digital beyond the obvious - vlerick business school/media/executive... · 6 digital strategy is...

DIGITAL BEYOND THE OBVIOUS

STEVE MUYLLE, PHDFULL PROFESSOR & PARTNER

Vlerick Business School

NASDAQ

2 © Prof Dr Steve Muylle

Vlerick Business School3

“Listen to the lab coats, not the suits. And get the lab coats to produce prototypes,not slideware.”

© Prof Dr Steve Muylle

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JOB MATCHING

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DIGITAL STRATEGY

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WHAT IS DIGITAL STRATEGY?

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Digital Strategy is the use of digital technologies

to enhance the firm’s performance

in support of its strategic priorities.

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THE ENVIRONMENT OF DIGITAL STRATEGY

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INFORMATIONTECHNOLOGY

web, cloud, social, mobile,

big data, IoT, ML

MARKETbehavior,

product digitization,

platforms, ecosystems

FIRMstrategy,

structure, culture, talent

PERFORMANCE

metrics

DIGITAL STRATEGY

digital innovation initiatives

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TECH TRENDS & MARKET SHIFTS

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BIG DATA ANALYTICS

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Decide.com (acquired by eBay; shut down Sep 30, 2013)

Web site (and mobile app)Price Alerts: We'll notify you the moment the price of a product you want drops

Online and Nearby Pricing: Get the best price whether it's in-store or onlinePrice Predictions: Find out whether the price is going down or upPrice Guarantee: If our predictions are wrong, we'll pay you the difference

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CUSTOMER BEHAVIOR

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CUSTOMER BEHAVIOR

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PRODUCT DIGITIZATION

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PLATFORM MARKETS

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Vision 2020: Smart Platforms & Energy Services

“Toon Open API”www.toonapi.com

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MACHINE LEARNING

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MACHINE LEARNING

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MEET HEAD CHEF ANDREW

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(Sources: http://english.huistenbosch.co.jp/ FT.com 1/2/2017)

FIRM

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ORGANIZATIONAL DNAFOR STRATEGIC INNOVATION

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Source: Vijay Govindarajan and Chris Trimble, Organizational DNA for Strategic Innovation, California Management Review, Vol. 47, No. 3, pp. 47-76, Spring 2005.

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FINANCIAL INVESTMENTS

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INNOVATION WITHIN EXISTING BUSINESS MODEL

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STRATEGIC EXPERIMENTS

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DIGITAL TRANSFORMATION

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Transformation A: Reposition the core business, adapting to the altered marketplace Transformation B: Create a separate, disruptive business to become the next source of growth “Capabilities exchange”: Establish a new organizational process that allows the two transformation efforts to share resources without intervening with each other’s operations

Source: Gilbert, Clark, Matthew Eyring, Richard N. Foster, Two Routes to Resilience, Harvard Business Review, pp. 3-9, Dec 2012.

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BEYOND THE OBVIOUS

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TECH TRENDS AND MARKET SHIFTS

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MEET MATLDA

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Source: FT.com Nov 17 2016: Robots muscle in on the job interview.

© Prof Dr Steve Muylle

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PRIORITIZATION – STRATEGIC BUDGETING

Worth ExploringWorth Building

Value

Cost

Unattractive

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STRATEGIC EXPERIMENTS

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TAKE AWAY

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Embracing conventional digital technologies and associated business practices does not suffice

Incumbent firms can go beyond the obvious by

Staying abreast of tech trends and market shifts

Crafting new business models that forget and/or borrow

Piloting new ecosystems as platform leaders

The end game is to have digital innovation drive performance

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TAKE AWAY

© Prof Dr Steve Muylle

Vlerick Business School

THANK YOU!

Steve Muylle, PhDFull Professor & Partner Academic Director Online MBAAccenture Digital 20/20 ChairVlerick Business School

Steve.Muylle@Vlerick.com

www.linkedin.com/in/stevemuylle