This document discusses digital transformation and its impact across many areas of life and business. It notes that we are living in times of great volatility, uncertainty, complexity and ambiguity. Digital transformation is touching every area of our lives from entertainment to communication to information. The amount of data and connected devices in the world is growing exponentially. Digital transformation is occurring across almost every industry and is bringing about the fourth industrial revolution known as Industry 4.0. While some organizations have succeeded in digital transformation, most fail due to issues with strategy, skills, tools, data management, leadership and culture. To succeed, digital transformation must be a fundamental part of a company's strategy rather than an add-on, and should follow principles like making the customer the

1. Digital Transformation
David M. Saunders

2. • We Live in Interesting Times
• We Live in Exciting Times
• How Big is Big Data?
• What is (not) Being Transformed?
• Industry 4.0
2
Agenda

3. We Live In Interesting Times
VOLATILITY
UNCERTAINY
COMPLEXITY
AMBIGUITY
Source: Elspeth Murray, Smith School of Business

4. We Also Live
in Exciting Times
Entertainment

5. 5

6. 6

7. 7

8. 8

10. www.amazon.com/Netflix-Socks-Invention-Never-Needed/dp/B019NSWHSM
Netflix – True Customer Centricity
Source: Elspeth Murray, Smith School of Business

11. We Also Live
in Exciting Times
Music

12. 12

13. 13

14. 14

15. 15

16. We Also Live
in Exciting Times
Communication

17. 17

18. 18

19. 19

20. 20

21. 21

22. 22

23. 23

24. 24

25. We Also Live
in Exciting Times
Information

26. 26

27. 27

28. 28

29. 29

30. 30

31. 31

32. Digital Transformation Touches
Every Area of our Lives

33. 2010 2015
1023
World'sData(Bytes)
You are here
The number of stars
in the universe
Sensors
& Devices
VoIP
Enterprise Data
Social Media
Big Data… Huge Data
Source: IBM

34. Digital transformation cannot
occur without:
 Basic science, especially physics
 Computer engineering
 Computer science

35. Connected Life is everything that is connected and how they interact: cars, mobile
devices, buildings, sensors and people
Top Ten in 2020
NY Times: A Messenger for the
Internet of Things
Wall Street Journal: IBM Tackles
Machine to Machine Big Data Deluge
Source:
www.globaltelecomsbusiness.com/ar
ticle/2985699/Connected-devices-
will-be-worth-45t.html
1 Connected Car $600 billion
2 Clinical Remote Monitoring $350 billion
3 Assisted Living $270 billion
4 Home and Building Security $250 billion
5 Pay-As-You-Drive Car Insurance $245 billion
6 New Business Models for Car Usage $225 billion
7 Smart Meters $105 billion
8 Traffic Management $100 billion
9 Electric Vehicle Charging $75 billion
10 Building Automation $40 billion
The Stakes are High

36. Just About Every Industry
Is Being Transformed
Source: Elspeth Murray, Smith School of Business

37. 37

38. 38

39. While there have been some
spectacular successes,
most organizations fail when
implementing digital
transformations

40. Strategy
Analytic
Skills
Analytic
Tools
Data Integrity
& Access
Leadership
Decision
Making Culture
Analytics Culture Assessment Tool

41. Industry 4.0 is a name given to the current trend of automation and data
exchange in manufacturing technologies. It includes cyber-physical systems,
the Internet of things, cloud computing and cognitive computing. Industry 4.0
is commonly referred to as the fourth industrial revolution. Wikipedia
Industry 4.0 – Business to Business
Source: Elspeth Murray, Smith School of Business
Mechanization, Water
power, Steam power
Mass production,
Assembly line, Electricity
Computer and
Automation
Cyber Physical
Systems

42. Building blocks of Industry 4.0
Industry 4.0
Autonomous
Robots
Simulation
Industrial
Internet
of Things
Cyber
Security
Blockchain
Additive Mfg
(3D Printing)
Augmented
reality
Big data analytics

43. The “factory of the future”?

44. The key takeaway for business is
to make digital transformation a
fundamental part of your strategy,
not a “bolt On”

45. What Does this mean for
organizations?

46. • VUCA
• Fundamental shifts, step function
changes, discontinuities in many
industries
• Everything is happening very quickly
• Huge divide emerging between the
digital 'haves and have nots’ with a race
on to be a 'have' and figure out what
will drive that
• Disconnect between current
organizational capabilities and capacity
and aspiration for many firms
The World Has Sped Up
Source: Elspeth Murray, Smith School of Business

47. 1. Customer-centricity at the core
2. Rethinking a product as a service
3. Managing the market
4. Platforms are vital (API Economy)
8 Principles of Digital Transformation
Source: Elspeth Murray, Smith School of Business

48. 5. Networks & markets, not hierarchies
5. Value Chain connectivity
6. Data is Everything
7. Agility in technology and process
8 Principles of Digital Transformation
Source: Elspeth Murray, Smith School of Business