Presented by Mr Nicholas Tan, Principal Lecturer & Consultant, Digital Strategy & Leadership Practice,NUS-ISS, at NUS-ISS Learning Day 2019

1. What is Digital Transformation?
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Nicholas Tan, NUS-ISS
2 August 2019

2. Question
What does Digital mean
to YOU?
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3. Question
What does Digital mean
to your BUSINESS?
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4. Confluence…
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C
u
s
t
o
m
e
r
Mobile
Social
Mobile
Analytics
B
u
s
i
n
e
s
s
C
u
s
t
o
m
e
r
Social
Cloud

5. … of Technology and Mindset
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C
u
s
t
o
m
e
r
Mobile
Social
Mobile
Analytics
B
u
s
i
n
e
s
s
C
u
s
t
o
m
e
r
Social
Cloud
… to do things in new ways
that:
• Creates value from the
perspective of customer
mindset
• Captures value from
new business
possibilities
• Creates foundational
capabilities that support
the new ways

6. Of Technology
The onward march of technology, with examples of recent broad-based impact:
• Cloud
• Distributed and scalable
• Performance and volume
• Agility in offering digital service
• DevOps
• Continuous integration/delivery
• Continuous improvement
• User eXperience Design
• Simpler to build and explain
• Easier to understand and use
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7. Of Mindset
The quest for instant/constant gratification:
• Online – accessible wherever there is internet connectivity
• Real-time – 24/7
• Instant – no wait for access, feedback, notification, …
• Looks – eye-catching UI, intuitive use, …
• Change – ever-changing to keep up with the fashion of the
moment
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8. Of Mindset
The quest for instant/constant gratification:
• Online – accessible wherever there is internet connectivity
• Real-time – 24/7
• Instant – no wait for access, feedback, notification, …
• Looks – eye-catching UI, intuitive use, …
• Change – ever-changing to keep up with the fashion of the
moment
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9. Agenda
• What is Digital
 What is Digital Transformation
• Why Go Through Digital Transformation
• Getting Digital
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10. Digital in its Many Forms
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Digital
To do things in new ways
that:
• Creates value from the
perspective of customer
mindset
• Captures value from
new business
possibilities
• Creates foundational
capabilities that support
the new ways

11. Digital in its Many Forms
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Digital
To do things in new ways
that:
• Creates value from the
perspective of customer
mindset
• Captures value from
new business
possibilities
• Creates foundational
capabilities that support
the new ways
Digitise
Convert physical
records to digital
computer files

12. Digital in its Many Forms
#ISSLearningDay
Digital
To do things in new ways
that:
• Creates value from the
perspective of customer
mindset
• Captures value from
new business
possibilities
• Creates foundational
capabilities that support
the new ways
Digitise
Convert physical
records to digital
computer files
Digitalise
Use digitised
information to
make existing
ways of working
simpler and more
efficient

13. Digital in its Many Forms
#ISSLearningDay
Digital
To do things in new ways
that:
• Creates value from the
perspective of customer
mindset
• Captures value from
new business
possibilities
• Creates foundational
capabilities that support
the new ways
Digitise
Convert physical
records to digital
computer files
Digitalise
Use digitised
information to
make existing
ways of working
simpler and more
efficient
Digital
Transformation
Change the way
business gets done
and in some cases,
creating new
businesses

14. Digital Transformation
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‘… profound transformation of business and
organizational activities, processes, competencies
and models to fully leverage the changes and
their accelerating impact across society in a
strategic and prioritized way, with present and
future shifts in mind.’
opportunities of a mix of digital technologies and
– i-Scoop

15. Digital Transformation
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profound transformation business
competencies
fully leverage
impact across society
strategic and prioritized way,
digital technologies

16. Digital Transformation
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profound transformation
business competencies
fully leverage
impact across society
strategic and prioritized way,
digital technologies

17. What Drives Digital Transformation?
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‘Digitally mature businesses are focussed on integrating
digital technologies… in the service of transforming how
their businesses work. Less mature digital businesses are
focussed on solving discrete business problems with
individual technologies. Digital technologies deliver the
most value when they are integrated and synthesised – and
supported by a culture that fosters risk-taking. Investment in
technology must be matched by an investment in cultural
and organisational transformation.’
‘A digital strategy does not treat technology in isolation, as a
separate component of the business’ operations; it is not just
an IT strategy or a marketing strategy. Rather, it considers
how digital technology can completely reshape the
company’s relationships – and reaches beyond “digital
substitution” to create a digital edge, where digital
information and physical resources combine in new ways to
create value and revenue.’

18. Transformation Mind Map
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19. Customer Value Proposition
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describe how products
and services create
customer gains
describe how products
and services alleviate
customer pains
list of all the products
and services a value
proposition is built
around
describe the outcomes
customers want to achieve
or the concrete benefits
they are seeking
describe what customers
are trying to get done in
their work and in their lives,
as expressed in their own
words
describe bad outcomes,
risks and obstacles related
to customer jobs
fit
Fit when products and services produce pain
relievers and gain creators that match one or
more of the jobs, pains and gains that are
important to the customer

21. Business Model Canvas
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 an organization serves
one or several customer
segments
 it seeks to solve customer
problems and satisfy customer
needs with value propositions
 value propositions
are delivered through
communications,
distribution and sales
channels
 customer relationships
are established and
maintained with each
customer segment
 revenue streams result from value
propositions successfully offered to
customers key resources are the assets required to
offer and deliver the previously described
elements
 the business model elements result in
the cost structure
 some activities are
outsourced and some resources
are acquired outside the
enterprise through key
partnerships
 by performing a number of
key activities

22. Undercut Value Chain
• Customer segments
• Channels
• Partners
• Platform model – enjoys network effect
• Complementary products/services
• Brand
• Revenue model – subscription, pay per use, etc.
• Cost structure
• Skills and processes – unique and essential to the
value offered, e.g., design
• Physical assets – digital + brick & mortar
• IP assets
• Data assets
Overwhelmed Value Proposition
• Lower price – sometimes free and ‘freemium’ model
• Access – anywhere, anytime
• Personalised
 Choices, with smart recommendations
 Customisations
• Unbundling – only what is needed
• Bundling – whole is better than sum of parts
• Network effect – social experience of sharing

23. Thank You!
nicholas_tan@nus.edu.sg
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