The Ripple - Digital Transformation - Edition 2/2020

The Ripple - Digital Transformation - Edition 2/2020

B R EAK I NG T HE SOUND BARR I E R

I N T O D I G I T A L MA T UR I T Y

Why did this fear of not being able to break the sound barrier exist?

Welcome to this new edition of THE RIPPLE dedicated to the pressing challenge of digital transformation which is being faced by most companies today. Digitalization is not only omnipresent; the pace of change which it is bringing is only accelerating. The stakes could not be higher. Previously, digitalization meant the automation of existing processes. As a result of emerging new business models and even greater interconnectedness, today digital- ization points to the re-making of organizations themselves.

As an airplane approaches the speed of sound, there exists an increased aerodynamic drag. The sound pressure “waves” pile up on each other and by doing so, compresses the air. This compressed air in front of the plane exerts a force on the plane impeding its forward motion. When a plane (or any object for that matter), finally does cross the barrier, a sonic boom (a shock wave heard on the ground like a loud explosion) is heard. Many of today’s companies find themselves in a similar situation – stuck in the space just prior to breaking the sound barrier. Increased turbulence and aerodynamic drag impede the company’s forward motion. But what happens once you break through the sound barrier – and arrive on the side of a supersonic flight?

Despite the urgency, the way forward is not clear.

HOW DO YOU MASTER A PROCESS IN WHICH UNEXPECTED DISRUPTIONS ARE OCCURRING ON A REGULAR BASIS? The future appears uncertain and undecipherable. In this issue we highlight steps that organizations need to take to move through the space of digital transformation into a state of digital maturity. In a state of digital maturity, companies have adjusted to and feel comfortable with the speed of change caused by digitalization. The current situation of digital transformation is like the challenge of breaking the sound barrier.

The aerodynamics are dramatically different. It requires a new wing design, more powerful engines and different composite materials which can with- stand the greater heat generated from traveling at this supersonic speed. Equipped with the right technology however, the flight is smoother than subsonic flight and quieter. The sound from the outside world travels too slowly to be heard. In this issue, we highlight how organizations can rise to the challenge of digital transformation. We explore ways to break the sound barrier and reach the smooth and quiet world of digital maturity. Welcome to THE RIPPLE and enjoy the articles. If you prefer, you can also download and listen to the content as podcasts.

Happy Reading or Listening!

Jeffrey Beeson Chief Alignment Officer ENSEMBLE ENABLER

“ Y O U

W A N T

T O

B E

T H E

P E B B L E

I N

T H E

P O N D

T H A T

C R E A T E S

T H E

R I P P L E

F O R

C H A N G E . “

Tim Cook CEO of Apple

UNFOLDING MODEL FOR ORGANIZATIONS Ensemble Enabler © 2020

I N TH I S ED I T I ON

FALL 2020

THE KEY TO SUCCESSFULLY TACKLING

DIGITAL TRANSFORMATION

The true challenge of mastering digital disruption is enabling people. All levels of an organization need to learn, grow and adapt in order to become a truly digital business.

Read more

STRATEGY DISRUPTED

Like everything else in the digital age, the world of strategy is in a state of disruption. A new approach to business strategy is vital to address the forces of digital transformation.

Read more

FOCUS ON YOUR ORGANIZATIONAL CULTURE

Digital maturity is the goal of digital transformation. Companies which are more digitally mature have the ability to compete effectively by taking advantage of opportunities enabled by technology.

Read more

PREPARE THE GROUNDWORK FOR YOUR

COMPANY ' S DIGITAL TRANSFORMATION

Eliminating misunderstandings about digital transformation and creating alignment on the nature of this challenge throughout an organization is essential. Taking this first critical step to launch a successful digital transformation lays a solid foundation for successful business endeavors.

Read more

ABOUT ENSEMBL E ENABL ER

Ensemble Enabler collaborates together with organizations of all sizes to promote an agile and learning culture while optimizing leadership capacity at all levels of a company.

WITH THE SUPPORT OF PRACTICES SUCH AS

Peer-to-Peer-Learning Team Coaching

Leadership Sprints Learning Journeys Community Learning Large Scale Thematic Events C-Suite Mentoring Cluster Communication Pinboards - a digital communication platform Ensemble Enabler supports organizations to gather key insights about their business and implement these ideas in their organizations during the course of their learning journey.

www.ensembleenabler.com

Danklstraße 30 81371 Munich, Germany

Office + 49 89 72 93 97 23 E-Mail

[email protected]

You can subscribe to THE RIPPLE here Listen to THE RIPPLE podcast

M A S T E R I N G D I G I T A L D I S R U P T I O N I S P R I M A R I L Y A P E O P L E I S S U E - N O T A T E C H N O L O G Y I S S U E

Listen to this article in our podcast THE ENABLER

W E H A V E E N C OU N T E R E D T H E E N E M Y A N D T H E E N E M Y I S U S

"The true challenge of mastering digital disruption (and a major part of the solution) is enabling people. Companies can effectively navigate the challenges of digital disruption by undertaking initiatives which are far more organizational and managerial than technical."

A four year research project conducted by the MIT Sloan Management Review and Deloitte has just come to an end. For a period of over four years, more than 16.000 people were surveyed about their experience with digital disruption and the adequacy of their organization's response.

The results are in .

digital disruption by mastering new skills through continual learning.

Yes, markets are being disrupted and traditional products are becoming obsolete. Yes, new competitors are unexpectedly One of the central questions which were asked in the survey addressed the nature of the threat which organizations face as a result of digital trends: Yes, the more an organization takes arising - seemingly from nowhere. steps to digitalize, the more cybersecurity issues are encountered. Identifying all these threats and ranking them as big threats to organizations was to be expected. However, the number one threat which was identified may be a bit of a surprise for many companies undertaking measures for a digital transformation.

An effective response to the changing environment must involve all aspects of the organization. This includes concrete actions and clear communication about how the organization is changing. Unfortunately the organizational congruence needed to mount this type of response is sorely lacking at many companies:

Some executives may not understand enough about the emerging technology to plan strategies, make necessary changes and/or understand the urgency of the task. Investors may care more about short-term profits than the long-term viability of the company. Many leaders who are approaching retirement may not have the interest and/or energy to invest in change which will be necessary in order to adapt for a future beyond their tenure at a company. Employees may not sufficiently understand the need or be encouraged to learn the necessary skills to be able to work and collaborate in teams in fast-moving and ambiguous conditions. Last but not least, clear communication about digital strategy and why certain changes are key for success may not be occurring and, as a result, employees on all levels may be 'in the dark' about the company's emerging future.

LACK OF AGILITY - COMPLACENCE - INFLEXIBLE CULTURE

All levels of an organization need to learn, grow and adapt in order to become a truly digital organization. C-Suite executives need to propose a bold new vision about how their organizations will adapt to this constantly changing world. Project managers must create an operating environment which is more conducive to effective work and collaboration in a digital age. Employees need to respond to

WHAT I S THE B I GGEST THREAT

FAC I NG YOUR COMPANY

AS A RESUL T OF

D I G I TAL TRENDS ?

T H E T E C H N O L O G Y F A L L A C Y : H O W P E O P L E A R E T H E R E A L K E Y T O D I G I T A L R A N S F O R M A T I O N , M I T P R E S S , 2 0 1 9

Only by fundamentally changing the way the organization works - through flattening hierarchies, speeding up decision-making, helping employees develop needed skills and successfully understanding both opportunities and threats in the current and future business environment - can an organization truly be prepared and successfully adapt to a digital world and its on-going challenges.

U L T I MA T E L Y

ORGAN I ZA T I ON S NE ED T O L EARN

T O L EARN T OG E T HE R .

J EF FREY BEESON

R E TURN TO T AB L E OF CONT ENT S

CH I EF ENABL I NG OF F I CER

ENSEMBL E ENABL ER

© 2020

Through processes such as Peer-to-Peer Learning, Community Learning, Leadership Sprints, C-Suite Mentoring, Team Coaching, Thematic Large Scale Events, Learning Journeys, Cluster Communication and Pinboards (a cloud-based communication platform), Ensemble Enabler supports organizations to gather insights and act upon ideas along their learning journey.

Click here to discover more about how Ensemble Enabler can support your organization on its unique digital transformation journey

You can subscribe to THE RIPPLE here

www.ensembleenabler.com

D I S R U P T I V E D I G I T A L S T R A T E G Y O R S T R A T E G Y D I S R U P T E D ?

Listen to this article on our podcast THE ENABLER

D I S R U P T I V E D I G I T A L S T R A T E G Y O R S T R A T E G Y D I S R U P T E D ?

Through the impact of the digital revolution, change is occurring with increasing speed in all aspects of both our business and personal milieus. Why would these accelerated developments not have an impact on how business strategy is approached as well? Digital transformation has indeed changed the classical paradigm of strategy. Like everything else in the digital age, the world of strategy is in a state of disruption.

This shift is particularly noticeable to me due to my hands-on-experience working for two of the best known strategy consultants in the world. During those years, I was applying what I had learned during business school about strategy and applying it as a strategy consultant, never questioning the fundamentals of the classical business strategy paradigm itself.

HOW DO MOST BUSINESS PEOPLE

DIGITAL STRATEGY IS MORE LIKE A

UNDERSTAND STRATEGY ?

SCIENTIFIC EXPERDITION THAN

TRAVELLING FROM A TO B

Classical strategy can be understood as the process of getting from point A to point B. Point A is the current location of the organization and Point B is the strategic goal that the organization sets for itself. Classical strategy begins with a pursuit to accurately assess the current situation, in other words Point A. For example, one tool which is used is the famous SWOT Analysis - Strengths, Weaknesses, Opportunities, Threats. The next step is the determination of the strategic goal. This is Point B that is a fixed destination to work towards and achieve. Point B can be items such as increasing market share, addressing new market segments or gaining new organizational capabilities. The all-embracing role of classical strategic planning is to move the organization from its current position (Point A) to the desired pre-determined destination (Point B) as efficiently as possible. Classical strategy is deliberate in nature. It depends on senior leaders to set goals and develop plans to achieve them. This typically leads to long-term plans which the organization doggedly adheres to and executes over a multi-year time frame.

In the spirit of a scientific expedition – learning along the way, collaborating via cross-functional teams, adapting to unforeseen change, dealing with risk - offers an appropriate metaphor for digital strategy.

(c) Deutsche Welle

Both the famous expeditions of Alexander von Humboldt in South America in the 18th century or Charles Darwin aboard the Beagle in the 19th century were expeditions without fixed destinations. The journey itself was the destination. Humboldt and Darwin gathered as much information as they could along their journeys in order to gain insights into the emerging sciences of biology, geology and evolution. Along the way, they were constantly interacting with the environ- ment to learn as much as possible. In the current business environment, promoting a similar intense interaction with the environment can provide an organization with a broad spectrum of potential options. Some options may lead to new breakthrough business models and/or processes which will allow a company to serve its customers more advantageously.

A powerful analogy for the pivotal difference of digital strategy is the humble 3M Post-it Notes® Product

WHY IS STRATEGY IN THE DIGITAL AGE SO DIFFERENT?

. Strategically positioned messaging: Posting notes on the refrigerator for the grocery list of items which need to be bought so that others can do

The powerful analogy of "Sticky Notes"

the shopping

To-do Reminders: Placing sticky notes in a visible location with one to-do item per sticky note Brainstorming: Using sticky notes to write down thoughts and arranging them on a board Temporary Mind-Map: Rearranging items into clusters or categories prior to transferring them into a more permanent format Filing system: Using sticky notes of different colors to identify where documents are to be filed 3M Post-It Notes® (hereafter referred to as "sticky notes") were discovered when a 3M scientist - Dr. Spencer Silver - developed an adhesive that stuck lightly to surfaces but didn't bond with them. At the time, he had no clue how this kind of glue could be used. Years went by with- out finding a commercial use. It was only until Art Fry, another 3M scientist became frustrated by the fact that the little paper pieces which he placed in his church's hymn book would constantly fall out, that the first use of sticky notes was born. They could be used as bookmarks! Since that beginning, myriads of ways of using sticky notes have been "discovered". Here’s an initial list (and there are certainly many more!)

Thank you notes: Using notes to leave as a thank-you note for someone, sending kudos to a colleague/friend

for a job well done, or offer an encouraging word.

and....

Keyboard cleaner: Catching

A coaster: Placing a sticky note (more than one is better!) under a cold drink to protect the surface of a table Party decor: Hanging strips of post-its in different colors from the ceiling to add ambiance to the celebration A Safe: Creating an unexpected place to store valuables by hollowing out a sticky note block the debris and dust in the little spaces between computer keys. A strip of a sticky note picks up this debris between the keys

1. THE OPPORTUNITIES TO COPY FROM OTHER SUCCESSFUL COMPANIES ARE LIMITED Benchmarking has been a favorite tool which is used by many companies to keep up with the competition. Unfortunately, in a "sticky-note" environment what is good for one company may not be good for another company. Many of the strategic challenges and opportunities which your company will encounter will be unique, with nuances related specifically to your company, your industry sector, your geography and your competitive environment. The nuances may overwhelm the similarities. In addition, solutions to challenges previously discovered by other companies will highly likely be outdated by the time your company can implement them. As a consequence, opportunities to "lift and shift" digital strategies from other companies is limited. There is no alternative but for your company to figure out what the best "sticky note" fit of technology is for your organization.

DIGITAL STRATEGY IS LIKE STICKY

NOTES

Each platform or technology that is brought into existence has a myriad of uses. Similar to the sticky note examples above, unexpected uses often emerge which were not even envisioned by the technology's developers! The use of Twitter provides an excellent example of the potential of multiple usage. Major media outlets use Twitter as a means to broaden the reach of their content. Airlines use Twitter as an effective customer service tool. Many other companies use Twitter as a business intelligence tool - by following certain Twitter feeds, organizations receive an early warning of what competitors are undertaking. To enhance their readiness to respond, Red Cross uses keyword monitoring on Twitter to quickly identify natural disasters as well as their intensity. Every technology - platforms, collaborative software, 3D printing, augmented and virtual reality, artificial intelligence, Internet of Things, etc. – embodies this multiplicity of uses. I like to think of this potential as the "the sticky note nature of digital technology".

2. DIGITAL STRATEGY REQUIRES CONTINUOUS EXPERIMENTATION (AND FAILING).

WHAT ARE THE

IMPLICATIONS OF THE

Since the appropriate use of technology can differ from user to user, how do you find out what the best fit is for your company and its customers? The opportunities to use technology in new

' STICKY NOTE ' NATURE

OF DIGITAL

TECHNOLOGY ?

3. ANY COMPANY CAN BE A DISRUPTOR!

and creative ways increase with every passing day. Not only are novel tech- nologies constantly emerging and improving, but existing technologies can be more easily and effectively combined with the existing techno- logical infra-structure to generate unimagined new capabilities. The only way to find out what is best for you and your customers is to continually experiment. And you have to be prepared to fail. Most experiments will fail. If you are not prepared to fail, you are not pre- disposed to learn. This mindset requires a significant shift in a company’s organizational culture. Most companies have been built around the principle of efficiency which has little tolerance for failure. This mindset must shift to adaptability – fail fast, learn fast - in order for organizations to survive in the current disruptive environment.

The good news (and the bad news) is that any company can become a disrupter. Everyone can experiment and potentially find breakthrough combinations which change the nature of your business. Cultivating a culture of curiosity, experimentation and learning is the best path to cultivate a disrupter mindset. This is not an activity which is relegated to a select few IT specialists but must embrace the creativity and ingenuity of as many of your employees as possible. There is power in numbers! As we enter an "Era of Experimentation and Emergence" (E³!) we should remind ourselves that this is not a new process but has been around throughout human history. However what is new and different in today’s world is the expo- nentially increasing possibility of find- ing breakthrough combinations which can be implemented quickly. In addition, the possibility to identify these innovative approaches is within the reach of a much larger population.

Experimentation and emergence has been around for a long time!

Sir William Henry Perkin British chemist 19th century

WHY DOES A COMPANY DO WHAT IT DOES?

Sir William Henry Perkin - a British chemist in the 19th century attempted to synthesize quinine as a treatment for malaria. His numerous experiments ended up in failure - or so he thought. It turned out that one of his "failures" could be used to dye textiles. He had accidentally created the first synthetic organic dye - mauveine. By doing so he lay down the foundation for the synthetic organic chemicals industry, thereby revolutionizing the world of fashion.

The answer to this question determines what areas to experiment in and what lessons to draw from this experiment- tation. The company Interface provides an inspiring story about the power of purpose. Interface is the world's largest manufacturer of carpet tile and a global manufacturer of commercial flooring. Their purpose is to create products and services which not only fulfill customer needs, but also contribute to creating a better world. In 2016 they launched an initiative in 2016 called "Climate Take Back" . This was a pursuit to determine how their products could help to reverse climate change. With this purpose in mind, the CEO unleashed the creativity and ingenuity of his employees to find a solution. After much experimentation, the R&D group revealed a first-of-its-kind prototype carbon negative carpet tile. Further experiment- ation has refined this product. In 2020 the company launched a carpet tile that has a carbon negative impact (i.e. the pro- duction and use of the tile sequesters more carbon out of the atmosphere than if it had not been manufactured in the first place).

DON'T LOOSE TRACK OF THE BIG PICTURE

In the micro-world of experimentation, it is easy to lose track of the big picture. The effort to achieve short-term objectives can easily lead an organization in the wrong direction. It is key not to lose precious time and resources experimenting in areas that will not bring the company forward. A fluid but deep-rooted framework to guide experimentation is critical for success. Digital strategy relies on its focus on a strong purpose and a clear vision of the digital future.

* Collins, J.C. & Porras, J.I. (2000) Built to Last: Successful Habits of Visionary Companies (3rd edition). London: Random House Business Books.

PURPOSE "...like a guiding star on the horizon— forever pursued but never reached.”*

“ IF YOUR PURPOSE IS TO DO AMAZING THINGS OR CREATE THINGS , YOU ' LL NEVER RUN OUT OF PURPOSE BECAUSE YOU ' RE NEVER DONE ."

Jim Collins American researcher on business management , company sustainability and growth

Case Study of Disruption: 3-D Printing

As companies think about their purpose, they are well advised to move beyond thinking of themselves not only delivering products and services, but delivering outcomes for customers, society and even the planet. Ask yourself this key question to determine (or refine) the purpose of your organization: "What are the outcomes you are delivering?"

3-D Printing is a potential disrupter of a classical manufacturing business. Leaders can use scenario role-plays to gain important insights. You begin by assuming that this technology has fully arrived. This assumption enables a company to explore what it could mean for its manufacturing footprint, supply chain, the nature of work in the factory et al. The result of these thought experiments enables a company to become better prepared for the future and act proactively rather than just reacting to on-going developments. It provides observations which enable an organization to articulate its purpose and the desired outcomes which it intends to deliver to its customers and society.

VISION

The word “vision” is a much misused word. Crafting a vision is challenging. In an era of constant disruption, a company’s vision is more crucial than ever. You don't want to be fighting the last challenge but preparing for the next one. In the words of the great Canadian ice hockey player Wayne Gretzky: "I skate to where the puck is going to be, not where it has been." The challenge is manifest. How is it possible to envision a future 2 to 3 years away - never mind 5 to 10 years in the future - with technology developing at such a rapid speed? Processes such as scenario role-plays or reverse engineering of the future can provide helpful insights. Such processes help to make explicit the transform- ational impact of technology your business faces.

How does this work in the current business environment?

The advantage of this approach was evident at a recent health care conference. Participants from various companies were discussing the adoption of the current EMR technology (Electronic Medical Records). As part of this discussion, they contem- plated upon the potential impact of artificial intelligence and blockchain technology on EMR in the coming years. Many participants reached the conclusion that a large majority of the EMR systems which they were currently developing would be obsolete by the time they were implemented.

An example in the field of manufacturing makes this point clear.

A WELL ARTICULATED

DIGITAL VISION HELPS PREVENTS COMPANIES

FROM GOING DOWN RABBIT HOLES .

THE ARRIVAL OF FLUID STRATEGY

It is fitting here to return to the analogy of a scientific expedition. Digital strategy is similar to exploring a natural environment. The explorer regularly stops to learn as much as he/she can about the flora, fauna and landscape. While never forgetting the purpose of their expedition, the surround- ings are scanned for possible next steps along the journey and the best path is chosen which could lead to additional discoveries and more learning. The process of learning, scanning and choosing the best path is continuously repeated, changing destination when necessary.

Deliberate strategy is dead.

The classical approach of planning how to get from Point A to Point B is too slow and inaccurate to be suitable in a time of digital disruption. Such approaches are being replaced by "Fluid Strategy". This is a constantly evolving strategy which is determined by the ability of an organ- ization to learn about a constantly changing environment.

THIS IS THE EXCITEMENT AND ON - GOING

CHALLENGE OF MASTERING DIGITAL

STRATEGY .

To identify a broad spectrum of possibilities, consider potential successful scenarios to explore their viability and discover how best to test ideas and products which fulfill the company’s vision and, by doing so, continue to pursue the company’s purpose for its future.

JEFFREY BEESON

RETURN TO TABLE OF CONTENTS

CHIEF ENABLING OFFICER

ENSEMBLE ENABLER

© 2020

Through processes such as Peer-to-Peer Learning, Community Learning, Leadership Sprints, C-Suite Mentoring, Team Coaching, Thematic Large Scale Events, Learning Journeys, Cluster Communication and Pinboards (a cloud-based communications platform), Ensemble Enabler supports organizations to gather insights and act upon ideas along their learning journey.

Click here to discover more about how Ensemble Enabler can support your organization on its unique digital transformation journey

You can subscribe to THE RIPPLE here

www.ensembleenabler.com

" I T ' S T H E C U L T U R E S T U P I D ! " A N O R G A N I Z A T I O N ' S C U L T U R E F O R E T E L L S I T S A B I L I T Y T O D E A L W I T H D I G I T A L D I S R U P T I O N

Listen to this article on our podcast THE ENABLER

F O C U S ON C U L T U R E ! In his initial run for President, Bill Clinton is famous for reducing his campaign message to campaign staff to one simple sentence: "It's the economy stupid!" During his presidential campaign, there were many competing issues to engage with such as foreign affairs (the first Iraq war had just ended and the Soviet Union had just been dissolved), healthcare, trade policy, attacks on his character - to name only a few. However he told his campaign staff that the only issue which mattered was the economy. With the support of this fixated focus, he was able to defeat the incumbent president George H.W. Bush in the 1992 election.

A major economic transformation caused by digitalization is currently in progress.

As disruptive technologies such as AI (artificial intelligence), big >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42

Made with FlippingBook Publishing Software