Leading Through Digital Disruption Sath BPP

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 17

Leading Through Digital Disruption

Table of Contents
Leading Through Digital Disruption...................................................................................1

Introduction........................................................................................................................3

Task 1: The Case for Change...........................................................................................4

The Company and Operating Market............................................................................4

Digital Transformation Strategy of Best Buy..................................................................4

Threats and Goals of Best Buy’s Digital Transformation Strategy................................5

Task 2: Capturing Insights.................................................................................................6

Techniques for Identifying Market Changes..................................................................6

Capturing Insights about Competitors, Macroeconomic Trends and Partners..............6

Competitors................................................................................................................6

Macroeconomic Trends..............................................................................................7

Partners......................................................................................................................7

Task 3: Make Fast Decisions............................................................................................8

Approaches for making fast decisions...........................................................................8

Task 4: Acquire and Engage Talents................................................................................9

Best Buy’s Workforce Development Approaches..........................................................9

Task 5: Create a Digital Ready Culture...........................................................................10

Advises for Fostering Digital-Ready Culture................................................................10

Task 6: Steer Collaboration.............................................................................................11

Use of Collaborative Tools...........................................................................................11

GoToMeeting............................................................................................................11

Asana........................................................................................................................11

Yammer....................................................................................................................11

Slack.........................................................................................................................11
Google Docs.............................................................................................................11

Task 7: Select Your Leaders...........................................................................................13

Leadership Attributes and Behaviors Needed for Digital Transformation...................13

Digital Vision.............................................................................................................13

Digital knowledge.....................................................................................................13

Innovative.................................................................................................................13

Adaptability...............................................................................................................13

Open to opportunities...............................................................................................13

Conclusion.......................................................................................................................14

Reference........................................................................................................................15
Introduction
In this age of digitalization, all organizations must go through the digital transformation
to be acquainted with technology and attain success. With the rapid advancement of
technology, most of the activities in almost all spheres are run through automation.
Thus, business organizations are also under a major requirement of digital
transformation. Digital transformation refers to the process of developing an
organization where all the activities and services are produced digitally through the
adaptation of technology and automation. This eliminates the conventional and manual
processes and replaces them with the process of automation. In this paper, the digital
transformation strategy adopted by Best Buy has been discussed briefly. Moreover,
some other aspects of the implementation of this strategy such as techniques, decision-
making processes, rebuilding the culture, etc. have also been reviewed.
Task 1: The Case for Change
The Company and Operating Market
The digital transformation of the company going to be explained is Best Buy. Best Buy
is an American multinational company committed to providing their consumer's products
of numerous categories, emphasizing electronic products. The company founded in
1966 and since then, it has developed a vast reputation and history in this field among
the consumers (Vial, 2019). The company operates in the market of consumer
electronics. But with the advancement of technology the company faced the
requirement of digital transformation and thus developed its digital transformation
strategy (Verhoef, et al, 2021).

Digital Transformation Strategy of Best Buy


The digital transformation strategy of Best Buy focuses on transforming its activities and
processes from manual to automated. The organization has focused on providing its
consumers with an online platform and to ensure the implementation of this effectively,
they have aimed at developing an automated delivery system (Mergel, et al, 2019).
Moreover, the company has aimed at using Google Cloud to adapt data science. The
strategy also includes using technology to protect their customer's information and to
develop a technology-based design (Tabrizi, et al, 2019). The organization has aimed at
investing in technological innovations and technological knowledge acquirement (Ebert,
et al, 2018). The strategy involves developing a diverse workforce who are acquainted
with different mechanics and applied science to implement the automated work
processes as well.
Threats and Goals of Best Buy’s Digital Transformation Strategy
In this era of digitalization, other companies of Best Buy’s operating market like
Amazon, eBay, Wal-Mart have been providing their tech-based automated services for
a long period in a very efficient way (Sebastian, et al, 2017). Thus, for Best Buy it would
be a difficult task to capture their market in such a competitive market which creates a
competitive threat for the company. Moreover, the company faces another threat of
whether the company would be able to recognize the value of their total cost of the
digital transformation strategy or not (Tekic, and Koroteev, 2019). Thus, it arises a
financial threat for the organization as well. On the other hand, the goal the organization
wants to achieve through this digital transformation is to greater consumer attachment
and satisfaction by providing automated and high-tech services to their consumers
effectively and efficiently which would ultimately result in greater turnovers (Wessel, et
al, 2021).
Task 2: Capturing Insights
Techniques for Identifying Market Changes
For undergoing a digital transformation, an organization must identify the changes of its
operating market and then transform accordingly. For this purpose, the organization
needs to use some techniques. Firstly, the organization must initiate researches on the
industry in its operating (Tabrizi, et al, 2019). Researches made by others shall also be
acquired and assessed. These researches will provide distinct information about the
operating market and its changes. Trend reports also contribute to this purpose (Tekic,
and Koroteev, 2019). It identifies the trends going on in the market and assists the
organization to transform accordingly. Secondly, the company shall use digital tools like
different social media platforms, search engines, and analytical software which will
enable it asses information and changes in its operating market (Wessel, et al, 2021).
Thirdly, the company shall closely observe their customer's behavior. Analyzing the
customer buying behavior will provide greater information about the current trends and
situations of the operating market. Finally, the company must analyze its competitors
and their behaviors to capture the market changes. For this purpose, the company may
initiate surveys, analyze its social media platforms and their business initiatives and
strategies (Wessel, et al, 2021). All these techniques discussed above will assist the
organization to identify the market trends and changes.

Capturing Insights about Competitors, Macroeconomic Trends and


Partners
Competitors, macroeconomic trends, and partners are important factors that must be
analyzed to understand an industry and market. Techniques for analyzing these aspects
have been discussed below.

Competitors: for analyzing the competitors of the company, it should initiate


identification of the competitors first (Andriole, 2017). Then the company should
categorize its competitors between primary and secondary competitors. Finally, the
company shall assess the websites, social media platforms of these competitors.
Moreover, the company needs to analyze the market positioning approach of their
competitors. Its also necessary to assess the reviews of the competitors given by the
consumers (Bloomberg, 2018). For further analysis, the company can go through
different working approaches of their competitors such as their fund-collecting process.
Investments and hiring approaches.

Macroeconomic Trends: for analyzing the macroeconomic trends the company needs to
initiate researches and analyze the existing ones (Bloomberg, 2018). For further
analysis, they need to acquire and assess the economic and financial data from these
researches and reports and shall consult expert advice to capture insights.

Partners: information about partners can be assessed from analyzing partner’s


approaches for funding and investments. This also leads to understanding the market
insights.
Task 3: Make Fast Decisions
Approaches for making fast decisions
While undergoing a digital transformation, an organization faces a major requirement of
making fast decisions to adapt to the digital changes quickly (Andriole, 2017). For this
purpose of fast decision-making, the company shall use some distinct approaches and
techniques. These approaches have been discussed below.

Firstly, the organization may initiate brainstorming approaches. Through brainstorming,


the organization will be able to identify a variety of solutions and outcomes for their
ongoing criteria in a short period and thus will be able to make a fast and effective
decision. Secondly, the organization shall emphasize making decisions based on
market researches (Ebert, et al, 2018). This will enable the organization to collect and
analyze the data quickly and make a fast decision. Thirdly, the company shall use the
cost-benefit approach for decision-making. This will enable the company to assess
whether the cost of the activities will result in equal or greater benefits or not. Moreover,
the organization may use the heuristic approach in the decision-making process
(Sebastian, et al, 2017). This will enable the company to eliminate time consumption of
decision making and will provide the company an efficient decision in a shorter period.
Finally, the company shall hire employees who have wide analytical potentials.
Employees with an analytical mind can capture insights about the market quickly and
thus can make develop solutions in a short period (Andriole, 2017). So, hiring
employees with analytical capabilities will enable the company to make faster decisions
(Nambisan, et al, 2019). These techniques discussed will assist to make a fast decision
which will ultimately result in adapting to the changes of the market quickly.

So, an organization shall use the techniques stated above to make their decision-
making process faster and this will ultimately enable the company to adapt to the
changes of the market in a shorter period.
Task 4: Acquire and Engage Talents
Best Buy’s Workforce Development Approaches
During digital transformation, an organization must acquire and engage people with
some distinct talents and potential which will assist the organization during its digital
transformation process. Best Buy has already undertaken some approaches for
acquiring talents during its digitalization. For example, Best Buy has aimed at
developing a diverse workforce. This will result in a flow of diverse talents in the
company. For this purpose, Best Buy has aimed at hiring employees of a different race,
nationality, gender, and geography (Verhoef, et al, 2021). The company has also aimed
at developing a digital and technology team. In this team, the company plans to hire
almost 1000 employees who will lead the organization towards digitalization and
betterment. Best Buy shall use some other techniques in their talent engagement
program as well. Some of such techniques have been discussed below.

Firstly, the company shall focus on hiring employees who are acquainted with high-tech
knowledge. Their knowledge about technology, mechanisms, and automation will assist
the company towards digitalization (Nambisan, et al, 2019). Secondly, the company
shall engage more flexible employees. During digital transformation, the company would
go through many changes. Employees with flexibilities will be able to adapt to these
changes quickly. Moreover, the company shall hire productive and efficient employees
for their effective digital transformation (Bloomberg, 2018). Finally, the company shall
recruit employees who can handle different digital tools. During the digital
transformation, different activities of the organization will involve digital tools. Thus, the
company shall engage employees who can handle these tools and mechanics.

So, from the above discussion, it can be stated that Best Buy shall use the techniques
and approaches stated above along with the approaches they have already taken to
facilitate their talent engagement process for the digital transformation.
Task 5: Create a Digital Ready Culture
Advises for Fostering Digital-Ready Culture
Digital ready culture includes a set of practices that initiate innovation and mechanism in
a digital environment. The digital transformation process is prone to be affected by the
organizational culture (Schwertner, K., 2017). For facilitating the digitalization process,
the organization must develop a digital-ready culture that involves practices that assists
to implement the digitalization process effectively. Thus, fostering a digital-ready culture
bears great significance in this regard (Kane, 2019). For this purpose, the formal and
informal leaders shall use some approaches. Some of them are discussed below.

Firstly, the company shall develop the practice of innovations and experiments in the
organization. An innovative and experiment-driven organizational culture will assist the
company in the digitalization process (Heavin, and Power, 2018). Secondly, the
company shall develop the practice of data-driven decision-making. This will facilitate
the digital transformation process as well (Vial, 2019). Thirdly, the company needs to
develop the practice of openness and employee engagement in the organization. An
open organizational culture will encourage the workforce towards innovations. Also, the
organization shall initiate the practice of using digital mechanics in its activities and
approaches (Chanias, et al, 2019). Finally, the company needs to develop practices of
integrity and flexibility. This will assist the organization to adapt to the ongoing changes
in the market and the organization quickly. Thus, a flexible organizational culture would
go a long way in the digitalization process of the organization (Schwertner, K., 2017).

These approaches discussed above are required to facilitate the digitalization process
of the company. Since they will assist the digital transformation strategy of the
company, the formal and informal leaders shall initiate these approaches to develop a
digital-ready culture that will involve practices that will support and facilitate the digital
transformation process.
Task 6: Steer Collaboration
Use of Collaborative Tools

Collaborative tools facilitate the collaboration of different entities of an organization and


encourage employee engagement in different decision-making processes of the
organization (Heavin, and Power, 2018). Collaborative tools contribute to engaging
employees in decision-making and give leaders visibility into such engagement (Mergel,
et al, 2019). From the discussion of different aspects of digital transformation, it has
been evident that during this transformation, the organization must encourage employee
engagement and collaboration with different entities (Li, et al, 2018). For this purpose,
the company needs to use collaborative tools. Some of such collaborative tools have
been stated below.

GoToMeeting: the company can use the software called GoToMeeting to arrange video
conferences where the members can contribute their views and ideas even while not
being physically present in the meeting (Chanias, et al, 2019). This collaborative tool will
make the decision-making process more effective and efficient.

Asana: Asana is a collaborative tool that assists the management of different projects
(Morakanyane, et al, 2017). Through this, the leaders can easily assign tasks to the
employees and can monitor them. This enables the leaders to get information on
employee engagement easily.

Yammer: Yammer is a private social network that helps to develop easier internal
collaboration of employees and departments (Brock, et al, 2019). Through this, the
organization can facilitate employee engagement and get better decisions.

Slack: Slack is a collaborative tool that facilitates communication among different teams
through messages.

Google Docs: this tool enables the company to share files and documents easily among
different entities and departments of the organization facilitating employee engagement
and collaborations (Jackson, 2019).
These tools stated above encourages employee engagement and collaborations. Thus,
the leaders shall use these tools to engage the employees in the decision-making
process and to get visibility into such contributions.
Task 7: Select Your Leaders
Leadership Attributes and Behaviors Needed for Digital Transformation
For implementing a successful digital transformation, the leaders must contain certain
attributes and skills. These are the attributes through which the leader guides the
company towards becoming an organization where all the activities are done through
digitalization and automation (Morakanyane, et al, 2017). Some of such attributes and
skills are stated below.

Digital Vision: a digital leader must have a digital vision. Digital vision refers to the
capability of the leader to understand the digitalization process its operating market will
go through in the future (Nambisan, et al, 2019). Having this attribute will help the leader
to understand and analyze the benefits the company will be able to capture from the
digital transformation process.

Digital knowledge: the leaders must have digital knowledge which will help the leaders
to analyze different technologies and mechanisms of the market and select the best
ones for the company which will provide the company the highest number of benefits
(Tekic, and Koroteev, 2019).

Innovative: the leaders must be innovative. Innovation is a fundamental requirement of


the digital transformation process. Thus, the leader needs to have an innovative mind.

Adaptability: during the digital transformation process the organization would go through
numerous changes (Morakanyane, et al, 2017). In this situation, the leader must have
the attribute of adaptability which will help to cope up with these changes effectively.

Open to opportunities: during the digitalization process, many new opportunities will
arise for the company (Loonam, et al, 2018). For a successful transformation, the
leaders must capture and utilize these opportunities.

These attributes of a leader facilitate the digital transformation process and provide the
company with a successful digital transformation. Thus, while selecting the leaders
during the digital transformation process, these attributes stated above need to be
analyzed in the leaders.
Conclusion
In this era of science and technology, to exist and operate successfully in the market an
organization must undergo the digital transformation process. Firms and industries that
are still using analog and manual approaches are being thrown out of the market and
getting bankrupted. Thus, for successfully operating business and making turnovers,
digital transformation has become a fundamental need. While going through such
transformations, the company needs to develop a workforce containing diversified
members with distinct digital and complex attributes. The company also needs to
develop a digital-ready culture that includes employee engagement and technology-
related practices. For further success, the company needs to use digital tools and select
its leaders according to the digital requirements. All these approaches will provide the
company with a successful digital transformation.
Reference
Vial, G., 2019. Understanding digital transformation: A review and a research
agenda. The Journal of Strategic Information Systems, 28(2), pp.118-144.

Verhoef, P.C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J.Q., Fabian, N. and
Haenlein, M., 2021. Digital transformation: A multidisciplinary reflection and research
agenda. Journal of Business Research, 122, pp.889-901.

Mergel, I., Edelmann, N. and Haug, N., 2019. Defining digital transformation: Results
from expert interviews. Government Information Quarterly, 36(4), p.101385.

Ebert, C. and Duarte, C.H.C., 2018. Digital Transformation. IEEE Softw., 35(4), pp.16-


21.

Tabrizi, B., Lam, E., Girard, K. and Irvin, V., 2019. Digital transformation is not about
technology. Harvard Business Review, 13, pp.1-6.

Sebastian, I., Ross, J., Beath, C., Mocker, M., Moloney, K. and Fonstad, N., 2017. How
big old companies navigate digital transformation.

Nambisan, S., Wright, M. and Feldman, M., 2019. The digital transformation of
innovation and entrepreneurship: Progress, challenges and key themes. Research
Policy, 48(8), p.103773.

Tekic, Z. and Koroteev, D., 2019. From disruptively digital to proudly analog: A holistic
typology of digital transformation strategies. Business Horizons, 62(6), pp.683-693.

Wessel, L., Baiyere, A., Ologeanu-Taddei, R., Cha, J. and Blegind-Jensen, T., 2021.
Unpacking the difference between digital transformation and IT-enabled organizational
transformation. Journal of the Association for Information Systems, 22(1).

Andriole, S.J., 2017. Five myths about digital transformation. MIT sloan management
review, 58(3).

Bloomberg, J., 2018. Digitization, digitalization, and digital transformation: confuse them
at your peril. Forbes. Retrieved on August, 28, p.2019.
Schwertner, K., 2017. Digital transformation of business. Trakia Journal of
Sciences, 15(1), pp.388-393.

Kane, G., 2019. The technology fallacy: people are the real key to digital
transformation. Research-Technology Management, 62(6), pp.44-49.

Heavin, C. and Power, D.J., 2018. Challenges for digital transformation–towards a


conceptual decision support guide for managers. Journal of Decision
Systems, 27(sup1), pp.38-45.

Chanias, S., Myers, M.D. and Hess, T., 2019. Digital transformation strategy making in
pre-digital organizations: The case of a financial services provider. The Journal of
Strategic Information Systems, 28(1), pp.17-33.

Li, L., Su, F., Zhang, W. and Mao, J.Y., 2018. Digital transformation by SME
entrepreneurs: A capability perspective. Information Systems Journal, 28(6), pp.1129-
1157.

Morakanyane, R., Grace, A.A. and O'Reilly, P., 2017. Conceptualizing Digital
Transformation in Business Organizations: A Systematic Review of Literature. Bled
eConference, 21.

Brock, J.K.U. and Von Wangenheim, F., 2019. Demystifying AI: What digital
transformation leaders can teach you about realistic artificial intelligence. California
Management Review, 61(4), pp.110-134.

Jackson, N.C., 2019. Managing for competency with innovation change in higher
education: Examining the pitfalls and pivots of digital transformation. Business
Horizons, 62(6), pp.761-772.

Loonam, J., Eaves, S., Kumar, V. and Parry, G., 2018. Towards digital transformation:
Lessons learned from traditional organizations. Strategic Change, 27(2), pp.101-109.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy