Lecture 2 – Introduction to

Digital Transformation
 Agenda

• Digital transformation definition

• Digital transformation elements
• 3 key areas of DIGITRANS
• Digital transformation process

P2
 1. DIGITRANS definition

• Digital business transformation is the integration of new digital technologies into all business areas,
leading to a fundamental change in the way the organization works
• Successful digital transformation goes hand in hand with reengineering and optimization of
business processes in the most appropriate way for the strategy
• Digital business transformation can only be successful if there is a well-founded strategy and
leadership.
(Schwertner 2017)
•
 1. DIGITRANS definition

• Organization’s digital strategy goal are: improve customer experience, increase efficiency, improve
innovation, improve decision making, transform the business.
• The organization is innovative compared to their competitors. Leadership has sufficient skills,
experience to lead digital strategy (Schwertner 2017)
 1. DIGITRANS elements
7 elements of DIGITRANS business
model

digitization
organization
al structure of products
/ services
digital
channels for
interaction
with clients
digital skills IT
of infrastructure
employees

digitization
of business
processes
 2. 3 key areas of DIGITRANS

Transforming customer experience

Transforming Operational Processes

Transforming Business Models

 2.1. Transforming customer experience

Customer Top-Line Growth Customer Touch Points

understanding
- Using social media to - Using technology to - Customer service can be
understand what leads enhance in-person sales enhanced significantly by
to customer conversations digital initiatives
dissatisfaction.
- Customized product - Multiple channels for the
- Promote their brands packages customer to provide an
more effectively - Simplifying their integrated
through digital media processes through a experience
digital plugin
- Building new online - Self-service via digital tools
communities
building analytics
capability to
understand customers
in more detail

Process Digitization
• Automation can enable
companies to refocus their people
on more strategic tasks
• Automation allows researchers to
focus on innovation and creativity
rather than repetitive efforts
2.2. Transforming Operational Processes
Worker Enablement
• Individual-level work has been
virtualized
• This is setting the stage for further
changes related to globalization
• The tools that virtualize individual
work, while implemented for cost
reasons, have become powerful
enablers for knowledge sharing
Performance Management
• Beyond being better informed,
digital transformation is actually
changing the process of strategic
decision-making.
• Transactional systems give
executives deeper insights into
products, regions and customers,
allowing decisions to be made on
real data and not on assumptions.
 2.3. Transforming business models

• Using digital to transform a new growth business

Digitally • Building digital or service wrappers around traditional products
Modified
Businesses

• Companies are also introducing digital products that complement traditional products
New Digital
Businesses

• Digital technology coupled with integrated information is allowing businesses to gain global
synergies while remaining locally responsive.
Digital • Global shared services promote efficiency and reduce risk. They even promote global flexibility
Globalization
3. Key success factors of DIGITRANS
 4. DIGITRANS process

1. 2.
Digitized information Telecommunications
Lecture 2 – The end