Managing the Digital Transformation: A Guide to Successful Organizational Change

✍ Scribed by Thomas Hess

• Publisher: Springer Gabler
• Year: 2022
• Tongue: English
• Leaves: 224
• Category: Library

✦ Synopsis

Digitisation and digital transformation are not only a topic of the media, but are also taking place in companies. The digital transformation affects the most diverse fields, from procurement to sales and from organisation to strategy development. This task requires the commitment of every company management and cannot simply be delegated. This book aims to help managers and entrepreneurs to set up structures in their organisation that allow them to approach the digital transformation systematically. The topics covered range from the configuration of digitisation strategies and new management roles such as the Chief Digital Officer to the importance of IT infrastructures, HR management and corporate culture as enablers of digital transformation. A simple framework serves as an orientation framework that structures the management tasks and clearly summarises the various concepts and instruments.

In the 2nd revised and expanded edition, the focus is on organisational aspects, in particular the role of start-ups for the digital transformation, the design of the so-called Digital Innovation Units and the role of the CDO. Secondly, the design and management of digitisation projects is considered in more detail. And thirdly, the concept of digital transformation is further specified and delimited. In addition, the advancing technological development is taken into account.

"Prof. Thomas Hess provides a concrete overview of many important aspects to be considered in the digital transformation of companies. Clearly worth reading."

Stefan Winners, Chief Digital Officer at Hubert Burda Media

"Beyond the buzzword - Finally someone manages to systematically untangle the chaos surrounding digital transformation. With his book, Thomas Hess truly establishes the guardrails for managing digital transformation projects. While others promise much and deliver little, Thomas Hess gives the reader a design framework rather than a patent remedy."

Dr Christoph Steiger, former board member and CDO of Hoffmann Group

"Clearly more than just another book on the topic of digital transformation! With exciting insights from science and practice, Thomas Hess provides a toolbox for digital transformation. Relevant for business and relevant researchers."

Prof. em. Dr. Dr. h.c. Hubert Österle, University of St. Gallen

✦ Table of Contents

Preface to the 1st English Edition
Contents
1 Challenge of Digital Transformation
1.1 Three Insights into Digital Transformation
1.2 The Two Levels of Digital Transformation
1.3 New Technologies as Drivers of Digital Innovation
1.4 The Three-Layer Framework of Digital Transformation
1.5 Structure of this Book
References
2 Welcome to the Digital Business World
2.1 Potential of Digital Technologies: From Automated Accounting to the Self-Driving Car
2.1.1 Music Industry: The Napster Shock and its Consequences
2.1.2 Automotive Industry: From Process Optimization in Production to New Mobility and New Vehicle Architecture
2.1.3 The Five Stages of Digital Transformation
2.2 Important Terms and Concepts
2.2.1 Digitalization and Digital Transformation
2.2.2 Digital Transformation as a Specific Management Concept
2.2.3 Digital Innovations and Disruptive Innovations
2.2.4 Industry 4.0, Social Media Marketing and Similar Concepts
2.2.5 Add-on: Theoretical Classification of Digital Transformation
2.3 Digitalization: How Digital Innovations Arise Today
2.3.1 Trends in Hardware
2.3.2 Trends in Software
2.3.3 Trends at the User Interface
2.3.4 Conclusion
2.4 Digital Transformation: Where Digital Innovations are Taking Place Today
2.4.1 Current Changes in the Company Environment
2.4.2 Typical Changes on the Market Side
2.4.3 Typical Changes in the Organization
2.4.4 Conclusion
2.4.5 Add-on: Data Economy as a Cross-Cutting Issue
2.5 When Digital Innovations Become Effective: Towards the Acceptance of New Systems
2.6 Is More Always Better? From the “Optimal” Degree of Digitalization
References
3 Changing Value Creation Structures through Digital Transformation
3.1 What is Special About Digital Transformation Projects?
3.1.1 On the Structure of Original Transformation Projects: The Integration Paradigm of Digital Transformation
3.1.2 Management of Transformation Projects
3.1.2.1 Team Composition
3.1.2.2 Project Management Style and Methods
3.1.2.3 Project Controlling and Evaluation
3.1.2.4 Embedding in the Core Organization and Project Landscape
3.2 Digital Products and Services
3.2.1 Three Variants of Digital Products and Services
3.2.2 The Role of Ecosystems for Digital Products and Services
3.2.3 Add-on: How much Privacy does the (German) Customer want from Digital Products and Services?
3.2.4 Procedure for the Development of Digital Products and Services
3.2.4.1 Basic Decision on the Procedure
3.2.4.2 Design Thinking as a Special Form of the Agile Approach
3.2.5 Product-Oriented Design of an Organization
3.3 Digital Customer Interfaces
3.3.1 Basic Understanding of the Customer Journey
3.3.2 The Customer Journey Map
3.3.3 The Change of the Customer Journey through Digitalization
3.3.4 Gatekeeper of the Digital Customer Interface
3.4 Digital Business Processes
3.4.1 Delimitation of Processes
3.4.2 Process Modeling
3.4.3 Typical Starting Points for Process Improvement
3.4.4 Process Mining as a New Analysis Approach
3.4.5 Procedure for Business Process Optimization
3.4.6 The Idea of a Process-Oriented Organization—and its Reality
3.5 Digital Business Models
3.5.1 Description of Business Models
3.5.2 Typical Business Model Innovation in the Context of Digital Transformation
3.5.3 Procedure for Business Model Analysis
References
4 Creating the Conditions for Digital Transformation
4.1 Prepare IT Landscape: Make Expandability possible
4.1.1 Why doesn’t everything work immediately? The Changeability of IT Landscapes
4.1.2 Bimodal IT as a Solution Approach?
4.1.2.1 Organizational Mapping of Bimodal IT
4.1.2.2 Advantages and Disadvantages of the Bimodal Approach
4.1.3 Cloud Computing as a Solution Approach?
4.1.3.1 Use of Cloud Solutions by Companies
4.1.3.2 Disadvantages and Risks of Cloud Solutions
4.1.3.3 Using Cloud Computing for Applications with Private Customers
4.2 Creating Organizational Structures that Facilitate Transformation: Do’s and Dont’s for Established Companies
4.2.1 The Dilemma of the (Product) Innovator
4.2.2 Setting up a Digitalization Unit
4.2.2.1 Objectives and Types of Digitalization Units
4.2.2.2 Design of Digitalization Units
4.2.2.3 Add-on: Ambidexterity as an Abstract Ability of a Company
4.2.3 Collaboration with Start-ups as an Opportunity for Innovation in Digital Transformation
4.2.3.1 Characterization of Start-ups
4.2.3.2 Accelerator and Incubator Programs
4.2.3.3 Corporate Venturing
4.2.3.4 Cooperation with a Start-up—Yes or No?
4.3 Transforming Corporate Culture: A Tough Challenge
4.3.1 What is Corporate Culture?
4.3.2 Adequate Culture for Digital Transformation
4.3.2.1 Resilient Organizations as Cultural Role Models
4.3.2.2 Market Orientation as a Value in the Context of Digital Transformation
4.3.2.3 Employee Orientation as a Value in the Context of Digital Transformation
4.3.2.4 Agility as a Value in the Context of Digital Transformation
4.3.2.5 Conclusion
4.3.3 Selected Tools for Managing Cultural Change
4.3.3.1 Culture Analysis
4.3.3.2 IT Systems as Tools for Cultural Change
4.3.3.3 The Role of Leaders
4.3.4 Specific Procedure in a Cultural Change Project
4.3.4.1 Analysis Phase
4.3.4.2 Implementation Phase
4.4 Building Competence for Digital Transformation
4.4.1 The Need for Digitalization and Transformation Competence
4.4.1.1 Need for Digitalization Competence
4.4.1.2 Need for Transformation Competence
4.4.1.3 Differentiation in Practice
4.4.2 Two Ways of Meeting Needs
4.4.3 Approaches for Building Transformation Competence
4.4.4 Add-on: Dynamic Skills for Digital Transformation
References
5 Defining Transformation Governance
5.1 Elements of a Transformation Strategy
5.1.1 Function and Delimitation of a Transformation Strategy
5.1.2 The Digital Transformation Strategy Framework
5.1.2.1 Use of Technologies
5.1.2.2 Change in the Value Creation Structure
5.1.2.3 Change in Organizational Structure
5.1.2.4 Financial Framework
5.1.3 Guiding Questions in Formulating a Transformation Strategy
5.1.4 The Strategies of Three Industries in Comparison
5.1.4.1 Starting Situation in the Three Industries
5.1.4.2 Use of Technologies
5.1.4.3 Changes in the Value Creation Structure
5.1.4.4 Change in Organizational Structure
5.1.4.5 Financial Framework
5.1.5 Typical Elements of a Transformation Strategy
5.2 The Way to the Transformation Strategy
5.2.1 Two Basic Ways of Development
5.2.1.1 Bottom-up Strategy Development at an Automobile Manufacturer
5.2.1.2 Top-Down Strategy Development at a Financial Service Provider
5.2.1.3 Conclusion
5.2.1.4 Add-on: Transformation Strategy as an Emergent Phenomenon
5.2.2 Further Peculiarities in the Formation of a Transformation Strategy
5.2.2.1 Interplay of Planning and Implementation
5.2.2.2 Dialogue-Oriented Approach
5.2.3 Two Instruments for Generating Ideas Bottom-up
5.2.3.1 Idea Competitions
5.2.3.2 Hackathons
5.3 Management Roles in Digital Transformation
5.3.1 Digital Transformation is a Top Priority
5.3.2 The CDO as a Supporting Role
5.3.2.1 Tasks of a CDO
5.3.2.2 Delimitation of the CDO Role
5.3.3 Conditions for the Deployment of a CDO
5.3.4 Successful Cooperation Between CDO and CIO
5.4 Maturity Models as a Tool?
5.4.1 The Concept of Digital Maturity
5.4.2 Two Typical Maturity Models
5.4.3 Design Parameters for Maturity Models
5.4.4 Limitations of Maturity Models
References
6 The Complete Approach at a Glance
6.1 The Most Important Concepts and Instruments at a Glance
6.1.1 Change Value Creation Structures through Digital Transformation
6.1.2 Creating Conditions for Digital Transformation
6.1.3 Develop Transformation Governance
6.2 The Right Entry
6.3 Beyond the Digital Transformation: What Comes Next?