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Become a Digital Master—No Matter What Business You’re In
If you think the phrase “going digital” is only relevant for industries like tech, media, and entertainment—think again. In fact, mobile, analytics, social media, sensors, and cloud computing have already fundamentally changed the entire business landscape as we know it—including your industry. The problem is that most accounts of digital in business focus on Silicon Valley stars and tech start-ups. But what about the other 90-plus percent of the economy?
In Leading Digital, authors George Westerman, Didier Bonnet, and Andrew McAfee highlight how large companies in traditional industries—from finance to manufacturing to pharmaceuticals—are using digital to gain strategic advantage. They illuminate the principles and practices that lead to successful digital transformation. Based on a study of more than four hundred global firms, including Asian Paints, Burberry, Caesars Entertainment, Codelco, Lloyds Banking Group, Nike, and Pernod Ricard, the book shows what it takes to become a Digital Master. It explains successful transformation in a clear, two-part framework: where to invest in digital capabilities, and how to lead the transformation. Within these parts, you’ll learn:
• How to engage better with your customers
• How to digitally enhance operations
• How to create a digital vision
• How to govern your digital activities
The book also includes an extensive step-by-step transformation playbook for leaders to follow.
Leading Digital is the must-have guide to help your organization survive and thrive in the new, digitally powered, global economy.
- Sales Rank: #37664 in Books
- Published on: 2014-10-14
- Original language: English
- Number of items: 1
- Dimensions: 9.75" h x 6.25" w x 1.25" l, 1.08 pounds
- Binding: Hardcover
- 256 pages
Review
“This is not simply a book for digital-only companies, but rather a book for all companies who want to learn to amplify revenue figures via digital channels.” — 800 CEO READ
ADVANCE PRAISE for Leading Digital:
Pete Blackshaw, Global Head of Digital and Social Media, Nestl�—
“Successful transformation of your organization to digital doesn’t just happen—you need to lead it. Leading Digital shows the key elements and processes that have made Digital Masters out of companies around the globe, in many different industries, not just high-tech. A must-read.”
Michael Tushman, professor, Harvard Business School; coauthor, Winning Through Innovation—
“The days when senior executives could delegate technology issues to their technology people are over. Digital leadership capability is essential to thriving in a world of fast-changing technologies. Westerman, Bonnet, and McAfee provide a clear and readable guidebook to help any leader or manager play an effective role in turning technology challenges into transformation opportunities, both now and in the future.”
Joe Tucci, Chairman and CEO, EMC Corp.—
“To stay relevant in this new, always-connected digital universe, businesses in virtually every industry are reinventing their business models for unprecedented customer access, interaction, speed, and scale. Leading Digital shows how transformative companies are navigating this disruptive era successfully—and why others are falling behind.”
Pierre Pringuet, Vice Chairman of the Board and CEO, Pernod Ricard—
“Leading Digital provides comprehensive, fact-based insights into how multinational companies can leverage digital technology to transform their businesses’ performance. In this book, the authors provide not only the inspiration, but also the practical guidance required for CEOs to successfully navigate this complex transformation.”
Erik Brynjolfsson, professor, MIT Sloan School; Director, MIT Initiative on the Digital Economy; and coauthor, The Second Machine Age—
“Technologies—whether based on stone, steel, or software—are tools. They deliver results only when wielded effectively. Westerman, Bonnet, and McAfee’s careful and insightful research reveals the patterns common to the most effective leaders of the digital revolution and shows how they are using digital technologies to deliver impressive results.”
Charlene Li, founder and CEO, Altimeter Group; author, Open Leadership; and coauthor, Groundswell—
“Digital is no longer the responsibility of a few tech-savvy executives—in the age of digital customers, it needs to be the responsibility of every leader in the organization. Leading Digital provides a blueprint for digital transformation.”
About the Author
George Westerman is a Research Scientist in the MIT Initiative on the Digital Economy. His research and teaching help senior executives drive competitive advantage with digital technology. He is coauthor of two award-winning books: The Real Business of IT (2009) and IT Risk (2007).
Didier Bonnet is a Senior Vice President at Capgemini Consulting, where he serves as Global Practice Leader and heads Capgemini Consulting’s Digital Transformation program. He has more than twenty-five years’ experience in strategy, internet economics, globalization, and business transformation for large corporations.
Andrew McAfee is Co-Director of the MIT Initiative on the Digital Economy. He has also held appointments at Harvard Business School and Harvard’s Berkman Center for Internet and Society. In 2008, McAfee was named number 38 on the Ziff Davis list of the “100 Most Influential People in IT.” He was also named one of the fifty most influential people in business IT, by Baseline Magazine. He is coauthor of The Second Machine Age (2014) and Race Against the Machine (2011), and the author of Enterprise 2.0 (2009).
Most helpful customer reviews
13 of 13 people found the following review helpful.
Invaluable lessons to be learned from Digital Masters about how to use technology to achieve business transformation
By Robert Morris
Why did George Westerman, Didier Bonnet, and Andrew McAfee write this book? They conducted rigorous and extensive research for three years in a collaborative effort to determine how firms around the world and in many different industries work with digital technologies. "We collected data and interviewed people at hundreds of companies. We talked with executives and examined the companies' performance. We studied both how the companies approach all things digital and the results of their efforts." They wrote this book to share everything they learned that could be of substantial value to any organization (whatever its size and nature may be) that currently faces the challenges of turning technology into business transformation.
"Our most fundamental conclusion is that the Digital Masters -- companies that use digital technologies to drive significantly higher levels of profit, productivity, and performance -- do exist, but they're rare." Digital mastery can be achieved in one or more forms of business model reinvention driven by digital technology. For example, reinventing industries, substituting better products or services, creating new digital businesses, reconfiguring value delivery models, and rethinking value propositions. There are indeed valuable lessons to be learned from the ones discussed in this book -- including Asian Paints, Burberry, Caesar's Entertainment, Nike, Procter & Gamble, and Starbucks -- but it would be a fool's errand to cherry-pick from among their initiatives and then attempt to apply all of it to the circumstances of the given business situation.
These are among the dozens of business subjects and issues of special interest and value to me, also listed to indicate the scope of the book's coverage in Parts I and II.
o Four Levels of Digital Mastery (Pages 15-17)
o What Do Digital Masters Do Differently? (33-34)
o Putting Customer Data at the Heart of the Experience (39-42ast (54-69)
o Incumbents Beware 75-77)
o Reinventing Industries (79-83)
o Reconfiguring Value Delivery Models (87-90)
o Rethinking Value Propositions (90-92)
o What Do Digital Visions Look Like? 101-106)
o How Can You Frame a Transformative Digital Vision? (106-113)
o All Hands to the Pump (122-131)
o Why Digital Governance Is Needed, and, Key Mechanisms for Digital Governance (138-147)
o The Digital Platform as a Leadership Challenge (165-170)
Then in Part III, Westerman, Bonnet, and McAfee provide "A Leader's Playbook for Digital Transformation" (Chapters 9-12) in which they explain how to (a) frame the digital challenge; (b) focus investment of resources; (c) mobilize the organization at all levels and in all areas, and finally (d) sustain the digital transformation which, keep in mind, is an on-going process, not an ultimate destination.
I commend George Westerman, Didier Bonnet, and Andrew McAfee on the abundance of in formation, insights, and counsel that they provide. Their objective is to help prepare as many executives as possible to become effective leaders in what has become the Digital Age; more specifically, to prepare them to help their organization become and then remain a Digital Master. That is, one that knows where and how to invest in the digital opportunities. "The size of the investment is not as important as the reason -- and the impact. Digital Masters see technology as a way to change the way they do business -- their customer engagements, internal operations, and even business models."
They also point out that, for Digital Masters, committed leadership is more than just a phrase buzzing around the C-suite. "It is the lever that turns technology into transformation. Despite the advice of many gurus to 'let a thousand flowers bloom' in your company, we saw no examples of successful transformation happening bottom-up. Instead, executives in every Digital Master steered the transformation through strong top-down leadership; setting direction, building momentum, and ensuring that the company follows through."
I presume to suggest that those who are about to read this book begin with "Digital Mastery Self-Assessment" (pages 251-254) and perhaps one or more of the other assessments that appear earlier on Pages 227, 236, 239, and 242. There are no "right" or "wrong" answers but there can be answers that are dishonest, usually the result of denial or delusion. Complete the exercise(s) and then proceed to the Introduction and begin what I hope is a journey of self-discovery. Also, one that provides the aforementioned preparation for turning technology into business transformation. After reading the book, re-visit the responses to the self-assessment(s). The value of what you can learn from those interactive exercises will probably be far greater than the cost of this brilliant book.
11 of 11 people found the following review helpful.
Long on description of the digital, covers a lot of ground; but too often only hints at digital reality,
By Mark P. McDonald
Leading Digital represents the culmination of a multi-year study of digital technologies impact on the organization. This makes Leading Digital different, in the sense that other books on the subject either concentrate on technology hype, product innovation or disruption. By focusing on the organizational impact of digital, Westerman, Bonnet and McAfee, create a simple, clear and compelling framework for categorizing companies and their attitudes toward digital technology.
Characterizing an entire company as either a Beginner, Conservative, Fashionista or Digital Master provides an executive short hand that appears highly effective on the surface, but quickly leads one to ask, ok but what do I do? The advices provided in the book borders not the self evident, i.e.: beginners are slow to adapt and have the basic digital capabilities while fashionistas are buying every new digital bauble.
That is one of the points holding this book back from a five star review, is that it presumes a monolytic attitude toward digital in order to simplify its messages. This treatment is appropriate for a book intended to drive client conversations for a consulting company.
The books chapters encompass the range of organizational and leadership topics related to digital transformation. The section titles reflect this:
Part 1 - building digital capabilities covers the customer experience, their link to core operations (aka legacy) and the business model.
Part 2 -- focuses internally on the vision, organizational engagement, governance and technology leadership.
Part 3 -- concentrates on digital transformation from strategic framing through mobilization and sustaining a change program.
Taken at this level, the book is rather complete in its topical treatment but the book treats each of these topics somewhat superficially. The case studies read like a who's who of digital transformation but they are mostly stories of success, descriptions of what worked and not a deeper examination of challenges with strategies to over come them. Reading the case studies, of which there are many and a good thing, provides little meat for the reader to chew on.
The case studies, clear and simple framework and clearly written prose are among the strengths of this book. Among its challenges are the observation that many organizations have already moved beyond an organizational characterization into transformative action so the advice is a little dated in places. It was revolutionary when these materials first came out almost two years ago. The clarity of the frameworks also tends toward clear but overly simply advice and actions. Take the 12 steps to being a digital master:
Build Awareness
Define Your Starting Point
Create a Shared Vision
Translate Your Vision into Action
Build your Governance
Fund the Transformation
Signal your Ambitions
Earn the Right to Engage
Set New Behaviors and Evolve Culture
Build Foundation Skills
Align Incentives and Rewards
Measure, Monitor and Iterate
These 12 points apply to any transformation not just digital. You could say the same for implementing ERP, post merger integration or any other significant change. This undercuts an understanding of digital's potential and its disruptive impact. These technologies are fundamentally different than the IT technologies that came before, but its hard to tell that from this book or from the approaches it suggests.
Readers who have digital scars will benefit from the reminders that this book provides. People new to digital can easily be lulled into a false sense of security or alarm as it seems so much like what has come before or that we all must become digital masters tomorrow. Knowing that difference and the nuance it contains is the reason for the length of this review. By focusing on the organization, Westerman, Bonnet and McAfee have created something very accessible, but they have also accepted some limitations on explaining the reality of digital transformation.
5 of 5 people found the following review helpful.
Outstanding, Enlightening, Must-Read
By Greg Hawod
This book is an outstanding account on how businesses transform into more profitable and viable sources of value using modern technology. It provides a vivid picture on how different types of firms face the disruptive changes across their respective industries.
The authors of this book started by giving us a background on how having a set of digital capabilities and leadership capabilities are important to become digital masters. This was followed by the discussion on what it takes to have digital capabilities. The next part was devoted to the different areas of leadership capabilities important to having a digitally driven firm.
Here are the following reasons why I will purchase this book and read it again:
1. It will help me understand in macro perspective how organizations should respond to the call of digital change.
2. The authors presented a very compelling argument and ideas on how to be digitally prepared in this modern era.
3. This book is very entertaining in itself, especially with the way the authors presented a colorful picture on how each company discussed harnessed the power of leading digital.
4. This book is published by well-respected organization, Harvard Business Review Press.
5. It will help the readers prepare to become an agent of change towards helping their organization become digital masters.
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