PwC tells us digital change should be rooted in “Industry 4.0”. As they shift to a component-centric model of business that’s able to deliver digital offerings quickly, companies need to adopt a new framework of accountability organized around components rather than functions, product lines, or geographies. McKinsey 4Ds are on fire. Digital transformation frameworks, like any kind of framework, give decision-makers a starting point. Keep what you manage to a minimum. The accountability block tries to break down organizational barriers as a means of transforming. “Looking ahead, we see the trend moving toward individuals and business customers preferring only one, or maybe two, powerful ecosystem drivers in each domain.”. Their Business Model Innovation is very cool. We believe the customer must be the reason for digital change. DXC claims these journeys need to be ‘intelligent’, ‘digital-first’ and ‘omni-channel’. A few frameworks we’d like to review, but were not able to, due to lack of information. I would like to offer an alternative digital transformation framework called the 4Qs. The 4Ds ranked high for customer-centricity. Executives in all industries are using digital advances such as analytics, mobility, social media and smart embedded devices to transform their businesses. The DX frameworks we addressed in this review are akin to a flow chart. It is common sense. Adapting to the digital economy can be life or death for a business. The external developer platform is a marketplace. They are not simple and require a lot of customization. The second position was taken by McKinsey’s work of art called the 4Ds. Digital transformation is a massive undertaking, especially for larger, established companies. CapGemini’s DX framework encourages organizations to go beyond digital wrapping traditional products, and instead build new products that are digitally native. MIT researchers have developed a field-tested framework for navigating a digital transformation. A startup and enterprise organization are diametrically opposed. Seriously, there is a lot of 7-point type and the application of ‘what’ and ‘how’ is not obvious. Frameworks offer checklists of what needs to get done, and sequence to order what needs doing. We provide the CIO and other digital leaders with insights on topics such as business complexity, data monetization, and the digital workplace. The Digital Compass consist of … While the article may not offer a particular model per se for digital transformation it does provide you with a classical 2 x 2 metric to identify if you are a Digirati, Fashionistas, Beginners or Conservatives. Data allows us to find new opportunities much more easily. Digitisation of product and service offerings (stage 2) is clear. I think CapGemini has got the right sequence which will lead to what McKinsey calls quick wins. Seriously, these frameworks are appalling. Customer journeys are an important driver of customer experience. There is a lot of emphasis on customers. This is about aligning the entire business around the customer. Called the 4Ds, McKinsey’s digital transformation framework put the customer first in the Discovery phase — looking at customer behavior trends. Overall KPMG doesn’t seem to bring anything new to the table, except perhaps a better visualize transformation compared to others. Agile + the 4Qs. Here are some of the   results of the survey. But how should companies craft a digital strategy that ensures they’ll remain competitive? The first step is recognizing exactly where the digital disruption to a company’s current business model may come from. And they must have great leaders at the helm to guide the transformation. Building a business that can leverage emerging technology and ride new opportunities with speed skill and determination, often requires a transformed way of working. A 12-month program focused on applying the tools of modern data science, optimization and machine learning to solve real-world business problems. It helps anticipate asymmetric competition. Anthony has two decades of experience consulting to marketplace and software-as-service startups. Older companies were starting to notice that new, small startups were hitting the ground with a higher level of familiarity of their customers, Woerner said, driven by the increased connectivity and richness of data provided by platforms like social media. see the big picture, ideal for executives, drill-down to a set of tasks and sequences. Most important, we will provide a novel framework for using digital technology as an enabler to align people, processes, and culture resulting in true business transformation. Should you serve enterprise or small business? Within each of the three pillars, different elements are changing. In a BCG survey of more than 5,000 managers and employees, over 80% said that digital was helping them get though the economic slowdown that the pandemic created. PwC encourages organizations to create a budget for a pilot project and then scale up funding. An interdisciplinary program that combines engineering, management, and design, leading to a master’s degree in engineering and management. Lastly, we value simplicity. McKinsey’s model expects an enterprise organization to behave like a startup. The 4Qs framework is customer-centric Gunter Haeussler, Principal Consultant, BlueSky Innovation Each review is based on what is published in the public domain. MITs framework was easy to review thanks to the anecdotal information provided by Jeanne Ross. A low score is one. Bring a business perspective to your technical and quantitative expertise with a bachelor’s degree in management, business analytics, or finance. There was no mention of customers which frightened me. PwC, McKinsey, Accenture, EY, Gartner, CapGemini, MIT, Cognizant, Altimeter, Ionology. “They put together a product where they could look for cars in your area, come up with a set of dealers with the best prices, and because of partnerships, go out and bargain with the dealer so you didn’t have to go do that.”. MIT created the below tool: The Digital Compass. Has the company developed the crucial capabilities to reinvent the business? There are no user guides in the public domain, so you will have to become a paying customer first. McKinsey has a proprietary DX framework called the 4Ds. Winners maintain control while they minimize their asset base. This business concept was relevant 30 years ago. CapGemini had a rock-solid approach to company culture and MIT’s simplicity of six building blocks was hard to beat. Their Digital Customer Experience piece is comprehensive. Business Model Canvas + 4Qs. It is academically peer-reviewed and taught in many leading universities. The framework is relatively easy-to-use. Successful Digital Transformation MIT-CDB and Capgemini Consulting Joint Research Program on Digital Transformation. A rigorous, hands-on program that prepares adaptive problem solvers for premier finance careers. Customer journeys form one of the blocks in McKinsey’s six building blocks for creating a high performing digital enterprise. Digital Transformation, Value Creation, and Breakthrough Innovation is designed for managers who are instrumental in driving digital transformation, creating new … Value propositions get a mention in EYs framework. A personal demonstration of each framework by the author would reveal more detail and give a more accurate review. Non-degree programs for senior executives and high-potential managers. DXC Technologies is the new kid on the block. Stephanie Woerner, research scientist at the MIT Center for Information Systems Research (CISR), outlines four potential pathways to digital transformation. Let’s begin with fifth place and work our way to the top of the leaderboard. This research undertaken by MIT Sloan and Capgemini in 2012-13, sought to identify what they call as digital masters and connected their “digital maturity” to business outcomes. A digital transformation strategy is a plan of action to reposition a business in the digital economy. KPMG has identified six dimensions of i4.0, as part of its DX framework. Focus on core competency and outsource what you can. Think of these people as coaches and mentors. findings from phase 1 of the digital transformation . The digital native underdog stands to challenge the status quo. The research was based on interviews with 157 executives in 50 companies, typically with more than $1 billion in sales. 65% said they would implement the 4Qs in their business, 65% reported the 4Qs framework easy to use, 50% believe the 4Qs would improve sales by 20-30%, > ACCENTURE DIGITAL TRANSFORMATION PLAYBOOK, > GARNTER’S DIGITAL TRANSFORMATION PLAYBOOK, > FORRESTERS DIGITAL TRANSFORMATION PLAYBOOK, DIGITAL TRANSFORMATION SLIDESHARE RESOURCES, > THE BEST DIGITAL TRANSFORMATION FRAMEWORKS IN 2020, > THE CONNECTED ENTERPRISE FOR DIGITAL TRANSFORMATION, > ALTIMETER’S THE SIX STAGES OF DIGITAL TRANSFORMATION. Sources claim MIT and CapGemini were responsible for writing the first digital transformation framework. The MIT Sloan Management Review recently conducted in-depth research with executives about how managers can use so-called digital transformation initiatives to improve their businesses. We provide the CIO and other digital leaders with insights on topics such as business complexity, data monetization, and the digital workplace. According to the McKinsey framework, the 4D’s of digital transformation are Discovery, Design, Deliver, and De-risk. Through intellectual rigor and experiential learning, this full-time, two-year MBA program develops leaders who make a difference in the world. Earn your master’s degree in engineering and management. Accountability framework — clear ownership of, and coordination among, a growing set of digital offerings and components. Many frameworks address opportunity, however organizations big and small face constraints. The framework mentions tapping into partner ecosystems. Altimeter, Ionology, Deloitte and EY all offer digital transformation frameworks, which I am sure, if demonstrated personally, could be reviewed. Technology transformation is useless unless people transform. Adapting to the digital economy can be life or death for a business. This is the operational changes required to deliver the value propositions. The framework dates quickly. In the second phase — Design — the customer gets another hug. This 20-month MBA program equips experienced executives to enhance their impact on their organizations and the world. The last phase encourages the organization to reinvest profits made from quick wins to de-risk the business against change fatigue. It is hard to beat either of these three frameworks. Source: MIT and Capgemini framework. Many of the frameworks we uncovered are steeped in years of academic research. Step 3 is powerful. We appreciate a personal demonstration would improve the reviews of each framework. Therefore, our reviews are first impressions at best. I think CapGemini’s digital transformation framework rocks. Earn your MBA and SM in engineering with this transformative two-year program. This time McKinsey talks specifically about designing and building customer journeys. In third place is Gartner with its digital transformation framework. Gartner, like Accenture, put shared beliefs first. That attempt should be focused on the best customers. In the digital world according to DXC, the consumer is in charge and will define your next move. This kind of thinking is why organizations deploy digital kiosks unnecessarily. “But we really wanted to get the framework and language out there, so that when you got to leadership, everyone would be on the same page.”, Deeper understanding, integrated experiences. The internet allows you to disaggregate that,” Woerner said. “Leadership is really the most important part of changing your digital business model,” Woerner said. Business leaders are encouraged to pick what looks tasty and add it to their plate. This is common sense and distracts us from what is important. Or installing a new toilet (flush now). In making digital change, Cognizant’s DX framework recognizes new pricing models are important. Asymmetric competition from unexpected sources will be the norm. While other DX frameworks touch on shared beliefs and culture, Gartner goes further suggesting the organization be supported by a digital excellence team. Work smart with the Thinking Forward newsletter. MIT’s five building blocks to digital transformation framework begins with operations, not customers. Digital marketing is not strictly speaking part of digital transformation, nor does it necessarily help customers. MIT’s five building blocks to digital transformation framework is more like a stack of building blocks. What are the company’s digital competitive advantages? Even with the help of consultants and a few hundred thousand dollars, don’t expect to roll out these   frameworks quickly. The framework places Industry v4.0 at the heart of digital change. Naming technology creates a few problems. While digital transformation frameworks from MIT, CapGemini, and DXC Technologies stand out, you won’t be taking these frameworks   home. Locked Interactive transcript Does the company have the leadership to make it all happen. Let’s continue the discussion on Linkedin, Seven levers of frictionless customer experience, E-commerce customer experience report Singapore 2020, run frictionless with new 4Qs sales training courses. Anthony has been a founder of two startups. Founded in 1974 and grounded in the MIT tradition of rigorous field-based research, MIT CISR helps executives meet the challenge of leading dynamic, global, and information-intensive organizations. The DX framework names types of technology — smart sensors and 3D printing. This scenario is highly likely and I have personally used this approach to help businesses. More on this subject at the end of the review. Digital transformation — the use of technology to radically improve performance or reach of enterprises — is a hot topic for companies across the globe. Technology changes and technology today is redundant tomorrow. All three scored 3.5 overall and also scored 5/5 for customer-centricity. Digital transformation frameworks show people at different levels of the organization how to cooperate to make digital change possible. I was surprised the digitization of the organization did not include a piece on culture. The staff needs to understand and share the same belief as the CEO about why digital change makes sense. Founded in 1974 and grounded in the MIT tradition of rigorous field-based research, MIT CISR helps executives meet the challenge of leading dynamic, global, and information-intensive organizations. A high score is five. Between late 2019 to mid-2020, we conducted over 100 interviews with digital transformation consultants. Learn to facilitate successful digital transformation and earn an official certificate of completion from the MIT Sloan School of Management. It can create a digital smorgasbord. The digital transformation framework created by McKinsey also places the customer first. Like MIT and CapGemini, DXC’s digital transformation framework puts customers first. We empirically develop and evaluate a framework that describes in the context of digital supply chain transformations the role of dynamic capabilities. Accenture’s digital business strategy framework seems to have the right ingredients. Other DX frameworks are akin to the thinking of a three-year-old. This program also counts towards an MIT Sloan Executive Certificate, which you can earn by completing four programs; three from your chosen certificate track and one completed in person. Shared understanding or shared belief is essential. “Partnerships were coming into play where companies were seeing that they had to be able to offer more multi-product, integrated experiences.”. The digital transformation framework has four components. We describe how transformational levers of leadership approach, investment decision process, and organizational digital teams activate the dynamic capabilities in this endeavor. DXC really knows how to put the customer first. Where PwC’s digital transformation model made a vague reference to a customer, Cognizant has an entire piece devoted to digitizing the customer experience. McKinsey put the customer first in the Discovery phase — looking at customer behavior trends. MIT researchers have developed a field-tested framework for navigating a digital transformation. Instead, the authors of the framework should invite the user to hack and mod their DX framework, to suit circumstances. Parked under ‘customer’ is digital marketing. The fonts and color? He has consulted to startups from the United Kingdom, Korea, Singapore, Philippines, and Australia. This is about understanding the customer and thinking about new kinds of customer journeys – precisely the ingredients prescribed by McKinsey. Steve Jobs said: you need to think about customer experience and work backward to the technology. The mission of the MIT Sloan School of Management is to develop principled, innovative leaders who improve the world and to generate ideas that advance management practice. How intel can create a frictionless customer experience, 5 steps to achieving a frictionless customer experience, The 4Qs are now available as upBOARD templates. However, to get started, we have a few general comments about what makes one framework better than another. The essential salesperson hiring checklist, a must-read for startups looking to scale their revenue, BRETT TRAINOR, FOUNDER, IQUIPT B2B EARLY STAGE VENTURE CAPITAL, I highly recommend anyone in business take on board this framework, CLAIRE KIDD, BUSINESS COMMUNICATIONS CONSULTANT, friction slows the customer from reaching their goal, and equally slows the sale, ALLEN PATTISELANNO, DIGITAL TRANSFORMATION CONSULTANT, THE AGILE DONKEYS, the 4Qs opens a new perspective on product, identity, target customers, and processes, MINH THU NGUYEN, CONTENT PLANNER, WECREATECONTENT, a must-read for any business owner who finds themselves being the sales champion, a must-read for any fast-moving customer-focused sales organization, ALISTAIR GRAY, CUSTOMER SUCCESS STORY SPECIALIST, integrate a sales-focused mindset into your entire organization, JEN FAUCON, PARTNER, MICA CONSULTING GROUP, an excellent framework to focus on what's important, the 4Qs is helping us win a greater number of ideal customers, MATT MCFEDRIES, CO-FOUNDER, CEO, DEBTOR DADDY, a smart framework for the entire go-to-market strategy, ETHAN BEUTE, AUTHOR, CHIEF EVANGELIST, BOMBBOMB, CHRIS SWALLOW, FOUNDER, SENIOR MARKETING CONSULTANT, CTRL, 4Qs got me redesigning parts of my business, YIANNIS MILIATSIS, SALES + PERFORMANCE COACH, BIZMAN, become a market leader, instead of falling for the follower trap, DR. FRÉDÉRIC CAUFRIER 柯付锐, MD, PHD, STRATEGIC FORESIGHT, THREE PARALLEL RIVERS, actionable methods clearly laid out and thoroughly explained, LIANG LIANG, MARKETING SUPPORT, TECHPACKER, a four-quadrant approach aimed at helping you reduce friction, JONATHAN GENNICK, ASSISTANT EDITORIAL DIRECTOR, APRESS, as I'm reading the book, I'm nodding and saying, yep, yep, yep, FRED DIAMOND, CO-FOUNDER, AWARD-WINNING SALES GAME CHANGERS PODCAST, understand how sales, marketing, and product can leverage each other's strengths, this book was a light bulb moment in my business, BRETT TARLINGTON, DIRECTOR, OAKWOOD LIFESTYLE ADVISERS, pierces through cumbersome bs of corporate culturalisation, CHRISTERINE OOI, INTERNATIONAL EDUCATION CONSULTANT, The future of selling does not include future-selling, The wisdom of someone who has done this before comes through very quickly, BART STUCK, MANAGING DIRECTOR, SIGNAL LABS, Anthony's secret sauce to a higher and successful sales conversion, RAYAN RAMOS, MARKETING MANAGER, JUSTPAYROLL, This book made me realize sales is a company effort, a very useful approach to sales through the lens of four complementing quadrants, What founders + sales teams need to scale their operations, PETER THOMSON, AUTHOR, STRATEGIC DIRECTOR, PERCEPTIVE, One of the most insightful, thought-pieces about building a business in recent times, Insightful, exciting, perceptive, illuminating, STEVE DANA, SALES COACH, COMET SALES CONSULTING, THE BEST DIGITAL TRANSFORMATION FRAMEWORKS IN 2020. six-step digital transformation framework, ACCENTURE DIGITAL TRANSFORMATION PLAYBOOK, GARNTER’S DIGITAL TRANSFORMATION PLAYBOOK, FORRESTERS DIGITAL TRANSFORMATION PLAYBOOK, THE CONNECTED ENTERPRISE FOR DIGITAL TRANSFORMATION, ALTIMETER’S THE SIX STAGES OF DIGITAL TRANSFORMATION, The best digital transformation frameworks in 2020. Cognizant has found four common elements that apply to most companies making digital change in both the B2C and B2B markets. A joint program for mid-career professionals that integrates engineering and systems thinking. A mashup of two awesome frameworks. While most authors gave some explanation, there was little published in the way of how to apply the framework. Or building the kid’s cubby house. Sign up for Tuesday insights. While you may not like the font and the monochromatic color palette, you have got to love their three stages. When he’s not working, Anthony enjoys racing sports bikes and sailing boats. In the MIT CISR 2015 CIO Digital Disruption Survey, we surveyed 413 enterprises. The traditional value chains were also becoming more porous as technology opened new avenues for connection, she said. This executive program explores how new and existing business strategies can be improved through the introduction of technologies and digital systems. A non-degree, customizable program for mid-career professionals. One block is devoted to what is called the external developer platform. Create a startup culture where it is possible to make mistakes and still succeed. In their new book “What’s Your Digital Business Model?” MIT Center for Information Systems Research senior research scientist Peter Weill and research scientist Stephanie Woerner say the solutions to a successful digital transformation lay in six questions: The answers, Woerner said, can help an enterprise figure out which of four business models — ecosystem drivers, suppliers, omnichannel businesses, and modular producers — it falls under and decide which direction it wants to move toward. How will the company connect using mobile and the internet of things? Like CapGemini and McKinsey, they touch upon customer journeys and take it one step further. Work smart with the Thinking Forward newsletter. They call stage one of their DX framework ‘shared understanding’. To write the book, Weill and Woerner convened a series of “virtual roundtables” with business leaders, asking them to identify the most important digital-enabled transformation projects they were working on. Accenture places vision at the top. digital transformation: a roadmap . It didn’t seem intuitive. Like MIT and Cognizant, this DX framework gives basic business advice. Shouldn’t the customer be here? study conducted by the mit center for digital If we cast stage 1 as front-of-office, then stage two is back-of-office. However, frameworks shouldn’t be prescriptive. Weill and Woerner recommend businesses experiment with becoming an ecosystem driver, which tend to see higher revenue growth and net profit margins than the other models. Most customers will tell you, they hate advertising. “We found companies saying ‘What are we really great at?” And so we started by identifying three sources of competitive advantage [content, customer experience, and platforms.]”. A mashup of two awesome frameworks. During each interview, the consultants were shown how to apply the 4Qs to digital transformation and asked to a complete survey. Combine an international MBA with a deep dive into management science. We scored frameworks against each value and came up with a total score out of five. While it’s prudent to address leadership before making change, this concept has been around a long time and is broader. The framework of the course is based on the book Machine, Platform, Crowd: Harnessing Our Digital Future written by MIT Sloan faculty and New York Times best selling authors Erik Brynjolfsson and Andrew McAfee. Digital transformation isn’t a new imperative for business leaders, but COVID-19 has made it more urgent, with companies looking to enhance their agility, speed, and data-driven decision making. Ecosystem drivers — companies like Amazon and Uber that aim to the definitive destination for a particular domain or service — must cover all the bases, Woerner said. “A lot of companies — especially those we call ‘big old companies’ that were not born digital — they were realizing that a lot of these born digital startups kind of had a head start in learning about the customers,” Woerner said. A full-time MBA program for mid-career leaders eager to dedicate one year of discovery for a lifetime of impact. When done right, it will result in a business that is more aligned with customer demands and resilient in the fast-moving digital future. They didn’t know a lot about what their options were and often weren’t getting the best value,” Woerner said. Companies need to adopt a new framework of accountability organized around components rather than functions, product lines, or geographies. We have to use the 7 Principles of Digital Transformation Framework, developed by Ionology. Overall Gartner’s digital transformation ranked highest for company culture. The outer ring labeled data and analytics is clever. “If companies can name the threat they’re facing,” Woerner said, “then they can start to figure out what can be done to address it.”. Like PwCs data and analytics core competency ring, MIT points organizations to develop a reservoir of intelligence about both customer problems and solutions. “They really dug deep into what these, especially younger, military personnel were trying to do. In this article, we provide you a directory listing of digital transformation frameworks and what makes each framework special. The MIT Initiative on the Digital Economy (IDE) explores how people and businesses will work, interact, and prosper in an era of profound digital transformation. CapGemini’s DX framework digitally transforms three key areas of an enterprise: customer experience, operational processes, and business models. How to Create a Data-Driven Culture Ben Shields, senior lecturer at the MIT Sloan School of Management, outlines three steps to steward a data-driven culture inside your organization. MIT’s DX framework calls value propositions ‘offers’. Based on the Digital Masters and how they approached digital business transformation. Michael is the author of two critically acclaimed books: Serious Play: How the World’s Best Companies Simulate to Innovate and Shared Minds—The New Technologies of Collaboration.A research fellow at the MIT Sloan School’s Center for Digital Business, Michael is a columnist for Fortune, CIO Magazine and MIT’s Technology Review, and is widely published in the business press. This decision is backed by research that suggests skill gaps are one reason why digital change fails. Which digital business model is best for its future? We will evaluate each framework based on its own merits in a moment. Suppliers need to ensure they remain adept at producing high-quality content, while omnichannel business models must focus heavily on a stellar customer experience and modular producers, which offer “plug-and-play” services need to be able to integrate reliably with other business’ platforms, no matter the technology. In a rapidly expanding digital marketplace, legacy companies without a clear digital transformation strategy are being left behind. A doctoral program that produces outstanding scholars who are leading in their fields of research. Designing employee experience in the remote work era, Glimpsing the future of work in warehouses. COVID-19 crisis has accelerated the transition to a digital future. Gartner wrote a six-step digital transformation framework, enabling CIOs and other business leaders to build a successful digital enterprise. Industry 4.0 refers to the fourth industrial revolution. However, the framework should be simple to apply. 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