Digital leadership

- doing the right things for strategic success of digitalization of

enterprise
Observation
-everyone wants to be digital
-CEOs have variied perspectives what that means (new tech, customer
engagement, )
-> lack of clarity

-People more concerned with culture change & strategy than technology
-Digitalization -> interconnectedness of enterprises

6 things to change when DT(digital transformation):

-concept of business strategy should be enlarged to include digitalization
(it strat not beneath business start)
-enable digital business models for creating business value (with new value
propositions)
-connectivity (more integrated inside and outside beyond traditional ERP &
supply chain)
-different mindset at all levels of the organization (more adaptive &
innovating)
-rethinking IT function (and CIO)
-workplace (flexibility)

LEGO
-2014: 2/3 revenues from new products
-"wheel" reduced silos & more communication
-LEGO consciously decided that it would not have a separate digital
products business unit
-Values: openness, trust, innovation, quality

-took on too many ventures into unknown fields (theme parks, clothing, video
games, movies)
-> new CEO started stop losses (stability strategy)
-> later back to growth strat

DT at LEGO
-Products
-hybrids (Mindstorms, Fusion[Combine App & Bricks], Dimensions)
-embrace openness (Mindstorm OS Hack) -> user creations
-> numerous Platforms & R&D Lab after that after that
- Crowdsourcing innovation (Lego Ideas, Creator gets share of sales)
->monitor trends, community connection
-Children-centered platforms (for sharing)
-Adult Lego Users with own communities
->representative as ambassador

DT for Marketing
-Pull activity than Information push
-Three audiences (Buyers [retailers], Shoppers, consumers & fans)
1.omnichannel move
-physical presence (stores, legoland, conventions)
-Social Media & Website
-"trailer" video games
-AR App
-Interactive content creation cycle is fast -> external agency
-Lego Movie
2.increased digital engagement
-more engaged users -> more likely for two way dialogue
 -Micromarketing data
-users rate UX on website
3. Globalizing Digital Assets
-balancing its own IP with externally licensed IP rather
-multiple languages

Enterprise Platform Digitalization Moves

-customers and partners who want more responsive digital engagement
-> rethink CIT architecture
-two platforms
-traditional for transactions
-second-generation platform for interaction & engagement
->5 moves for DT for enterprise platofrms
1.Bolstering IT platform
-simple, global, consistent & standarized processes
-2004 information flow inadequate
-> visibility lacked & many silos (Who was loosing money? who made it?)
solution:
-corporate apps with personalized interfaces (one app, one use) (modern, no
clutter)
-prototyping in collaboration with users

-traditional enterprise apps -> first cost, then quality then reliability
-digitalization apps -> time highest priority (quick releases), then
reliability (online store), then quality (continouus prototyping)

2. Building separate engagagement platform

-engagement platform requirements: 24/7 available, digital interaction
-these two platforms loosely connected
-Enterprise Platform -> inside focus, high governance, low change
-digital -> outside focus, low governance, fast change

3. restructuring CIT
-core it in HQ, but new colleagues deployed at other hubs -> integration
-5 CIT groups
-Business Enabling, Marketing & Operations (working with business, one
CIO each)
-Tech&Security internally oriented (CTO)
-CIT Business development to drive Business planning

-high-degree cross-function between each group (and the business)

-agile response important
-more collab. with external partners

4.orchestrating distributed digital innovation with multiple digital officers

-CDO is closer to business� customer offerings than CIO & manages customer
engagement of platform
-CDO manage & monitor introduction of new tech

-Lego different:
-digital officer for each business area, bcs too much for CIT
-> innovation process is distributed & closer to expertise

5. Building up workforce and work environment

-focus on user engagement -> CIT needs to spend more time on prototyping;
spending time with business experts
-hire for career not for a specialization

Business Impacts of DT
 -more focus on customer, less diversification

Towards Digital Leadership(DL)

-different levels of DT:
-first ad-hoc, then enterprise wide (more committed) -> point where it can be
sped up

Lessons for DL
1.execute business strategy digitally (no digital strategy)
-some things only possible digitally(interactive ebook)
-digitalization transforms businesses (uber)

2.Use digitalization to bolster business strategy around your core

distinctive competence
-dont spread out bcs digitalization

3.CIT Function close to Business and enable Responsive Digitalization

-CIT & CIO should understand their groups issues

4.