How can a business use technology to transform itself holistically? One of the present top-of-mind topics is “digitalization” and digital transformations. IMD’s Global Center for Digital Business Transformation (DBT) defines DBT as “organizational change through the use of digital technologies and business models to improve performance.” At the heart of this is that it is not technology itself that is important; rather, technology exists only to serve the new business model. Due to the complexities involved, companies should define why they need to transform, what they need to transform, and how to execute the transformation before they even embark on such a journey. For some companies, this transformation is a matter of survival, for others, it is not necessary and should be avoided as the process can be expensive, difficult to manage and may disrupt the company To help companies adopt a holistic approach to digital transformations, IMD’s DBT Center has created the digital orchestra framework which proposes 10 critical questions to ask across four business areas – going to market, engaging with key stakeholders, operations, and the existing organization itself.
“Some companies are embarking on all kinds of digitization projects because they feel like they are doing something and see themselves as cutting edge. Yet, the core of their organization remains unchanged, so they remain vulnerable to disruption. They are confusing achievements with the process and wasting money on many inefficient scattered projects.” – Professor Michael Wade, Director of IMD’s Global Center for DBT