The document discusses digital transformation, providing definitions and explanations of key concepts. It outlines elements of digital transformation including transforming the customer experience, operations, employee experience, and business models. Frameworks for digital transformation are presented, including a maturity model and a 5-stage roadmap for transforming business models digitally. The summary focuses on providing a high-level overview rather than specifics from the document.

1. DIGITAL TRANSFORMATION
Unit 06
Ngo Quy Nham
Foreign Trade University
Nhamnq$ftu.edu.vn
THE
DIGITAL
TRANSFORMATION
Emerging Issues of Management
Unit 07

2. CONTENTS
• Digital transformation explaination
• Elements of DigitalTransformation
• Model of DigitalTransformation
• Process of DigitalTransformation

3. WHAT
IS
Digital
Transformation?
Excerpt
From:
Lindsay
Herbert.
“Digital
Transformation.”

4. DIGITAL TRANSFORMATION
Unit 06
Digitization,
Digitalization
Digital Transformation
Digitization: is the process of
converting analog information into
digital form using an analog-to-
digital converter, such as in an
image scanner or for digital audio
recordings.
Digitalization is the use of digital
technologies to change a business
model and provide new revenue
and value-producing
opportunities,”
Gartner’s glossary.
s

5. WHAT IS
Digital Transformation?
Digital transformation involves
Ø a change in leadership,
Ø different thinking,
Ø the encouragement of innovation
and new business models,
Ø incorporating digitisation of assets
and an increased use of technology
to improve the experience of the
organisation’s employees,
customers, suppliers, partners and
stakeholders.”
Agile Elephant

6. WHAT IS
Digital Transformation?
“Digital transformation is the
integration of digital technology
into all areas of a business,
fundamentally changing how you
operate and deliver value to
customers...
….it's also a cultural change that
requires organizations to
continually challenge the status
quo, experiment, and get
comfortable with failure. ”
enterprisersproject.com

7. GROUP DISCUSSION
What are benefits of digital
transformation? (G1&3)
What are challenges of digital
transformation? (G2&4)

8. 01
Increased
revenue
Increased
competitive
advantage
02
Getting
more done
faster and
with less
03
BENEFITS
OF
DIGITAL
TRANSFORMATION
Excerpt From: Lindsay Herbert. “Digital Transformation.”

9. Digital
Challenges
Fears from staff
….most often is a fear the business is
moving away from ‘the existing
employees’ core skills.
….a perceived threat to their
autonomy and area of responsibility
Resistance from
management
Loss of revenue from non-
digital customer segments
….the potential loss of revenue/value from
customers who currently rely on traditional
channels to transact, access services, and engage
with your organization.
Decreases in business-as-
usual productivity
…the biggest overlooked areas is the
loss of time and resource a business
will incur, while those assets are
diverted to the DT programme
“Inconsistencies in the
quality of customer and
staff experiences”
some areas of the business are lagging
behind once digital transformation
has already taken place in some parts
of the organization
COMMON DIGITAL CHALLENGES
AND THEIR TYPICAL ROOT CAUSES
Excerpt From: Lindsay Herbert. “Digital Transformation.”

10. What are elements of
digital transformation?

11. NEW ELEMENTS OF DIGITAL TRANSFORMATION
Source: Didier Bonnet, George Westerman (2021)

12. EXPERIENCE DESIGN CUSTOMER INTELLIGENCE
EMOTIONAL ENGAGEMENT
ELEMENTS OF DIGITAL TRANSFORMATION
TRANSFORMING CUSTOMER EXPERIENCE
Design and deliver compelling
customer experiences requires:
- Tools and practices to provide
an intimate understanding of
human behaviors and the
ability to surface customer
insights
- Ability to digitally reengineer
customer experiences
Integrating customer data across silos
and understanding customer behavior
Technology: machine learning can do
• Emotionally engaged customers
are 52% more valuable than highly
satisfied customers.
• Use digital technology to solicit
and enable customer participation
across their value chains

13. ELEMENTS OF DIGITAL TRANSFORMATION
TRANSFORMING OPERATIONS
CORE PROCESS
AUTOMATION
CONNECTED & DYNAMIC
OPERATIONS
DATA-DRIVEN
DECISION MAKING
Digitally reinvent operations:
• Establishing a core of digitized
processes
• Incorporates machine learning,
robotics, augmented reality, and
other technologies to digitally
enable its expansion
Use sensors, cloud infrastructure,
and machine learning (digital
threads) connecting machines,
models, and processes provide a
single source of truth to manage,
optimize, and enhance processes
Taking advantage of connected
devices, new machine learning
algorithms, smarter
experimentation, and plentiful
data to make strategic and
operational decisions.

14. ELEMENTS OF DIGITAL TRANSFORMATION
TRANSFORMING EMPLOYEE EXPERIENCE
PERFORMANCE ENHANCEMENT FUTURE READYING FLEXFORCING
Companies are considering how
robotics and other digital
technologies can increase
employee productivity and
performance — enabling people
to work faster, smarter, and more
safely.
Transforming the learning and
development function à
Providing employees with the
skills they need to keep up
with the pace of change.
Companies need to build agility
into their talent sourcing
systems à To respond to fast-
paced digital opportunities and
threats.
• Multiskilling employee
• Using contingent workers
• Outsourcing (old)

15. ELEMENTS OF DIGITAL TRANSFORMATION
TRANSFORMING BUSINESS MODEL
• A business model describes the rationale of how an organization
creates, delivers, and captures value

16. ELEMENTS OF DIGITAL TRANSFORMATION
TRANSFORMING BUSINESS MODEL

17. MULTISIDED PLATFORM
BUSINESS
INFORMATION BASED
SERVICE EXTENSIONS
DIGITAL ENHANCEMENTS
1
C
2
3
ELEMENTS OF DIGITAL TRANSFORMATION
TRANSFORMING BUSINESS MODEL
• Digitally enhance their existing
business models without requiring
major changes to the business.
• Turning product sales into service
offerings
Companies are expanding their
product based business models
with information-based
services, combining sensors,
communication networks, apps,
and analytics to create value for
customers and new sources of
revenue for themselves.
This requires advanced analytic
capabilities, end-to-end service
design, and tight integration
with customers’ devices and
business processes.
Launching a successful multisided
platform ecosystem requires
specific economic conditions,
heavy investment, and luck to
reach profitable scale.

18. EXTERNALLY FACING
PLATFORM
CORE PLATFORM
DATA PLATFORM
ELEMENTS OF DIGITAL TRANSFORMATION
DIGITAL PLATFORMS
- The technology
backbone that power a
company’s key processes
is a strong foundation for
operational and
transactional systems.
- Should be well
structured, well managed,
and only as complex as it
really needs to be.
Platform that powers the websites, apps,
and other processes that connect to
customers and ecosystem partners.
Platform that provides the ability
to perform intense analytics, build
and test algorithms, without
disrupting the company’s
operational systems.

19. MOVING FROM EXPERIENCE TO OPERATIONS, EMPHASIZING
THE CLIENT NEED TO CONNECT FRONT TO BACK OFFICES

20. THE DIGITAL TRANSFORMATION PYRAMID

21. 1
/
4
T
I
M
E
2
/
4
F
I
N
A
N
C
E
3
/
4
S
P
A
C
E
4
/
4
Q
U
A
L
I
T
Y
Objectives are set which relate
to the temporal aspects of the
business model (such as
faster service provision, faster
production, etc.).
Objectives are set which relate
to the financial aspects of the
business model (e.g., cost
savings, sales, etc.).
Objectives are determined which
take the spatial aspects of the
business model (e.g., networking,
automation, etc.) into account.
Objectives that relate to
qualitative aspects of the
business model (relationship
quality, product quality,
process quality, etc.).
04 CATEGORIES FOR INTEGRATED BUSINESS
MODEL ELEMENTS.

22. FIVE
DOMAINS
OF
DIGITAL
TRANSFORMATION
• Customers as strategic assets
• Reinventing the marketing funnel
• The digital path to purchase
• Core behaviours of customer network
(accessing, engaging, customizing,
connecting, and collaborating)
• Harness customer
networks: to engage,
empower, and co-create
with customers beyond the
point of initial purchase
• Build platforms, not just
products
• Apple, Uber, AirBnb
Platforms business models
• Direct/indirect network effects
• (Dis)intermediations
• Competitive value trains
STRATEGIC THEMES KEY CONCEPTS

23. • Turn data into
assets
• Data-driven decision making
• Templates of data value
• Driver of big data
• Innovate by rapid
experimentation
• Divergent experimentation
• Convergent experimentation
• Minimum viable prototypes
• Paths to scaling up
• Adapt your value
proposition
• Adapt your value proposition
• Concepts of market value
• Paths out of declining market
• Steps to value proposition evolution
STRATEGIC THEMES KEY CONCEPTS
FIVE
DOMAINS
OF
DIGITAL
TRANSFORMATION

24. FOUR CATEGORIES OF DT ENABLERS
The mobile internet
provides direct access to
the client, who in turn is
provided with higher levels
of transparency and new
services.
The combination of AI
technologies that enable
autonomous work and self-
organizing systems. This
reduces error rates, increases
speed, and makes it possible
to reduce operating costs.
Using broadband
telecommunications for the
mobile or wired networking
of the entire value-added
chain allows for the
synchronization of supply
chains, which leads to a
reduction in production
times and shorter
innovation cycles
The collection, processing,
and analysis of digitized
data to facilitate and
improve predictions and
decisions.
DIGITAL
CUSOMER
ACCESS
3
NETWORKING
4
DIGITAL DATA
1
AUTOMATION
2
(Source: Boue´e and Schaible 2015: 19)

25. IDC's Digital Transformation Maturity Model

26. IDC's Digital Transformation Maturity Model
Digital Register
Kế hoạch kinh doanh và các sáng kiến số hoá không liên quan đến nhau
và gần như không liên kết với chiến lược doanh nghiệp, không tập trung
vào trải nghiệm khách hàng.
Digital Player
Mục tiêu kinh doanh và IT được liên kết với nhau ở cấp độ toàn doanh nghiệp
và xoay quanh quá trình tạo sản phẩm và trải nghiệm kỹ thuật số. Tuy nhiên
chưa tập trung vào tiềm năng mang tính đột phá của các chương trình chuyển
đổi kỹ thuật số
Digital Explorer
Doanh nghiệp xác định được nhu cầu phát triển từ chiến lược kinh doanh định
hướng khách hàng, nâng cấp về mặt kỹ thuật số, nhưng việc triển khai vẫn theo
dự án. Sự tiến bộ không dự đoán được cũng như không lặp lại được
Digital Transformer
Các nguyên tắc quản lý kinh doanh – IT được tích hợp và
cộng hưởng, nhờ đó cung cấp các trải nghiệm sản
phẩm/dịch vụ dựa trên kỹ thuật số một cách liên tục.
Digital Disruption
Doanh nghiệp là rất quyết liệt và đột phá trong việc sử dung
công nghệ kỹ thuật số và mô hình kinh doanh để tác động
đến thị trường. Kiến thức về hệ sinh thái và phản hồi là đầu
vào thường xuyên cho đổi mới doanh nghiệp

27. Roadmap for
the Digital Transformation
of Business Models

28. Roadmap for the Digital Transformation
of Business Models
1. Digital
Reality
2. Digital
Ambition
3. Digital
Potential
4. Digital
Fit
5. Digital
Implementation
Objectives
Activities
Results
Knowledge acquisition
about Digital Reality
- Analysis of value chain
and action
- Collection of customer
requirements
- Sketch the existing BM
- Value chains with
actors
- Customer requirements
- Uniform description of
existing business model
Development of a
Digital Ambition for
the business model
• Set objectives
regarding the DT
• Prioritize business
model dimensions
- Objective per category
for the DT
- Relevant BM
dimensions
Identification of the
Digital Potential for
the business model
• Collection of best
practices for DT
• Collection of enablers
for DT
• Design of options for
future BM
- Best practices for DT
(own industry/ other
industries)
- Enablers for the DT
- Option space for DT
Evaluation of the
digital business model
suitability
- Determine the
combination of options.
- Evaluate the
combinations in terms of
BM fit, fulfillment of the
customer’s
requirements and
achievement objectives
Evaluate combinations
of the digital business
model which serve as
the basis for the
finalization
Implementation of
the digital business
model
- Finalize & implement the
digital BM
- Design of the digital
customer experience
- Design the digital value
creation network &
partner integration
- Finalized and
implemented DT model
- Digital customer
experience
- Digital value creation
network with partners