Digital transformation of industry (Neysen)
1. Digital Strategy
1.1 What are digital technologies?
Jack Welch: “If the rate of change on the outside exceeds the rate of change on the inside,
the end is near…”
Digital technologies
= no consensus but wide spectrum of meanings, from all computer science components,
from hardware to operating system and programs to emerging and disruptive technologies
like AI, advanced robotics, and programs.
Evolutionary perspective:
1950: Introduction of the first computer.
1980: Personal Computers (PC) and MS-DOS.
1990: Emergence of the World Wide Web.
2000: Development of Web 2.0.
2010: Rise of mobile technologies.
2020: Introduction of Big Data analytics, IoT, VR/AR,
blockchain, additive manufacturing, and deep
learning.
1.2 Conceptual levels of digital
technologies (3)
Emerging only
= Digital disruptive technologies such AI, VR,
drones, crypto economy, and additive
manufacturing are all leveraged by technologies
that make it possible to substitute (some) physical alternatives
Post-Internet
= Digital technologies are defined as combinations of information, computing,
communication and connectivity technologies such as cloud computing, data analytics and
mobile technologies
All computer & IT
= Digital technologies comprise electronic tools, systems, devices and resources that
generate, store, process, exchange or use digital data
1
, 1.3 Research approaches to digital technology
When to tag research as digital?
Tech-centered approach
= the research explores a particular digital technology, which is thus at the core of the study.
Transformative approach
= the research explores the impact of digital technology on individuals, organizations, or
society at large.
Contextual approach
= digitalization is part of the key characteristics of the environment in which the research
takes place.
Instrumental approach
= the research makes use of digital technology, though the object of study has nothing (or
little to do with digital technology.
1.4 The nature of digital
Digital is neither good nor bad: it is the use that one makes of it which can be either
disastrous or can prodigious.
Example: virtual harassment can have real-world consequences.
1.5 Digital strategy vs. digital technology
Digital is about technology; digital strategy is something else.
Digital strategy involves:
• Partnership
• Innovation
• Governance
• Change
• Performance
Digital outside
= focuses on customer experience, social media, digital
ecosystems, and big data analytics.
Digital inside
= involves new ways of working, connected workplaces, and performance analytics
2
,1.6 Digital strategy process
1) Vision
• Digital: for what?
o Define the purpose of digital transformation. What does the company
aim to achieve?
• Which degree of ambition?
o Determine how extensive the digital transformation should be (small
optimizations versus full digital reinvention)
2) Analysis
• Which level of internal maturity?
o Assess the current state of digital capabilities within the organization.
• Which trends?
o Identify external digital trends and technologies relevant to the
business.
3) Decision
• Which are the priorities?
o Decide which digital initiatives to focus on based on business needs
and resources.
• Make or buy?
o Determine whether to develop solutions internally or outsource to
third parties.
4) Execution
• How can it be implemented?
o Develop a roadmap and action plan for implementation.
• How can it be measured?
o Define key performance indicators (KPIs) to track success.
3
, 1.7 Digital transformation
2 views of digital transformation:
• Left Side (Negative): Digitalization is
seen as a distant, unclear goal. It's
like trying to reach a point (B)
without a clear path or strategy,
leaving you stuck at your starting
point (A). Digital is no horizon.
• Right Side (Positive): Digitalization
is a powerful tool for change. It's
actively used to move from your
current state (A) to a better future
(B), transforming your organization
along the way. It’s a transformative force.
Digital transformation must be approached as a rational, integrated, and steered evolution of
an organization’s operating model, in which digital technologies play a decisive part.
1.8 Components of digital strategy
1) Strategic diagnosis on digital maturity
• For each strategic business unit and supporting activity department, assess
the digital capabilities focusing on the 3 key elements. It’s like a digital health
check.
• Key elements:
o People
▪ Skills and digital literacy
▪ Culture of innovation
o Process
▪ System integration (in-house and third party)
▪ Procedure standardization
o Technology
▪ Cybersecurity
▪ Data management
• Central eye: represents a focused and insightful analysis of the interplay
between these 3 elements.
4
1. Digital Strategy
1.1 What are digital technologies?
Jack Welch: “If the rate of change on the outside exceeds the rate of change on the inside,
the end is near…”
Digital technologies
= no consensus but wide spectrum of meanings, from all computer science components,
from hardware to operating system and programs to emerging and disruptive technologies
like AI, advanced robotics, and programs.
Evolutionary perspective:
1950: Introduction of the first computer.
1980: Personal Computers (PC) and MS-DOS.
1990: Emergence of the World Wide Web.
2000: Development of Web 2.0.
2010: Rise of mobile technologies.
2020: Introduction of Big Data analytics, IoT, VR/AR,
blockchain, additive manufacturing, and deep
learning.
1.2 Conceptual levels of digital
technologies (3)
Emerging only
= Digital disruptive technologies such AI, VR,
drones, crypto economy, and additive
manufacturing are all leveraged by technologies
that make it possible to substitute (some) physical alternatives
Post-Internet
= Digital technologies are defined as combinations of information, computing,
communication and connectivity technologies such as cloud computing, data analytics and
mobile technologies
All computer & IT
= Digital technologies comprise electronic tools, systems, devices and resources that
generate, store, process, exchange or use digital data
1
, 1.3 Research approaches to digital technology
When to tag research as digital?
Tech-centered approach
= the research explores a particular digital technology, which is thus at the core of the study.
Transformative approach
= the research explores the impact of digital technology on individuals, organizations, or
society at large.
Contextual approach
= digitalization is part of the key characteristics of the environment in which the research
takes place.
Instrumental approach
= the research makes use of digital technology, though the object of study has nothing (or
little to do with digital technology.
1.4 The nature of digital
Digital is neither good nor bad: it is the use that one makes of it which can be either
disastrous or can prodigious.
Example: virtual harassment can have real-world consequences.
1.5 Digital strategy vs. digital technology
Digital is about technology; digital strategy is something else.
Digital strategy involves:
• Partnership
• Innovation
• Governance
• Change
• Performance
Digital outside
= focuses on customer experience, social media, digital
ecosystems, and big data analytics.
Digital inside
= involves new ways of working, connected workplaces, and performance analytics
2
,1.6 Digital strategy process
1) Vision
• Digital: for what?
o Define the purpose of digital transformation. What does the company
aim to achieve?
• Which degree of ambition?
o Determine how extensive the digital transformation should be (small
optimizations versus full digital reinvention)
2) Analysis
• Which level of internal maturity?
o Assess the current state of digital capabilities within the organization.
• Which trends?
o Identify external digital trends and technologies relevant to the
business.
3) Decision
• Which are the priorities?
o Decide which digital initiatives to focus on based on business needs
and resources.
• Make or buy?
o Determine whether to develop solutions internally or outsource to
third parties.
4) Execution
• How can it be implemented?
o Develop a roadmap and action plan for implementation.
• How can it be measured?
o Define key performance indicators (KPIs) to track success.
3
, 1.7 Digital transformation
2 views of digital transformation:
• Left Side (Negative): Digitalization is
seen as a distant, unclear goal. It's
like trying to reach a point (B)
without a clear path or strategy,
leaving you stuck at your starting
point (A). Digital is no horizon.
• Right Side (Positive): Digitalization
is a powerful tool for change. It's
actively used to move from your
current state (A) to a better future
(B), transforming your organization
along the way. It’s a transformative force.
Digital transformation must be approached as a rational, integrated, and steered evolution of
an organization’s operating model, in which digital technologies play a decisive part.
1.8 Components of digital strategy
1) Strategic diagnosis on digital maturity
• For each strategic business unit and supporting activity department, assess
the digital capabilities focusing on the 3 key elements. It’s like a digital health
check.
• Key elements:
o People
▪ Skills and digital literacy
▪ Culture of innovation
o Process
▪ System integration (in-house and third party)
▪ Procedure standardization
o Technology
▪ Cybersecurity
▪ Data management
• Central eye: represents a focused and insightful analysis of the interplay
between these 3 elements.
4
