Digital transformation - the paradigm shift towards business as usual - Rick Bouter - Digital Transformation - The Marketing Technologist

1. “Digital Transformation: The paradigm shift towards business as usual”
By Rick Bouter, Marketing Technologist, 04-12-2014
Where back in the days technology, techies, related people where seen as the weird people which
every office needed for I(C)T development and maintenance, are we now looking with respect to all
kinds of self-made billionaires of Silicon Valley. Compared to the pre 2000’s, technology is a hot
topic. A lot of noise around different elements and types of new technology. Whether we talk about
3D-printing, Augmented Reality, Big Data, Social, Mobile, Analytics, Cloud, (SMAC) + Internet of
Things (SMACT), Wireless Power, Robotics, Computer brain interfaces, Human Augmentation,
Artificial Intelligence (AI), Digital Customer Experience (DCX), all these topics are in the marketing
buzz machines of big industrial leaders or even made on kitchen tables by (as Chris Anderson called
them) the makers of these days.
The title of this article: “Digital Transformation: The paradigm shift towards business as usual” is
about the core of Digital Transformation. It will explain what Digital Transformation is, how you can
use Digital Transformation to create competitive advantage, enter new market segments and deliver
new value to your client, customer and end-user through an excellent customer experience. On this
page we will discuss the topic Digital Transformation in general. What is the phenomenon Digital
Transformation is the red wire through the bottom of this page. We will look at the following
questions to guide us in this much often heard techno buzz word.
 “What is Digital Transformation?”
 “How can I use Digital Transformation in my advantage?”
 “How to adapt/ implement a Digital Transformation Strategy”
 “How can I offer solutions that serves the client/ customer need in 2020?”
 “What is the relation between Digital Transformation & Digital Customer Experience?”
Let us start with the question: “What is Digital Transformation?”. To answer that question we will
start with an overview of definitions of Digital Transformation by Industry & Business leaders:
1: Altimeter Group
“We defined digital transformation as a movement under a customer-centric lens: The realignment
of, or new investment in, technology and business models to more effectively engage digital
customers at every touchpoint in the customer experience lifecycle.”
2: Ashley Friedlein, CEO, Econsultancy
“Digital transformation is the journey from where a company is, to where it aspires to be digitally.” “A
digital organisation is generally considered to be one that focuses on customer experience
irrespective of channel, and has a digital culture. During the digital transformation process, the four
areas typically focused on are strategy, technology, people and process.”
3. Capgemini Consulting/ MIT Sloan Management
“Digital transformation (DT) – is the use of technology to radically improve performance or reach of
enterprises”
4. IBM
“Digital transformations, rethinking what customers value most and creating operating models that
take advantage of what’s newly possible for competitive differentiation. The challenge for business is
how fast and how far to go.”

2. 5. Atos
“Digital Transformation is about the impact of new technology on all areas of our society”
6. Accenture
“Re-imagine from the Outside-in: Business success today requires a customer-focused digital
transformation. It starts with prioritizing a superior and relevant customer experience, and aligning
the organization, processes and technology to power it. There are three essential elements to deliver
enduring customer relevance at scale”
If you ask me, Digital Transformation is:
“Digital Transformation is the collective noun of the movement which intertwine the
physical and digital world to better determine client, customer and target audience needs
to deliver excellent products & services with an excellent digital experience by the use of
new technology.”
The reason why I come up with this definition is as follows. Every company exist because it delivers
some sort of value, in some sort of way, to some sort of audience. A lot of ‘some sorts’, you might
say, and, you are right. But does your company knows, why they deliver what to whom? If you are
thinking, on one of those point above I have no idea what I am doing, keep on reading. If you do this
already, congratulations, keep that position. On the other hand, who says that you are doing this
already? You, or your client? That is right, keep on reading as well.
Digital Transformation refers to the use of digital tools, new technology to better define customer
needs. When companies can define customer/ client needs in a better way, they can provide a better
solution. A better solution, whether it is a product or service. Defining customer needs has always
been the key activity in marketing. And, even this core activity has changed to ‘hang out’ on digital
for some brands, defining needs is key. Because delivering what your audience need is the reason
why you exist as a company. To build upon that, customers are getting more and more famil iar with
digital concepts. Adoption of new technology is increasing by wearable technology and so there is a
shift of channel choice on the client side. For that reason companies should make sure that they
deliver in the new JIT method. In the right channel, on the right time, delivering the right solution for
the customer need. That it, bottom-line, what every new technology is about. Increasing your
company to identify B2C/ B2B needs to provide them with better solutions.
A research on Digital Transformation by MIT’s Sloan School of Management, and Capgemini
Consulting shows us some interesting facts around Digital Transformation. An article, titled as:
“Research: Digital Transformation Seen As Critical By 4 in 5 Execs” gives an overview of: “Some of the
most interesting stuff deals with the barriers, ones people see in this space all the time:
 Defining an agenda;
 Developing a vision and direction;
 Lack of urgency;
 Attitudes of older leaders who don’t “get” digital;
 Fear of investing too early in technology;
 Politics;
 And innovation fatigue.”
Sounds familiar? I do have enough time right? Digital Transformation is not something which
happens in one day. Looking to our market segment, industry and clients I do not really see the point
of investing in Digital Transformation today, you might say. Seen the outcome of the following
research, it is also ‘a kind of urgent’..

3. You might ask how did we got to the point of Digital Transformation? What drives us towards this
digital era? The Guardians ‘s Howard King describes in his article called: “What is digital
transformation?” three key drivers of transformation:
“There are three key drivers of transformation: (1) changing consumer demand, (2)
changing technology and (3) changing competition. These, of course, are an ecosystem and
it is always a convergence of factors that brings about changes in a market.”
Interesting, right? Now let us look where you should start towards your own digital transformation.
McKinsey sees six areas where: “Digital can reshape every aspect of the modern enterprise”:
 Customer Experience
 Product and service innovation
 Distribution, marketing and sales
 Digital fulfilment
 Risk optimization
 Enhanced corporate control

4. Capgemini Consulting together with MIT Sloan did a research at large on Digital Transformation.
“This: In-depth research with executives at a wide range of companies shows how managers can use
technology to redefine their businesses.”
“We interviewed 157 executives in 50 companies to find out. These companies are large —
typically $1 billion or more in annual sales — and spanned 15 countries. To provide balanced
perspectives, approximately half of the interviewees were business leaders such as CEOs, line
of business managers, marketing heads or COOs, while the other half were IT and technology
leaders. The companies we interviewed are moving forward with digital transformation at
varying paces and experiencing varying levels of success. Some are transforming many parts
of their organizations while others are still doing only the basics. Others are encountering
organizational issues or other challenges that prevent them from transforming successfully.”
The research identified 3 key area’s with all 3 elements. These are the elements below:
 Customer Experience
a. Customer understanding
b. Top line growth
c. Customer touch points
 Operational Process
a. Process digitization
b. Worker enablement
c. Performance management
 Business model
a. Digitally-modified businesses
b. New Digital Business
c. Digital Globalisation

5. “In his interactive Harvard Business Review webinar, Westerman describes these nine key elements
of digital transformation and shares case studies of companies that are transforming.” you can watch
this webinar here!
Do you know the, lately, released book called: “Leading Digital, Turning Technology into Business
Transformation”. The book, written by MIT’s Sloan Research Scientist George Westerman, Capgemini
Consulting’s Senior Vice-President and Global Practice Leader Didier Bonnet & MIT’s principal
research scientist Andrew McAfee gives an overview of the current digital transformation landscape.
But it does not end there. Westerman, Bonnet and McAfee provided a 12 step roadmap that must
support companies of the ‘old’ economy transform into real digital masters.
So it is all about Transforming my IT right? No, most definitely not! In his very informative
presentation with nice visuals and tables, Vishal Sharma explains: “Why Digital Transformation is not
an IT Transformation”
Ok, so Digital Transformation is not an IT Transformation, I got it. But the, what is Digital
Transformation? Digital Transformation is a mind shift towards the new normal. A paradigm shift
from old, traditional, physical business models towards new, flexible, digital business models. In this
way companies can better determine business needs, provide in a better, lean, approach what their
customers need and deliver it according an excellent Digital Customer Experience (DCX). And that is
the reason: “Why Businesses Must Embrace Digital Transformation”
There is no such thing as disruption
If you ask me the thing that will be disrupted the most will be our minds, the way we look towards
companies, industries and markets. The only thing we see today, in different market segments all
over the world, is that companies will identify, produce and deliver their belief in a different way
than they used to do. The reason for this is, that they need to… Customers, clients and target
audience groups can no longer be found in traditional channels. Therefore, companies need to
change the way they deliver their reason of existence in other, non traditional, channels.

6. PHY-gital
But, even if Digital Transformation is the fall of business as usual, it tells us something else: “Digital
Transformation: The paradigm shift towards business as usual”. Digital Transformation is the mind
shift to success in the near future. Be aware that you will not be the next Kodak or Nokia. Be
prepared for a big change. A change from 100% physical towards an integration with digital. There
always will be physical elements in your business processes, but there will be a more and more
integration with the digital world. A new marriage within business model is announced, the marriage
of PHY-GITAL.
Adapt or Die
And that, that is what I call: Digital Transformation. For that reason I will give you the same advice as
my Sogeti ViNT colleagues. Design To Disrupt.
“Are you the one who is going to disrupt, or are you going to be disrupted?”
This is my point of view on Digital Transformation, now let’s see how you can improve your digital
journey!
By Rick Bouter, Marketing Technologist, 04-12-2014
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