable of content Reflection Agenda ITIL® 4: digital and IT strategy (DITS) Introduction to digital and IT strategy DITS Key terms & concepts Summary Questions & Answers The strategy journey — What is the vision? Summary Questions & Answers The strategy journey ~ Where are we now? Summary Questions & Answers Introduction to case study Assignment 1 The Strategy Journey ~ Where do we want to be? & how do we get there? Summary Summary Summary Questions & Answers The strategy journey — Take action Summary Questions & Answers The strategy journey — Did we get there? Summary Questions & Answers Assignment 2 Assignment 3 The strategy journey — How do we keep momentum going? (6) (13) (24) (53) (54) (62) (88) (89) (94) (113) (114) (117) (125) (132) (165) (198) (216) (217) (225) (255) (256) (258) (280) (281) (283) (290) (299) Copyright protected. Use i for Single Users only via a VHP Approved License. For information end printed versions please see www vanheren.net 13 7 22 37 37 41 54 55 57 67 67 69 73 76 93 109 118 119 123 138 138 139 150 151 152 155 160Summary Questions & Answers Assignment 4 The 4 key capal Summary Questions & Answers The 4 key capabili jes — Managing innovation and emerging technologies Summary Questions & Answers The 4 key capal ies ~ Managing strategi Summary Questions & Answers The 4 key capabilities - Structuring for digital business Summary Exam preparation ITIL practices Glossary ‘Sample Paper 1: Question Booklet ‘Sample Paper 1: Answers and Rationales Sample Paper 2: Question Booklet Sample Paper 2: Answers and Rationales Syllabus (324) (325) (328) (336) (351) (352) (354) (384) (385) (388) (409) (410) (41a) (425) (427) (431) (479) Copyright protacted. Use i for Single Users only via a VHP Approved License. For information end printed versions please see www vanheren.net 172 173 174 178 186 186 187 202 203 204 215 215 217 223 224 226 250 254 265 282 293 310Self-Reflection of understanding Diagram “What you do not measure, you cannot control.” - Tom Peters Fill in this diagram to self-evaluate your understanding of the material. This is an evaluation of how well you know the material and how well you understand it. In order to pass the ‘exam successfully you should be aiming to reach the higher end of Level 3. If you really want to become a pro, then you should be aiming for Level 4. Your overall level of understanding will naturally follow the learning curve. So, it’s important to keep track of where you are at each point of the training and address any areas of difficulty. Based on where you are within the Self-Reflection of Understanding diagram you can evaluate the progress of your own training. Level of Understanding | Before Training | Training | After After Training Part 1 (1st | Part2 studying / exercises and (Pre- Half) (2nd | reading the | the Practice knowledge) Half) _| book exom (Self-Reflection of Understanding Diagram) ‘Van Haren Pubishing® 7 Copyright protected. Use is for Single Users ony via a VHP Approved License. : For information end printed versions please see www.vanheren.netWrite down the problem areas that you are still having difficulty with so that you can consolidate them yourself, or with your trainer. After you have had a look at these, then you should evaluate to see if you now have a better understanding of where you actually are on the learning curve. Troubleshooting Problem areas: Topic: Part 1 Part 2 You have gone through the book and studied. You have answered the questions and done the practice exam. 8 ‘Van Haren Publishing® Copyright protected. Use is for Single Users only via a VHP Approved License. For information and printed verotons please see www.vanharon.netDay1 Introductions DITS Key terms & concepts What is the vision? Where are we now? Introduction to case & assignment 1 Day2 Where do we want to be? & How do we get there? Take action! Did we get there? Assignment 2 Assignment 3 Day3 How do we keep momentum going? Assignment 4 The 4 key capabilities Exam preparation ITIL Practices Glossary ‘Van Haren Publishing® Copyright protected. Use is for Single Users only via a VHP Approved License. For information and printed versions please see www.venheren.net10 Copyright protected. Use is for Single Users only via a VHP Approved License. For information and printed versions please see www.venheren.net ‘Van Haren Publishing®Welcome to na ae Digital and IT Strategy ¥ Safety Breaks Lune Phones/Computers ‘Van Haren Pubishing® 1" Copyright protected. Use is for Single Users only via a VHP Approved License. For iafomafion and printed vereions please see wew.venheren.net:Our coming days sete patton! a Theory (alot) Presentation My questions: Who are you? What experience do you have from IT? ¥ What is your role at work? Copyright| Use is or Single Users only via a VHP Approved License. For iafoemelion and printed vereions ploase see wew.venheren.net: ‘Van Haren Publising®ABOUT THIS COURSEWORK We will test your exam skills by ending each chapter with several multiple-choice questions. This is a relatively complex course. Therefore, to support the didactive storyline we have additional slides that that are outside the syllabus, these slides are not required exam content. They are visualized with the icon above; the trainer may decide to use or neglect them during the training. es DIGITAL AND IT STRATEGY (DITS) ‘Van Haren Pubishing® Copyright protected. Use is for Single Users only via a VHP Approved License. For iafomafion and printed vereions please see wew.venheren.net:Digital and IT Strategy (DITS) ITIL® 4: Digital and r Strategy (DTT) focuses on the alignment of digital business strategy with IT strategy, adding a new perspective to the TI suite and elevating the discussion around ITIL concepts to a strategic level among, business leaders and aspiring leaders. It also covers how disruption from new technologies is impacting ‘organizations in every industry and how business leaders are responding ‘The TIL4 publications are supported by the TIL management practice ides, which contain pragmatic, hands-on guidance that can be applied in the context ofall ITI 4 publications. Practices that are particularly relevant to Digital and I strategy include architecture management, measurement and reporting, portfolio management, risk management, service financial management, strategy management, and workforce and talent management. ‘This guide provides detalled guidance on leading service organizations through digital transformation programmes, ‘These programmes may include analysing internal and external ecosystems, developing business and operating models, managing organizational change, and cultivating a more agile and resilient organization ‘This training assumes that the reader s familiar with ITIL Foundation, where the fundamental service management concepts of ITIL are introduced and has a minimum working experience. The ITIL 4 certification scheme ‘The MIL 4 certification scheme that has two main training streams and four levels: + MLFoundstion + iL Antanagin Professional (tu) ey + MLA strategic Leader (St 2 modules ofthe ITIL Strategic Leader designation: + MLA strategist Direct Plan and improve + Caine agi rst ee eed Incrder to be eligible to become an ITIL Master, end-learers must have both the ITIL MP and ITI SL designations. 4 ‘Van Haren Publising® Copyright protected. Use is for Single Users only via a VHP Approved License. For iafoemalion and printed vereions ploase see wew.venheren.net:Content from several sources Digital & IT ‘Syllabus Strategy reat relevant to this ustation Wir bn on ELC TLS tM a eon Nn ELE Ag 8 Key learning requirements DleraLANorrsreareoy wW Selon lic ee 8 dr emer ion ease 2 rena pated ancmysiens yeeetaunecimarrsoned ov} shee ste’ fate latest opraeralecelece Ponte n aes, ’ aes 56 ‘amne des on ELSE TCS met harap aren POm MELE AP ee 10 ‘Van Haren Pubishing® 18 Copyright protected. Use is for Single Users only via a VHP Approved License. For iafomafion and printed vereions please see wew.venheren.net:Two-part assessment for DITS Part 1: In-course practical assignments -Aincourse, practical group assignments based on acase study with thre ftiona companiesand a sk report. + Twi Tene satay company S assessment criteria, each worth maximum of 8 points ass mark 75% (30/40) Bloom's level 4 (Anaiyss") ‘open-beok ‘The trainer evaluates the outputs ofthe assignment on: 1+ sope completeness oft recte + uty revance oe cse stat nd appation oT Individual or group skis and behaviour ae NOT evaluated Marks are shared by al patcipatingaroup members Part 2: Multiple-choice question exam ‘Note: 6o minutes 30 questions ase mark 70% (22/20) ‘looms lve 2 ("Comprehension") and3 (Application) Online prctored exam loses: book Ifacandidate misses group assignment, an ndvidual written ‘assignment shouldbe ful, Fulflment of al h-coutse asslanments with a passing score i Felted to take the multiple-choice question exam eae on LS TEN a Beem an MELE Ag " Cole 16 ‘Van Haren Publising® Copyright protected. Use is for Single Users only via a VHP Approved License. For infomation and printed vereions ploase see wew.venheren.net:INTRODUCTION TO DIGITAL AND IT STRATEGY abn on ELS TEN at He aa aon ELE A 3 Digital and Strategy An examination of the role strategy ina diatally ‘enabled organization Anovervicw ofthe capabilities needed to compete in ® eta wore About how evaluate new technology and is potential for competitive differentiation Away of thinking about innovation so that organizations ‘can prepare successive waves of carte technology What is Digital and IT Strategy (DITS)? Ee ‘amnea dees on LCE TCS mehr apn aren Po PELOSI ee “ Digital and iT tategyis NOT: ‘Now to" guide to doing strateay ‘ist of dos and don'ts ‘An overview of spectc emerging technologies and how tousethem ‘forcast of the next wave of ideas an technologies that wil srupt the industry ‘Van Haren Pubishing® Copyright protected. Use is for Single Users only via a VHP Approved License. For iafomafion and printed vereions please see wew.venheren.net:The strategy journey Ea ‘There ism great deree of aignment between the Distal and strategy sourey in aenmentand the Continual improvement model. The sections are mapped to chapters 3.8 n the ITS publication: How dowepetthere? erp buss apm say tar bn acon: we How dowekseptte Ove reammansin on Imaertengaeg” gran 8 evan Pete eS a an es Het 5 Related ITIL practices ‘There are may TL practices that support the realisation of ital andT Strategy. The key practices covered as partof this trainingare [evaminabie practices im bold): + architecture management Project management Continual improvement * Relationship management Knowledge management + Rskemanagement + Measurement and reporting = * Service financial management + Organizational change management + Strategy management + Portillo management + Workforceand talent management ‘moe dees on LCE TCS mehr apn aren PO MELCE AP ee 6 ‘Van Haren Publising® Copyright protected. Use is for Single Users only via a VHP Approved License. For infomation and printed vereions ploase see wew.venheren.net:Digital technology has changed the world Digital Eos ant Need ‘eee Business models are changing ‘The opportunities and changes created by dtl technology force organiatons to rethink their entire business models. New business meds replace slower, older and mere expensive way of working, by changing the ‘to-tomarkat approach; how the organization engages with customers; ana the products, services 2d delivery platforms. These models esut ina demand for further novation. (Older business models are becoming less relevant because they depend on estabished relationships, unchanging processes, onsstentavalabilt of resources, and loyal customers and employees. These qualities canbe consaining when competing {gare ale and innortive organizations Lntirecenty, the relationship between an organization and its customers was that he customer revolve around the products and services. However, today the most succesful organizations ate those tat revolve around and ain with the changing needs ofthe Consumer (Dearing, 2013) Definition: Business model formal description of how an organization shoul be configured to creat value for customers based ons strategy ‘Van Haren Pubishing® Copyright protected. Use is for Single Users only via a VHP Approved License. For information and printed verelons please see www.venheren.net 8The role of technology leader is changing Ee ‘As technology becomes more comple italso becomes ease to accessand use, Consequenth, the rol ofthe technology leader as ‘someone who unlocks the valu of technology through specalzedtechnialexpertse, is changing Although there wil always bea rol for technical expert, it increasingly regarded ac aback office role The new technology eager sa Busnes: executive who Uunderstanés technology, rather than a technology expert who understands the business ‘This pases challenges for both busines leaders and technology experts, Tobecome leaders, ‘technology expertsneed todo more than justunderstang business prinapes. They need to become expersin the busnestheyarea partof For example, they needt know how to manage technical debt while operating and understancing the technology, and commiting the eypense of making manageable ‘and secure Busines leaders must also understang the ln of technology and have 3 basic understansing of bee practice frameworks and ways of working, A need to adapt to accelerated innovation =~ | Icon lcs ochre cot etn roe 9 ew cape a eat Sonat comport saonage pe toe ter agurutes le eee No ere ‘ara rin tor orredy ate weal say ones, ‘ew ong a oon crptine soanage Conmeatises erro eaten o pads and mata, {eet eae marge area sa sur ‘te conmoaty moe creapy an beter ban ean be anew hue, 8 0 ‘Van Haren Publising® Copyright protected. Use is for Single Users only via a VHP Approved License. For iafoemalion and printed vereions ploase see wew.venheren.net:Accelerated innovation and business change Fes ergnatecholgyhasinrcucedoopouniesthat have sia ial Goucanacter Messin ectersramamenaposeen real ia pas aes apace wae nce roa Tavaoweal overheats — af Pin \ Secanty the speedotimontonasscclate setcart La ‘Technology is cheaper, faster, and easier to implement. innovation | 2s rete unetonalty, making it strand easier to enter new | euia mares Ornlatons ede cange qlee ernest power \ oral ele da techncb oOo, ‘ Run \ In the earty years of computerized automation and digitization, \ organizations manages technology using 3 reatvelysimole plan-buld-run model as ilustrated by the lf-hand dagram in ese adil cotnlnatn ce 1.3-Innovaton changed organizations but the at of change vas in months dyes, Today oxginizations need to change quickly to harness the power of rapidly evoling ital technology, increased pace of innovation and the everchangingdemandof a mobile consumer base. Summary We have just talked about: \ What oa ad ate) sae hati ot See a nhl ioaiedteoten (he 1 Teor wdnle ha chee ter ond ete har ereiatncinae eere nee ae RR saitnanrneearcnacentucttaneinst erase! eerie uopotncnietna ll eens slip sccacncantouten ‘Van Haren Pubishing® Copyright protected. Use is for Single Users ont via a VHP Approved Licence. For iafomafion and printed vereions please see wew.venheren.net:Cortera) DITS KEY TERMS & CONCEPTS 22 ‘Van Haren Publising® Copyright protected. Use is for Single Users only via a VHP Approved License. For Waieansiicmremd peisied vercann sheave aes eee. verbeesa ral:Key terms Digital technology is any technology tha dgtzes something or processes gta data, The term refers to the merging of information technology (1), operational technology 07), and communication technology to achieve evel of funcionalty and automation that are not possible with any ofthese alone Definition: Infomation technology(T) The application of ig technology a store, retrieve, tranumst, and manipulate data, coften nthe context of» business ‘rather Kind of organization Definition: Operational teehnology(GT) The application of gta technology for detecting or eausing changes in physical vies through monteing andor contro) Defrton: Internat of Things 7) ’ system of interrelated computing devices and mechanical and digital machines that are interconnected via the internet, enabling ther to send and receive data without human interaction Definition: Communieationtecnnology Win is sometimes seen as a component tether or OT, enables and OF tbe high» mobile and accesible to organizations consumers, and ather stakeholders Digital organization & digital business ‘what iferenats a digtal organization the extent to which it uses gal technology as abasisto differentiate Ret Digital organizations rely on digital technology as fundamental component oftheir business and operating odes. Ther products and services often havea dgtal component, or maybe ently dig. ‘Most organizations wilrelyan a combination of dgitl OT, analogue, and manual systems and actives. An organization needs to decide which parts the busines otize and to what extent, s0 that it can achieve and maintaina competitive advantage ‘he term ‘tal busines ic here referesta ae the actites that, using ital wechnology,enabies an organization to full ts purpose { Definition Dig business ‘Actives that use dgtal technology, enabling an organization ofl ts purpose Definition: Digtalorganzation An organiaton that i enabled by ital technology to do business significantly ferent, (orto doa significant citlerent business ‘moe deseo CEILS mehr apna ren Pom MELE AP ee 2% ‘Van Haren Pubishing® Ey Copyright protected. Use is for Single Users only via a VHP Approved License. For iafomafion and printed vereions please see wew.venheren.net:Digitization vs digital transformation ‘ital transormation’ has diferent potential meanings, depending onthe individual and the conte. secutives should view agit! transformation as an organizations ably to identify Innovative uses ofboth emerging and curenttechneogis. The ergnitation shoul then respond by transforming its strategy and operations to maintain and grow its market poston. Mary aperoaches imi ital transformation to technologies, such a data, 3utomatan, and wtualzation. However, ansformations impact al areas ofan organization, Ths slustrate in Faure 2.2 cor images rom analogue to digital form by expressing | Definition: Digitization The process of transforming something (tet, sound, the information in binary date Definition: Digtal transformation The use of dtl technology to enable a sgnfieantimprovement inthe realization ofthe organization's objectives that could nat fas have been achieved by non-digital means Pete eS a an a Het a Products and services ‘The products and services that an organization offersare central tos strategy 2 thisishow trealaes its purpose andco-creates value. The Felatianship between products and services the bass for business decisions and which operating modelit chooses to use Services ar presented to consumes in the orm of serv offerings, which deerbe one or more serves based on one of more pradvets Service offerings might inclu goods, accessto resources, arc Definition: Resouree A person or ether entity thats required for Ss Definition: Product A configuration of an organizations resources, yee ionew aren never inerstans erin ete designed to offer value for a consumer ‘touceavata Definition: Senice Ameansof enabling vale co-creation by faciltatng outcomes that customers want o achieve, without the ustomes having to manogespeaiie costs and sks ‘moe deed on LCE TCS met hres aren POm MELE AP ee 2 ‘Van Haren Publising® Copyright protected. Use is for Single Users only via a VHP Approved License. For infomation and printed vereions ploase see wew.venheren.net:Making strategic decisions Inaneverchanging environment strategists mustfingwaysto make better strategie decisions faster Av example ofa metho thats wed for this i known a "Wardley rapping” This il method for making strategie decisions. Includes the strategie oye wnich builds on other well known concepts, Regardless of method used the ability to make fast and good strategic deesionsisa key capaitt for any organiation embarking ona gal transformation journey, and something that equires a lat of practice. Definition: Strategy “The couse of action by which an Pa corgaization achieves its objectives omen Defintion: Tates “Te specie methods by which strategy is enacted Pmt en a an as Hg 2 Situational awareness vs action ‘Treaty heb an rgnztin tober Uncertane ts stuntonl arenes The whee ane inform acon whet ten detest Now wha, od whe to present impuse doneasshomin2 Nisan Dd What? ‘Acommon error organizations make when sea = When? implementing a stratey ito leave the ot Components alone andfocuson those tha are to be introduced. The assumption behind this that business as usual shouldbe let alone when the new component are introduces. rel, there 2re multiple implemented If architectures each from a previous strategy and rarely updated Signs that hishas happened include: lupication of functionality between T systems + multiple technology architectures, each emerging irom its own strategic natives + outdated technology and management practices + lackof cost wansparency. eee Cee ‘amo deseo ALCS TCS mer hres pan arent MELE. AP ee wo ‘Van Haren Pubishing® 5 Copyright protected. Use is for Single Users only via a VHP Approved License. For information and printed verelons please see www.venheren.netLink organizational aspects to strategy ‘sinsoant toons spect the sete Ay in thetthvough hese of te eoneptse buses snd operat made i / ‘This training do not coverin detail how to create business or operating modes, i Dut bathe os ontonty sed dese / / = + how an organization shouldbe configured o provide value to customers ‘a conceptual and/or visual representation of how anorgaizaion ; ‘o-creates value with is customers and ater stakeholders, a wll a show the organization runs itself How prosucts and services are managed s therefore an important pat of an organization’ stratepy,especaly how it transorms its business ‘model inta an operating mode! Defintlon: Business model ‘formal description of how an organization should be configured to prove value ta customers based omit strategy Penton eS a an as sgt a Tiers of strategy Many approaches to digtalstrategyare basedona teredmodel. in sxamle of thisls shown in Figue2 5. tated ‘The organation’s strategy scaled the Tusiness strategy or ‘enterarise strategy. ‘Te dgtalstrategyisa subset ofthe business strategy, and applies to those partsof the busines that wl be impacted by digital technology. The MT strategy is Seporate, but supports both the dig enablement projects and the established partsf the orancation. CE) Tey enstratenalprpectiocrucns 9258 tye end eng eee of bes, In practice, though, he modelfordgtal =" deed wore, andIT strategy star more complex. [Amore appropriate examples based ona clearer defriton of business, digital and IT strategy ands shown in Figure 26. ‘moe des on LCE TCS mer harap aren POm PELE AP ee 2 26 ‘Van Haren Publising® Copyright protected. Use is for Single Users only via a VHP Approved License. For iafoemalion and printed vereions ploase see wew.venheren.net:Business strategy Business strategy ishow an organization defines andachiewests purpose. Every rgarization has a business strates, Some organizations maintain a formal st of processes and documents. Others lyon less formal communication, decision-making criteria, and patterns of behaviour bythe governing body and executives, Regardless ofthe rigour of strategy management practice, a business strategy willencompass + away of defining, refining, and communicating the vision ofthe organization away t defining its objectives its business mode + ameans of algning the ferent parts ofthe orsanzation’s ecosystem to achleve ts goals + ulding principles that determine how decisions are made and what actions are taken {agreement on which courses of ation the organization wil take and how o allocate resourcesto them definition of what the organization wil nt do. Definton: Business strategy The organisations culture cetermineshow toserves and enforce ts business tratey. However the organization’ success depends ona rlevon, cohesive, and clearly How an organization defines communicated strategy Without a coherent strategy, wil be behind Rs competitors | and achieves its purpose Pmt en a an as Hg 3 Digital strategy Describing a tered strategy imply thatthe business strategy is separate from the technology used to achieve. Alternatively, they suggest ‘that using digtal technology sited to optimizing the organzaton’sperformance. Theretre the dial strategy being a subset ofthe business strategy. Ths does not retiect he broad range of opportunities or impact that digital technology fers. Nor does it refec the fundamental siftn culture, practices, and obectives that an organization must experience tobe sucessfulina digtal word Digital strategy isabout understanding + how technologyhas changed, and how thas changed the wordin which n organization operates + whether the organization needs to respond to these changesor continue along is curent course + howto identify opportunites inthe gta world + thersksinvaed with each oppertunity howto plot course that expos opportunities and mitigates or avoids rik Dctnton: Dg strategy A cigital strategy should; explott market opportunities due to use of new digtal technology, " se gta technology to improve customer experience, relauneh exsing products and ‘business strategy thats based ll ‘services with new features, an improve the efficiency oftherganiaton.Oxgtalstatesy gy inparton sing ial teehnolony Ismerely the business strategy based on emersing technologies \ to achieves goalsand purpose corte am Rag estonia i” ‘Van Haren Pubishing® a Copyright protected. Use is for Single Users only via a VHP Approved License. For information and printed verelons please see www.venheren.netIT strategy Different organizations wil have diferent formal governance strucuresand locate responsiiites different Regrcless of these differences, there 'sastrong ierrelation and major overlaps between business sates, dial strategy and strategy as shown in Figure 25, Fr strategy i about understancing + how an organization's department supports is business goals + which technology wl be used to perform business operations * how to utize the technology erwsionedin the cigtal strategy + how to move to technology that supports the organizations objectives + the nature and role of technology supplies 8 The role of business models ‘The terms ‘strate; business made and acti’ ae often used interchangeably, yet they each have ilferent meanings. Abusiness model describes how an organization should be configured provide valueto customers based onthe strategy. It shows how every omponent should colaborat to provide valu, rather than fusing only on how each product o service indidualy provides vale. ‘business model most eflct the system and consequences of sate -Abusinasemadels framework that consists of three major themes + How an organization worst realize value through ts series products, and offerings. This includes supplies, resources and assets, key actives, and cost Structures associated with value creation, ow an organization creates value. Tis includes va customer relationships, channels customers segments, and revenue streams. How an organization flisits promises and expectation. _aneflective business model must ada these thee themes so that meets the following enter + providesa strong narative regarding the organization’ vale realization uses viable inarcial mode! (e.g calculating he costs needed to realize the model, ‘mmo deed on CEILS esha eer PON ANELCE AA % ‘Van Haren Publising® Copyright protected. Use is for Single Users only via a VHP Approved License. For iafoemalion and printed vereions ploase see wew.venheren.net:Business models and strategy ‘This ection wil sea vehele analogy to demonstrate how strate, business models, an tates collaborate to realize sive (Casadesus Masanal and Ricart, 2011), Vehicles are avlablein a variety of shapes, sites, and features to provide value by _atisying each driver’ speci requirements Each desig eau in difering capabilites foreach typeof vehicle For exam, f Shiver neees a vehice fr use-on mourtalnous or unpaved roads, they will needa vehicle with powerfuloff oad capabilites. the terrain isthe competitive landscape, the design ofthe car willbe the strategy Table 2.1 lustrates thi ‘The aratepy aspect invlves evaluting the internal and exemal ‘environments a determine the landscape als inves iacegteconmpresexmeroesaacs oh manga aerate) meta sschargs hole nse cee See ae = nnn in Teena ASNT ane cruise brraatoncnsusaniscompetine ieee marin or exploiting ey characteristic, tea achieve this by developing a varetyof business mode configurations to address a range of strategic contingencies. Pete eS a a an as tpt a Business model canvas Business and operating models can be detailed and complex documents. Alternatively the made canbe explained ina canvas format, 2s shown in Figure 27 (Osterwalder and Pgneut, 2010). The Business modelcanvascan be supplemented with documentation, but itis Important to remember that ists simple vial format that makesit easy to understand, strategie choices are surnmarized across each ey element ofthe organization, which represents how the exganzation creates and delvers value to ts customers. ‘The business model's an effective panning oo asit canbe use to Wsualize ideas A range ‘of business models and organizational coniguations canbe combined without delving ito ‘complexdetals sa planning oo, the business model helps strategists to analyse, est, and ‘validate ideas against incvidual business elements It leo demonstrates the possible results ‘oF thse ideas, sevossthe erie business mode ‘Business modes can easy be copied by competitors, duet their conceptual and adaptable "ee 27 ues noe ane nature, ts commen practice for oganizations ta compare competitors’ business models, 0 {eterine now bes to compete agnne them, Goad business maces therefore, rarely provide long-term competitive aantages The {cheeverent of along term aovantage involves fering and delivering unique value propositions that ate ele to emulate. This is {achieved by using astng strategic plan, which defines how an organization wil apply te business modelin specific regions, customer segments, or speci use of key suppliers etc ‘amne des on ELSE TCS mer hres pn arent PELE AP ee ~ ‘Van Haren Pubishing® 2 Copyright protected. Use is for Single Users ont via a VHP Approved Licence. For iafomafion and printed vereions please see wew.venheren.net:Creation, delivery and capture of value ‘The business model template illustrated in Figure 28 provides a canvas for answering key questions about who an organization wil ‘serve (customer scope), whatit willofe to them (value poposton), and how twil be delivered (valu creation/operating model). should als exclain how the business model wi prevent replication from competitors (value capture), rn cther word, what makes Irunaue and aifeu to emulate (Boudreau, 2018). “The more commoditized the services Postion te mart beating model Sources of wteaness ‘that an organization prods ar, the ‘easeritisto replicate the business customer scope Value preposition model This is because orgaizations that prove seilrseviestend to replicate capabilities activites, methods, and orgorizationastructire However culture can bea major factor Vena 2 Maan ena Neen ane nye Inthesuecessof abusinessmodel,by ure? antacongay depot making the busines model lasso a ‘commodity, Competitors general al when they try to replicate a business model without fst adapting itt their own cultre, oF hanging thei culture; and these are not easy changes. Operating models If business model are ured te describe how a business captres value, then operating models ae used to describe how the organization willbe run. Using the vehicle analogy if the business made refer to acardesgned for aspeciic terran the operating model describes the requited components, haw the ae installed, and how it operates to provide value tothe driver, ‘An operating model represents a series of pretces tnd ch the tera betwen tem ES SS determines if and how the busines delves Teseatoecr tet Reteuesttrose aoe ectomeen dy itsdetined valve proposition and hodsits market SMuRESRsual2 een area position, (ter nee ere Engen ere onsrgaztoteanat for arg nt ‘orc an) ‘An operating model ensures thatallof these choices and practices (suchas whch staf needto be hire, what technology needs to be deployed and which partners need tobe used) work ogetherin unified way Tile 22 Sates, anes nae nape ecg Definition: Operatingmodel A conceptual and/or visual representation of how an oxgaizationco-reates value wth ts customers and other stakeholders, aswel a how the orgniation uns self ‘amo deseo ALCS TCS mer hres pan arent MELE. AP ee 40 30 ‘Van Haren Publishing® Copyright protected. Use is for Single Users only via a VHP Approved License. For information and printed verelons please see www.venheren.netKey themes of operating models ‘An operating models to! usedto facta the desi and configuration ofan organizations operations, to enablethe creation ofthe ‘alueautinedin te Business model There are two key themesin an operating model + Thekey workthattakesplace. A the centre ofan operating model ae the organizations vale streams, which lastat the mal ‘work ah organization need od to deliver ts valve propostions to ts dented consumers + Thecontextinwhichthe value streamswilbe performed, including: ‘how partners and suppliers willbe invoedin the value streams andthe creation of value + where the work dane inthe valve streams willbe located, and what assets are needed in those locations ta perform the ‘work ‘+ the orgpization structure, skillets, decison structures and process and practice ownership required to do the workin the value streams + the aplication, or other tachnology, and information serces needed to perform the work tvoughout the value + how the targets wil be decided and pertocmance measured to ensure that the value streams are functioning optimally ‘The organization's value propostions driv the operating model asthe value streams enable the creation of the value as defnedin the busines model eventhough the value proposition snot part ofthe operating model, Consequently the value propositions ave the objectives ofthe operating model “1 Operating model canvas ‘The canvasis used to plan andimprove operating models (Campbel eta, 2017). fT —- | — | Many ttl operating se ely only tamewos tht sow how ferent Se _ypes of emerging technology are tlated 19. ane another, or guides that show how anortanzation can use emerging technologies to replace or augment existing ‘capabliies. These are technology model, frameworks, or architectures, not operating models ‘An operating model fora digtl organization wl ook very similar to that of any other organization. For example, wl secly how ae wrested “Stl alu teams a stat how he wl be managed ei whieh partes the oan works wth what theese, nd what cna en late Neti the mportance of cite and tine wast promete the type of ature equi io ahve the rpm's purpose ently conser ad throes inthe value tea, ning whch pods seve they consi and wha cos ince tat censuneton ‘clea porto of projects, eres ane prot slong thinfrmaton abo the mvesment eae to min ‘Van Haren Pubishing® 3 Copyright protected. Use is for Single Users only via a VHP Approved License. For iafomafion and printed vereions please see wew.venheren.net:Digital operating models ‘An operating model fora dial organizations unique in that: ‘many ofthe technologies specified are emerging technologies, though ‘they often perlorm the same function as alder technologies or marual actities in other operating models itistely to emphasizeinnovationand experimentation + tsprocesses willbe geared toward the pace of changeln the organizations ‘envionment: they wil bemoan nature they wil focus more on Speed to market, minum wable products snd the incremental development ‘of products and series In ML the concept ofthe operating models represented bythe service value chain, which sa detailed operating model, suitable for Aigal organizations. Pete eS a an a8 tet 2 Strategy and the service value system ‘An organizations existence depend on ts abity to translate ‘demand into Services ard products that arerelevantand valuable twitsconsumer. ts saig ie bssed ons ances fad cents opportunites nd demands ins erwronment: The S Subsequent plans, ations, and structures ae described inthe service vale system and service vale chan, which express the organization’ strategy ‘Theservce value system provides a desertion of how an orgarization's components and activites collaborateto ‘enable valucreation Specialy the service value system ere 220 eee lta "rieulates both what an organietien’ strategy I and naw tile reaies Inthe flowing sides we willok tthe components of the eric value system from tatepc perspective ‘moe dees on ELSE TCS mehr apn aren POm MELE AP ee “ 32 ‘Van Haren Publising® Copyright protected. Use is for Single Users only via a VHP Approved License. For iafoemalion and printed vereions ploase see wew.venheren.net:Strategy and the service value chain ‘The service valve chains the operating modelia TL and cours ailthe processes, people, technelogies nd partners used to Implement te strategy and co-create value. represents: + aisting operations of the organization + Implementation af changes that rfc the strategy of the organization + Thecurren state ofthe organizations poxtfolo ‘The service value cain contine sikarchetpicalactities that any Service provider wil undertake a some pont ‘Strategy formulation should include a comparison ofan organization's internal envionment, such 2s current objective and operations, ‘with changesin its extemal envronment. Pete eS aS an es ttm 6 Strategy as the way to respond to opportunities and shifts in demand Strategy defines the way an organization responds to opportunites and shits demand ts ‘strate poston. {tion cbpoa ‘An opportunity isa situation that allows an organization to expands existing operation, ether by introducing new products and services or by moving into anew marke, Cpporturities can be the result of chengesin the environment, stagnation in the existing industry, o simply areas that have been lgnoced by competitors. { Dente: Deana Input to the service value system based on opportunities and needs of itera and external salehoder Environmental changes have majr implication for demand, as thy ten to imoact the demand fr easing services. This sa reactive strategy, sometimes called protective strategy, ete the organization alters its operation 9 meet the change in demand. the Ways of responding to each typeof change in demandvariesdepencingon the eason: + Variable demand from the same marke, forthe same products ane services + Demand rom new markets for enistng Services and preducts, or fr new productsn esting markets, representing both an ‘opertunityanda variation in demand + Asustained reduction in demand ‘amne des on ELSE TCS met hres pan aren POm MELE AP ee 6 ‘Van Haren Pubishing® 38 Copyright protected. Use is for Single Users only via a VHP Approved License. For iafomafion and printed vereions please see wew.venheren.net:Value and unique value propositions ‘Tactic and operational elements ofthe organization tend to focus onthe valve of individual services and products toast of consumers but strategy is concerned withthe overall ably ofthe organization to co-create value ina partular envionment. trtegy defines the ‘value propositions that individual services and products must achieve {ironmental analy sratege planing, and business moceling help the exganittion gin a strategc postion, which includes © proposal fr how twill compete with vals. Specialy wil describe the opportunites markets, and vai propositions wil pursue. ‘Te organization must be abet explain how it co-creates value In eachof ts markets - Tis explanation wl include a hih-ievel overview ofthe value elements that are Definition: value Specified n every product or service line, namely + supported outcomes + increased efficiencies + reduces eek Definition: Unigue Valu Proposition (UVP) ‘Te perceved benefits, usefulness, \ and importance of something {An example of this explanation isan ogancations unique value proposition (UP), | shot statement that explains the unique Sucha statement isusualy net the organization's complete strategic vision vale the organization provides Pmt en a an as Hg a Governance ‘Organizasonal governancelsthe system by which an organizatlonis ected andcontrolled.In the context of strategy the maj activities of governance ate: + Ealuate The governing body evaluates the strategy, potiolos, and relationships wit other pares. This evalvation a ‘continal process of review and revision 2 the content ofthe organestion ant stakeholders changes Direct - The governing body assigns responsibilty fr, and ects the preparation and implementation of organizational strategy and polices. Strategies set the cretion and prioritization for erganizational acti, future investment etc. Policies ‘establish the requirements for behaviour across the organization a, where relevant, supplies, partners, and other Stakeholders. * Monitor The overning body monitors the organizations performance, practices, products, and serWces The purpose of this 'stocensure that it performs in accordance ith poliesand cretion. ‘The strategy and operation ofthe organization ae subjectto governance. This does not mean thatthe governing body has drect overaght of all espects of the oanzation instead, it means that al aspects ofthe business are designed and operated within the scope ofthe agreed strategy, policies, practices, ee. The performance ofeach ofthese aspects seported on, so thatthe governing body can asess the effectiveness ofthe stratesy and the organization long-term vali, ‘amo deseo ALCS TCS mer hres pan arent MELE. AP ee 48 ‘Van Haren Publishing® Copyright protected. Use is for Single Users only via a VHP Approved License. For information and printed verelons please see www.venheren.netThe ITIL guiding principles and strategy Ee ‘These guiding prncplesare essetial for any organization pursuing dtl stratey, However these arent the only princplesan organization wil use when creating and implementing ts strategy. The strategy should indude ary raciplesthat ‘eaision makers need to use when implementing strate Intative, oF ‘when defining lover level of states, ‘Te TL guiding principles are nt independent. ‘Youneedto thnkaboutall of them, each ime you need to. Make a decsion Prortise ware Review improvement opportunities Resolves confict Sometimes you wil decide that only ane or two principles apply..but you nee to consider alo them, ate on ELS TEN a Hee em an ELE Ag 49 fete ‘A etnecptrs tens rat aa te uy any, ao ees fon ore ny eapase ncrg enar oo one ‘raven teatv th Gontatempadevehne tance loess mut be eine Cent ponte inne a Se tpn dr ond gem ‘ey “nts We snags a han sn ‘ek rswrtaty urn re most se wine re ah by amd a er bl aes ptt asapeemens whch ad alte orate tnt ee eptamcleard—_ Fapenes re seon wnt is oernriourer soe sed oscar cise nape a oc nee ee pote ‘inte a eps ncouno sneak ene) Anan ome sed ae pode nt aon eae ‘pmaeonanerte ‘ere hatettartananmg ermine ‘amne ded on ELC TCS mer hr apn aren POm PELCE AP ee 0 ‘Van Haren Pubishing® 35 Copyright protected. Use is for Single Users only via a VHP Approved License. For iafomafion and printed vereions please see wew.venheren.net:Continual improvement CContinualimproverent cei atalllevels ofan organization it canbe applet the organization, er to an indiadual product, serie, technology or organizational unt The strategy management process reflects the steps ofthe TL continua improvement ‘mode! which described in detain the drategy manogementprotice guide However, IUsimportantto note thatthe purpose of making continual improvements sot aways ‘the same 2 hat of defining and implementing strategy. The primary objective of ststegy 'stoensure that the organization continues tobe vable ina changing erwonmer, which may requieimprovement of esting capabilities, but move often aims at expanding reducing its operation -oplied toa sratey in two ways: 1 Thestrategy management practices activites andits outputs aresubject to ontingalimprovement + Theimpovement of the organization self mig be the basis forits strategy As the strategy evolves, itis important to update and reconfigure the practices as thi activity is an aspect of continual improvement, Pmt en a an as Hg 3 Practices An omarization’s strategy species how the organization will meets objectives, by ulin value streams at al level ofthe organization. > Practices utiz the processes, resources, partners, and technologies and how they wil contrbute tothe strategy. Three ofthese practices, strategy management portfolio management and arctecure management are usedto map organization's “eapoblies and assets tots desired outcomes Strategy inslves continually updating and aligning the practices, which ae created and configured to achieve specific objectives. As the strategy evolves, t'simportant 9 update and reconfigure the practices, whichis afunction of continual improvement. Tis includes ontnuousiy updating the organization's architecture, to show how each component contibutes to the strategy, nd tthe performance required or an effective strategy Definition: Practice Aseto organizational resources designe fr performing work or accomplishing an objective ‘amo deed on LCE TCS ela epenerer PO ELC Ae 82 36 ‘Van Haren Publishing® Copyright protected. Use is for Single Users only via a VHP Approved License. For information and printed verelons please see www.venheren.netSummary We have just talked about: key concepts and terms related to dial and I strategies How to use ferent supporting models and structures to Went, define and deseribestatepies ‘The imporance of inking the strategy 10 organizational aspects ‘The tiers of strategy and why these should be integrated busines strategy igital strategy cirstateey ‘The roles of business and operating models in dgtal and IT strategy ‘The relation between all components ofthe Svs and OTS =the service vale chain the ML guiding principles continualimprovement goverance =the ML practices i. Digs egarizaton ) | © Ditizaion ‘Van Haren Pubishing® Copyright protected. Use is for Single Users only via a VHP Approved License. For iafomafion and printed vereions please see wew.venheren.net: 7Cee ee eee ee ee ee a Seer a A. Digital technology 8. Digital organization ) ( nme on LCS TE et Hee emp an ELE AO s Cea eee eee croray Cerone ete Digital transformation | Digital strategy DL Digital business >) SS 38 ‘Van Haren Publising® Copyright protected. Use is for Single Users ont via a VHP Approved Licence. For information and printed verelons please see www.venheren.nettumented their purpose and how they will achieve it, Which term is used to A. Digital organization 8. Business strategy ) \ ( romcantsewe pantie XY nme on LCS TE et Hee emp an ELE AO ST ee eee een a Cg er ee en ne ere ey eee Pe ee eee ne te ere ‘A, An operating mode! will ensure that suppliers meet their contracts, so thatthe service provider, can create products and services 8. An operating model will help with understanding what organization structure and people are needed to create products and services ( C. Anoperating model wll help with understanding the sets of activities needed to create each ) product and service ) (' ©. An operating model will ensue thatthe service provider can describe the features ofthe ) products and services that provde value to customers ‘Van Haren Pubishing® Ey Copyright protected. Use is for Single Users ont via a VHP Approved Licence. a For information and printed verelons please see www.venheren.net‘An organization that develops video conferencing t evelopers has identified that doctors an Pree i Tn Core products and services that meet the needs ofthis sector. Which concept BEST describes this situation eee eee ene c A. Opportunity l («we ) nme on LCS TE et Hee emp an ELE AO 2 stion has produced a business strategy document. A section ofthis document describes how the ee ne eee ee ee en ee eee ad does ths section of the document include? Strategy management | (cate ) (ence ) Mie montl beet on XELCS TLS tana! 8 peed ees FOR AMELOS. AP ee o % Von oon anne copy lec sn Sg oy na Ayr ioe a For information and printed verelons please see www.venheren.netCortera) a UY Chg JOURNEY Van Haren Pubishing®> 4 Copyright protected. Use is for Single Users nly via a VHP Approved License. For ielcansiicrrend peisied verciann siaaen wee eee. verteesa ras:What is the vision? Visions defined aspiration of what an organization woud keto become in the future. le may include the future-state picture of the prblems thatthe orgrizaion wil solve forconsumers lt alsa describes how consumers il intract wih the organization's products and serves, and what is people, thet sls one the overl structure wil look ke Digital transformation often requires new ways of thinking and working for everyone Ir ean also require an organization to change processes ana systems that Used to work well and institute new processes, practiees, systems, and sks ‘Adler digital vision can overcome fears and drive postive action. Detintion: ison [A cefinedaspration of what an organization ‘wouldlike ta become inthe fture Penne eS a an as tet 6 What is a vision? ‘Many organizations have diferentited between their sion and their purpose (the reason why the oraniation ex). Ie encapsulates the objectives that it ims to achieve, usually within a stated time. It can be confusing when an organization embeds 1s purpose [what already does, nts vison statement. The organizations business trategy encompasses ts purpose and son, and also outines the speificintatvesrequredto achieve these resuts > Theorganizations digital andIT strategy must reflect and supportits purpose, vision, and business strategy ‘The dgtal strategy defines the future state ofthe problems thatthe organization wl save fos customers > Adligtalvsion should promote the transformation, and foster understanding at aleve. This approach illpersuade teamsto ‘assistin realizing the new realy, ‘moe deeds ELSE TCS mer hres pan aren POm PELE AP ee o 2 ‘Van Haren Publishing® Copyright protected. Use is for Single Users only via a VHP Approved License. For iafoemalion and printed vereions ploase see wew.venheren.net:Confirming the scope of the vision _Ateam an ony define the vision and strategy ofthe areasthatit is responsible for and hasauthonty over. _Acomman error for groups whe define strony ito include areas over which they haveno authority, aeas without funding or ‘without resources, Ie lsimportant thatthe organization’ governance has been effectively apated, which means: + the inclusion ofan areain a strategy has been authorize bythe governing body, or bya person or rle representing the governing body + the person or ole responsible for the budget of that areahas made funding salable resources have been made avallable by thelr manager, without compromising the organization's exsting operation and > anerolect he strategy management prectice sto ensue that any vsonorstratey's properly scoped and ledby those ‘with he appropiate eel of autho. Defining the vision Sometimes, the vsion is defined before an environmental or dgtal readiness assessment has been performed, usualy to narrow the scope ofthe assessment However, the Wslon must be reviewed and efined in consideration of he assessment ining Defringavsionis a teamwork with the patcpation of al stakeholders who have authority over any aspect be contertous due to aferences of opinions but tan important part ofthe proces to dentfy nd aces Neen confit > Many aspects ofa wson shal ot be revealed external a8 contains ‘confidential information about the organization, ended hevaonisdocanatdinte seer meh alo be sedin sfwons eamsencs mexomneshaldorare tt seen une [ —— the stratepy. can aso ‘Van Haren Pubishing® Copyright protected. Use is for Single Users only via a VHP Approved License. For information and printed verelons please see www.venheren.net 6Guidelines for defining a vision Guidelines for defining a vision include: + separate the purpose from the vison, unles the strategy specifically aims to change the purpose ofthe organization. + Besuccinct and specifi Be unambiguous ad rect. Every stakeholder should now what it means, and what their part in achieving it should be + Be aspirational andinspiting The vison i what the eganitaion wil steve to become, + People wil al around the vision; therefore ft should convey actions and concepts that embody the organizations core belies + There should not be any aspectof the statement that isincansisten wth the behaviour and values ofthe organiztion'speople ‘The vision shouldbe unique and specific to the organization + TRevision shouldfocus onthe exgnrization, not technology Technology snot an end in andof tse Instead, he wslon shoule {cus on how to enhance the consumer’ experienc, streamline operations, or transform business model, + Base the vison on a deep understanding the organizations consumers and how technologies enable to soe problems + Thevision should outine intent and outcome, and prowide Reblit fr others to lnnoxate, discover, and develop the vison. + TRevision shouldbe time-bound to create sense of urgency. Digital disruption Disruption factors may be of eiferent natures + politiat + economic + social + technological + egal + environmental ere focus son dgtal ruption. his occurs when liga technology causes «2 fundarnertalshiftin how any aspect ofthe organzation’sinteral or external ‘environment functions, Fm alent alton Digital dssustion occurs a thee main lve Eoaystem Industry/Marke and Organization Definition: ruption fundamental shift nan organization's operation eased by anew or changed internal or external factor “ ‘Van Haren Publising® Copyright protected. Use is for Single Users only via a VHP Approved License. For iafoemelion and printed vereions ploase see wew.venheren.net:Difference between market & industry > Disruption canincludeincreased marketcustomer relevance and/or greater operational excellence at each one of these levels ‘Toundestand how csruption and strategy can affect organizations, markets, industries and even ecosystem, these terms need tobe defined Table 3.1 below claiesthe diffrence between market and industry, ‘xamples of industries: banking, insurance, an healthcare. Markets ar often broader than an Industry, an example ammarket tsttime buyers needing a mortgage Dinien Wietnyenandlennectionate Aguel apnitorseragednBevane pec! [edaumavencescruve;hemetets tiwcasuoy ere patio oe osc! Shes br demiedntsaaone sacs onpeiten Amangnarecutsdes sbye rang ronan oetngtesomeniry Ecosystem disruption corystem disruption curs when dita technology introduces 3 ‘change that impact orgenastone across multiple industies/markats, It also changes the way multiple ecosjstem factors work. Organizations that wish to disrupt the ecosystem must be prepared to use csr uptive digital technology across the busines, in multiple market segments and industries atthe same time ‘rample: the ality o use mobile and cloud-based technologes to connect ndviuals in virtual communities has resulted in the ‘growth ofthe gig economy. Organizations such as Uber, rb, ty, and TaskRabbit provide a platform where people who need a Service connect wth people wha can prowde't ‘moe dees on LCE TCS mer harap aren PELE AP ee 70 ‘Van Haren Pubishing® 6 Copyright protected. Use is for Single Users ont via a VHP Approved Licence. For iafomafion and printed vereions please see wew.venheren.net:Industry disruption (rac sped ny oro group eens. Orgran coast drut an Industry wi oso none of to nye + Using the technology to spin of anew orgorization, which sels the new technology as products or Services to ts competors Industry druption i usualythe result of pursuing operational excellence Petter eS a an a tet n Market disruption Market lsruption occurs when digital technology introduces 2 Change that impacts particular market rmarkat segment sample a cosmetic retale could use technology ta change how Consumers research and buy cosmetics, Marke disruption can, as industry disruption, be an objective ints It could also be the result of improving products and services, distribution and delivery methods, or customer engagement models Market dlsuption can sometimes be based on repiating succes none market in another ‘moe des LCE TCS mer hres pan aren POm MELCE AP ee re 6 ‘Van Haren Publishing® Copyright protected. Use is for Single Users only via a VHP Approved License. For infomation and printed vereions ploase see wew.venheren.net:Organizational disruption ‘The majortyoforsanizations are not dsuptve by nature Industry and/or market dsrptions requ organizations to recover ‘orpreserve theirposition inmate an wel-establshee markets > suchan organiationwil need tous the technology that has already cdsrupted ts enviconmentt erin competive. wll need to embrace the extemal disruptions and derupt sel, brample:a petrochemical company started using test data from its laboratories to create tats performance and emision forecasts. hese forecasts were so accurate tht this practice replaced physical testing for certain types of test, reducing costs and attracting customers from competitors who had outsoutced ther laboratories, This created a new industry testing standard and forces competitors to conform. Pete eS aS an es ttm a Being a disruptor or responding to disruption corystem, industry, and market disruptions are often conceived am ist and planned by visionary individuals and organizations. =, =, Organizations do nt alwaysintend ta be disruptive some become oe Asruptive asa response to clsruptios in thelr envionment eat at Examples of how disruptions may occur ee + Asmall change in the ecosystem may have far-reaching eae consequences, sit impacts some aspect of al organizations item An orgariztion makesa change that has far-reaching Poeeatimsafienain consequences forthe whole ecosystem. ‘amnea dees on ELSE TCS mehr apna rerPo PELE AP ee 1” ‘Van Haren Pubishing® a7 Copyright protected. Use is for Single Users ont via a VHP Approved Licence. For iafomafion and printed vereions please see wew.venheren.net:Deciding on a balanced strategic focus Strategie approaches avilable for organizations wishing to achieve a druption at some eve! hasa range of strategie approaches avaiable: +Customer / market relevance + Operational excellence Internal ang extemal focus > ttlsthe balance between diferent strategle approaches that creates success, ‘xample: the singular focus on operational excellence ha resulted inthe challenge ‘that Tyotas facing with increased competition frm Tesla ‘Example: Kodek disregarded the opportunity presented by cgitl photography ‘because its capabltes supported tim and print Gotarerfmasel Customer/market relevance ‘Organizasons focusing on customer or market relevance 2:3 basis or disruption il ty to change the basic customer experience, customer journey, and behaviour of customers, iluencig ther demand for new products how they engage wth the organization ‘This ieotten done by driving innovation into the market, by ether cresting new markets or varsforming the exsting market Organizations taking this approach wll primarily focus on staying relevant to customer needs or market dynamics as they charge Definition: Customer relevance An organitatons ability to continually meet and exceed customer expectations, and changes to the customer and ther contest. Consumer needs change overtime, and the organization remains relevant by understanding what value looks ike From the consumer perspective Definition: Marketrelevance An orgrizaton’sability to continue to operate within a market thats characterized by 2 Particular use of egal technology, and how tat technology ar is use changes ‘amo deseo ALCS TCS mer hres pan arent MELE. AP ee 76 6 ‘Van Haren Publishing® Copyright protected. Use is for Single Users only via a VHP Approved License. For information and printed verelons please see www.venheren.netOperational excellence Organizations focusing on operational excellence as a basis for disruption willuse it technology in nnovatve ways to obtain higher levels of performance and quality iB ‘with owe cost, improved productivity and reduced waste ‘This isaten done by dentiying internal areas for improvements and innoxation Tecan also be achieved by identifying into the marke, by ether creating new mmaritsor transforming the existing market, Organizations taking this approach wll primarily fous on improving internal and operational pect ofthe organization to perform more effet and deliver better and cheaper products and services tits consumers, © Definition: Operational excellence An organization's ability to continually meet and exced customer expectations and changes to ‘the custome and ther context. Consumer need change ver time, and the organization remains relevant by understanding wht value looks ike frm the eonsumer perspective enna SS wc nm 7 Considerations for each strategic focus "gto mohrancusoermatt tare rings ache operational eee: re Goetonalcompenenisarecienhefsiocetet + Theabyte ace hares to derand ard aluthateqaes ate + sanves tees ind aun + contents Seiineaceeeascay | yg hatteation | " oeoesreremmesramsmisiatw ” ayegsatamae ‘rated on AGL RCS at ra 8 epee ELS A 78 Van Haren Pubiehing® 6 Copyright protected. Use is for Single Users only via a VHP Approved License. For information and printed verelons please see www.venheren.netInternal and external focus ‘When crafting cial vison, some organizations (rimariybusiness-to-consumer ones) ook ‘outwards and ask questions such 2s + What markets dowe serve? + What products/services do we currently provide ta the market? ve they valuable? + What opportunities are therefor growth or dsruption? What threats do we face? + What eapabities do we have to open new avenues for usin ensting/new markets? r Other oreanizations strategie by looking inwards and asking + what do we nee to dot continue doing business? + What dowe need to docliferenty? + How do we manage the risk associated with each opportunity? ow do we monitor and contro our journey? + How can we improve operational efficiencies? + How ean we recuce costs? + How do we get to where we want tobe? Pete eS a an es tet n A balanced approach ‘Most organization wil therefore, find themeves aking a balanced approach, even ifthe tratey tends more towards one focus ‘than the other Most important there should only be one strategy that adresses both, not separate strategies for customer and market relevance and for operational excellence. = Howarecsone'reeichrahs? + Hew coweenone wi. oxtomer? Gurr’ S Nintesinstencererssy + Non SStatmmercmeronetne ap wedener asic ant SS [olen fo eine te a pny ‘itepowratissreereon eee s recite odecam m+ sawed racer + What Fe pte ive ‘ectrce | [ommedaeteyaendenrimne Connie iecnde ace cece ot etch? Shee eS tiem dean eh 50 ‘Van Haren Publishing® Copyright protected. Use is for Single Users ont via a VHP Approved Licance. For infomation and printed vereions ploase see wew.venheren.net:What is strategic positioning? Strategie postionin is erm that i use lot but that i seldom explained. In this section we try ta cary wha a strategie postions and why it san essential part of defining adil and IT strategy. Insthe positioning an orgaization in the futur, whiletaking into account the external andinteral envionment its strategic apabltes, purpose and culture, within the governmental framework ofthe organization. Strategic positioning has a close elation to strtepic planing Business leaders try to secure the strategic poston that is mest 2vantageous fr ther organization A statesc postions the consequence of a eres of decisions, al designed ta give the organization best posible positon nts marketplace Or, using a miltary term~ "the higher ground” Some tings to consider are Consumer focus Definition: Strateg postion + competitor awareness iF + Cove competencies strategic postion s concerned wit the impact on strateay ofthe external envionment, + -Resourceallocation Internal rerources ana competences and he expectations and influence of takeholder. i iephlating ohnsan and Scholes, 2005) Positioning tools for digital organizations ‘This section describes the major features require fr positioning models and provides some examples of widely used techniaues Inthe next section several intemal anc external assessment fools that can also be uted for positioning decisions. + the desired levels of customer/market relevance and operational excellence — + which products and services iil deliver + which business model wll emerge a these decisions are made. Choosing analtical techniques and tools almost as comple asthe poshioning anal tse “Two major approaches salable for strateic decision-makers are + maturtymodels + dita positioning models ‘moe des oy WEL TCS mehr apn aren Po MELCE AP ee 2 ‘Van Haren Pubishing® ot Copyright protected. Use is for Single Users ont via a VHP Approved Licence. For iafomafion and printed vereions please see wew.venheren.net:Maturity models “Two types of maturity mode's are prevalent + + Medes with focus on the characterises ofthe organization, regerdessof the postion wartsto attain. Models focusing on helping the orgnization o evolve frm ‘one evel of disruption usually orgariztional tothe next, [etter markt orineustry and then economy}. Dita apa ‘ramp: Four Levels of Digital Mastery ~a two-dimensional ‘model for characterization of organizational maturity Modes focusing on helping an organization are bulton the "sumption tha the organ sation wilfallow 3 precletable seis ot poston, but tly dsrustive organizations have not necessaniy : followed these patterns. endentin capably Pmt en a an as Hg 8 The limits of maturity models Using maturity models as primary approach for digital positioning canbe time-consuming because: + Maturity models ae bit on data ond experiences from mutipl organizations and are only partly appliable toa specie ‘organization ina specie postion and context + Notall characterises and succes factors illaply tan ndvidalerganizatin oto every ype of postion + success daes not always depend on being atthe pinnacle of maturity, But, maturity modes can help identi the characteristics and capabilities needed to take a particular position. They are alo helpfl In defning natives to culthate valuable charactertice and capabilities, ‘Maturity models are hepfl to organtatons that wsh to follow inthe footsteps of those that have aleady been suecesstl ‘amo deed on LCE TCS ela epenerer PO ELC Ae au 52 ‘Van Haren Publishing® Copyright protected. Use is for Single Users only via a VHP Approved License. For information and printed verelons please see www.venheren.netDigital positionings models ze ‘The positioning tool shown in Figure 341s too that can hep organizations pot their poston an one or two axis to help lat its strategic focus ot compare diferent, possiblestrategic postions or foc. Itean also be used to define the postions of competitors and to inca how an organization’ postion fey to change in the nearto-medium term, Clustering of organization inthe digital positioning tol can be used to hight the none of competition An organization may consider eting the zone of competitionas away of ensuring long-term vabity. Statege . Pout FecusD Penton eS a an as Het & Example of positioning model with focus Ee on strategic transformation Exnene — (One example of how the positioning tol can be used witha set of ‘maton anrton four spectie strategie tansformation foc: = Business transformation (focused onthe organization's business mode). Operational transformation (focused onthe operating model and operational excellence} Cultural transformation (focused on attude and behaviour) Experience transformation focued oninteractons with the Se “organation = cansumers an partner). ita Oneatons ‘ontomston ‘ncmaton ‘Van Haren Pubishing® 8 Copyright protected. Use is for Single Users ont via a VHP Approved Licence. For iafomafion and printed vereions please see wew.venheren.net:Another example of a model with ze other focus areas Pane sense" ack Ganga unsa mar pencaege ee Physical presence Dighal presence Use of emeraing technoloay Use of industry standard tools eax — _ ‘Changing the strategic fol changes the postions ofthe same ae 2 ‘organizations, the direction of travel foreach organization, and even what cluster forms the zone of competition Use ndtey gta ‘Standard Tectalogy Presence Sohal rece a tee ower gga sara dagen hate on ELC TES Sa Hee Mp aon MELE AO ar We have just talked about: ( 2 ctr ere ee aterm ancl tcoten ‘aeoy ate cee { 1 ened stmco rang rb wane of Re enttnotrcee eerie + pecan ed mie eter may sand er rans 54 ‘Van Haren Publishing® Copyright protected. Use is for Single Users ont via a VHP Approved Licance. For iafoemelion and printed vereions ploase see wew.venheren.net:Se eee ene one ce has become widely adopted by consumers in many markets and multiple industri oe See eee et et ae ene eee der is doing from the perspective of their competito ( a ) ee - rw SO ee eee er aS See customer relevance. Which is the BEST approach to adopt: A implenet anew wrk management lo spor theses deprient ) Respond to trends by offering deals that provide more frequent app upgrades | C.__Utlize digital technology to optimize the app development and deployment processes >) SS 1D. Reorganize the service desk to increase support hours and expand user access channel ‘amo deseo ALCS TCS mer hres pan arent MELE. AP ee #0 ‘Van Haren Pubishing® 5 Copyright protected. Use is for Single Users ont via a VHP Approved Licence. a For information and printed verelons please see www.venheren.netre 6 to grow their business. They completed an assessment and implemente improvemen ee eer ke ee containing costs, What else do they need to consider to have a balanced approach to their strategy? ( tonompon teropenin ) ( ee - A indesbesan oat’ reson tes ) It describes the value an organization aims to create | C._Itdescribes specific strategie objectives and initiatives >) SS D._Itdescribes what an organization would like to become in the future 56 ‘Van Haren Publising® Copyright protected. Use is for Single Users ont via a VHP Approved Licence. a For information and printed verelons please see www.venheren.netCortera) UY L=ChG JOURNEY : Copyright protected. Use is for Single Users nly via a VHP Approved License. For ielcansiicrrend peisied verciann siaaen wee eee. verteesa ras:The context of strategy Strategy articulates the past cutrent nd future relationships between an orgaization andi enironment ery organization fulls a need within an erwranment, and continues to exist only because continues to meet some need ints envronment, Thi ithe purpose ofthe organization -an ougarization achieves its purpose by interacting wthitseniranment-Succestul strateges identify een key prt of the envionment that interacts wth, andthe nature of those interactions. Strategy aso identifies what capabitiesthe organization ‘wil needt conduct those interactions succesfully, ‘Toda this, many ferent types of assessments or analysis canbe performed. The folowing section points atthe need to perform these types of anaysisto get 2 good picture of ners are we now” but does nat daserbe how to perform ieee, Penton eS a an as ttm % Environmental analysis Environmental analysis encompasses three main areas P +The rganzations envionment, othe ‘extemal environment a + Theoreanzation sf or the ‘temal environment. ‘The interaction between the organization anit external ft Strategy defines the optimal configuration and actives of the organization, so that can achieve ls purpose is ervronment. ‘These three area are increasingly complex. as waves of technological innovation continue to dost. The model used in combines the PESTLE approach to analysing the external enironment wth the four mensions of serlce management for analysing the organization ise _‘arainenourtarce mesponee ‘The use ofboth approaches spaticularyhepfulin understanding the interactions between the two enviranments. This modells. strated in Fur 4.1 ‘Van Haren Publising® Copyright protected. Use is for Single Users only via a VHP Approved License. For infomation and printed vereions ploase see wew.venheren.net:External environmental analysis ‘There ae several approaches to analsing the external environment, PESTLE is hepflin categoria factors influencing ar constraining how an organization operates as shown Table 4.1. Paka Thtnfens of gaeenanoah pols a age a ona, commons my fxs obi eee OO y's, eaten ores tiene eae patna estan emome—Faurcemnig eats tanec, iho Me a, igh arene Resin ay ec tay of rat ‘stat enh ace an, ee so i esol Apatite ues roms es denogen buch aage. zane, Sxnovenens ora art cation rae latins ei ‘ton eum banned me enn serene al ognmay dare Se ora! SSeecncemet ‘etesogal Thee! dingo iccdoe art, seen ech nd ‘rag orton fe emtngsautes stirs ieoprent aeeusetomoonsononeonsn, meets touemonene occa corse ‘naa suman eH ‘las ates, spect geen er ana. ndg ae de agetan pags cen ey ander ‘errata, omit, over cer Peton aye ptr maton ead mim, pr oer apton rsa ren rei eee natty xc oa ‘rumen etn ese eri Tale «AEST: enermen ana ci dine on el sever Patan a ELS TEN a Hee emp an MELE A a Questions asked in external analyses Using external analiss strategy asks questions such as: + What needs exstin our envionment? + How important are thoee neds to people and other organizations? ow could those needs befulfiled What kindof services or products would meet that need?] How dothose needs change overtime? + Aveother organizations meeting those needs, and iso, ae they doing so adequately? + What are the imitations of our environment? (s there anything that we ae prevented trom doing?) ‘The questions above are focused on needs and the ality of the organization to meet such needs. When answered, thy eve 2 goed ‘view of some very imrtant factors that a service provider should consider when defining is Sategy. ‘There are ofcourse many more perspectives and views thet canbe valuable to conslder an therefore many moce tols thet could be used for external ensironmental anaises ‘Van Haren Pubishing® 2 Copyright protected. Use is for Single Users only via a VHP Approved License. For iafomafion and printed vereions please see wew.venheren.net:Tools for external environmental analysis i nee Atemteninemenmrerneticontemrte Mrs agered a nbecinen ane S Crete rere metered, somata teaen tienes ‘irae paccarsnredt oct Seed nen enagptoanhaponaa he Nerina Anurag arenyean ester ta pon onngan conn tn nto Sexrtegacnrereman mm tose, Sant ntrediyrceseme opus Amal nso i ma, Catrina ep noe sn apt cpiameanate ‘ico Strdmnttnctemeineseamnengsotnse Simscnetnoa eae ae Questions asked in internal analysis {Asan image ofthe external environment emerges, strategy looks inwards to the organization It seeks to understand ways to ensure ‘the oganzation’s success ints environment Strategy uses internal analyst determine + whether the organization has the capabilities required to achieves purpose in the environment that operates in + whether curent capabilities could be used to create new lines of busines, products, or eerces + where might be possible to make the organization more electveor efficient in meeting ts purpose Internal analysis compares the results of external analss with the crgarizations curren capabilities, and aks ‘What expats do we need to full the identified needs? + what knowledge would we need? + Which people would we need to hire? What technoiogy woul we nee to ives in? + What uncue characterises does the organization have that enable ito fll needs in way not easly copied by competitors? + Would we need to work with other orgaizations? + What ae our constraints? (What ae we unable todo, or what ae we able to do in one way but not in another way?) + How should we organize ourselves? + _what the best way of working ull the sented needs? ‘moe des on WLC TCS mer hres aren POm PELE AP ee +100 0 ‘Van Haren Publising® Copyright protected. Use is for Single Users only via a VHP Approved License. For infomation and printed vereions ploase see wew.venheren.net:Internal environment analysis Ee SSS ae ~ SeatuvepactCternee stop cto eae on LCS HE a Ha emp an MELE AE al Tools for internal environment analysis orca a ‘Sever antes sens Shatin — eantngugarpenneccccempegaciecd snenseue creme Anetaigedinnataetreniametiion!spidcivayh onteaicm na oatyater berating ap ee ctor soem ss peniceatonstcuase nay semen ot i men, ‘amne dees on ELC TCS met hres pan aren POm PELE AP ee 02 ‘Van Haren Pubishing® et Copyright protected. Use is for Single Users only via a VHP Approved License. For iafomafion and printed vereions please see wew.venheren.net:Interaction between the organization and its environment [Environmental analysis des nt end with the strategy definition. The organization changes with each ationed step ofthe strategy the changes affect the jobsitereats, the products and serves it pronides, the resoucesit manages and consumes, et Nota hese changes ae easy to predict, and not all are under the organization’ contol. Sategy must include continuous meniteing ‘analysis the organization and its enronment, fo\ensure it remains relevant. This eludes constant evaluation + how the needs being met by the organization are changing ‘whois competing to meet those needs ‘whether there ae new, better ways of meeting them + whether the sizeof the esting needs s changin increasing or decreasing) + whether new needs ae emerging + whether the organizations services and products are sil adequateto mest needs inthe endronment, and if nt, how they wll need to change + whether new capabilites have evolved that wil change the organizations business model Pmt en a an as Hg 103 Using results of environmental analysis Environment analysis helps the organization to identify and articulate: + the purpose ofthe organization + the nature ofits interactions wit its environment ‘the products and services it offers, and the needs that each one fli the ste of the nee it wil ful + the constraintsimposed bys environment + the capabilities itwil ned how it wil organize itself to ull its purpose (eg. itsbusiness model ‘amo deseo ALCS TCS mer hres pan arent MELE. AP ee 108 2 ‘Van Haren Publishing® Copyright protected. Use is for Single Users ont via a VHP Approved Licence. For information and printed verelons please see www.venheren.netOpportunity analysis Positioning not ust a matter of deciding which evel of disrustion an oceanzation wants to pursue, or which aspect of its environment it ‘wishes to focus on. Asi investigates each area, several opportunities wil emerge. Strategy management includes evaluating each opportuity to determine the folowing: + Whetheritis consistent wth the organization's strategic objectives. + Thelevelof demand for products or serves thatthe opportunity represents + How competitors ae likely to pursue the opportunity and how well the organization spositoned against them, + How long the opportunity kaly to exist. Some opportunities can be very lucrative, bu shorved + Theimpact of pusuing the opportunity (eg rwestment, changes the organization wl need to make, and potential RON. ‘The impact of not pursuing the opportunity eg, loss of revere, reduced competitive advantage, other similar opportunities) + sk associated with the opportunity and the governing body's appetite fr rk + Thelegal and ethical aspects involved + Theorpanizations bility to make the required cuturel changes ‘Opportunity analysis wilidentiy which opportunities ar viable and support the organizations strategy. wil as ident undesirable approaches, even those that appear attractive at fist, ae on ELC TEN a He amp an ELE A 105 Tools for opportunity analysis luckmecponostes|Anchodefemiyngserenlopns forsee te eiangonedawirg rent na setae OH teionrenensece” stow (Getanesed rons tn rachis teseaene sine She ‘ocr hm asarg torent alters ae, [cnc romania thay earn wan toes Aretistortningmotehontte nestor Keg ning fas nan tae ite tered stoy sone ‘Sina tcnpemgcreaynehcampetas eg ener ied conan aap oman Zaps sndoes enon ones ‘Sranicinsy aons—‘Thse meas at mu einen snspntsnto Sypris oe ad men nba hess Ite set ee heatcwecomeinns ne rms See ny os ose tometer ns Siren asin! ‘Stuer elbreures stem Instr petitin _Atnene utp Spaces Ycompowee Te wolate anions mie oO nga sma teB pt, Incumevreuteg tac ate nine once Weecgposanes wo suecne ne ‘moe des on LCE TCS mehr sepa ren POm PELOSI ee +106 ‘Van Haren Pubishing® 8 Copyright protected. Use is for Single Users ont via a VHP Approved Licence. For iafomafion and printed vereions please see wew.venheren.net:Digital readiness assessment ‘Many erganiations have plunged int data transformation initiatives without knowing whether they had the aporonrite capabilites and practices. As ares, ew intiatives are sucessful An effective digital readiness assessment can help wih these preparations. [Athough a organization may try to be more concerned with dg solutions than with assessments, 2 wel conceived assessment can help demonstrate where its deficient. t wl thereloe, identify where the orgaivation shoul concentrate ts resources and portzation efforts to produce the best rests. ‘Te analysis ofall aspects ofthe organization's erviconment (internal and externa) and how ts kely to chang, together with an assessment ofthe organization's current position, eapabllties and esoutes, wl prove o baseline forthe next sage ofthe strategy: how to achieve the son, Pmt en a an as Hg sor What the strategy assessment provides ‘The strategy assessments nota report, but a processof consideration, prictzatonand decsons based on the resus of all the snalyes performed inthis phase of the strategy, ts ouput willbe a Getaleg st of strategie objectives prioritized by its connection ta ‘thevision It wil also include deta about the current stat ofthe organization and a description falibarie's to achieving the objective. Ie wll communicate the key principles and polices that heped form the planning decisions, ‘Te sateny assessment wil give the planning team a picture othe organization's future state. The ned phase willinolve planning how to achieve the states objectives, The stakeholders performing tis task may have to review ad refine the strategy assessment, dependngon the results of the planning activites. For example, it might be too expensive o oo dificult to make the changes needed to achieve an objective ‘The folowing sections provide an overview ofthe key actives of a digtal readiness assessment. ‘amo deseo ALCS TCS mer hres pan arent MELE. AP ee +108 ‘Van Haren Publishing® Copyright protected. Use is for Single Users only via a VHP Approved License. For information and printed verelons please see www.venheren.netEvaluating current organizational capabilities Distal readiness assessments canbe done within an orgniation or by experienced external prewdersandoften look st how organizations re performing in sx key areas: + strategy and ial postioning- Organizations that are strong in this area havea clearly defined gta vansformation vin shared {tal levels of the orgarzation. They alzohave a high level understanding of digital portioning and how to execute t, + Valuestreams, practices, and processes- Organiations that are strong inthis area have well established practices an processes ‘that suppor the vera dial busines, Value streams ate we unde'stocd and mapped across the oganeation, + Information nd technology Organizations that are strong in this area use automation nthe right areas and make good use of ligt technology to increase customer excellence, operational excellence or both. + Organizational development andlesring- Organizations that are strong in ths area effectively eer, hte, develop and provide ‘gouth opportunites to employees wth gl sil. This key area drives the ‘orgaization and people’ aspect ofthe four ‘Simension of service management + Rskmanagement- Organizations that are trong inthis ares have amature attude towards business and cgital ris, effectively balancing and responding to treats and oppertunties + Innovation Orgariztions that are strong in this are value and support ga initiatives, and integrate them int the organization. ata and information esting rom these areas can help leadership teams determine where there are gaps that need to be addressed, Pmt en a an as Hg 08 Gap analysis ‘The digital asessment areas can be assessed indhidualy or together. A gap analyiss used to compare a curren state with desired future state. The output ofthis analysshighights the nature and scape of the gap between the two states. gapanalss finds the organization's strength and weaknesses, and can resutin actionable, practical steps fo ita implement inthe shot, medium, anion terms ‘Aap analysis report helyto contain the following information: + the organization's objectives (deste future state) + description ofthe curentstuation related to each objective + description of whats needed to achieve the future tate (capable, resources, partners, te.) + actions equited to close the gap between the current anc future states. ‘amo deseo ALCS TCS mer hres pan arent MELE. AP ee 10 ‘Van Haren Pubishing® 6 Copyright protected. Use is for Single Users only via a VHP Approved License. For information and printed verelons please see www.venheren.netOutputs of a digital readiness assessment [Aciatal easiness assessment, in combination with a digtalpastionin model can dec future atvties and areas of focus forthe organization in supporting deta ransfermation goals. There are many different approaches oa dig eadiness assessment. There are also many proprietary frameworks fered by consulting or technology vendors. However, they areal kayo include seetions on: + culturareadness (openness to change innovative culture etc} + shilsassessmen for implementing ane using deta technology + level imovation, or apennesst0 innovation + cutent eves of automation ‘extent fo which value streams have been defined and are ready to be automates + nature of products and services provided customer personas and profiles + leadership syle + contoisand governance, Risks and challenges of digital readiness assessment Becker et, (2009) summarize some of the main issues when conducting adigtal readiness atsesement + Many assessments are overomplicated. Overly complex maturity model attempt to convince the organization ofthe vat ofthe tindings ane recommendations by applying alse rigour to subjective criteria. The resulung evidence, although detaled and at ‘times insightful is suspect, sts largely subjective in nature and based more cn opinion than on fat. Many assessments are too simple. The diect opposite of the very complex models the overy simplistic one. This typeof _asserement usally aks one ora hand of participant a ew basic questions, + Fewassessments account forrsk While stl transformations share many of the same risks as thar businssinttives, there ae certain re unique octal infatives. There ae alsa sk aesonates with ransorming exiting business models 0 new gt ‘models. One ofthe biggest states isin not understanding the sk attitudes of key stakeholders + Fewassessments aecount for comprehensive practices. Many dig maturity assessments tend to focus heolly on ifastucture, such as cloud vs on-premise, or on spe tols employedby the organization Other assessments ump everything into one ‘category as though IT was one department with few simple activites, Although stable and predictable technlogys 8 prerequisite fora successful cigtalintiatve, snot enough, Nor isthe ol cfT to manage technology + Assessment of strategyand leadership isnot appropriately addressed. Unfortunately, most tal asessment modes do not ‘evaluate the leadership's understanding ofthe data landscape or the extent to which sets a lear direction forthe ‘organization. Furthermore, a gal eadines assessment must consider the organization's abilty to run the cuter business ‘model and digital business model simultaneously: nother words, a parallel execution models. ‘amo deseo ALCS TCS mer hres pan arent MELE. AP ee 2 6 ‘Van Haren Publishing® Copyright protected. Use is for Single Users only via a VHP Approved License. For information and printed verelons please see www.venheren.netSummary We have just talked about: ‘Understanding the context ofan organization's strateay How environmental analysts encompasses three maln ares: = The organization’ erwfonment, o the extemal enronment = The organization sel oF the ‘internal envecnment ‘The interactions between the organization ants ewitonment ialuaton of key areas current orgaiztionalcapabilties How to use the results of environmental analysis The use of opportunity anais ‘Gap analysis and what they can be used for ‘what egal readiness assessments are and how these can be used Risks and challenges of dtl reodiness assessments pole ) (= ) (owes ) ‘moe deo ELC TCS mer hres pan aren POm PELE AP ee 6 ‘Van Haren Pubishing® 7 Copyright protected. Use is for Single Users only via a VHP Approved License. For iafomafion and printed vereions please see wew.venheren.net:‘The report included detailed numerical data of hundreds of diferent aspects of digital readiness, and was used to create a strategy. When the organization tried to implement this strategy, it was clear that the consultants had not understood the organization, and the markets where they operate, Which is the MOST LIKELY cause of this issue? ( +) (A. Theassessmentfaled to consider strategy and leadership | [ B. The assessment was too simple } C._ The assessment was too focused on technology (0. teasesinertvesorompkatd ) Penton eS a an es Het 15 Cole 68 ‘Van Haren Publishing® Copyright protected. Use is for Single Users only via a VHP Approved License. For infomation and printed vereions ploase see wew.venheren.net:INTRODUCTION TO CASE STUDY hate on ELS TES a He em an MELE Ag 117 About the case study ‘Te case study belowis designed forthe practical assignments ofthe TIL4 Leader: Digital and Strategy course t describes thee tional “companies; any resemblance to real companies is unintentional ‘The course patcigantsare expected to work on four (4) practicalasignmentsin small groups or inevidually They start by reatingall materi andselecing one company to werk with thraughout the cause. n2cassom setting it recommended that groups select diferent companies forthe value added. However, al patpants are expected to be familar with the ent case study ineuding athe ‘companies their relationsto each other and thei contexts. The secon third and fourth assignment should be consistent wth the material land presentations delivered in previous assignments -As wel as containing descriptions ofthe companies, the case study includes 3 brief major riskreport with iss that are key to affect ll “companies, in diferent ways, Where relevant, this information shoul be used during the assignment, Parcpants can add any information, as one a ay assumptions made ae easonable and explicly stated during in ther presentations uct a |_[ rome Sassen Datinneta Sateen ‘amnea deed on ELSE TCS mer hres aren POm MELCE AP ee 18 ‘Van Haren Pubishing® 2 Copyright protected. Use is for Single Users only via a VHP Approved License. For iafomafion and printed vereions please see wew.venheren.net:MeL = The New Hospitality Company (TNH) Ee 70 ‘Van Haren Publising® Copyright protected. Use is for Single Users ont via a VHP Approved Licence. For information and printed verelons please see www.venheren.netInteLearn Em ‘Van Haren Pubishing® 7 Copyright protected. Use is for Single Users ont via a VHP Approved Licence. For information and printed verelons please see www.venheren.net