Part 4:Managing Digital Transformation

Topic: Digital business transformation

Dr Qiuyan Fan
Unit Coordinator
q.fan@uws.edu.au
http://www.uws.edu.au/staff_profiles/uws_profiles/doctor_qiuyan_fan
 Learning Objectives

After completing this part, you should be able to:

• Critically analyse the journey of an organisation through
transformation
• Review the approaches to be taken in a digital
transformation exercise
• Understanding the reasons for digital transformation

Innovation through digital technology prepared by Dr Qiuyan Fan

Defining Digital Business Transformation
• Digital business transformation is organisational
change through the use of digital technologies and
business models to improve performance’ (Wade,
2015).
• Digital business transformation is a journey where
businesses manage the adaptation of organisations
around innovations through digital technology so
that they can take advantage of a digital
opportunity and place it at the heart of the
organisation.

Innovation through digital technology prepared by Dr Qiuyan Fan

Understanding why organisations need to
transform digitally
• Organisations that fail to transform digitally are
more likely to fail as organisations.
• Change is happening at a greater speed than at any
point in human history and much of this is down to
technological development.
• Digital enables big bang disruption.

Innovation through digital technology prepared by Dr Qiuyan Fan

The Framework for Digital Business
Transformation
• Unlocking business opportunity in digital trends
• Digital opportunity
• How sure the organisation is of the opportunity
• Benchmarking your digital capabilities
• Digital leadership capability
• Digital maturity
• Developing your digital strategy
• Referring to Part 3
• Implementing your digital transformation project
• Agile approaches
• Evaluating your digital transformation project
• A constant evaluation of the results of your digital strategies

Innovation through digital technology prepared by Dr Qiuyan Fan

 Business opportunity in digital trends
• The opportunities provided by digital
• Buy side, Sell side and internal organisational processes;
• business models.
• Each of these areas provides its own unique set of
opportunities and very specific circumstances that use the
particular digital technologies.
• Adapting the existing business to a digital opportunity
rather than simply adopting a digital technology into a
business
• The connection between digital disruption and observing
digital trends is important
• Digital trends should be an increasingly heavily weighted
factor when developing/updating business strategy.

Innovation through digital technology prepared by Dr Qiuyan Fan

How sure the organisation is of the
opportunity
• Is there an opportunity to grow the business with
existing customers or new customers?
• What are the kinds of revenue we can forecast or
expect?
• What value can this create for customers?
• Can the opportunity be scaled up?
• How safe is it for the business to adapt to this
digital opportunity?

Innovation through digital technology prepared by Dr Qiuyan Fan

 Class Discussion
• Mini Case Study 10.5: Domino’s Pizza as a
constantly transforming business

• How did Domino’s Pizza adapt the business so that

it can take advantage of digital culture, processes
and practice and maximise return on digital
technologies?

Innovation through digital technology prepared by Dr Qiuyan Fan

Digital leadership capability and challenges
• There is significant demand for the kind of senior
managers and leaders who possess the kind of
qualities required for leading digital transformation,
and an under-supply of the ‘right kind’ of people.
• There is no digital leader with decision autonomy,
direct budget or profit or loss responsibility for
digital change.
• C-Suite and leadership are not directly involved in
the company’s digital strategy.

Innovation through digital technology prepared by Dr Qiuyan Fan

 How mature as a digital business the
organisation sees itself
• Digital maturity models underpin success in transformation projects by:
• establishing clear, universally understood goals and plans for the short and longer
term
• helping organizations assess where they are in their transformation journey
• allowing businesses to objectively measure their progress during the journey
• Key elements of digital maturity
• the level of adopting of digital technology intended to improve a company’s
performance.
• the level of management and leadership capabilities needed to create digital
transformation
• A stage model for digital maturity
Stage 1: Using basic digital technologies with limited e-business strategy.
Stage 2: Using advanced digital technologies but digital strategy not well integrated with
business strategy.
Stage 3: Integrated E-commerce (Buy-and sell-side integrated with enterprise resource
planning or legacy systems; E-commerce strategy integrated with business strategy)
Stage 4: Becoming a digital business (Full integration between all internal organisational
processes and elements of the value network, linking of business processes with partners;
Digital business strategy fully integrated with business strategy.
• Achieving digital maturity
Innovation through digital technology prepared by Dr Qiuyan Fan
Implementing your digital transformation
project
• Agile describes a set of guiding principles that uses
iterative approach for IT project development.
• Scrum is a structured framework for product
development that is frequently used by agile
software development.
• How does Scrum work?

Innovation through digital technology prepared by Dr Qiuyan Fan

Evaluating digital transformation
• Evaluating the process of digital transformation as it runs.
• Evaluation allows for progress to be checked, to observe whether changes are
having the effect desired from the strategy stage, and to make any corrections
and put remedies in place if this is required.
• Inevitably there is a period when a whole digital transformation project itself
needs to be evaluated in terms of success.
• Evaluation will review the issues raised in the initial stages of the project:
• Did the transformation grow the business with existing customers or new customers?
• Did it generate the forecasted or expected revenues and what revenue can we forecast or
expect?
• Did it create the value that customers wanted?
• How stable is the new technology, culture, process or practice now that the organisation
has adapted to it?
• Were all the risks and issues associated with the new technology, culture, process or
practice adequately identified and were the counter-measures appropriate?

Innovation through digital technology prepared by Dr Qiuyan Fan