Categories
Things To Know

Discovery-Driven Digital Transformation

In Short

📝 Discovery-Driven Digital Transformation: Learning Your Way To A New Business Model 🧒🏻 Rita McGrath and Ryan McManus 📕 Harvard Business Review, May–June 2020

💻+business management °article @HBR ^Discovery-Driven Digital Transformation #digitalization #innovation

💡 What: Instead of big moves, established companies should take an incremental, step-by-step approach in response to the threats posed by digital technology.

✔️ Why: Incumbent companies should exploit their resources and knowledge in order to learn their way gradually towards an effective digital transformation.

Things to Remember

  • Digital technologies and new business models pose an existential threat to traditional companies. They often invest a lot of resources in big all-or-nothing digitalization project, but fail badly. Instead, they should take a more incremental approach to transform over time.
  • Large firms have a better chance of responding effectively to digital challenges. Traditional companies have the following advantages over new competitors: Paying customers, financial resources, customer and market data, and larger talent pools.
  • A discovery-driven approach gets past the common barriers of digital transformation, by starting small, spending little on an ongoing portfolio of experiments, and learning a lot.
  • In the digital context, discovery-driven planning (DDP), an incremental experimental approach, focuses on reinventing the way a company sells and delivers products it already produces, as well as on identifying how to create and deliver new value through new digital capabilities.
  • Digitalization projects can be used to to begin an organisational transformation.

But whatever the goal is, [the company] should frame the technology as an opportunity for the business rather than frame the business as an opportunity for the technology.”

  • ⚙️ A DDP approach to digital transformation involves five key steps: (1) redesign of operations that are not working well and where technology adds value; (2) focus on specific problems, identification of outcomes and development of progress metrics; (3) identification of the arena of competition; (4) check of whether a platform opportunity exists; (5) test of the assumptions.
  • 🛠️ Use “from-to” tables, in order to identify problems that can be addressed with digital technology, to describe the solutions to achieve and to propose ways to measure progress.
  • 🛠️ A way to measure progress on digital transformation overall: return on time invested (ROTI) = total revenue / number of employees
  • 🛠️ For identifying competitors: The field of competition is not a marketplace (similar players over rival products) but an arena, that is defined by a customer need (job to be done).
  • 🛠️ Tool to understand whether a platform opportunity exists: customer consumption chain.
  • 🛠️ Test assumptions with the assumption checkpoint table: write down the next milestones the project goes through, which assumption need to be tested at each and, if possible, the costs of the test.

Categories
another service & digital orientation playbook beta

Service & Digital Orientation – Strategy

References

Furr, N., & Shipilov, A. (2019). Digital doesn’t have to be disruptive. Harvard Business Review, 97(4), 94-103.

Govindarajan, V., & Immelt, J. R. (2019). The Only Way Manufacturers Can Survive. MIT Sloan Management Review, 60(3), 24-33.

Categories
another service & digital orientation playbook beta

Service & Digital Orientation – Business Model: Value Proposition

References

Ross, J. W., Beath, C. M., & Mocker, M. (2019). Creating digital offerings customers will buy. MIT Sloan Management Review, 61(1), 64-69.

Categories
another service & digital orientation playbook beta

Service & Digital Orientation – Business Model: Customer

References

Grove, H., Sellers, K., Ettenson, R., & Knowles, J. (2018). Selling solutions isn’t enough. MIT Sloan Management Review, 60(1), 55-9.

Categories
another ai playbook beta

AI – Business Model: Value Proposition

References

Barro, S., & Davenport, T. H. (2019). People and machines: Partners in innovation. MIT Sloan Management Review, 60(4), 22-28.

Messerli M. (2019). Zwischen Fiktion und Wirklichkeit. Handelszeitung, 19. September, 2019, 42-43

Categories
another ai playbook beta

AI & Ethics

References

Friedland, J. (2019). AI can help us live more deliberately. MIT Sloan Management Review, 60(4), 45-51.

Wick, H. (2019). Am Anfang ist man allein mit einer neuen Idee. CS Bulletin 2/2019, 58-62.

Categories
another ai playbook beta

AI – Business Model: Resources and Capabilities

References

Barro, S., & Davenport, T. H. (2019). People and machines: Partners in innovation. MIT Sloan Management Review, 60(4), 22-28.

Daugherty, P. R., Wilson, H. J., & Michelman, P. (2019). Revisiting the jobs artificial intelligence will create. MIT Sloan Management Review, 60(4).

Categories
another ai playbook beta

AI – Business Model: Value Configuration and Activities

References

Fountaine, T., McCarthy, B., & Saleh, T. (2019). Building the AI-powered organization. Harvard Business Review, 63-73.

Tarafdar, M., Beath, C. M., & Ross, J. W. (2019). Using AI to enhance business operations. MIT Sloan Management Review, 60(4), 37-44.

Categories
another ai playbook beta

AI – Strategy

References

Kiron, D., & Schrage, M. (2019). Strategy for and with AI. MIT Sloan Management Review, 60(4), 29-36.

@SATW (Dez 2019) #Empfehlungen für eine KI-Strategie in der Schweiz

Categories
another ai playbook beta

AI Playbooks

@Andreessen Horowitz (Dec 2019) #AI Playbook

@Microsoft (Dec 2019) #The AI playbook

@MMC Ventures (Dec 2019) #The AI Playbook

@Landing AI (Dec 2019) #AI Transformation Playbook