,

What drives digital transformation?

Secound day of the semester and my first lecture in 11 years. The topic of the lecture was digitization and digital transformation and was actually held yesterday. Unfortunately I missed the live lecture but watched the recorded version uploaded on the student platform. Gunnar Wettergren held an intriguing and amusing lecture on the topic and I thought it was a good introduction to the program as a whole.  It outlined the foundation of where we’re heading – as a society and profession.

Gunnar talked about the different drivers behind digital transformation and how most of these drivers have played their role historically. Even though I agree with what Gunnar said there was one word I missed – Value. I work with IT Service Management and from my perspective technology in itself isn’t a driver and has never been. Technology is an enabler but value is the driver. What value means will evolve over time but without a business case behind it –  technology in itself, is useless.

From my perspective, several companies are is a real mess when it comes to IoT. IoT as a phenomenon could still be considered a unmatured market and perhaps that’s why they’re struggling. I’m amazed by some of my friends “smart home” solutions but the sheer amount of useless implementations of IoT is astonishing. Businesses need to focus their product or service portfolios to ensure that they provide value (utility and warranty) to their customers. Value, not the hyped technology of the month.

Another example of technology not aligned with value is Nokia. Though technically superior (better sound, better antennas, better batteries, better microphones) the utility of a mobile phone had changed by 2007. Nokia’s was no longer in touch with their market. Their production was based on technology (hardware specifications), something the customers didn’t care for nor understood. Usability, style and entertainment was suddenly key. Their products no longer provided value and in just a few years, Nokia’s market shares had completely crashed.

Statistic: Global market share held by Nokia smartphones from 1st quarter 2007 to 2nd quarter 2013 | Statista

Global market share held by Nokia smartphones from 1st quarter 2007 to 2nd quarter 2013

Got any comments, remarks or questions? Please leave a comment.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *

nine + four =