Summary - Digital Strategy and Goveranance (2012TEWMHB)

DIGITAL STRATEGY AND GOVERNANCE
INHOUD

Introduction – The complex pathways of digital transformation ......................................................................................... 2
Setting the scene ............................................................................................................................................................. 4
Learning Objectives, Approach and Assignments ............................................................................................................. 5
The Landscape of Digital and Digital Transformation ........................................................................................................ 6
The Role & Value of IT ....................................................................................................................................................... 9
Business and IT Strategy/Alignment ............................................................................................................................... 13
Enterprise governance of IT ............................................................................................................................................ 18
Setting the scene........................................................................................................................................................ 18
Mechanisms for Enterprise governance of IT ............................................................................................................... 19
Cases KLM: Governance Principles and Practices....................................................................................................... 24
Best-practice guidance for Engterprise Governance of IT ................................................................................................ 28
E. Tailored to Enterprise Needs ................................................................................................................................... 29
B. Holistic approach ................................................................................................................................................... 30
Governance Capability Domains (COBIT).................................................................................................................... 31
Scoping and Applying COBIT....................................................................................................................................... 34
Governance and Management Objectives: international benchmarking ...................................................................... 36
Enterprise governance of IT: other important standards and frameworks ..................................................................... 36
Bringing it all together: strategy map for governing digital technology .............................................................................. 37
Final summary ............................................................................................................................................................... 40




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,INTRODUCTION – THE COMPLEX PATHWAYS OF DIGITAL TRANSFORMATION

Digital transformation is about a business transformation enabled by IT
 IT enables the transformation
 A business way of looking at a challenge!
 Business strategy context, business mindset




 When you do a business case, you focus on operational efficiency, customer experience or both
o Customer experience
▪ Increasing customer delight
▪ IT helps to create more customer value
▪ The use of a technology to add value
▪ Outside-in
o Operational efficiency
▪ Increasing standardization, integration, reuse, …
▪ Efficiency gains enabled by IT
▪ Inside-out
 Four quadrants
1. Beginners
o Not yet into digital transformation
o For many industries, being in a digital transformation is just not favorable, think about the little bakery
2. Fashionista
o Technology strategy, you just follow the market trends
o For example you want to implement AI, because everyone does
o But actually you need to think about the value, the strategy
▪ When you invest in something, you always need to ask why, and “because everyone does” is not
a good answer there
o IT backhole: money that not really goes somewhere
3. Conservatives
o Usually really rely on ERP systems: little innovation
4. Digital Masters
o Combine effective value chain and innovate continuously
o Stability, innovation and flexibility
o Highest return (ROI); where you want to be




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,  Three possible pathways to digital transformation




1. Pathway 1: increase operational efficiency first, later customer experience
o A good pathway? It depends!
o It takes a lot of time, it’s changing the way of working, which might take years
▪ Can be too long and customers can move to the concurrence
o Good for monopolists, they have time to do that
o In case of Fast Moving Consumer Goods, they don’t have the time, so for them, this is not the good
pathway
2. Pathway 2: increase customer experience first, later operational efficiency
o With this pathway, the challenge is to not getting stuck into the fashionista quadrant
o To movement from the left to the right has in practice a lot of resistance, because it needs a structural
change in the way of working
3. Pathway 3: increase customer experience and operational efficiency both step by step
o Investments in line with future standards
o Agile approach
o Long term thinking
o Improve both together, step by step
 The movement from the beginners quadrant to the digital masters quadrant:
o Changing decision rights
o Adopting new ways of working (= business changes)
o Performing organizational surgery
▪ Across units of a company, difficult to realize
o Creating a platform mindset




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