This document discusses the implications of digital transformation for learning and development (L&D). It outlines how technological innovations like mobile computing, cloud computing, the internet of things, and cognitive computing are changing business needs and learner expectations. Learners now want personalized, engaging learning that is immediately useful on any device. Businesses want L&D support for their strategies and measurable business impact. The document presents a framework for how L&D organizations can adapt, including adjusting their service portfolios, business processes, customers, and revenue models to focus on agility, innovation, and developing digital competencies. It provides examples from companies like Festo Group, scil academy, Centre for Young Professionals, and SAP Learning H

1. Digital transformation: implications for L&D
ICELW Conference 2016, New York, June 15-17, 2016
Sabine Seufert / Christoph Meier
swiss center for innovations in learning (scil)

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My plan for this session
1. Digital transformation
2. L&D in digital transformation
3. A framework & glimpses of cases
4. Buzz groups & discussion

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Who are we? What do we do?
Icons by Freepik.com
Innovative learning with impact
in the age of digital transformation

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Disruption …

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… due to digital transformation
Nach: http://www.altimetergroup.com/2014/07/the-2014-state-of-digital-transformation/
Infographic: https://www.unbelievable-machine.com/blog/aktuelles-zur-wirtschaftslage-und-zum-stand-der-industrie-4-0/
"Digital transformation is 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." (Altimeter Group)

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Is digital transformation relevant to L&D?
Technological innovations
Mobile
computing
Cloud
computing
IoT /
Industry 4.0
Augmented- /
virtual reality
Cognitive
computing
Big data &
analytics
Changes in business
Everything as a service
(on demand)
Digital work
environments
Blurred
organizational
boundaries
Information work
Knowledge work
Design-based work
Development needs Expectations of L&D
Innovation (new product / services) Learners: personalized, engaging,
immediately useful, any device, …
Adaptability & ability for learning Business: support strategy (which
competences?), business impact, …
Performance in digital work environments

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What?
Service
portfolio
Sus-
tainable?
Value &
Revenue
Who?
Customers
How?
Business
process
The basic operating model for L&D
Quelle:https://www.scil-blog.ch/blog/2015/09/28/geschaeftsmodell-innovationen-bei-
bildungsorganisationen-ein-erster-ueberblick/
Normative level:
What for?
Strategic level:
How?
(Medium range)
Operational level:
How?
(Short range)

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Normative level: What for?
Generic:
Agility & innovation
Specific / Current:
Digital competences
Overall
organization
Creation of requisite context
conditions
- flexible work schedules
- access to professional
networks (inside & outside
company)
- …
1 Information
e.g.
Browsing, searching & filtering
Evaluating
Storing & retrieving
2 Communication
e.g.
Interacting
Sharing
Digital identity
3 Content creation
e.g.
Developing
Integrating
Copyright and licencesSpecific L&D
processes /
offerings
Development of adaptive &
innovative personalities 4 Safety
e.g.
Devices
Personal data
Personal health
5 Problem solving
e.g.
Technical problems
Needs & tech resources
Innovating and creativity
Sourcefor"digitalcompetence":Ferrari(2013)DIGCOMPframework

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Strategic level: 1) Customers / beneficiaries
1. Individual participants in training /
development activities
2. Supervisors / managers of participants
3. (Unit) Management
4. Networking partners
5. Customers / employees of customers
6. …

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• Family-owned business
• 1924, 61 countries, 19'000 employees
• Business areas:
1. Process Automation
2. Technical Training (Festo Didactic)
 Events & conferences on current
industry issues
 Training internal & external
– Tools for process simulations
– Courseware
– On-site training
 Consulting
Case: Festo Group / Festo Didactic

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Strategic level: 2) Service portfolio
 Prüfpunkt 1
 Prüfpunkt 2
 Prüfpunkt 3
 Prüfpunkt 4

Extended training
& performance
support
"Standard"
trainings & courses
(incl. eLearning)
Facilitated learning
& reflection in the
workplace
Collaboration,
exchange & learning
in networks
& communities
Curation of
content & tools
L&D professionals design
& are in charge
L&D professionals
support / help create
supportive context
L&D professionals
facilitate / support

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Case: scil academy

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Strategic level: 3) Business process
Needs analysis
& consulting
Design
Development
"Delivery"
Evaluation
Portfolio Mgmt.
• Crowd-sourcing of "burning issues"Dialogue
along the value chain
• Trainer communities
& resource wikis
• OER, YouTube, etc.
• User-generated content
• "Catalog" / offerings open to anyone
• Ratings & comments
by users in "catalog"
• … based on feedback
& evaluations

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Case: Centre for Young Professionals (CYP)
• Founded in 2003 by major Swiss banks
• 6'800 course participants in 2016
• 2012: all course materials in digital format only
• Trainees provided with tablets
• Adapted processes
(e.g. support hotline & ticket system)
• New roles
(e.g. Module Manager, Leader Digital field)

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Strategic level: 4) Value / Revenue
Non-monetary Return on expectations
(customers, stakeholders)
Monetary Return on investment
Revenue
1. Sales of individual products / services
2. Sales of individual products / services,
billing only when actually made use of
3. Subscription to libraries
4. Brokerage fees
5. Sponsoring of specific products / services by
partners
6. Monetarization of learner data / learner
profiles

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Case: SAP Learning Hubs
• Subscripion model
• Different options
(pricing, content)
SAP
• Supports sales of licences
SAP Education
• Complements / replaces
on site training
• Students
(Mgmt, Computer Science, ...)
• SAP Consultants
• SAP Partner Businesses
• Customers of SAP
What?
Service
portfolio
Value?
Revenue
generation
Who?
Customers
How?
Business
process
Online "learning rooms"
• eBooks
• eLearning / WBT
• "Learning cards"
on new products
• Curriculum plans
• Facilitated discussions
(SAP trainers / experts
and other learners)

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What?
Service
portfolio
Sus-
tainable?
Value &
Revenue
Who?
Customers
How?
Business
process
Overview "Empowerment for whitewater"
-> agility & innovativeness
-> digital competences
Adapted processes;
New roles;
More dialogue
along value chain
Internal, external,
prospective, …
Multiple options
Extended portfolio

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Discussion
1. Do you see the
need to adjust /
change your L&D
business model?
2. Which element(s)
need to be in
focus in your
case?
3. What exactly
needs to be
done? Where
would you start
adapting?

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Thanks for participating!
Contact / more information
Dr. Christoph Meier
swiss centre for innovations in learning (scil)
University of St.Gallen
christoph.meier@unisg.ch