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
   

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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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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
    

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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
    

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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
    

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

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

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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
    “
    “
    

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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.
    

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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
    

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