Question

“When digital transformation is done right, it’s like a caterpillar turning into a
butterfly, but when done wrong, all you have is a really fast caterpillar.”
Georg Westerman, MIT

Reflect on this quote discussing the speed and focus of change in business
processes, structures and culture while going through a digital
transformation.
(recommended to choose companies like Nike, ByteDance,
Vodafone, Microsoft and Siemens during reflection)

Answer 1

First, digital transformation is not monolithic.

There are four types of digital transformation: business process, business model, domain, and cultural/organizational.
Process Transformation A significant focus of corporate activity has been in business processes. Data, analytics, APIs, machine learning and other technologies offer corporations valuable new ways to reinvent processes throughout the corporation—with the goal of lowering costs, reducing cycle times, or increasing quality.
Business Model Transformation Some companies are pursuing digital technologies to transform traditional business models. Whereas process transformation focuses on finite areas of the business, business model transformations are aimed at the fundamental building blocks of how value is delivered in the industry.
The complex and strategic nature of these opportunities require involvement and leadership by Strategy and/or Business Units and they are often launched as separate initiatives while continuing to operate the traditional business. By changing the fundamental building blocks of value, corporations that achieve business model transformation open significant new opportunities for growth. More companies should pursue this path.   
Domain Transformation An area where we see surprisingly little focus—but enormous opportunity—is the area of domain transformation. New technologies are redefining products and services, blurring industry boundaries and creating entirely new sets of non-traditional competitors. What many executives don’t appreciate is the very real opportunity for these new technologies to unlock wholly new businesses for their companies beyond currently served markets. And often, it is this type of transformation is that offers the greatest opportunities to create new value.
The lesson is to recognize the new domain opportunities afforded by new technologies and understand they can be captured—even by traditional incumbents. Because these opportunities involve re-defining business boundaries, pursuing these opportunities often involves Strategy and the CEO.
Cultural/Organizational Transformation Full, long-term digital transformation requires redefining organizational mindsets, processes, and talent & capabilities for the digital world. Best-in-class corporations recognize digital requires agile workflows, a bias toward testing and learning, decentralized decision-making, and a greater reliance on business ecosystems. And they take active steps to bring change to their organizations.

siemens

A company that digitally transforms successfully becomes a digital enterprise and enjoys competitive advantages such as:

• More efficient use of resources and reduction of errors
• Application of knowledge sharing for innovative new ideas
• Agile responsiveness to competitive threats, market disruptions and opportunities presented by new prospects, mergers and acquisitions,

Microsoft

Focus on four areas to unlock value

Successful organisations make the most of their transformation journey by focusing on empowering people to achieve more with the right technology.

Vision and strategy

Defining a clear vision and strategy is key to developing a strong roadmap to help move organisations forward.

Culture

Creating a unified and elastic culture that invites diversity allows for change to be positively accepted.

Unique potential

Amplifying your organisation’s unique potential transforms what you currently have to what you can become.

Capabilities

Developing your organisation’s capabilities continuously enables you to improve productivity and efficieefficiency.

ByteDance

Chinese conglomerate ByteDance that owns popular short video-sharing app TikTok has finally unveiled its rumoured smartphone named Nut Pro 3 under the Smartisan brand in China. Through the digital transformation

Nike

Our business momentum is being accelerated by our ability to scale innovation at a faster pace and expand new digital consumer experiences around the world,” Parker told investors during the aftermarket hours earnings call.