taking digital strategy to the next levelembracing conventional digital technologies and associated...

TAKING DIGITAL STRATEGY TO THE NEXT LEVEL

STEVE MUYLLE, PHDFULL PROFESSOR & PARTNER

Vlerick Business School

NASDAQ

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“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

© Prof Dr Steve Muylle

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.

© Amit Basu © Steve Muylle

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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

© Amit Basu © Steve Muylle

TECH TRENDS & MARKET SHIFTS

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BIG DATA ANALYTICS

© Prof Dr Steve Muylle

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BIG DATA ANALYTICS

© Prof Dr Steve Muylle

▪ 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

© Prof Dr Steve Muylle

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CUSTOMER BEHAVIOR

© Prof Dr Steve Muylle

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PRODUCT DIGITIZATION

© Prof Dr Steve Muylle

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PLATFORM MARKETS

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Vision 2020: Smart Platforms & Energy Services

“Toon Open API”www.toonapi.com

© Prof Dr Steve Muylle

Vlerick Business School

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

© Prof Dr Steve Muylle

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

© Amit Basu © Steve Muylle

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INNOVATION WITHIN EXISTING BUSINESS MODEL

© Prof Dr Steve Muylle

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STRATEGIC EXPERIMENTS

© Prof Dr Steve Muylle

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DIGITAL TRANSFORMATION

© Prof Dr Steve Muylle

▪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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IBM BLUE MATCHING

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Source: https://www.slideshare.net/scherbakovvladimir/dec-910-2015-talent-mngt-forum-epertise-ibm

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MEET MYA

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Source: https://hiremya.com/

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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

Vlerick Business School

UNILEVER NEW TALENT RECRUITMENT

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Source: Business Insider, Unilever uses AI to hire entry-level employees, Jun 28 2017.

Results July 2016 – June 2017:

▪ Applications to jobs doubled within

the first 90 days of their posting

year-over-year, to 30,000

▪ Average time for a candidate to be

hired was reduced from 4 months

to 4 weeks

▪ Job offer acceptance rate increased

to 82% from 64%

▪ “Most diverse class to date”

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PRIORITIZATION – STRATEGIC BUDGETING

Worth ExploringWorth Building

Valu

e

Cost

Unattractive

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STRATEGIC EXPERIMENTS

© Prof Dr Steve Muylle

TAKE AWAY

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▪ Embracing conventional digital technologies and associated

business practices does not suffice

▪ Incumbent firms take digital strategy to the next level 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, PhD

Full Professor & Partner

Academic Director Online MBA

Accenture Digital 20/20 Chair

Vlerick Business School

Steve.Muylle@Vlerick.com

www.linkedin.com/in/stevemuylle