Chapter 3

Why? The clock is ticking

• “Big is nothing, you can still die out”
• Key questions for management:
1. Sense of urgency
2. Type of change
3. Barriers to change
4. Relevant assets
5. Ambition
 1. How urgent is Digitization
• Observation, experiences and meetings
• We act, we learn, we get better (Jeffey
Immelt)
• The CEO must shape this moment of
enlightenment and make it intuitively clear
• Small company is easier to take the path
toward the digital future
 1.1 taking leadership in hand
• Mental barriers = “not relevant to us”, “we’ve
done that for a long time anyway”
• There will always be resistance and concerns
in certain group. (owner, employee, active
investor)
 1.2 benchmarking to assess starting
position
• Anticipating the impact
• Actively creating an ecosystem of partners, customers, and suppliers
• Allowing room for a digital strategy
• Assessing what we can do
• Intend to spin off
• Reflect
• Consideration the force with
• Using best talent
• Prioritizing and allocating capital, talent, and management capacity
• Defined a feasible time scale and meaningful KPIs
 1.3 experiencing digital live
• Only real experiences count
1.4 Sampling digital at a hackathon
• Hacking and marathon = small group and
cross-functional groups of tech-savvy
innovators work locked away together until
they find an ingenious solution to a particular
problem.
• Motto = build, test, refine
• Case = Facebook’s like button
 1.5 Mobilizing your employees to
uncover weakness
• Bosch motto : “Better that we find our
weaknesses than allow others to.”
3.2 Determining the kind of change
required
 Those Who Know the Roadblocks
Overcome Them More Easily
Three insights reveal the biggest obstacles :
1. Efficient organizations often slow down the
necessary change
2. The best and most efficient managers who stand
in the way of the project.
3. Deep-rooted mind-sets and working methods in
functional silos
“At least 40% of all businesses will die in the next 10
years . . . if they don’t figure out how to change
their entire company to accommodate new
technologies.” (John Chambers)
 3.3 Identifying relevant assets
• First and foremost, it’s about the core of the
business the benefit to the customer.
• It’s about recognizing where the new
technology can help the company the most,
and how it will help to renew the company
• “We don’t just program apps, but build
solutions around our products that our
customers should desire,” (Bosch CEO Volkmar
Denner)
 The relevant assets
1. Powerful brand
2. Strong customer relationship
3. Extensive installed base
4. Deep customer insights
5. Emotional ties
 3.4 Determining the Aspiration Level
for the Transformation
• Identify and communicate:
1. The management : clear about the objective of
the transformation, and formulate it articulately
2. The managers : must then consider and describe
the scope and impact of the changes.
3. Team : the aim must be communicated to the
team and at the same time creating enthusiasm
and enjoyment for the upcoming work
 Conclusion

• Digitization is changing every function in the

company
• New ecosystems are breaking down
boundaries across all industries, from
automotive → banking, retail → construction,
and bringing in competition between
competitors that previously had nothing to do
with each other.
Conclusion