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. 

Transcript

1. @BERMONPAINTER – #DSCLT THE FALLACY OF DIGITAL TRANSFORMATION !1 CHARLOTTE DIGITAL SUMMIT – 2019 THE FALLACY OF DIGITAL TRANSFORMATION
2. THE FALLACY OF DIGITAL TRANSFORMATION !2 @BERMONPAINTER – #DSCLT
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) “ “
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
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.
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.
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.
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.
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.
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.
12. THE FALLACY OF DIGITAL TRANSFORMATION !12 @BERMONPAINTER – #DSCLT
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
14. @BERMONPAINTER – #DSCLT THE FALLACY OF DIGITAL TRANSFORMATION FAILED DIGITAL TRANSFORMATIONS !14
15. THE FALLACY OF DIGITAL TRANSFORMATION !15 @BERMONPAINTER – #DSCLT Sears Video • @BERMONPAINTER #INNOVATECHARLOTTE Subheading text
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
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
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
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
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
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
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
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
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
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
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
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
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
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
32. @BERMONPAINTER – #DSCLT THE FALLACY OF DIGITAL TRANSFORMATION SUCCESSFUL DIGITAL TRANSFORMATIONS !32
33. https://www.ey.com/en_gl/advisory/how-digital-transformation-opened-new-channels-for-growth
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
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
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
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
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
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
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 “ “
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.
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 charlottewavespace@ey.com