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Business Agility and Digital Transformation

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Many companies have voiced the intention of carrying out Digital Transformation but continue to run their businesses in the same old ways, except to add Digital channels to it. In this VUCA (Volatile, Uncertain, Complex and Ambiguous) world, this will be insufficient to cater to the rapid changes in the market and business environment, and the company will hence run the risk of being overtaken by disruptors.
This talk will illustrate what is VUCA and Digital Transformation, and why VUCA leads to the strong need for Business Agility as a pre-requisite for Digital Transformation. It will also explains the need for business departments (in addition to IT) to not only be heavily involved in, but also drive the Business Agility and Digital Transformation initiatives. Finally, the presentation will explain why Digital Transformation can, in turn, help Business Agility.

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Business Agility and Digital Transformation

  1. 1. WHY BUSINESS AGILITY MATTERS IN DIGITAL TRANSFORMATION (AND VICE VERSA) © Copyright National University of Singapore. All Rights Reserved GOH BOON NAM 12 Jul 2019 / Why Business Agility Matters in Digital Transformation OVER GRADUATE ALUMNI5,900 OFFERING OVER 130 ENTERPRISE IT, INNOVATION & LEADERSHIP PROGRAMMES TRAINING OVER 130,000 DIGITAL LEADERS & PROFESSIONALS 1
  2. 2. Agenda • Digital Transformation • VUCA & Impact to Digital Transformation • Business Agility matters to Digital Transformation (due to VUCA) • (Vice Versa) Digital Transformation matters to Business Agility © Copyright National University of Singapore. All Rights Reserved 2
  3. 3. DIGITAL TRANSFORMATION © Copyright National University of Singapore. All Rights Reserved 3
  4. 4. Digital Transformation – How transformative must it be? Digital transformation is the journey of leveraging digital assets and capabilities to fundamentally rethink and radically redesign an existing business to become a digital business. Changes may be applied on all or some of these aspects – • Business model • Products • Services • Market positioning • Customer experiences • Partner relationships • Operations Not only at the enterprise level, but even more so at the industry level © Copyright National University of Singapore. All Rights Reserved 4 Image by Nicole Köhler from PixabayImage by klimkin from Pixabay
  5. 5. Digital Transformation – Business Model © Copyright National University of Singapore. All Rights Reserved 5 What was the business model then for Apple products? • B2B (for sales) • Product sales (one-time payment) https://www.laptopmag.com/articles/macbook-pro-2018-keyboard-testedhttps://www.cultofmac.com/484382/tiah-apple-ii-goes-on-sale/ https://www.apple.com/au/shop/buy-iphone/iphone-xs/5.8-inch-display-256gb-gold What is the business model now for Apple products? • B2B and B2C (online and Apple Stores) • Apple is 4th largest online retailer in US • https://9to5mac.com/2018/11/17/apple-e-commerce-sales-2018/ • Product sales (one-time payment) and also subscription model for iPhones (iPhone Upgrade Program in US) • https://www.apple.com/shop/iphone/iphone-upgrade-program
  6. 6. Digital Transformation – Products © Copyright National University of Singapore. All Rights Reserved 6 Digital Product Transformed by Digital Non-Digital Product Transformed by Digital https://www.amazon.com/Certified-Refurbished-All-new-Generation-improved/dp/B071P72R59 https://store.nike.com/sg/en_gb/product/nike-air-max-97-by-you/?piid=10000274&pbid=597372611https://www.youtube.com/watch?v=25CNwCeoL7Q
  7. 7. Digital Transformation – Services © Copyright National University of Singapore. All Rights Reserved 7 Old way of getting a ride https://worldstreets.wordpress.com/2015/04/23/taxi-anonymous/ https://www.grab.com/sg/download/ Digitally transformed way of getting a ride
  8. 8. Digital Transformation – Market Positioning © Copyright National University of Singapore. All Rights Reserved 8 How do I differentiate myself from others? Digital transformation for market positioning 31 digital-enabled benefits above the competition https://www.businessinsider.sg/amazon-prime-benefits-what-is-included/?r=US&IR=T Home Key Delivery Kit https://www.amazon.com/b?ie=UTF8&node=17861200011
  9. 9. Digital Transformation – Customer Experiences (1) © Copyright National University of Singapore. All Rights Reserved 9 The old Netflix experience https://edition.cnn.com/2019/04/04/media/netflix-dvd-subscription-mail-trnd/index.html https://hothardware.com/news/redbox-vs-netflixs-red-envelopes https://twitter.com/dvdnetflix Netflix - pioneer in new Streaming Experience (from 2007) enabled by Digital https://www.lifewire.com/delete-netflix-history-4161316
  10. 10. Digital Transformation – Customer Experiences (2) © Copyright National University of Singapore. All Rights Reserved 10 https://www.youtube.com/watch?v=vDNzTasuYEw https://www.youtube.com/watch?time_continue=22&v=c-NUbGtAeYU Looks Nice In the Store – How About in My Home? Initiative towards Digital Transformation - Provide Better Assurance of Right Choice Being Made How do you think that is done? https://www.yelp.com.sg/biz_photos/ikea-round-rock?select=p9IfeiITRz4vGS19LKH0ng
  11. 11. Digital Transformation – Partner Relationships © Copyright National University of Singapore. All Rights Reserved 11 New type of partner only possible with Digital https://www.youtube.com/watch?v=Up_RPqZZfGk https://www.youtube.com/watch?v=wcpDvdtqxRc https://nichesiteproject.com/amazon-affiliate-sites-niche-site-process/ Estimated 22% visits to Amazon through such referrals https://blog.geni.us/just-big-amazon-associates-program/ https://affiliate-program.amazon.in/help/topic/t500
  12. 12. Digital Transformation – Operations © Copyright National University of Singapore. All Rights Reserved 12 https://www.youtube.com/watch?v=-l8gTvuXVkw
  13. 13. Agenda • Digital Transformation • VUCA & Impact to Digital Transformation • Business Agility matters to Digital Transformation (due to VUCA) • (Vice Versa) Digital Transformation matters to Business Agility © Copyright National University of Singapore. All Rights Reserved 13
  14. 14. VUCA & IMPACT TO DIGITAL TRANSFORMATION © Copyright National University of Singapore. All Rights Reserved 14
  15. 15. VUCA • V_ _ _ _ _ _ _ _ _ • U _ _ _ _ _ _ _ _ _ _ • C _ _ _ _ _ _ _ _ _ • A _ _ _ _ _ _ _ _ 3© Copyright National University of Singapore. All Rights Reserved • Volatility • Uncertainty • Complexity • Ambiguity Scenario: I am thinking of digitally transforming my company’s mobile workforce e.g. AR inspection and repair, analytics optimised routing based on GPS tracking etc. How does VUCA impact my initiative?
  16. 16. Volatility © Copyright National University of Singapore. All Rights Reserved 16 Original planned device: Huawei barred from Google updates: What you need to know if you own a Huawei or Honor phone MAY 20, 2019, 3:53 PM SGT Next planned device: https://www.straitstimes.com/tech/huawei-banned-from-google- updates-what-you-need-to-know-about-the-ban Japan to restrict tech exports to S. Korea amid frayed ties Jul 1, 2019 - 21:20 Volatility: refers to the speed of change https://www.forbes.com/sites/jeroenkraaijenbrink/2018/12/19/what-does-vuca-really-mean/#36d26f4f17d6 https://english.kyodonews.net/news/2019/07/45db06dfa456-update2-japan-to-restrict- tech-exports-to-s-korea.html
  17. 17. Uncertainty © Copyright National University of Singapore. All Rights Reserved 17 What will happen next? Uncertainty: refers to the extent to which we can confidently predict the future https://www.forbes.com/sites/jeroenkraaijenbrink/2018/12/19/what-does-vuca-really-mean/#36d26f4f17d6
  18. 18. Complexity © Copyright National University of Singapore. All Rights Reserved 18 https://www.foreignaffairs.com/articles/2018-09-13/financial-crisis-still-empowering-far-right-populists The Financial Crisis Is Still Empowering Far-Right Populists Trump calls China trade deficit 'horrible' ahead of Asia visit Trump orders probe of China's intellectual property practiceshttps://www.reuters.com/article/us-usa-trump-trade-china/trump-orders-probe-of-chinas-intellectual-property-practices-idUSKCN1AU23N https://www.reuters.com/article/us-usa-trump-trade/trump-calls-china-trade-deficit-horrible-ahead-of-asia-visit-idUSKBN1D15AM?il=0 NOVEMBER 2, 2017 AUGUST 15, 2017 China Puts U.S. Soy Buying on Hold as Tariff War Escalates https://www.bloomberg.com/news/articles/2019-05-30/china-puts-u-s-soy- purchases-on-hold-as-tariff-war-escalates May 30, 2019 China Raises Threat of Rare- Earths Cutoff to U.S.https://foreignpolicy.com/2019/05/21/china-raises-threat-of-rare-earth-mineral-cutoff-to-us/ MAY 21, 2019 Subprime Mortgage Crisis, Its Timeline and Effect https://www.thebalance.com/subprime-mortgage-crisis-effect-and-timeline-3305745 Complexity: refers to the number of factors that we need to take into account, their variety and the relationships between themhttps://www.forbes.com/sites/jeroenkraaijenbrink/2018/12/19/what-does-vuca-really-mean/#36d26f4f17d6
  19. 19. Ambiguity © Copyright National University of Singapore. All Rights Reserved 19 Trump says he will allow Huawei to buy from US suppliers Huawei Android ban could still be on as US government says it’s still blacklisted https://www.techradar.com/sg/news/huawei-android-ban-could-still-be-on-as-us-government-says-its-still-blacklisted 3 Jul 2019 JUN 29, 2019 Ambiguity: refers to a lack of clarity about how to interpret something https://www.straitstimes.com/asia/east-asia/trump-says-will-allow-huawei-to-buy-from-us-suppliers
  20. 20. Agenda • Digital Transformation • VUCA & Impact to Digital Transformation • Business Agility matters to Digital Transformation (due to VUCA) • (Vice Versa) Digital Transformation matters to Business Agility © Copyright National University of Singapore. All Rights Reserved 20
  21. 21. BUSINESS AGILITY MATTERS TO DIGITAL TRANSFORMATION (DUE TO VUCA) © Copyright National University of Singapore. All Rights Reserved 21
  22. 22. VUCA • V_ _ _ _ _ _ _ _ _ • U _ _ _ _ _ _ _ _ _ _ • C _ _ _ _ _ _ _ _ _ • A _ _ _ _ _ _ _ _ 3© Copyright National University of Singapore. All Rights Reserved • Volatility • Uncertainty • Complexity • Ambiguity Scenario: I am thinking of digitally transforming my company’s mobile workforce e.g. AR inspection, analytics optimised routing based on GPS tracking etc. How does VUCA impact my initiative? How to cater for VUCA? BUSINESS AGILITY Environment (PESTEL) Customer Needs / Tastes Competitors
  23. 23. Business Agility © Copyright National University of Singapore. All Rights Reserved 23 V U C A “Like water, be gentle and strong. Be gentle enough to follow the natural paths of the earth and strong enough to rise up and reshape the world” ― Br… ― Brenda Peterson https://www.outsideonline.com/2367261 /grand-canyon-travel-guide Business Agility: Ability of an organization to quickly sense or anticipate market and business changes and respond in flexible, timely and successful ways
  24. 24. Agenda • Digital Transformation • VUCA & Impact to Digital Transformation • Business Agility matters to Digital Transformation (due to VUCA) • (Vice Versa) Digital Transformation matters to Business Agility © Copyright National University of Singapore. All Rights Reserved 24
  25. 25. (VICE VERSA) DIGITAL TRANSFORMATION MATTERS TO BUSINESS AGILITY © Copyright National University of Singapore. All Rights Reserved 25
  26. 26. Business Agility important to Digital Transformation – what about vice versa? (1) © Copyright National University of Singapore. All Rights Reserved 26 https://www.slideshare.net/ppnd/grab-taxi-46368147 http://www.whichtravelapp. com/grabtaxi-book-taxi/ Grab when it was initially launched Is this still the home screen now? Current Home Screen What’s different now?
  27. 27. Business Agility important to Digital Transformation – what about vice versa? (2) © Copyright National University of Singapore. All Rights Reserved 27 Oct 2013 GrabTaxi Jul 2014 GrabCar Nov 2016 GrabPay Dec 2016 GrabShare Dec 2016 GrabRewards Mar 2018 eScooter May 2018 GrabFood Oct 2018 GrabExpress (Delivery) Dec 2018 GrabClub (Subscriptions) Apr 2019 Hotels Videos (Trip Planner) Is Grab Agile? Does Digital matter to Grab’s business agility? YES – how does it matter/help? E.g. digital platform gives flexibility to launch new businesses
  28. 28. SUMMARY © Copyright National University of Singapore. All Rights Reserved 28
  29. 29. Summary • Digital Transformation • What is it? • How transformative is it? • VUCA & Impact to Digital Transformation • Why VUCA brings challenges to Digital Transformation • Business Agility matters to Digital Transformation • Business agility helps to overcome VUCA in Digital Transformation • (Vice Versa) Digital Transformation matters to Business Agility • In turn, Digital Transformation helps greatly in Business Agility © Copyright National University of Singapore. All Rights Reserved 29
  30. 30. 30© Copyright National University of Singapore. All Rights Reserved www www.iss.nus.edu.sg facebook.com/ISS.NUS twitter.com/ISSNUS @iss.nus linkedin.com/company/iss_nus youtube.com/user/TheISSNUS/

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