DBS transformation (B): Going digital and creating a 22,000 person start-up

In late 2023, when the management team at the consumer packaged goods company Reckitt considered adopting gen AI, potential use cases spanned the business—from drafting presentations to delivering customer support to optimizing procurement contrac...

Energy efficiency is the fastest and cheapest way to cut emissions. Business leaders must do more to translate words into action.

With US tariffs on Swiss goods at 39%, Carlos Cordon outlines eight strategic ways to reduce costs and turn protectionism into advantage.

IMD Professor Omar Toulan speaks with Dan Luo at OWP Singapore about driving growth, profitability, and leadership across global brands like Heinz and Lego.

European innovation can be a force for resilience, transformation and global leadership. And yet it is often overlooked due to the geographical bloc’s fragmented markets, risk-averse culture, regulatory complexity and limited access to growth capi...

The case examines how DNB Bank, Norway's largest financial services company, reshaped its growth strategy by focusing on startups and SMEs, a segment traditionally considered unprofitable. In 2013, DNB launched a bold SME strategy, deliberately choosing a gross approach to win new startups early in their life cycle rather than a net approach focused on the profitability of existing accounts. This strategy, enabled by a significant investment in digitalization and a cultural shift toward customer lifecycle engagement, generated exceptional results and by 2025, the SME segment delivered the highest return on allocated capital. The journey, however, was not linear. A European regulatory crackdown in 2019, following the Danske Bank money laundering scandal, forced DNB to shift its focus from growth to compliance. The bank reallocated 1,000 employees to KYC units, dismantling its startup-friendly onboarding process and causing customer acquisition to stall. As competitors advanced, DNB had to orchestrate a strategic Restart effort to rebuild its SME leadership. This involved launching superior digital tools, providing automated lending decisions within a minute, and renewing its customer-centric focus. By 2025, the recovery was well underway, with one in three Norwegian SMEs banking with DNB. The case challenges students to evaluate DNB's past choices, the critical balance between growth and compliance, and the future of SME banking as AI and digital agents transform customer interactions.

Las estrategias de economía circular y regeneración están transformando el crecimiento empresarial frente al cambio climático, la escasez de recursos y la tensión geopolítica, dentro de los límites del planeta.

The case study examines the organizational transformation challenges faced by MedTech Diagnostics, an 850 million medical diagnostics company attempting to balance innovation speed with regulatory compliance and quality standards. CEO Patricia Chen must navigate the tension between traditional, reliability-focused operations and agile innovation pods, while facing a critical contract renewal worth 187 million that represents 22 of the company's revenue. The case illustrates the complexities of dual operating models in regulated industries. MedTech's traditional divisions generate 120M in EBITDA and are FDA-compliant but are declining at 8 annually. Innovation pods achieve 120 growth and high customer satisfaction but face higher post-market issues and lower FDA approval rates. Hybrid teams intended as a compromise satisfy neither approach, demonstrating the difficulties of organizational ambidexterity. Chen faces three strategic options: controlled evolution over 24 months, creating a separate subsidiary for innovation, or transforming into a platform company. Each option carries significant costs, risks, and uncertain outcomes. The case explores critical organizational design questions, including culture change, stakeholder management, resource allocation, regulatory navigation, and leadership alignment in transformation contexts. Key themes include managing organizational culture during transformation, balancing innovation with quality in regulated environments, addressing internal resistance and political dynamics, developing effective dual operating systems, and making high-stakes strategic decisions under uncertainty. The case is designed for classroom discussion on organizational change, innovation management, and strategic decision-making in complex operating environments.

The case looks at the fundamental challenges, tensions and opportunities associated with an internally run venture as opposed to an externally funded startup or spin-off company. It discusses the genesis and context of Kontor, an internal venture funded by Resmed Inc. Resmed is an S&P 500 MedTech company. At the time of the case, May 2024, Resmed was also experiencing increasing external competitive threats and pressure on its margin due to GLP-1s, a class of medicines. Kontor is an internal venture at Resmed trying to find its way through turbulent times. Kontor applies Resmed's class-leading comfort and fit technology to the AR/VR space, thus making these devices more comfortable for the user. Kontor has been running for several years and Erika, the case protagonist, is the newly appointed general manager. The current turbulent situation is causing the executives to question investment in the internal venture. Erika must deal with many challenges, but the fundamental question is whether Kontor will create the most value for Resmed as an internal venture or whether it should be spun out and in what manner. The case compares five strategic possibilities: 1) Spinning out the business and running Kontor independently of Resmed with external investors, 2) keeping Kontor wholly owned by Resmed but, run it off-balance sheet, 3) sell Kontor to a strategic buyer, 4) keep running Kontor internally with operational assistance from Resmed Inc, or 5) wait and see how the venture goes without making a decision in the near term thus preserving all options.

A climate of pervasive uncertainty is paralyzing decision-making. Here's what leaders can learn about survival and resilience from multi-generational, family-run businesses.