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The Process of Digitalization - A How-To Guide


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A brief guide that outlines the main steps that need to be undertaken in order to digitalize the business model of your company.

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The Process of Digitalization - A How-To Guide

  1. 1. ® The Process of Digitalization A how-to guide to digitalizing your business model
  2. 2. ® Digitalization The process of implementing a customer centric view in the organization’s business model by making use of modern IT technologies.  DIGITALIZATION More than just an IT Upgrade! It affects: • All organizational units • All organizational levels When done correctly digitalization of the business model brings: • Dynamic strategy • Flexibility and agility • Customer development 10.09.2015 Copyright © SCS-Lüttgen 2015 2
  3. 3. ® The Process of Digitalization 10.09.2015 Copyright © SCS-Lüttgen 2015 3 1.Evaluate current IT Infrastucture Identify weaknesses and ares to be improved / replaced / removed from the current IT setup. 4.Train Workers in New Ways The new digitalized business model needs to be sustained by continiously training all organizational members in the new ways. 2.Develop Transformation Roadmap With that in mind the guideline to how to adopt a customer-centric digitalized busines model could be developed. 3.Implement Digitalization Using the roadmap the changes needed to achieve digitalization could be implemented.
  4. 4. ® 1. Evaluate Current IT Infrastructure Goal: Identify the degree to which the company is already making use of digitalization aspects and what effect changes in IT might have on the organization’s current business model. Evaluation point - IT current application: – Used for worker assistance? – Used for cost reduction? – Used for process optimization? – Used to gather data on customers? – Used to connect with customers? 10.09.2015 Copyright © SCS-Lüttgen 2015 4 Process Centric - Old view Customer Centric - Digitalization
  5. 5. ® 2. Develop Transformation Roadmap Goal: Develop a clear and well-defined plan on how to bring the organization’s business model into the new world by making it more digitalized and customer centric. Points to be covered: • Clear beginning, end, and exit points for the transformation project • Gradual progress – well-defined step stones to track development • Affected structural components by digitalization – communication channels, hierarchy levels, decision-making processes • Affected strategy components – partner network, customer focus, marketing methods, performance measures, capabilities redefinition 10.09.2015 Copyright © SCS-Lüttgen 2015 5
  6. 6. ® 3. Implement Digitalization Goal: Make the adjustments required to achieve digitalization of the business model. This is the changes execution step. Possible scenarios: • Use cloud computing to support a dynamic strategy • Set up an online shop to reach more consumers • Access work data securely from anywhere over the Internet • Integrate business units and set up communication flow channels between them 10.09.2015 Copyright © SCS-Lüttgen 2015 6
  7. 7. ® 4. Train Workers In New Ways Goal: Ensure that every organizational member has a thorough understanding of the ways digitalization has affected the organization’s business model. Challenges and pitfalls: • Get everybody on board – new technologies could be intimidating but benefits outweigh the cost of learning • Sustainability – the nature of the digitalized business model is dynamic thus adjustments will be made on regular basis • Reporting and KPIs – the new digitalized model makes the old ways of reporting and measuring performance obsolete thus new ones must be developed with a focus on gauging customer satisfaction 10.09.2015 Copyright © SCS-Lüttgen 2015 7
  8. 8. ® Digitalization is more than just an IT upgrade! It affects the whole business model and all organizational components. It could be… • A grief challenge for those refusing to implement it and thus risk falling behind their competitors • An incredible opportunity for those willing to make the step and bring their company into the modern world 10.09.2015 Copyright © SCS-Lüttgen 2015 8 Sum Up