How to successfully integrate digital in the existing portfolio of products and services? - Understanding the challenges that firms face with digitalization - Create recommendations for companies to succeed Digitalization is changing the way firms innovate, and many are struggling with the new forms of innovation and commercialization.

1. Successfully integrating new digital to your existing
portfolio of products and services
28th EurOMA Conference
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Supply Chain Management in unprecedented times
Online 5 - 7 July 2021
Shaun West, Pilar Gil Fombella, Günter Zepf

2. West, Gil-Fombella, Zepf| EUROMA 2021
Introduction
The problem and the purpose of this paper
Create recommendations for companies to succeed
Understanding the challenges that firms face with digitalization
Purpose of this paper
How to successfully integrate digital in the existing portfolio of
products and services?
Problem
Digitalization is changing the
way firms innovate, and
many are struggling with the
new forms of innovation and
commercialization.

3. West, Gil-Fombella, Zepf| EUROMA 2021
Background
Digital transformation and digitally enabled innovation
Firms need to be ready to cannibalize their existing offers
“Digital transformation is not
a technology problem—it is a
people one. The primary need
is not overcoming resistance
but enabling and supporting
people to adapt”
(Laloux, 2014)
New digital technologies are challenging firms
with innovation in all kind of organizations.
Technology is an enabler of almost all innovative
products, services, processes, and business models
Firms are failing to implement a technology driven approach
by just creating a digital version of their analogue business.

4. West, Gil-Fombella, Zepf| EUROMA 2021
We used interviews and cases to understand the challenges
Methodology
Qualitative and quantitative approach was taken
International
survey
124
responses
Follow up
interviews
15 interviews
Cluster
lessons
learnt
Discussion –
build a
framework

5. West, Gil-Fombella, Zepf| EUROMA 2021
340 comments on barriers – 80% people, 10% process, 10% technology
Results
Survey insights [n=124]
The top drivers for digitalization Barriers to transation
Process
efficiency 95
New
business
models 44
Customer
value
propositions
42
No vision 145
Legacy
systems 142
Resistance
to change
108
Business
silos 105
Lack of
skilled talent
95

6. West, Gil-Fombella, Zepf| EUROMA 2021
Results
Key interviews insights
Lack of resources is just an excuse, a willingness to change is more important
“The design phase is very nice, hire consultants, design a brightness
future but then you lack resources and capabilities to implement”
“Digital transformation is not only about the customers it is also
about reshaping the company. About the change of the mindset”
“It is not important to have a lot of money neither resources nor
people, but only need to have a clear mindset. If you need help,
collaborate with externals”
“When then the innovation is ready, commercialization is an
afterthought, and it should be the other way around. The key
question what does my customer need?”

7. West, Gil-Fombella, Zepf| EUROMA 2021
Discussion and conclusions
Lessons learnt from the study
The job is not easy – get help!
Category Lessons learnt Recommendations
Business
strategy
The firm should know what they want to achieve
Identify the resources needed to achieve the vision
Involve more the employees
Communicate a clear roadmap
Digital
strategy
Strategies were reactive rather than proactive
Resource limitations were used as an excuse
Follow the lean start-up approach
Involvement of externals
Digital
(innovation)
team
Break down the silos and build teams
fostering a culture of risk tolerance and innovation
A mixed team should be formed
Share lessons learnt
Process
Firms focus on internal views
Stage-gate innovation process worked poorly
Use externals to accelerate innovation
Focus on the value propositions
Change
management
Senior management needs to be engaged
Need to change traditional build/sell approaches
Focus on people, processes and technology
Keep engagement with the employees

8. West, Gil-Fombella, Zepf| EUROMA 2021
Discussion and conclusions
A framework to enable digital innovation
It’s all about people, build trust and empower them to be creative
The transformational process
required for digitalization
links the digital strategy with
the business one.
The team should drive the
transformation linking the
firm with externals.

9. West, Gil-Fombella, Zepf| EUROMA 2021
Thanks for your time!
Industrie 2025, F&E Konferenz zur Industrie 4.0 |Jürg Meierhofer & Dr Shaun West
For more information please visit slideshare.net/ShaunWest
Who we are…
A multidisciplinary group from four universities in two countries
2
Projekt4 2.8.2007 19:17 Uhr Seite 1
Senior Lecturer
Industry 4.0
Coordinator Platform
Executive MBA
Dr. sc. techn. ETH (PhD)
Jürg Meierhofer
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www.zhaw.ch/idp
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IDP Institute of Data Analysis
and Process Design
Zurich University
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Jürg Meierhofer
Expert Smart Service Engineering