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Digital Transformation

Date: 2019-10-16

Table of Contents

• What does it mean? 📹3:57
• Digitalization → Digital Transformation → Change Management 📹12:42
  • Digitalization
  • Digital Transformation
  • Change Management
• Digital transformation from a business process point of view 📹47:06
  • The case of a tech company - HP 📹47:52
  • Agricolture pharmaceutical company - Monsanto 📹1:07:57
  • A new “breed” company - 23andMe 📹1:16:02
• Summary 📹1:20:25

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What does it mean? 📹3:57

Digital transformation is a buzzword and, more than it, a phenomenon that is making quite a change in society. Digital transformation is:

• Digitalize processes and assets for time-saving
• Changing the way we interact Example: more virtual
  • personal impact
  • impact on society
  • impact on organizations
    • in the way we do business
    • in the way we reach costumers
    • in the way we develop further
• Negative impacts:
  • Use of non-renewable resources Example: Chip, circuits, batteries, disks, memories
  • Generate a lot of heat
  • Use of electricity

It was initially a buzzword but it is now part of our reality. Also, something that we need to take into account is the future impact of it.

Digitalization → Digital Transformation → Change Management 📹12:42

Digitalization

The process through which digital technologies are permeating human activities.

It’s destroying the physical barriers → Globalization
We have the physical reality where we exist, but now another reality is in development. It has its own rules, structure and mechanisms.

Digital Transformation

The impact of globalization and digitalization on organizations and societies; the concrete expressions and actions that businesses need to take as a result of digitalization Example: business models, organizational structure, new activities, …
Disruption of the barriers of reality, we have the world in one place and we can break these barriers through digital reality.

• Quicker
• Fewer costs
  • related to physical spaces
• Changes with the customer relation
  • Quicker to gain customers
  • No office hours - a website is open 24/7

Change Management

The way to deal with the changes that the digitalization creates. Digital transformation without a proper change management plan is useless if not counterproductive because the biggest resistance comes from the people, the employees.
It is usually neglected, often with catastrophic results.
The disruption brought by digitalization requires a systematic approach on how to cope with the change and the associated impact that it creates.

People are not naturally keen to change, everyday changes bring discomfort and tiredness. This field of change management focuses on how changing can be brought to organizations and societies. Basically, how can we minimize the bad impact of this change? Example: For an organization to adopt a digital transformation requires complete re-training of the staff and re-learning on how to deal with customers in order for them to accept the changes and even appreciate them. An IT office and people who work in it is not enough!

Digital transformation from a business process point of view 📹47:06

The case of a tech company - HP 📹47:52

Hewlett and Packard (HP) started a startup in their garage through research.

Hewlett-Packard products can be categorized as hardware Example: computers and other devices (printers, scanners, servers, …) and services.
They developed a business of PCs, computers, accessories printers and then one of the first 3D printer. HP is also known for making a profit from printers-supplies (Example: ink cartridges) which allowed them to have a great market share in the printing sector.

HP grew so much that it lost its agility and quickness of response, so around 5 years ago they broke the company in two:
HP (focused in the hardware business) and HPE (= HP enterprises) that was services oriented.

But the split was not good enough and around 3 years ago they split into 4 companies mainly because they had too many products and were not able to know what they were offering

• HP Inc → hardware
• HPE - HP enterpreses → software solution, customized solutions
• DGS
• ??? → services for bigger clients (internal servics)

Because of the digitalization, HP grew a lot and then split up again to be agile and quick.

Agricolture pharmaceutical company - Monsanto 📹1:07:57

They were one of the first companies to capitalize on data analytics, and by having such precise data, they can offer more profitable solutions. They deal with a lot of data to support their research in genetics.
They are a company focused on their own profit and gains. Digital transformation enabled them to have better business opportunities, even though controversial.

A new “breed” company - 23andMe 📹1:16:02

Not only a tech company, it is a company that uses big data but they specialized in genetics data.
Appealing to curiosity and the need for knowledge, people can use a DNA kit to know more about their ethnic background and disease markers.

This is a non-tech company that created a fully digital business that would not have been possible without digitalization. Because of digital transformation this company is having an impact, through digital, in all types of sectors such as the police and investigation areas.

Summary 📹1:20:25

We saw that digitalization brings both pros and cons and it require changes, changes that must be introduced wisely using a clear plan.

We also saw how the digitalization has an impact on the world, in particular in:

• the way the nature of a business
• how you run a business
  • organization structure
• how you create business values
  • business model
• how you impact other players and competitors
• how you create new industries and sectors
• how you impact society as a result of digital transformation