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The Fallacy of Digital Transformation

The Fallacy of Digital Transformation

Far too often we are involved in lack-luster or failed digital transformation initiatives. We’ll discuss what happens when companies attempt large-scape digital transformations that primarily focus on the digital aspects of the initiative. Herein lies the fallacy of digital transformation. Technologies will continue to change at faster rates but real value is fundamentally generated by people, not technology. People are what will persist and adapt across multiple waves of disruption and if empowered will reinforce a company culture built on the foundation of purpose, behaviors, motivations, and experimentation to drive transformation initiatives towards success. 

Bermon Painter

October 03, 2019
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  1. @BERMONPAINTER – #DSCLT THE FALLACY OF DIGITAL TRANSFORMATION !1
    CHARLOTTE DIGITAL SUMMIT – 2019
    THE FALLACY
    OF DIGITAL
    TRANSFORMATION

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  2. THE FALLACY OF DIGITAL TRANSFORMATION !2
    @BERMONPAINTER – #DSCLT

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  4. THE FALLACY OF DIGITAL TRANSFORMATION !4
    @BERMONPAINTER – #DSCLT
    Our focus has always been to help people find and discover
    things they want to buy…We’re not limited to selling our 

    own stuff.
    – Jeff Bezos (1998)


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  5. THE FALLACY OF DIGITAL TRANSFORMATION !5
    @BERMONPAINTER – #DSCLT
    1997
    Goes public on May 15th at $18/
    share. Company is evaluated at
    $300M.
    $2.4B is spent online
    1998
    Moving beyond just selling books
    and expands into music.
    1999
    Patents 1-click checkout to
    streamline online purchases

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  6. THE FALLACY OF DIGITAL TRANSFORMATION !6
    @BERMONPAINTER – #DSCLT
    2000
    Dot-com bust and Amazon
    launches 3rd party seller
    marketplace. Addition of 3rd
    parties create a large increase in
    volume of sales on amazon.com
    2002
    Starts to sell clothing and
    introduces the precursor of
    Amazon Prime called “Super
    Saver Shopping” that allowed for
    free shipping on orders over $99.
    2003
    Launches their web hosting
    business, Amazing Web Services.

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  7. THE FALLACY OF DIGITAL TRANSFORMATION !7
    @BERMONPAINTER – #DSCLT
    2004
    Amazon acquires Joyo for $75
    million and enters China.
    2005
    Amazon Prime debuts as a
    loyalty program for $79/year with
    free two-day shipping on 

    any order.
    2006
    Amazon launches fulfillment for
    third-party sellers. It now exists in
    over 100 countries.

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  8. THE FALLACY OF DIGITAL TRANSFORMATION !8
    @BERMONPAINTER – #DSCLT
    2007
    Amazon launches the Kindle.
    2008
    Amazon acquires Audible for
    $300 million and incorporates
    their service into their Kindle.
    2009
    Amazon acquires Zappos and
    separately founds BigCommerce
    to make it easier for business to
    sell products online.

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  9. THE FALLACY OF DIGITAL TRANSFORMATION !9
    @BERMONPAINTER – #DSCLT
    2012
    Amazon acquires Kiva Systems, a
    robotics company to automate
    fulfillment at their warehouses
    and deliver products faster with
    less staff.
    2013
    Jeff Bezos buys the 

    Washington Post. Amazon starts
    delivering packages on Sundays
    through an undisclosed deal with
    the USPS.
    2014
    Amazon acquires Twitch, a social
    media game streaming site.

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  10. THE FALLACY OF DIGITAL TRANSFORMATION !10
    @BERMONPAINTER – #DSCLT
    2015
    Amazon launches the Echo as a
    platform for the Alexa virtual
    assistant.
    2017
    Amazon acquires Whole Foods
    and begins to integrate their
    distribution networks.
    2018
    Amazon reaches a $1 trillion
    market cap. Their share price is
    now worth +$2000. The
    subsequently raise minimum
    wage to $15/hr.

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  11. THE FALLACY OF DIGITAL TRANSFORMATION !11
    @BERMONPAINTER – #DSCLT
    2019
    Now 25 years in business with
    650,000 employees and 288.4
    million square feet of real state.
    Amazon accounts for almost 50%
    of online retail in the US.

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  12. THE FALLACY OF DIGITAL TRANSFORMATION !12
    @BERMONPAINTER – #DSCLT

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  13. THE FALLACY OF DIGITAL TRANSFORMATION !13
    @BERMONPAINTER – #DSCLT
    Agenda
    What causes large scale digital transformations to fail?
    How can we craft the appropriate parameters for a successful transformation?
    Key takeaways

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  14. @BERMONPAINTER – #DSCLT THE FALLACY OF DIGITAL TRANSFORMATION
    FAILED DIGITAL
    TRANSFORMATIONS
    !14

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  15. THE FALLACY OF DIGITAL TRANSFORMATION !15
    @BERMONPAINTER – #DSCLT
    Sears Video
    • @BERMONPAINTER #INNOVATECHARLOTTE
    Subheading text

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  16. View Slide

  17. View Slide

  18. THE FALLACY OF DIGITAL TRANSFORMATION !18
    @BERMONPAINTER – #DSCLT
    Why Do So Many Digital
    Transformations Fail?
    There’s a lack of strong 

    executive sponsorship or no continuity
    among leadership
    There’s a lack of focus 

    on strategic initiatives
    The necessary talent needed to
    implement the transformation is
    missing
    The orgnanization is resistant to 

    change (i.e. but we’ve always done
    things this way)
    The adoption and pace of change
    creates “change fatigue
    Little or no change management 

    was planned
    1
    2
    3
    4
    5
    6

    View Slide

  19. THE FALLACY OF DIGITAL TRANSFORMATION !19
    @BERMONPAINTER – #DSCLT
    Why Do So Many Digital
    Transformations Fail?
    There’s a lack of strong 

    executive sponsorship or no continuity
    among leadership
    There’s a lack of focus 

    on strategic initiatives
    The necessary talent needed to
    implement the transformation is
    missing
    The orgnanization is resistant to 

    change (i.e. but we’ve always done
    things this way)
    The adoption and pace of change
    creates “change fatigue
    Little or no change management 

    was planned
    1
    2
    3
    4
    5
    6

    View Slide

  20. THE FALLACY OF DIGITAL TRANSFORMATION !20
    @BERMONPAINTER – #DSCLT
    Why Do So Many Digital
    Transformations Fail?
    There’s a lack of strong 

    executive sponsorship or no continuity
    among leadership
    There’s a lack of focus 

    on strategic initiatives
    The necessary talent needed to
    implement the transformation is
    missing
    The orgnanization is resistant to 

    change (i.e. but we’ve always done
    things this way)
    The adoption and pace of change
    creates “change fatigue
    Little or no change management 

    was planned
    1
    2
    3
    4
    5
    6

    View Slide

  21. THE FALLACY OF DIGITAL TRANSFORMATION !21
    @BERMONPAINTER – #DSCLT
    Why Do So Many Digital
    Transformations Fail?
    There’s a lack of strong 

    executive sponsorship or no continuity
    among leadership
    There’s a lack of focus 

    on strategic initiatives
    The necessary talent needed to
    implement the transformation is
    missing
    The orgnanization is resistant to 

    change (i.e. but we’ve always done
    things this way)
    The adoption and pace of change
    creates “change fatigue
    Little or no change management 

    was planned
    1
    2
    3
    4
    5
    6

    View Slide

  22. THE FALLACY OF DIGITAL TRANSFORMATION !22
    @BERMONPAINTER – #DSCLT
    Why Do So Many Digital
    Transformations Fail?
    There’s a lack of strong 

    executive sponsorship or no continuity
    among leadership
    There’s a lack of focus 

    on strategic initiatives
    The necessary talent needed to
    implement the transformation is
    missing
    The organization is resistant to 

    change (i.e. but we’ve always done
    things this way)
    The adoption and pace of change
    creates “change fatigue
    Little or no change management 

    was planned
    1
    2
    3
    4
    5
    6

    View Slide

  23. THE FALLACY OF DIGITAL TRANSFORMATION !23
    @BERMONPAINTER – #DSCLT
    Why Do So Many Digital
    Transformations Fail?
    There’s a lack of strong 

    executive sponsorship or no continuity
    among leadership
    There’s a lack of focus 

    on strategic initiatives
    The necessary talent needed to
    implement the transformation is
    missing
    The orgnanization is resistant to 

    change (i.e. but we’ve always done
    things this way)
    The adoption and pace of change
    creates “change fatigue
    Little or no change management 

    was planned
    1
    2
    3
    4
    5
    6

    View Slide

  24. THE FALLACY OF DIGITAL TRANSFORMATION !24
    @BERMONPAINTER – #DSCLT
    Why Do So Many Digital
    Transformations Fail?
    There’s a lack of strong 

    executive sponsorship or no continuity
    among leadership
    There’s a lack of focus 

    on strategic initiatives
    The necessary talent needed to
    implement the transformation is
    missing
    The orgnanization is resistant to 

    change (i.e. but we’ve always done
    things this way)
    The adoption and pace of change
    creates “change fatigue
    Little or no change management 

    was planned
    1
    2
    3
    4
    5
    6

    View Slide

  25. THE FALLACY OF DIGITAL TRANSFORMATION !25
    @BERMONPAINTER – #DSCLT
    Why Do So Many Digital
    Transformations Fail?
    There’s a lack of strong 

    executive sponsorship or no continuity
    among leadership
    There’s a lack of focus 

    on strategic initiatives
    The necessary talent needed to
    implement the transformation is
    missing
    The orgnanization is resistant to 

    change (i.e. but we’ve always done
    things this way)
    The adoption and pace of change
    creates “change fatigue
    Little or no change management 

    was planned
    1
    2
    3
    4
    5
    6

    View Slide

  26. THE FALLACY OF DIGITAL TRANSFORMATION !26
    @BERMONPAINTER – #DSCLT
    Why Do So Many Digital
    Transformations Fail?
    There’s a lack of strong 

    executive sponsorship or no continuity
    among leadership
    There’s a lack of focus 

    on strategic initiatives
    The necessary talent needed to
    implement the transformation is
    missing
    The orgnanization is resistant to 

    change (i.e. but we’ve always done
    things this way)
    The adoption and pace of change
    creates “change fatigue
    Little or no change management 

    was planned
    1
    2
    3
    4
    5
    6
    People

    View Slide

  27. THE FALLACY OF DIGITAL TRANSFORMATION !27
    @BERMONPAINTER – #DSCLT
    Why Do So Many Digital
    Transformations Fail?
    There’s a lack of strong 

    executive sponsorship or no continuity
    among leadership
    There’s a lack of focus 

    on strategic initiatives
    The necessary talent needed to
    implement the transformation is
    missing
    The orgnanization is resistant to 

    change (i.e. but we’ve always done
    things this way)
    The adoption and pace of change
    creates “change fatigue
    Little or no change management 

    was planned
    1
    2
    3
    4
    5
    6
    People
    People

    View Slide

  28. THE FALLACY OF DIGITAL TRANSFORMATION !28
    @BERMONPAINTER – #DSCLT
    Why Do So Many Digital
    Transformations Fail?
    There’s a lack of strong 

    executive sponsorship or no continuity
    among leadership
    There’s a lack of focus 

    on strategic initiatives
    The necessary talent needed to
    implement the transformation is
    missing
    The orgnanization is resistant to 

    change (i.e. but we’ve always done
    things this way)
    The adoption and pace of change
    creates “change fatigue
    Little or no change management 

    was planned
    1
    2
    3
    4
    5
    6
    People
    People
    People

    View Slide

  29. THE FALLACY OF DIGITAL TRANSFORMATION !29
    @BERMONPAINTER – #DSCLT
    Why Do So Many Digital
    Transformations Fail?
    There’s a lack of strong 

    executive sponsorship or no continuity
    among leadership
    There’s a lack of focus 

    on strategic initiatives
    The necessary talent needed to
    implement the transformation is
    missing
    The orgnanization is resistant to 

    change (i.e. but we’ve always done
    things this way)
    The adoption and pace of change
    creates “change fatigue
    Little or no change management 

    was planned
    1
    2
    3
    4
    5
    6
    People
    People
    People
    People

    View Slide

  30. THE FALLACY OF DIGITAL TRANSFORMATION !30
    @BERMONPAINTER – #DSCLT
    Why Do So Many Digital
    Transformations Fail?
    There’s a lack of strong 

    executive sponsorship or no continuity
    among leadership
    There’s a lack of focus 

    on strategic initiatives
    The necessary talent needed to
    implement the transformation is
    missing
    The orgnanization is resistant to 

    change (i.e. but we’ve always done
    things this way)
    The adoption and pace of change
    creates “change fatigue
    Little or no change management 

    was planned
    1
    2
    3
    4
    5
    6
    People
    People
    People
    People
    People

    View Slide

  31. THE FALLACY OF DIGITAL TRANSFORMATION !31
    @BERMONPAINTER – #DSCLT
    Why Do So Many Digital
    Transformations Fail?
    There’s a lack of strong 

    executive sponsorship or no continuity
    among leadership
    There’s a lack of focus 

    on strategic initiatives
    The necessary talent needed to
    implement the transformation is
    missing
    The orgnanization is resistant to 

    change (i.e. but we’ve always done
    things this way)
    The adoption and pace of change
    creates “change fatigue
    Little or no change management 

    was planned
    1
    2
    3
    4
    5
    6
    People
    People
    People
    People
    People
    People

    View Slide

  32. @BERMONPAINTER – #DSCLT THE FALLACY OF DIGITAL TRANSFORMATION
    SUCCESSFUL DIGITAL
    TRANSFORMATIONS
    !32

    View Slide

  33. https://www.ey.com/en_gl/advisory/how-digital-transformation-opened-new-channels-for-growth

    View Slide

  34. THE FALLACY OF DIGITAL TRANSFORMATION !34
    @BERMONPAINTER – #DSCLT
    What’s Necessary for a Successful
    Digital Transformation?
    Put people at the core to enable the
    delivery of better human experiences
    Enable and encourage creativity and
    experimentation
    Prioritize digital adoption, training and
    upskilling teams
    Augment human capabilities with new
    technologies (i.e. not human vs.
    machines)
    Expand capabilities and increase
    velocity through partnerships
    1 4
    5
    2
    3

    View Slide

  35. THE FALLACY OF DIGITAL TRANSFORMATION !35
    @BERMONPAINTER – #DSCLT
    What’s Necessary for a Successful
    Digital Transformation?
    Put people at the core to enable the
    delivery of better human experiences
    Enable and encourage creativity and
    experimentation
    Prioritize digital adoption, training and
    upskilling teams
    Augment human capabilities with new
    technologies (i.e. not human vs.
    machines)
    Expand capabilities and increase
    velocity through partnerships
    1 4
    5
    2
    3

    View Slide

  36. THE FALLACY OF DIGITAL TRANSFORMATION !36
    @BERMONPAINTER – #DSCLT
    What’s Necessary for a Successful
    Digital Transformation?
    Put people at the core to enable the
    delivery of better human experiences
    Enable and encourage creativity and
    experimentation
    Prioritize digital adoption, training and
    upskilling teams
    Augment human capabilities with new
    technologies (i.e. not human vs.
    machines)
    Expand capabilities and increase
    velocity through partnerships
    1
    2
    3
    4
    5

    View Slide

  37. THE FALLACY OF DIGITAL TRANSFORMATION !37
    @BERMONPAINTER – #DSCLT
    What’s Necessary for a Successful
    Digital Transformation?
    Put people at the core to enable the
    delivery of better human experiences
    Enable and encourage creativity and
    experimentation
    Prioritize digital adoption, training and
    upskilling teams
    Augment human capabilities with new
    technologies (i.e. not human vs.
    machines)
    Expand capabilities and increase
    velocity through partnerships
    1 4
    5
    2
    3

    View Slide

  38. THE FALLACY OF DIGITAL TRANSFORMATION !38
    @BERMONPAINTER – #DSCLT
    What’s Necessary for a Successful
    Digital Transformation?
    Put people at the core to enable the
    delivery of better human experiences
    Enable and encourage creativity and
    experimentation
    Prioritize digital adoption, training and
    upskilling teams
    Augment human capabilities with new
    technologies (i.e. not human vs.
    machines)
    Expand capabilities and increase
    velocity through partnerships
    1 4
    5
    2
    3

    View Slide

  39. THE FALLACY OF DIGITAL TRANSFORMATION !39
    @BERMONPAINTER – #DSCLT
    What’s Necessary for a Successful
    Digital Transformation?
    Put people at the core to enable the
    delivery of better human experiences
    Enable and encourage creativity and
    experimentation
    Prioritize digital adoption, training and
    upskilling teams
    Augment human capabilities with new
    technologies (i.e. not human vs.
    machines)
    Expand capabilities and increase
    velocity through partnerships
    1 4
    5
    2
    3

    View Slide

  40. THE FALLACY OF DIGITAL TRANSFORMATION !40
    @BERMONPAINTER – #DSCLT
    If I do my job right, you won’t even notice the technology. You’ll
    just notice really amazing experiences.
    – Joey Hasty

    Innovation and Transformation Lead, Royal Caribbean


    View Slide

  41. THE FALLACY OF DIGITAL TRANSFORMATION 41
    @BERMONPAINTER – #DSCLT
    • 40k sqft innovation hub
    • Solution delivery
    • Co-creation
    • Training
    Charlotte
    wavespace
    Explore innovative ideas, unlock
    ingenuity and make change
    happen — faster.

    View Slide

  42. THE FALLACY OF DIGITAL TRANSFORMATION 42
    @BERMONPAINTER – #DSCLT
    Let’s Chat
    Open Office Hours
    Friday mornings: 7am – 9am
    https://calendly.com/bermon-painter
    Twitter/Linkedin
    @bermonpainter
    Charotte wavespace: EY’s innovation hub in the Carolinas
    [email protected]

    View Slide