The document discusses key elements of digital transformation including: 1) Seeing digital transformation as more than just technology upgrades but also new business models and opportunities for social change. 2) Cultural change is necessary to successfully implement digital transformation. 3) Emerging technologies like blockchain, artificial intelligence, and the internet of things are changing business processes.

1. Digital
Transformation
Lessons for Practitioners
Alan W. Brown
Professor of Entrepreneurship and Innovation
Executive Director, Centre for Digital Economy (CoDE)
University of Surrey, UK
alan.w.brown@surrey.ac.uk
www.SurreyCoDE.org
Digital Strategist, NotBinary
www.NotBinary.co.uk
1

2. Welcome to the Future!

3. Digital Transformation:
Moving Beyond
Technology
• Digital as a technology upgrade
(internal focus)
• Digital as new channels to market
(external focus)

4. Digital Transformation:
Moving Beyond
Technology
• Digital as a technology upgrade
(internal focus)
• Digital as new channels to market
(external focus)
• Digital as new business model opportunities
(business model innovation)
• Digital as an enabler for social
transformation
(power redistribution)

5. Elements of Digital Transformation
D
F V
feasibl
e
C
What is the cultural
change necessary?

6. Toward a Data-driven World
• Data quality
• Data maintenance
• Data liability
• Personal data
management
• Data science skills
• Legal implications
• Ethical issues
Key Challenges:

7. Emerging Technology Stack
Source: How smart, connected products are transforming competition, HBR, Nov 2014

8. Emerging Technology Stack
Source: How smart, connected products are transforming competition, HBR, Nov 2014

9. • You can access information about origins and provenance with greater
transparency and distributed governance.
• You can better prevent counterfeiting issues around
goods such as pharmaceuticals, luxury goods,
electronics and diamonds…
• You can have end to end visibility across your supply
chain allowing you to meet your customers demands for
accuracy, transparency and agility.
• And more…
Blockchain, a distributed public ledger providing a new
form of trust mechanism underlying many forms of
transaction-based activities
Blockchain will fundamentally
change business processes

10. 0
User
Raw
healthcare
data sent to
user’s chosen
aggregator e.g.
FitBit, Apple,…
Illustrative
Example
See: http://blockchain.surrey.ac.uk

11. 1
User
Aggregator ML Researchers
Raw
healthcare
data sent to
user’s chosen
aggregator e.g.
FitBit, Apple,…
Secondary
market
for ML models
created
Illustrative
Example
See: http://blockchain.surrey.ac.uk

12. 2
User
Aggregator ML Researchers
Smart
Contracts
(Brokers)
Practitioners
Healthcare
providers
Interest
expressed
in diabetes
data
Raw
healthcare
data sent to
user’s chosen
aggregator e.g.
FitBit, Apple,…
ML used to extract
descriptors e.g. diabetes.
Encrypts, signs and commits
to Blockchain.
Secondary
market
for ML models
created
Request
descriptors of
interest (ofer £/day)
Offer: Co will
pay £0.10 per
day of diabetes
data?
Agree
disclosure
Disclose keys for
descriptors
Illustrative
Example
See: http://blockchain.surrey.ac.uk

13. 3
Impact
 Democratise and commodify health data – user maintains control. No hoarding!
 Creative, new sustainable business models for preventative healthcare ofering new
value approaches
 Auditable chain of evidence for public health research and epidemiology
 Disruption of actuarial science towards real-time –potential to detect early conditions
for pre-therapeutic beneft
 Crowd-sourced risk management and contract negotiation for particular diseases
User
Aggregator ML Researchers
Smart
Contracts
(Brokers)
Practitioners
Healthcare
providers
Interest
expressed
in diabetes
data
Raw
healthcare
data sent to
user’s chosen
aggregator e.g.
FitBit, Apple,…
ML used to extract
descriptors e.g. diabetes.
Encrypts, signs and commits
to Blockchain.
Secondary
market
for ML models
created
Request
descriptors of
interest (ofer £/day)
Offer: Co will
pay £0.10 per
day of diabetes
data?
Agree
disclosure
Disclose keys for
descriptors
Illustrative
Example
See: http://blockchain.surrey.ac.uk

14. 4
Data-Driven Transformation
Examples
• Where is our value?
• How do we compete?
• Can we market our data and
performance expertise?
• Do we have the right culture?
• How do we leverage brand?
• Can we disrupt ourselves?
• How do we adapt to VUCA?
• What are the key “agile” targets?
• Does regulation bring
opportunity?

15. 5
Data-Driven Innovation
4 Key Lessons
• Focus on Value
– Changing view of value
– Jobs-to-be-done
• Innovate in the Business Model
– 9 key business model elements
– From product to service to platform
• Learn Fast through Rapid Experimentation
– Design thinking
– Agile delivery
• Think beyond the Data
– Data curation, ownership, stewardship
– Ethics and cultural issues

16. 6
Business Model
Innovation

17. 7
Business Model
Innovation
REDUCE
COSTS
REDUCE
COSTS
INCREASE
REVENUES
INCREASE
REVENUES

18. 8
Multi-Sided Platform Business
Model
Asset Sharing

19. 9
Successful business model innovation requires at least three of these elements
• Tailored to individual needs
• Use of technology to manage pricingPersonalization
• From linear to circular business model
• Reduce resource costsClosed Loop
• Shared and part ownership of assets
• Multi-sided markets for network efectsAsset Sharing
Usage-based
Pricing
Collaborative
Ecosystem
Business Agility
• From ownership to usage-based approach
• Cost and value based in utility
• Integrated supply chain
• Re-allocated costs and risks across supply chain
• Real-time decision making
• Faster adaptation of business to consumer needs
S. Kavadias, K. Ladas, and C Loch, “The Transformative Business Model”, HBR, October 2016.
Elements of a Sustainable
Business Model

20. 0
When things go wrong……

21. 1
Redefning Value, Trust and Risk

22. 2
Elemen
ts
of
Value

23. 3
Key Elements of Digital Strategy
• Opening up
• Co-creation with clients and stakeholders
• Transparency of activities and processes
• New ideas, solution, suppliers
• Joining up
• Across silos internally and externally
• Public-Private mix
• Outcome-led KPIs
• Smartening up
• Upskilling
• Efcient Processes
• Automation through new technology

24. 4

25. 5
Culture, People and Capability are
critical differentiators in the 21st
Century.
But who has the answers….?
The 21st
century
competitiv
e
landscape
The newcomers /
disruptors to both of
the above !
• Spotify
• Tesla
The 20th
Century players
– Fortune / FTSE
100
• Daimler
• GE
• Centrica…
• etc
Digital ‘natives’
– the ‘titans of
tech’
• Google
• Amazon
• Facebook
• etc

26. 6
• Slow or stalled decision-making caused by internal
politics, competing priorities, or attempting to reach
consensus.
• Inability to prove business value of digital through
traditional ROI calculations, resulting in lack of senior
management sponsorship.
• Too much focus on technology rather than
willingness to address deep change and rethink how
people work.
• Lack of understanding operational issues at the
decision-making level; tough going from theory to
practice.
• Fear of losing control by management or centralSource: Jane McConnell, HBR, August 2017.
What Cultural Attributes Derail
Digital Transformation?

27. 7
Useful / Aligned Cultures..?
• Facebook
GOLD STANDARD/ PAGE 9 /
MY ENCOUNTER WITH J ACK WELCH

28. 8
Changing Cultures..? – The ‘old
way’..
GOLD STANDARD/ PAGE 10 /
• WORKOUT
• NUMBERS AND VALUES
• T SHAPED PEOPLE
BUT STILL USEFUL LESSONS
20TH CENTURY CORPORATE STYLE..
V a lu e s
Numbers
T h e ‘N u m b e rs a n
V a lu e s ’ M a trix
Breadth
Depth
Breadth
Depth
Breadth
Depth

29. 9
Building Digital Capabilities – 1
• ‘Hard’ skills: aka Digital Curricula / Academy’s
– Design Thinking
– Business Model Innovation
– Lean Start-up
– Agile Delivery and DevOps
– Strategic Change Management
• Meta-level / Organisational
– Discipline and Focus
– Business Agility
– Connectivity (internal and external)
– Openness and transparency
– Empowerment and alignment
Source: Korn
Ferry

30. 0
Building Digital Capabilities – 2
• Soft Skills: Exec Leadership needs to:
– Develop and retain 21st
Century talent
– Manage change well
– Drive execution
– Nurture cross team and company collaboration
– Empowerment and decision making
• Soft Skills: Team Leads need to:
– Listen, communicate, feedback, coach
– Remove roadblocks, not micro-management
– Have real interest in team members’ success and
wellbeing
– Be productive and results orientated
– Help their people with career development

31. 1
Summary
Elements of Digital Transformation
D
F V
feasibl
e
C
What is the cultural
change necessary?