This document discusses digital transformation and its challenges. It identifies key reasons for digital transformation as improving customer experience, reducing inefficiencies, and innovating to keep up with digital disruptors. Some top challenges are modernizing legacy systems, developing digital talent, and managing competing technical priorities. The document also differentiates between incremental optimization and full transformation, and outlines eight levers including demand generation, customer experience, and new business models that can be used for digital transformation. It provides a case study example and identifies important factors for success like people, culture, data, and having an end-to-end approach.

1. Digital Transformation Success

2. Why digital transformation and why now?
Customer experience
Reduce operational
inefficiency
Modernizing legacy
systems
Org Structure &
DigitalTalent
Change Management
Competing technical
priorities
Innovation and
customer experience
are priorities
Revenue generation
and growth
Impact of digital tech
trends on business
priorities
1958 – 61 years
2016 – 18 years
Inefficiency
Digital Disruptors
Top Challenges
Top Needs
Corporate Lifespan
Shrinking
C-Suite Perspective
Sources:
McKinsey, Tek Systems, IDG
Red Hat Global, Adobe & Forrester

3. Why is digital transformation so difficult?
Digital is hard to define
Behavior is changing:
Industry
Societal
individual
Functional areas and
priorities not clear
Path to ROI is not always
clear
Technology is not neutral

4. Digital transformation or incremental optimization?
Phased optimization leading to
full transformation.
• Increased revenues
• Reduced costs
• Improved productivity
• Enhanced customer
experiences
• Improved collaboration
May look like a refinement
rather than a reinvention.
• Increased revenues
• Reduced costs
• Improved productivity
• Enhanced customer
experiences
• Digital products and
services
• New business model
• Monetization of hidden
assets
• High Impact performance
A radical change in the way
products and services are
delivered to create new value.
Transformation Hybrid
Incremental Optimization
Digital transformation or incremental optimization?

5. 8 Digital Transformation Levers: A spin on an
existing framework
¥
The 8 levers for digital optimization &
transformation
• Demand generation - the process of getting
people interested in what you have to sell
• Reach - the extent or range of effect, or
influence.
• Customer experience - is your customers'
holistic perception of their experience with
your business or brand
• Path-to-purchase - series of channels that
customers use or are exposed to in order to
convert into a 'purchase'
• Process - a series of interrelated tasks that,
together, transform inputs into a given
output
• Optimization - the process of identifying
and implementing new methods that make
the business more efficient and cost effective.
• Agility - Adapt quickly to market changes -
internally and externally.
• New Business Models - company's plan for
making a profit
Source: 8 levers framework Flevy

6. A case study
Case study:
Situation:
Firm and its distribution network lagging
behind competition in digital sales.
Action:
Started digital transformation on growth
side: involving digital advertising, websites,
CRM, social media, customer experience,
reputation management and sales processes.
Digital tools and processes were set up to
capture data.
Results:
Significant increase in digital sales.
Data generated was used for product
planning, capacity planning, financial
planning and evaluation of new business
models.
Note: By treating the transformation as non-
linear, the growth side transformation kick
started the efficiency side transformation.

7. Keys to success
• End-to-end
• Break down by-
channel
• Manual vs.
automated
• Replace complicated
processes
• Usable & appropriate
• Location & access
• Quality & structure
• Consolidation
• Ownership
• Governance
• Roles &
responsibilities
• Skills
• Leadership
• Third parties
• Objectives &
compensation
• Commitment
• Cognitive
• Behavioral
• Emotional
Process Technology
People Data Culture
• Tools
• Integrations (API
first)
• Why?

8. Observations
• Digital transformation is a business transformation
• Digital transformation is non-linear and depends on speed, flexibility and
iteration
• Digital transformation is more about talent and less about technology
• Maximum benefits are derived when processes are also digitized
• Thinking of digital transformation as non-linear, allows improvements in any
one of the 8 levers to impact and inform the other levers
• Data is the “fuel” that powers all digital tools and processes
• Technology is not neutral – governance and ethical frameworks are critical
• Understand and account for the intersection of digital and physical worlds
• COVID has been an accelerant to - not the genesis of - digital
transformation

9. Eric Siano is the managing director of Blue
Leopard LLC. In his role, he helps firms navigate
the complexities of the digital landscape and
transform their marketing, sales and digital
capabilities, processes and technologies.
You can reach Eric at:
www.blueleopardllc.com
An MSDC certified Minority
Business Enterprise
eric.siano@blue-leopard-llc.com
Insight Transformation Results