MIT CISR research has concluded that digitally transformed companies enjoy net margins 16% above the industry average. Our top content from 2018 covers transformation’s various facets, such as business models, digital design, agility, analytics, and employee experience. Here are our top ten publications in 2018.
Each of these publications can be accessed with free registration on the MIT CISR website.
Digital technologies are changing the business landscape. What can you do to protect against threats and to harness opportunities to grow your company profitably? This video is the first in a series based on the book What’s Your Digital Business Model?: Six Questions to Help You Build the Next-Generation Enterprise by Peter Weill and Stephanie Woerner. Listen as Dr. Peter Weill offers examples of companies creating new value in the digital era.
Established companies face daunting changes as they attempt to introduce digitally inspired customer value propositions. MIT CISR research has identified a set of five building blocks that develop assets essential to delivering digital value propositions. This briefing describes the five building blocks and the practices and tools established companies are relying on to develop their digital assets.
To remain competitive, established companies are increasingly recognizing the need to develop digital offerings. Digital offerings, however, are dependent on software. Unlike traditional products and services, software-based offerings constantly evolve in response to both customer demands and new opportunities to address customer needs. To support digital offerings, companies must adopt new organizing principles—specifically, empowered teams that own digital components. This briefing examines what established companies can learn from Spotify as they attempt to reorganize around empowered teams.
Most established companies must rethink their value propositions in light of what digital technologies make possible. Recognizing the viable opportunities for integrated customer solutions is not easy. The bigger challenge, though, is transforming your company to deliver digital offerings consistent with your targeted value proposition. This briefing highlights the journey companies are taking to successfully transform for the digital economy.
A company’s employee experience, produced by balancing increasing work complexity with collaboration, impacts how effectively the company’s people can work in a digital environment. Digital capabilities that enable new ways of working and evidence-based leadership are key in building great work experience. It’s important to get it right: companies that do deliver different business value. In this animated short, Dr. Kristine Dery—who is studying employee experience, the digital workplace, and talent—details an employee experience framework from the research.
Blockchain applications promise to smooth out the many friction points in today’s business transactions. We don’t doubt blockchain technology’s potential to be transformational, but before it becomes widely applied, technology and business leaders must resolve some rather gnarly issues, including (1) the lack of standards, particularly in data formats and how different types of transactions are defined; (2) immature technology, which currently limits security, capacity, and processing speed; (3) regulatory uncertainty; and even (4) immature and undisciplined internal transaction processing systems that must link seamlessly to blockchain applications. This briefing addresses what companies should be doing now to build blockchain capabilities.
To succeed in the digital economy, companies need to be both digitized and digital. Despite the similarity of the words, there is a big difference. Digitization is an operational necessity and involves standardizing business processes. To become digital, leaders must articulate a visionary digital value proposition for customers and deliver it in the form of digital offerings. This briefing clarifies what is involved in these two essential transformations and describes Schneider Electric as an example of how a company progresses from digitized to digital.
Companies create customer value with analytics by wrapping them around core offerings to reinforce, streamline, or enrich the usage or experience of the offering; companies can apply data wrapping to any customer touchpoint. Regardless of where data wrapping falls along the customer journey, two key capabilities are required to generate customer value: analytics and customer intimacy. These capabilities allow companies to create wrapping that is tailored to the customer and automated.
To counter pervasive uncertainties in the business and technology environment and prioritize the most strategic innovation projects from myriad options, companies can take a test-and-learn approach to innovation investments. From our analysis of top-performing firms, we have identified three principles around which test-and-learn capabilities can be built: articulate a vision that focuses and guides innovation efforts; foster experimentation throughout the organization; and deepen engagement to coordinate interdependencies. This briefing describes each principle and discusses how one large firm, Deutsche Telekom, has applied these principles to increase the strategic impact of its digital innovations.
In the new digital economy, many companies won’t succeed by merely tweaking the management practices that led to past success. To thrive in a digitized universe, businesses of all sizes will need to reinvent themselves and substantially change their organizations. Yet leaders often lack a common language to assess the degree of threat that digital disruption poses to their business, and—more importantly—the language to create a compelling vision for their company’s success. In this briefing, we identify six key questions to help executives as they develop a company’s transformation strategy, and provide an overview of the actions required for success, using companies like WeChat, DBS and BBVA as examples. The briefing derives from the authors’ May 2018 book, What’s Your Digital Business Model?: Six Questions to Help You Build the Next-Generation Enterprise.