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What ICT Companies need

to do in the times of

Digital Transformation

and Industry 4.0

Michel Lason

Homburg & Partner

CeBIT 2016

17th March 2016

X-Ray and Ultrasound for Business:




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Competence Center ICT/ Michel Lason/ 17th March 2016

X-Ray and Ultrasound for Business: What ICT Companies need to do in the times of Digital Transformation and Industry 4.0 2

You have to power to change the way we do business




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“Just as X-Rays and ultrasound advanced medicine,

Digital Transformation, Internet of Things and

Industry 4.0 will advance the way we do business.”

based on a quote of Prof. Dr. Elgar Fleisch in 2008 (!), Professor for Information & Technology Management at

the University of St. Gallen and ETH – Swiss Federal Institute of Technology Zurich




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Solution

and

Service

Provider

Made to

Stock and

Made to

Order

Digital

Communi-

cation

B2B2C

Focus on

Customer

Needs

On-Time-

In-Full

Service

Level

Directly and

Multi-

channel

Delivery

Standard &

Customized

Solutions

Flexible

Production

Order Taker Made to

Stock

Traditional

Communi-

cation

Unknown

Consumer

Standard

Delivery

Distribution

through

Wholesaler

Standard

Catalogue

Volume

Production

Sales Warehouse Marketing End

Customer

Order

Fulfilment Logistics Product Production

The old

grey world

The new

blue world




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Procurement

Technology Development

Human Resource Management

Infrastructure

Service

Marketing

&

Sales

Outbound

Logistics

Production

Inbound

Logistics

Controlling Logistics Administration Research Development

Services Production Product Marketing Sales

Fields of Application of ICT

Manufacturer Consumer Retail

Classic Value Chain (simplified): B2B2C

Post Digital Transformation Value Chain: C2B2B

Manufacturer

Consumer

Multichannel

„It‘s about me“

New Business Models

Online & Offline

I II

Digital Transformation

The customer wants to be

integrated in the production

and provision of tailored

services and products at any

time and from any where

Engaging and embedding

ICT in the right field of

application, in the right

way, can release new value

potential in the whole value

creation process and

provides for new business

models




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Thus the big picture we have is getting sharper by the

minute – and we have the capability to see clearly

This new clarity and transparency along the value

creation has the capacity to change business for good




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You may say: Why just “capacity”?

Doesn’t it change business already?

To what I say: Not enough!




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Economics vs. Technology




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vs.




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Strategy





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Strategy


Structural change doesn’t just simply “happen”.




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„What‘s the Business Case?“




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„What‘s the Business Case?“

“But a lot of companies already do Digital Transformation, Internet of Things, Industry 4.0…”




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Do they really?

Should-be: Systematic and strategic view

Strategic Business Segments

Company

Sector view

Business Unit

Business Unit

Strategic handling of Digital Transformation by

systematic identification and exploitation of potential

Open innovation for some applications in some technology fields

As-is: Uncoordinated and random view

Product Development

Company Business Units

Ex post: „Of course, we do Digital

Transformation…”




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How can companies achieve the

systematic and strategic view on their

strategic segments?




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Two possibilities:

Inside-out

or

Outside-in

Market Resources

Resources

Capabilities

Activities

Business Model

Market Position

Strategic Position

Marketing

Segment

Offering

Competitive Advantage

Competitive Advantage

Superior Profitability

Value Creation Positioning




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Both ways are possible…

BUT: Although path via Value Creation very often with great stories that show the vast possibilities of

Digital Transformation, they are mostly demonstration of capabilities.

The benefit, the commercial utilization and the business case remain vague…

Additionally the company may get lost in the nearly infinite possibilities of applications

Market Resources





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Recommendation:

Via Positioning

BECAUSE: Structured and tangible approach

Clearly oriented to the market

Strategic decisions are based on a business case!

Market Resources





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Now, let’s go to the of matter:

How do I – as an ICT company – identify

lucrative innovations in the context of

Digital Transformation, IoT and Industry 4.0

that have a promising business case?




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Segment Selection

II

Commercial Excellence

VII

Product/ Service Innovation

III

Go-to-Markt

Business Model

PRE

V Additional Services

VI IV

I

Operational Excellence

VIII




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Segment Selection

II


VII


III

Go-to-Markt

Business Model

PRE


VI IV

I


VIII

Resources

Case 1: IT-Software




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Segment Selection

II


VII


III

Go-to-Markt

Business Model

PRE


VI IV

I


VIII

Resources

Case 2: IT-Services




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Segment Selection

II


VII


III

Go-to-Markt

Business Model

PRE


VI IV

I


VIII

Resources

Case 3: IT-Hardware




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So what?




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The following will happen:

Digital Transformation, IoT and Industry 4.0 will

– at least partially –

destroy business of ICT companies!

…but: new business will emerge!

Digital Transformation, IoT and Industry 4.0 will

– at least partially –

not affect business of ICT companies!

…but: business will need to be marketed differently!




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Recommendation:

ICT companies need to deal with their chances and risks of

Digital Transformation, IoT and Industry 4.0 dedicatedly,

systematically and on a strategic level.

If an ICT company aligns itself strategically to

identify and exploit the business potentials enabled by

Digital Transformation, IoT and Industry 4.0 and

manages to reduce or even avoid risks – it will in the end be

successful!

The best part: it’s an area of growth that can be tapped without risking too much…




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Strategic alignment of the ICT company to Digital Transformation, IoT and Industry 4.0 will

transform the company into a customer-centric organization with customer-oriented

processes that feature the following characteristics:

Ubiquitous, always and from anywhere obtainable by the customer

Specific, with individually tailored products and services based on the customer’s need

Agile (and flexible), because they constantly adapt to changed market settings

Predictive (thus fast), because needs are instantly noticed and met with reaction

…and these are the key success factors of successful companies

in the Post Digital Transformation World!

Furthermore the ICT company will become future-oriented and will benefit from

first mover advantages and create sustainable competitive advantages

based on market positioning and value creation.




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Thank you for your attention…

Remember:

You have to power to change the way we do business

Download - X-Ray and Ultrasound for Business - Deutsche Messe AGfiles.messe.de/abstracts/68633_CGC16_Lason_Homburg_Partner.pdf · Home | Slides | Layout 12,10 7,94 12,10 12,10 7,94 12,10 4,40

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