Digital Transformation Strategies for Leaders | Ahmed Albalooshi | Skillshare

Digital Transformation Strategies for Leaders

Ahmed Albalooshi, Technology & Digital Business Advisor

Digital Transformation Strategies for Leaders

Ahmed Albalooshi, Technology & Digital Business Advisor

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10 Lessons (54m)
    • 1. Introduction

      4:38
    • 2. Class & Project Overview

      3:28
    • 3. Stepping into the Digital Era

      4:34
    • 4. Digital Disruption and the New Competitive Landscape

      6:06
    • 5. Digital Terminologies

      1:40
    • 6. The Basics of Digital Transformation

      11:05
    • 7. Digital Transformation Examples

      7:07
    • 8. Leading Digital Transformation

      6:58
    • 9. Blueprint of Digital Transformation Strategy

      6:25
    • 10. Conclusion

      1:44
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About This Class

A successful Digital Strategy that transforms your business is key to its survival and competitive advantage. 

This is class is for leaders that want to develop a Digital Transformation Strategy that positions their business as an industry leader in the digital era. 

Technology has been and still is, particularly important to business’ survival and success. Historically, businesses relied on technology to achieve levels of efficiencies that could not be attained through manual and labor-intensive business processes. Nowadays, businesses are using digital technologies not only to achieve unmatched levels of efficiency but also to provide a superior customer experience. Some businesses have even chartered to new frontiers by leveraging digital technologies to create new business models or disrupt existing industries.

The class objective is to equip business executives and leaders with a foundational knowledge of Digital Transformation and provide them with a blueprint to craft their own Digital Transformation Strategy. Having a Digital Transformation Strategy that is aligned to a specific business and its industry is crucial to gaining a competitive advantage in the digital era.

Other than covering the basics of Digital Transformation, leaders will experience real-life examples of Digital Businesses. Finally, they will work on a project using a Digital Transformation Strategy template that they can take and apply it in their business.

Meet Your Teacher

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Ahmed Albalooshi

Technology & Digital Business Advisor

Teacher

Ahmed Albalooshi is a technology and digital transformation C-Level executive. Passionate about leveraging technology to empower people and businesses.

An award-winning technology executive experienced in IT leadership, IT governance, IT strategy, IT management and digital transformation.

Currently Group Chief Information Officer (CIO) of a multinational banking group. Chairing several committees in different associations related to Digital Transformation and FinTech.

MBA holder with several certifications: Certified in the Governance of Enterprise IT (CGEIT), Certified Information Security Manager (CISM), and Certified Information System Auditor (CISA).

See full profile

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Transcripts

1. Introduction: Technology is shaping the world. It is shaping the way we live and the way we function as a society. And the business world, technology is not only changing, help companies operate and complete, but also it's a key factor to determine if the business will survive or even thrive in the future. Hi, my name is Ahmed Albalooshi and I'm your instructor for this class. I have more than 20 years of experience working in technology. I'm currently the head of technology at a multinational banking group. When I help banks and multiple countries develop and execute to the digital strategies, I also chair multiple committees that help businesses just like yours, to harness the power of digital technologies to empower their business. From an educational perspective, I have done an MBA with a focus of digital strategy, and it also completed courses on digital business from MIT and Columbia Business School. My aim through this classes transfer this knowledge and experience to you and enable you to achieve two things. One, have a basic understanding of digital transformation. Second is to enable you to develop your own digital transformation strategy that you could take to your workplace and add value. Digital transformation is one of the most important topics in the business world today. If you would like to learn more about it, then this is the class for you. You don't need to have an advance knowledge of technology and business to benefit from this class. All you need is a basic knowledge of how your business operate in order for you to apply the knowledge you gain from this class to your workplace. The class will be structured in the following manner to achieve the two objectives we discussed earlier. Section one is about digital era and the new competitive landscape. And this section, the emergence of digital era will be highlighted and how it's changing the competitive landscape of businesses and their respective industry. Section two will cover the basics of digital transformation. In this section, the terminologies and the fundamentals of digital transformation will be explained. Section three will give you an examples of digital transformation and digital business. And this section, examples will be illustrated with real life walk-through of a digital business. Section four, we'll discuss leading digital transformation. And this section, you will learn about the importance of having a vision of digital transformation for your company and what it takes to lead the company into the digital era. Section five, we'll talk about blueprints of digital transformation strategy. And this section, you will learn to develop your own digital transformation strategy. Section five will be very important for your class project. And the class project, you will develop your own digital transformation strategy that is tailored, made for your business. And I promise you that if you make the time to complete the project, I will review it and provide you with a feedback to improve your strategy and add value to your workplace. We live in an exciting times where technology is rapidly advancing while changing the way we live and function as a society. And in business domain, the lines between the physical and digital world are blurring. Creating new opportunities for a business to optimize itself. But most importantly, creating new business models to generate new source of revenue. I'm excited to share my experience with you and provide you with the tools required to kick off digital transformation journey at your workplace. This will provide you with an opportunity to add value to your organization while advancing your career as you become a valuable business partner. Looking forward to teach you this important topic and review your class project. Thank you. 2. Class & Project Overview: In this video, I would like to give you an overview of the project and lessons you recover and thus class. So the first one is the project overview. The project aims to enable you to develop a digital transformation strategy for your company. It is very important to note that developing a full fledged digital transformation strategy requires a lot of time, resources, and working with people in your company to come up with a cohesive strategy. However, by completing this class project, you will have a blueprints of digital transformation strategy that you could take back to the work and accelerate your digital transformation journey. So here is the project scenario. You have been asked to develop a digital transformation strategy by your CEO and board of directors. Once you complete the strategy, you would need to presented to them. The project was chosen for the sole purpose to enable you to make and real impact and your company. It will not only teach you how to develop a strategy, but also how to present it in front of a CEO and board of directors. So my promise to you, a few devote time to complete the project class, our review of the project, and provide you with a feedback that enables you to refine the strategy and add more value to your work place. Now we'll talk about the lessons we're going to cover in this class. The first one is really setting the scene of why digital era is upon us and how we have reached to such an era. Then as we are in the digital era, what is the digital disruption that is happening and how it's impacting the competitive landscape of the businesses and industry we work at. Then before going into further details, its very important to clarify a few of the digital terminologies that we hear every day. Once these terminologies are clarified, we will talk about the basics of digital transformation. And to cement those basics of digital transformation, we will go through examples of how businesses were able to transform. Then we will talk about leading digital transformation at your company. And then will come to the main part where we will discuss what do you need to do to have a digital transformation strategy. So as a suggestion, these two components, the project class and the lessons, were created to allow you to leave this class. Knowledge and tools to foster digital transformation at your company. As you go through the lessons, think of the opportunities and threats the technology and its impact on customer behavior brings to your business, right them down and think of how you will apply those and your class project. This way. I, when you reach the end of the class, you will have a firmer understanding on how to apply what you've learned and to the class project. So ready to start the journey and lead your company in the digital era. See you on the next lesson. 3. Stepping into the Digital Era: In this lesson, we'll talk about stepping into the digital era and historic context on how we reach to the digital era and the impact it has on our lives. The first Industrial Revolution was enabled by the invention of steam. Steam allowed the mechanism of manufacturing process. The Second Industrial Revolution was enabled by the invention of electricity. Electricity enabled manufacturer to create assembly nine, therefore, creating mass production and massively improving the manufacturing process. The Third Industrial Revolution was enabled by the invention of microcontrollers and computers. Let's help automating and computerizing the manufacturer process. We live in the Fourth Industrial Revolution, a revolution enabled by integration of physical system and digital technologies. And that's creating new opportunities that we are going to discuss later on. The term fourth industrial revolution was coined by closed Schwab, the founder afford economic form. He defines the Fourth Industrial Revolution as the blurring lines between physical, digital, and biological spheres. In front of you is a great example how the blurring lines between physical, digital and biological. This kid unfortunately lost his arm. And with the help of 3D printer that integrates with a biological signals that comes from the body. He was able to gain his ability to grab things. And since tanks, there are spectrum of technologies that are enabling the digital era. In front of you are only some of the technologies that are changing the way we live and how we operate as a society, and even how we conduct business. Things like mobile technology, 3D printing, artificial intelligence are creating opportunities for businesses to change the way they operate and even creating new business models. So what's the impact of these technologies on us on a personal level as changing our habits. For example, the first thing we do when we wake up as check our phone. It is changing the way we consume information, consume services, and also it's changing the way we on things. So for example, we don't need to own a car. We could hail a taxi using Uber, for example. We could rent and accommodation using Airbnb and so on. Technologies also enabling us to learn and work and different ways that were not possible before. From a societal perspective as changes the way we communicate and interact with each other. It is also changing how leaders exert influence on us and also businesses, how they influence us through social media. The business France technology is really shaping the customer expectations. On the business front, technology is changing the customer expectation from our business. They demand the convenience of technology when they use our product and services. Products are also data-driven now. They could be connected on the internet. They could generate real-time information. And this allow businesses to monitor and improve and come up with new products and ideas. Technologies are also enabling new business models, things like platforms, and new business models that purely operate the use of mobile cloud services and so on. To recap our lesson, we have discussed that we live in a digital era. At digital era, enabled by a spectrum of technology that are profoundly changing the way we live, function as a society, but also how we conduct business. And the next lesson, we will discuss specifically how digital is impacting the business and creating a competitive landscape. See you in the next lesson. 4. Digital Disruption and the New Competitive Landscape: In this lesson, we'll be talking about digital disruption and how it's creating a new competitive landscape. For many industries. To illustrate the points will be discussing digital disruption and the banking industry. So if you look at the red line, represents the pace of technology advancement over time. And the last decade we've seen a lot of new technologies like cloud computing, AI and big data, really enabling a lot of organization to grow and optimize their business. When you look at the orange line, this represents the technology adoption by banks. Over time. Banks were fairly consistent and adapting to technology. However, in 2008, the financial crisis created a gap between the pace of technology of advancement when compared to the adoption by banks. This was very obvious because banks were burdened with the crisis and confirming with regulations. They had budget constraints as well as Mistress by their customers. So this gap allowed a lot of companies and businesses outside the banking industry to leverage technology to provide a better services. Some of them are actually financial services. This has created a new competitive landscape for banking industry. Banks are accustomed to compete with each other under the protection of regulations, which means that other companies that are not licensed as a barracks were not allowed to provide banking products and services. But this has radically changed. We've seen telecom companies use technology like mobile wallets to provide banking and financial services to directly to banking customers. We've seen fintechs, financial technology companies providing platform such as crowd funding and crowd lending to businesses and individuals to lend and invest their money. We've seen technology companies like Google, Apple, Facebook, Amazon provide financial services to their customers as well as merchants. We've seen apple providing Apple Pay. We've seen Google, Google Pay. And we also have seen recently Apple introducing their new credit card. On the other hand, we've seen new breed of banks coming called challenger or new Neo bags. Those challenger or new banks operates differently than the traditional banks. They don't need branches or physical presence for you to start an account with them as thoughts using their products and services. So this created a lot of new competitors for the traditional banks, where banks are targeting customers at the convenience of the mobile phone. Okay? And when banks thought that they are protected, we see regulators introducing a new frameworks and regulations such as open banking that mandate banks to share customer data with fintech companies. Not only that, we've seen regulators also creating sandboxes where new technology companies and fintechs come and explore a new banking products and services. Not only that. Now central banks and regulators are coming together and looking at how to further innovate the financial industry and to break up the monopoly of banks and financial services and financial products. As we've seen in the banking industry and digital disruptions as serious matter, it is important that companies undertake digital transformation to ensure that not only that they survive in the digital age, but also thrive and grow as a business. We have seen many businesses lose its status as a market leader because they didn't recognize the changes happening due to technology advancement and changing customer behavior. Kodak is a good example where they used to be a market leader. But because they didn't see the shift of technology and customer behavior, they filed for bankruptcy. Another example is BlackBerry, where they fail to recognize the shifts happening and technology brought by Apple or Google and how it's changing the customer behavior. We also see new business models emerging, disrupting a very old traditional industries. For example, Uber disrupting the taxi and transportation industry. Netflix disrupting not only movie rental, but even producing movies. And as well as Airbnb offering accommodation without even owning a single property. To recap our lesson, we have discussed the digital disruption is creating a new competitive landscape in many industries. Therefore, it is critical for businesses to recognize this fundamental change and to ensure that they survive and thrive in the digital era, they need to undergo digital transformation. And the next lesson, we will be talking about digital terminologies before we go into the basics of digital transformation. And then blueprints for digital transformation strategies. See you then. 5. Digital Terminologies: In this lesson, we'll discuss digital terminologies used in digital transformation. The first term is digitalization. Digitization is the conversion of analog or physical information into a digital format. For example, bank statements were printed as sent to us through traditional meals systems. Now will receive our bank statement through email. The next term is digitalization. It is the use of technology to enable or improve a business model or a process. For example, we used to go to the branch of a bank to enquire or getting a statement about our bank account. However, with the help of mobile banking or E banking, all of these services, inquiries, statements are available at your fingertips. Digital disruption is about the impact of the way business operates and compete as a result of technology advancement and as they associated, customer behavior changes, the most important term as digital transformation. Digital transformation as about the coordinate of massive change effort across the entire organization to optimize operation, grow their business, and even reinvent the business model to create new sources of revenue. Think of digital transformation as a caterpillar that Morse and to a beautiful butterfly. Digital transformation prepared organizations for the future. 6. The Basics of Digital Transformation: In this lesson, we'll cover the basics of digital transformation. We have established perviously that technology is enabling digital transformation. A spectrum of technologies is changing the way we live and function as a society. The purpose of this lesson is to see the impact of these technologies on business. To understand how technology is impacting the business. Important to discuss the five domains of digital transformation. The first domain is customers. Technology has changed the way companies deal with their customers. Previously, customers were treated as one mass market. Now with the help of web technologies, customers are becoming a dynamic network. And companies can also establish two-way communication with their customers. Also. And the past companies were the main influencer about the company image, brand, and products. But with the help of technologies like social media, customers are becoming key influencers about the brand and products. They influence their family and friends. And that has a significant impacts on how companies deal with their customers. The second domain is competition. As we've seen in the banking industry example. Now, companies not only compete with their rivals within the same industry, but also competing with others outside of their industry. Technology is enabling the blurring lines between industries. The other thing is that competition used to be product-driven. Now with platform such as Uber, Airbnb, and others, it is becoming a platform type of competition. The other aspects in the past competition was a 0 sum game means that a few compete and a specific market split and a specific industry, businesses either win or lose. Now, businesses can go into a different market, different industries and compete and different markets and different business models. The ellipse domain is data. Technology has really changed the way companies generate and monitor and act upon data. Data used to be generated within the firm, meaning that all the customer data resides in systems and saw the organization. However, with the help of technologies like social media and other platforms, your customers are generating data outside your organization that is critical for your success. The other aspect is that data used to be in a structured manner. That means they are in a databases within your systems that you have in your company. However, with the emergence of social media, video platforms and user-generated content, these unstructured data as available outside your company. And its is becoming critical for you to understand this data and use it to improve your business. Another factor is data used to be and as siloed manner within the organization. That means different department has different data about your customers, business operations, and products. Now, data becoming very critical for the business success. You are able to generate value from that data that could give you insights on how to optimize the business and even grow that business. The next domain is innovation. Technology has changed the way companies innovate. And the past innovation was expensive. It requires a lot of investment and resources. Therefore, the decisions of innovation is always intuition-based and based on the seniority of the person in the organization. However, and the digital world where you can create digital offering, innovation is becoming cheaper. You can easily test and validate those ideas. And also you could launch Sadat and incrementally improved that offering based on market feedback. Technology is also changing the way companies deliver value to their customers. Historically, value was defined by the organization itself and they decide what's valuable for the customer. Now, value is defined by the customer needs. So if the customer sees value in using technology or using a certain platform, then that the value that the companies need to focus on. Value also used to be done through optimizing the business model of the company. Now, this model is under tremendous pressure to change, to adapt to technology and changing customer behavior. As you can see, these domains are critical for the business success. It is very important that companies understand the fundamental changes that is happening and these five domains and ensure that they transform their current business model into a business model that are able to sustain those changes and improve upon them to ensure that the company survive and the digital era. Now that we have seen how technology is changing fundamentally five of the most important domains of any business. What are the digital transformation strategies that companies can undertake? To answer that, there are two dimensions. The first dimension is the transformation focus. Which areas of the business you'll focus on New York transformation effect. The other aspect and the most important dimension is the transformation vision. What is your ultimate vision to become a digital master, to become a leader and your industry. Now we will go into the details of each dimension. So the first focus areas or operational efficiency. How can you use technology to ensure that your business processes are efficient and effective? The second focus area is the customer experience. How are you going to leverage those technologies? And the fundamental changes are causing N2, attracting and retaining your customers. The third focus area is how to use technology to create more innovative products. Now we'll discuss the second dimension, which is the transformation of vision. There are two visions for digital transformation. Either you optimize the current processes, the current business model. All your transformation vision is about growing the business and creating new opportunities for it. Now it's very important to understand that whatever you decide to focus on, on which version you would like to undertake will ultimately determine the outcome of the digital transformation strategy. So let me give you some examples. And the transformation forecasts dimension. If you concentrate on operational efficiency alone, you will only have an efficient and effective business that might not be enough to put you as a leader and your industry. Moreover, if you focus on the customer experience, all you can obtain out of this as a growing market share. And when you choose on focusing on product innovation, the results will be products that customers love and will ultimately impacts of profitability. Now we'll talk about the outcome of the transformation vision. When you choose to optimize the business, all you have is an improved current business model. You are not introducing a new business model. However, when you focus on growing the business, you will have a new digital offering. You also will have a new business models and then you will become a digital leader any industry, there are key consideration when you select digital transformation strategy for your business. First, digital transformation is a journey. You will not be able to consider all focus area and it will not be able to select the vision of growth if you don't have the fundamental capabilities. So make sure you have a roadmap for your journey. Focus on the things that are more important to the business. Now, putting into consideration that competitive landscape of your business and have a long-term plan to be a digital master. The second key consideration is an industrial focus. You need to select a digital strategy that fits your industry and make sure that puts you at the forefront of the competition. The third most important key consideration as that your current capabilities need to be put into perspective. You cannot even for growing the business, if you don't the current capabilities to run your business efficiently. So it's important to build your core capabilities and then start acquiring capabilities to make you a digital master. The fourth key consideration as constraint, while many businesses aspired to be leaders and their organization and undertake a digital transformation that has very ambitious and you will be limited with the constraints you have in your organization. And don't forget digital transformation as a journey. You could have short-term, medium and long-term to achieve your ambition and the digital era. To recap our lesson, we have discussed that technology is causing a fundamental change and in five of the domains that are important to the business. And therefore, it's very important to select a digital transformation strategy that puts us at the forefront of our competition. Digital transformation as a journey, it requires involving all the stakeholders of the organization to determine what ambitions were trying to achieve and what are the focus areas that we need to concentrate on? And the next lesson, I will show you examples of digital business. See you then. 7. Digital Transformation Examples: In this lesson, we'll cover some examples of digital transformation and digital business. The first example is Netflix. Netflix is an interesting case because a lot of industry analyst attribute the bankruptcy of Blockbuster, Netflix. Blockbuster was the place to go when you wanted to hire a movie. So when that fixed launch acknowledged as services as a subscription, you will subscribe to their business and they will physically mailed a DVD GO. The technology aspects is that should you were able to select the movies you want to watch through a website and through your choices, they were able to identify the movies that you want to watch next. Meanwhile, Blockbuster didn't change. Its continued offering their services and rentals through their physical store. As technology became more accessible, internet became more faster. Computers, mobile phones, laptops became more common. Netflix transform their business from mailing DVDs and streaming services, where you could watch any movie you want at the click of a button. Nowadays, Netflix is not only streaming movies, but they are creating their own TV shows and movies because technology enabled them to produce movies and TV shows at a lower cost. As you can see, Netflix was a good example of how they could anticipate the changes in technology and its impact on customer behavior and transform their businesses to offer something of a value to their customers. Meanwhile, Blockbuster didn't do anything to transform their business. They insisted on providing the services the way they always do. This example illustrates the importance of adapting to technology and customer changing behavior to continuous transforming your business and to ensure that you always provide value to your customers. Our second example is beehive. Beehive is a FinTech Financial technology company providing crowdfunding platform. If you recall our lesson on how digital disruption is changing the competitive landscape and banking, beehive is one of the industry disruptors. Why it is disruptors? Because businesses, instead of going into bags, they would come to the platform and request funding. Investors like you and me, as low as 100 homes, have the ability to invest or fund those businesses and yield better return than putting their money in a saving or an investment account. Now, this is not a promotion to beehive and I'm not associated with them. And such investment carry a risk of losing your money. However, this is a great example how digital businesses are disrupting the industry. So to give you a better understanding of beehive as a digital business. I would like to walk you through their platform. Remember the reason of why these are disrupters is because they provide a convenience to their customers. It is very convenient for me to invest my money. There is no physical presence whatsoever, an opening an account with them, depositing money, withdrawing money, or even investing my money. So as you can see in front of you, this is the dashboard you get. Here. It shows you the money you have and how it is allocated based on your investment choices. If you would like to make an investment, you go to the marketplace and look at what are the businesses available. You could simply know more about the business. You can look at their website, their financials, and then decide how much you would like to invest in them. If you would like to see how your previous investments are performing, you can simply click on this based on your investments that will show you a breakup of the investments based on risk profile. And if you would like to see which businesses you invest in as a risk, plus, you click on it and it will show you all the companies you invested and what are the current capital, what is the return and so on. Therefore, if you would like to deposit more funds in your account, you just need to click and transfer the money to them. And if you would like to withdraw as the same process, as you can see, it's very easy service to use. But most importantly, the convenience alone is not enough. As you can see, that my current investments are yielding to me 11%. The flower would put that same amount and a bank account, it barely get 0.5%. However, such investments are very risky. It is possible that you lose all your money. So what is the value for the other parts of the platform, the businesses that are seeking funding. Obviously, they are paying less than what banks will charge them. Plus is the convenience that they would also get their money faster than the normal process that banks take. And the United Arab Emirates typically a takes two to three months to find a business. While if you seek funding from this platform, you would typically get your money and two to four weeks depending on the interests of the investors. So such Platform provide convenience for both sides, the investors and the businesses, and provide value to both of them. And this is the power of digital business. They've created a new business model where its funds businesses and allow investors to invest their money purely using digital technologies. In this lesson, we've covered two examples of digital transformation. The first one was net flux and their ability to continually transform by adopting technologies to provide value for their customers and stay ahead of the competition. The second example was beehive as a digital business, disrupting the incumbent of the industry by providing value to both the investors and businesses seeking funding. And the next lesson we'll talk about leading digital transformation. See you then. 8. Leading Digital Transformation: In this lesson, we'll be talking about leading digital transformation. How do you ensure your company Thrive and the digital era? The good news is that leaders in digital transformation are actually more profitable than businesses that does not pursue digital transformation. This is a study that has been done that illustrates that whoever embrace digital transformation and become a leader and their industry are actually more profitable than their peers. Research shows that companies that become Digital Masters and become leaders in their industry undertake digital transformation differently. They have different capabilities that distinguish them from their competition. So the first strand of the DNA Masters is that they have leadership capabilities. They recognized that digital transformation as a journey. It's not a project or initiative that belongs to a specific department or the IT department. It's a collective effort of the entire organization to be in the forefront of their competitors. Other aspects of leadership capabilities at the CEO and board of directors defines the digital vision for the company and ensure that the entire organization is marching toward that vision. The other thing is Digital Masters. Follow a top, bottom approach, means that the Board of Directors and see you really believe that digital transformation as critical to the success of the business. The second strand of the DNA as digital capabilities. The first aspect of digital capabilities as that investments at technology is done based on business need and that more so than toward the Digital Vision. The focus on investments that creates value to the business and their customers. They also invest in technology that generate revenue for them. So there are four types of companies when it comes to digital transformation. The way they develop their digital and leadership capabilities, determine if they are a digital master or not. So the first type of company is the big enough type. The beginner type is very low on the leadership capabilities and the digital capability as well. They just started their digital transformation journey and they are building those capabilities as they go. The other type of company is the conservative types. The ones that have high leadership capabilities, but are very low on the digital capabilities front. That means they believe in the digital transformation and the value they will get, but they are very selective in which technology investment dates to. The third type of the company is the fashionistas. Those companies invest in every technology possible, but they don't have the leadership capabilities to ensure that the investments heels to revenue and profitability. The fourth type of companies are the digital masters. They have high capabilities both in digital and leadership that positioned them ahead of the competition. They have a clear vision of how the company will be positioned in the future and how digital will help them grow their business. They also have excellent governance that cascades from the board of directors and the CEO and replicates down and the company. They ensure that digital generate value to the company and all the stakeholders, including customers. Digital Masters knows the importance of culture. It is very important that all aspects of the business really embraced digital as the way of work. Therefore, they ensure that culture is aligned with the company vision and strategy. Research shows that digital masters outperform their competitors and generate 26% more profit than their peers. Digital transformation have as challenges. It is important for the leaders of the company to anticipate these challenges and plan on how to deal with them. Some of the leaders only see the Eisenberg of these challenges. This could be in a form of resources that the company does not have enough resources to conduct digital transformation. Or some of the industries would say regulation will stop them from embracing new technologies. And also some of the companies will have challenges with their old, outdated legacy system. Therefore, it's very important that leaders see the real challenges of digital transformation. One is the lack of leadership vision. Digital transformation requires to have a clear vision on how the company will be positioned in the digital era. Therefore, having vision as critical to the success of digital transformation. Also leadership buy-in as very critical for digital transformation. They need to believe that digital transformation is critical to the survival of the company. The company culture is critical to the digital transformation success. Everyone in the organization need to understand the importance of digital transformation and ensure they devote their time and resources to achieve the objective of digital transformation. Digital transformation is not a onetime initiative, intercourse, continuous innovation to see how technology could generate value to the company and its customers. To recap the lesson, we will discuss that companies that undergo digital transformation yield better results than their peers. They are actually more profitable. However, to undertake digital transformation, right, the company needs to essential capabilities. One is leadership capabilities and the second is digital capabilities. Together at positions that company to be at the forefront and become a digital master. And the next lesson, we'll talk about the blueprints of digital transformation strategy. See you then. 9. Blueprint of Digital Transformation Strategy: We'll come to the last lesson of this class where we will discuss the blueprints of digital transformation strategy. It is also important to mention that this lesson is also important to compete your class project. I have created you a PowerPoint template where you could fill your own strategy and take it to your workplace and kickoff your digital transformation strategy there. Before we go into the details of digital transformation strategy, it is very important to cover the overall picture that will drive your digital transformation strategy. The first component is the business vision. It is very important to understand what is the vision of the company you work at. Obviously, the company will also have a strategy to achieve that vision. All of these are elements that you require to create your own digital transformation strategy. Then as a result of the digital transformation strategy, you will need to have a digital operating model that will allow you to execute the strategy. While digital operating model is not within the scope of this class. I just want to give you a high-level idea on what does it constitute of. First digital operating model talks about the structure or the organization chart that will execute. The digital transformation strategy also actually define the accountability of the organization and who exactly is responsible to deliver what of the digital transformation. Then it talks about the governance of digital transformation. Starting from the board of directors to the CEO and relevant departments that will execute the digital transformation. Then we'll talk about ways of working, how the organization will work together with different department to execute that digital operating model. Then what are the capabilities required to execute that digital operating model? What are the people, resources, information required to enable that digital operating model to work? Now let's focus on the digital transformation strategy. What are the building blocks of a strategy? First, you will have an executive summary. Then it will be followed by a business contests that to give you an idea of the company's vision and strategy. Then how does that business contexts drive the digital transformation? Then you will articulate what is the digital vision that you aspire to achieve. F this digital transformation has completed. Then you need to list all the digital opportunities and digital threads that are impacting your business. Then you'll have to talk about digital capabilities. Now that you have identified opportunities and threats, what are the capabilities that you require to leverage those opportunities and mitigate those threats. At the end, you will need to illustrate the roadmap that will take the organization from where it is. To achieve the digital vision, you also need to define the budget record to execute the strategy. Now that we have identified the building blocks of a digital transformation strategy, let's see what details do we need to include in each of them? This details will be essential when you want to develop your digital transformation strategy. Whether it's a written document strategy or a PowerPoint presentation like the one we are covering and the class project. The executive summary is one page and left. Typically that focus on y transformation is needed. And what are you asking the CEO and board of directors to approve? The second component of the strategy is the business context. What is the business vision and what is the strategy that is in place to achieve that vision? It is very important to Alice straight the understanding of your business in order to ensure that digital transformation is enabling that vision. Digital context talks about which technologies and trends that are impacting the business and the industry you work in. Ed talks about how this technology is changing the way companies in your industry operate and compete. In the digital vision, you will articulate what is your vision for the company and the digital era, and how you will achieve digital mastery. The next components as digital opportunities and digital trends. Technology is creating new opportunities for businesses that needs to be leveraged, but at the same time creating threads that needs to be mitigated. And this section you will list what are these opportunities and threats and the context of digital that we've mentioned above. You can also conduct a SWOT analysis where you can identify what are the strength, weaknesses, opportunities, and threats that are relevant to your business and the context of digital transformation, then you need to talk about what are the digital capabilities you require? What are the processes, resources that you need to harness the digital opportunities that we identified earlier. And also traumatic gate, the thrust that technology brings to your business. The last components is a high-level roadmap and budget. And this component, you will develop a roadmap that illustrates how you will achieve strategy. This will include projects and initiatives that the company needs to undertake. To achieve the strategy. You will also need to define what is the budget required to achieve that strategy. We come to the end of the class. I would like to take this opportunity to remind you that digital transformation sole purpose is to create a digital master of your company. By becoming a digital master, really ensure that your company not only compete, but thrive and the digital era. 10. Conclusion: Congratulations on completing the class. Now you have the fundamental knowledge of digital transformation strategy. And by completing the class project, you have the tool to take back to your workplace to kick off your digital transformation journey. Throughout the class, we have covered how technology is causing a fundamental change on how businesses operate and compete. It is creating a new competitive landscape that requires companies to undertake digital transformation. To stay relevant. We also discussed the digital transformation strategies that the company can undertake to be digital masters. They need to select what are the focus areas and most importantly, what is the ambition of the transformation. We discussed how you can lead digital transformation inter-company, and that leadership and digital capabilities are critical to the success of digital transformation strategy and your organization. I urge you to complete the class project. I have created a template of digital transformation strategy that you can fill and take to your workplace. And I promise you that if you devote time to complete the class project, I will personally review the project and provide you with the feedback. I would like to sincerely thank you for your time and allowing me to share my experience with you. I hope I can have the privilege to teach you another class until then. Thank you and have a successful digital transformation journey.