Products & Services: Operational changes externally at the customer interface. That’s PNR. //]]>, Click here for free 2-page executive summary (pdf), Click here for free presentation slides (pptx). As a result, a digital transformation strategy becomes more interwoven in a company’s marketing approach. If the transformation is focused on the interface with customers (external business processes), the CDO/CTO can lead in collaboration with the CIO/COO. To help managers address this challenge more systematically, we describe how three German media companies successfully approached digital transformation. : > https://aisel.aisnet.org/misqe/vol15/iss2/6, Home Publications of Darmstadt Technical University, Institute for Business Studies (BWL) from Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL) Date: 2016-06 Conservative (Follower): Firms adopt established and widely used technology solutions. (2016) Request PDF | On Apr 6, 2020, Thomas Hess and others published Options for Formulating a Digital Transformation Strategy | Find, read and cite all the research you need on ResearchGate Digital Transformation is probably one of the most used buzzwords in management consulting right now. > Changes in culture, leadership, processes, products, organizational structures are always fraught with resistance and require a clear agenda to help align everyone on the coordination, prioritization and implementation efforts of a firm’s transformation efforts. | 4. Our approach is a collaborative, action-driven and ongoing planning process ignites collective decisions and real-time implementation, empowering our clients to put their business strategy into actions, activating real and immediate change. Iss. Iss. External Sourcing: Firms can hire consulting firms like us or outsourcing firms for their digital capabilities. CIOs and other senior executives face the challenge of how to handle the opportunities and risks of digital transformation. Digital transformation has much more to do with strategy and new ways of thinking. > Options for Formulating a Digital Transformation Strategy by Hess, T.; Matt, C.; Benlian, A.; Wiesbock, F. (2016) — MIS Quarterly Executive, Vol. As the authors argue, “the accumulated knowledge from previous research and best practice on IT strategies cannot be simply transferred to digital transformation on strategies.” At PNR, the angle we usually take is to integrate the digital strategy in the business strategy with the goal of not having the technology in isolation of the business strategy. Supporter: Is IT a way of supporting business changes. To help managers address this challenge more systematically, we describe how three German media companies successfully approached digital transformation. Research Teaching Publications ... Options for Formulating a Digital Transformation Strategy. On top of that, digital transformation may look different across industries and business sizes. Yahoo was well known for doing this kind of acquisition in their shift to mobile. However, if there is a big culture clash or a dramatic change in business models, firms can create a separate business unit or a newly formed subsidiary. Thomas Hess, University of North Carolina at GreensboroFollow To help managers address this challenge more systematically, we describe how three German media companies successfully approached digital transformation. Based on their experiences, we provide a list of 11 strategic questions and possible answers managers can use as guidelines when formulating a digital transformation strategy. An SME perspective on this To help managers address this challenge more systematically, we describe how three German media companies successfully approached digital transformation. Available at: Moderate (Early Adopter): Firms deploy technology solutions at the early stages of their development. 15, №2 pp.103–119, Building Blocks of Digital Transformation, Guidelines for Formulating a Digital Transformation Strategy, Adobe transition from a licence model to a SaaS model, General Electric which sold off most parts of GE Capital and decided to focus on the Industrial Internet), Making Fast Strategic Decisions in High-Velocity Environments, Digital innovation strategy: A framework for diagnosing and improving digital product and service innovation, The Positive Impact of Strategic Planning on Small Firm Growth, PNR Podcast Episode 23: Jeremi Lavoie, Managing Director @ car2go Montreal ». Executive Summary. Business Processes: Operational changes internally at the business processes. Companies that want to keep up have to be prepared to adapt to this new digital landscape.. > According to a 2017 survey on digital transformation by Constellation Research, 64% of respondents said a digital transformation strategy was essential to driving profits, 70% said they had an IoT (Internet of Things) strategy, and a whopping 75% said they have a Big Data strategy.. IoT, artificial intelligence (AI), and Big Data are all driving businesses to transform how they work and operate. The business scope is highly dependent on the individual firm and the context they are in. In our practice we have seen more business where the financial pressure on the core business was high. Executive}, year={2016}, volume={15} } The aim of this paper is to provide insights regarding the state of the art of Digital Transformation, ... an overview of the literature. 11. Financing of New Digital Activities — Internal or External 15 Home It will also depend on the opportunities, the resources of the firms and on the risk appetite of the top management. Based on how three German media companies successfully approached digital transformation, this paper presents a framework and provide strategic questions to help handle the opportunities and risks of digital transformation. Alexander Benlian, LMU MunichFollow Skills: Operational changes may occur because of the new skill sets needed. Editor Login | For media companies the choice is either: content creation, content aggregation, content distribution, management of content platforms, etc. In their Digital Transformation Framework (DTF), the authors structure the digital transformation strategy around four key dimensions: 1. Firms that are already financially struggling will find their options limited and the business model might not evolve fast enough to sustain the business. Options for Formulating a Digital Transformation Strategy by Hess, T.; Matt, C.; Benlian, A.; Wiesbock, F. (2016) — MIS Quarterly Executive, Vol. The ideal situation is when the CEO of the group or business unit is in charge. To help managers address this challenge more systematically, we describe how three German media companies successfully approached digital transformation. "Options for Formulating a Digital Transformation Strategy," The authors define digital transformation as “the changes digital technologies can bring about in a company’s business model, which result in changed products or organizational structures or in the automation of processes” with the main benefits of increasing productivity and innovations while also reducing costs. MIS Quarterly Executive: Vol. 15, №2 pp.103–119 Executive Summary In this paper, the authors argue that to remain competitive, businesses must “formulate and execute strategies that embrace the implications of digital transformation and drive better operational performance.” Options for Formulating a Digital Transformation Strategy. The digital economy is marked by rapid development, evolution, innovation, and disruption. About Company Takeovers: More popular in the US, firms can acquire companies for their capabilities (acqui-hire). + "<\/a>") In the end, they sold most of the assets to focus on their core business. For media companies the choices are: electronic sales channels, cross-media, enriched media, content platforms and extended business. Options for Formulating a Digital Transformation Strategy CIOs and other senior executives face the challenge of how to handle the opportunities and risks of digital transformation. 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