Page numbers followed by f or t indicate a figure or table.
additive manufacturing, 173
Adobe software company, 137–139
Aéropostale, 4
Affordable Care Act (ACA), 47, 49
agile culture, 137–146
at Adobe software company, 137–139
discipline of creating, 145, 146f
at New York Times newspaper, 142–144
role in creating Living DNA stage, 145
role in perpetual digital transformation, 139–140
at SpaceX, 144–145
at Zappos, 140–142
Airbnb, 82–83
air cover
consequences of lack of, 65–66
defined, 63
disruption empowerment discipline and, 67–68
methods for providing, 70
Siloed stage and, 180t
aircraft (aviation) industry aircraft engines evolution, 118–119
The Economist data on takeoffs, 12
lessons from aircraft takeoff, 27
steps for successful takeoff, 11
Swiss cheese model of accident causation, 27–28
Alibaba, 151
Alphabet/Google
game playing AI (AlphaZero), 19
intrapreneurship ideas, 108
massive transformative purpose, 68
“moonshot thinking,” 107–109
Schmidt’s role in transformation of, 105–107
70-20-10 innovation formula, 105–108
strategy sufficiency and, 105–108
Wi-Fi initiative, 107
exponential processes, 82
initial failure, 48
iterative customer feedback, 50
role of innovation velocity, 56
Andreessen, Marc, 172
application program interfaces (APIs), 132
Arc Publishing tool, 67
artificial intelligence (AI)
effect on jobs, 188
as exponential technology, 83
increasing power of, 82
possibilities and limitations, 186
potential applications, 19
role at NGS, 128
ShotSpotter tool, 164
types of applications, 89, 124, 185–186
use cases, examples, 187–188
use in shared services industries, 166, 174, 187
AT&T workforce retraining, 123–125
Ballmer, Steve, 157
Bank of America, “Keep the Change” program, 85
bankruptcies, retail sector, 4
battery technology, 175
Bell, Alexander Graham, 65
Blockbuster, 76
blockchain technology
cautions and limitations, 193
description, 133
disruptive potential, 176
enterprise-related solutions, 127–128
possibilities of, 191
practical information about, 192–193
secure online voting, 176
Siloed stage and, 22
unhackability of, 19
use cases, examples, 191–192
use in enterprise-related solutions, 127
boiling frog syndrome, 147, 148
Bon-Ton, 4
Boston Globe, 66
Branson, Richard, 110–112
Brin, Sergey, 106–107
British Post Office, 158
Brookstone, 4
Brustein, A. J., 19–20
Bryant, Andy, 44
Burke, Steve, 44
Burns, Ursula, 44
Business Model Canvas, 80, 81f
business process outsourcing (BPO) industry, 82, 149, 190
Bynes, Jonathan, 99–100
Centers for Medicare and Medicaid Services (CMS), 50
change management model, 89–102
decentralization execution strategy, 92
description, 169
discipline of using correct model, 97–98
edge organization structures, 98
global Year 2000 (Y2K) success, 91–92
inorganic change, 98
integration of Gillette, 94
leadership role, 96
organic change, 97–98
Partially Synchronized transformation failure, 87t, 90–91
types of strategies, 101
working backward strategy, 92–93
Y2K effort at P&G, 94
The Checklist Manifesto: How to Get Things Right (Gawande), 12
Chief Analytics Officer, 123
Chief Data Officer, 123
Chief Digital Officer, 119, 123
Chief Information Officer, 123
Chief Information Security Officer, 123
Christensen, Clayton, 156
Civil Service Computerization Programme (CSCP, Singapore), 40
Clinton, Bill, 128
“clock speed” issues, 57
Codex of the eye, Manual D (da Vinci), 155
Comcast, 44
committed ownership, 37–46
digital literacy challenge, board level, 44
digital literacy challenge, leadership level, 43–44
disciplines checklist for, 46f
Foundation stage, 35t
role of leaders, 38–39
in Singapore’s digital transformation, 39–41
Committee on Coinage, Weights and Measures (U.S.), 65
Computers in Crisis (Murray and Murray), 91–92
Craigslist, 151
Cushman & Wakefield, 4
customer effort score (CES), 152
da Vinci, Leonardo, 155
Decker, Susan, 44
Denver Airport Baggage System project failure, 51–52
design thinking
at Bank of America, 85
business opportunities, disruptive ideas, 53f
digital leverage points and, 79, 84
iterative execution and, 54
Diamandis, Peter, 17
digital ambassadors (tech-savvy users), 132–133
digital disruption
AirBnB vs. Hilton, 177
de-risking approach, 59
digital disruption index, 148, 149f
digital leverage points and, 86
as existential threat, 6
GBS recognition of, 30
getting predictions wrong, 157–158
historic opportunities of, 172–178
importance of frozen middle, 99–100
recognition of risk factors, 148–149
Siloed stage and, 61
Uber vs. General Motors, 177
warning signs, 149–158
digital disruption index, 148, 149f
digital DNA, 39
Digital Equipment Corporation, 158
“Digital Leadership Is Not an Optional Part of Being a CEO” (Bersin), 38, 41
digital leverage points, 75–88
Business Model Canvas, 80, 81f
creating big ideas, 84
exponential ecosystems, 31, 82f, 83–84, 86f
exponential technologies, 18, 31, 83–84, 86f
exponential work processes, 83–84
Fourth Industrial Revolution and, 78
of McDonalds, 78
multiplier effect, 82f
of Netflix, 75–78
starting points, 79–80
understanding possibilities, 80, 82–83
digital literacy challenge
board level, 44–45
leadership level, 43–44
digital reorganization, 117–126
digital technologies
aircraft engine development, 118–119
digital resource functions, 123
doing vs. becoming digital, 24, 24–25t
“growth engines” of, 118–119
need for leadership attention, 38
positives vs. negatives, 4–5
Digital Transformation 5.0. See five-stage digital transformation model
digital transformation failures boiling frog syndrome, 147, 148
company life spans, 6
Denver Airport Baggage System, 51–52
HealthCare.gov launch, 49–51
role of language, 6–7
digital transformations
aircraft engines evolution, 118–119
AT&T workforce retraining, 123–125
“clock speed” issues, 57
digital internal operations format, 164
enterprise-wide digital human capabilities, 123–125
importance of frozen middles, 100–101
importance of speed, acceleration, 55–56
iterative execution approach, 52–55
Living DNA steps, 124–125
name changes, resource functions, 123
new business model format, 164
new technology-embedded products format, 164
speed (innovation velocity) as metric, 56
Stage 5 transformation, 124–125
staying current, 127–136
transition challenges, 167–170
travel expense solutions, 164–165
“two worlds” issues, 58
disciplines checklist
for agile culture, 146f
for committed ownership, 46f
for digital leverage points, 86f
for digital reorganization, 126f
for disruption empowerment, 73f
for effective change model, 102f
for iterative execution, 60f
for sensing risk, 159f
for strategy sufficiency, 113f
disruption empowerment discipline, 63–74
description, 67–68
detection and usage, 76
elements of, 68f
feeder pipeline, 63, 67–68, 71
leadership skin in the game, 39, 63, 66–67, 70–72, 180t
massive transformative purpose, 68–69
Netflix and, 75
starting points, 79–80
disruption risks. See also disruption risks, warning signs
business model trends, 149
business performance results, 149–150
customer information, 149
digital disruption index, 148, 149f
industry trends, 149
Living DNA, causes of failures, 135
measuring/acting upon, 148
P&G’s intuitive risk identification, 148–150
disruption risks, warning signs
addressing fear, inertia, misjudgment, 158
from business model, 152–153
from customers, 151–152
from digital business performance, 153
from digital feedback, 153
fear-based ignoring of, 154–156
from industry trends, 150
inertia-based ignoring of, 156–157
misjudgment-based ignoring of, 157–158
drones. See robotics and drones
Drucker, Peter, 171
Duersch, Breny, 207
eCitizen portal (Singapore), 40–41
Economist Intelligence Unit, 20–21
The Economist magazine, 12
edge organization structures, 98
effective change model. See change management model
enterprise-related blockchain solutions, 127–128
enterprise resource planning (ERP) system, 42–43, 45
exponential ecosystems, 31, 82f, 83–84, 86f
Exponential Five technologies
artificial intelligence, 129, 185–188
robotics and drones, 129, 185, 193–195
smart process automation, 129, 185, 188–190
special-function technologies, 129, 185, 195–198
exponential organizations (ExO)
description, 97–98
necessity of, 18–19
as possible GBS end state, 17–18
role in global transformation, 18
Exponential Organizations (Ismail), 17–18, 54, 68
exponential technologies, 18, 31, 80, 83–84, 86f
exponential work processes, 83–84
feeder pipeline, for starting disruption, 63, 67–68, 71, 72
Ferry, Joe, 112
First Industrial Revolution, 6
five-stage digital transformation model, xvii, 10, 21–24
expansion into disciplines, 27
role of CEOs/leadership, 38–39
in Singapore, 37–38
stage 1: Foundation, 22, 23f, 24t, 30, 35t
stage 2: Siloed, 22, 23f, 25t, 30
stage 3: Partially Synchronized, 22, 23f, 25t, 30
stage 4: Fully Synchronized, 22, 23f, 25t, 31
stage 5: Living DNA, 23f, 24, 25t, 31
traditional vs. digitally native organizations, 26–27, 26f
Forbes, 66
Ford Motor Company, 157
Ford Motors, 9
Foundation stage (digital transformation) committed ownership, 179–180
description, 22, 23f, 24t, 35t
iterative execution, 180
questions, 179–180
take off/staying ahead checklist, 29f
traditional vs. digitally native organizations, 26f
Fourth Industrial Revolution characteristics of, 6–7, 117
demands made by, 30
digital leverage points, 78
early warning signals availability, 147
potential for thriving within, 171
retail sector closures as symptom, 4
role of digital technology, 4–5
transformation predictions, 6–7, 12–13
Fully Synchronized stage (digital transformation model)
description, 22, 23f, 25t, 115t
digital reorganization, 182–183
disciplines to address risks, 115t
“one-hit wonders” transformations, 147
staying current, 183
take off/staying ahead checklist, 29f
traditional vs. digitally native organizations, 26f
Gawande, Atul, 12
General Interbank Recurring Order (GIRO), 37
General Motors, 9
Gibson, William Ford, 80
Gillette
Buffett on P&G’s acquisition of, 94–95
change management model, 94
P&G’s acquisition of, 42–43
P&G’s integration of, 93–96
Global Business Services (GBS)(P&G) best-in-class benchmarks, 163
constant change cycles (2002–2015), 147
disruptive innovation experience, 90
exponential organizations as possible end state, 17–18
growth/maturity of, 16
iterative execution application, 54
leadership role in transformation, 42, 70
Nemeth’s leadership dilemma, 15
Passerini’s leadership of, 93
recognition of digital disruption, 30
risk areas, 148–149
transformation takeoff in, 11–12
Global Business Services Officer, 123
Global Consumer Relations service (P&G), 89
Google. See Alphabet/Google
Google Brain (speech recognition), 108
Google Contact Lens, 108
Google Earth, 107
Google Local, 107
Google News, 107
Hagel, John, III, 98
Harvard Business Review
Bynes’s article, 99–100
Tuff and Nagji’s article, 106
Wessel’s article, 177
Hastings, Reed, 76
iterative execution and, 48–50, 52
IT project launch issues, 49–50
leadership roles, responsibilities, 50–51
horse and carriage industry, 7–8
The House of Cards (Netflix show), 76
Hulu, 151
Human Genome Project, 163
human resource (HR) function makeover, 177
IBM Institute for Business Value, 153
immune system management, 99–100
Industrial Revolutions
characteristics, 6–7
industry turbulence during, 5
staying ahead, 10–11, 12–13, 137
strategies for surviving, 5–9
transformation takeoffs, 10–11, 13, 55
information and communications technology (ICT), 39, 166–167
information technology (IT) benchmark costs of, 164
differing enterprise names, 119
“engines” of powering of, 118–119
flexible platforms, 121
function maturity, 120–121
Global Business Services unit, 16
global Y2K fix effort, 90–93
HealthCare.gov issues, 47, 49–51
leadership challenges, 43–44
McDonald’s Innovate program, 78
piston engine version, 119
redesigning for next generation, 120–123
self-healing of systems, 20
two-worlds issues, 58
vectors (six) of change, 121–123
Innovate program, McDonalds, 78
The Innovator’s Dilemma (Christensen), 156
Instagram, 44
Intel, 44
Interaction Design Foundation, 85
International Space Station, 173
intrapreneurship
Alphabet’ generation of ideas, 108
Branson’s love of, 111–112
defined, 109
successful examples, 109–110
Virgin Group’s approach, 110–112
Ismail, Salim, 17–18, 54, 68, 98, 129
iterative execution, 47–62
approach to digital transformation, 52–55, 53f
“clock speed” issues, 57
description, 29f
disciplines checklist, 60f
Foundation stage, 35t
Global Business Services application, 54
Healthcare.gov launch and, 48–50, 52
multi-project programs application, 48–49
Next Generation Services application, 52, 53f, 54, 57, 59
“two worlds” issues, 58–59
J. G. Brill Company of Philadelphia, 8
Jefferson, Thomas, 64–65
Jobs, Steve, 171
Johnson & Johnson, 155
John Stephenson Company, 7–8, 10, 12, 147
Keep the Change program (Bank of America), 85
Kurzweil, Ray, 17
leadership
committed ownership digital literacy challenge, 43–44
digital directors, 44
over-delegating of digital transformations, 38
role in digital transformations, 38–39
skin in the game by, 39, 63, 66–67, 70–72, 180t
Lee Kuan Yew, 39
Liberia, 64
Limited, 4
Lincoln, Abraham, 171
Living DNA stage (digital transformation model) description, 23f, 24, 25t
role of agile culture, 145, 183–184
sensing risk, 184
steps of transformation, 124–125
take off/staying ahead checklist, 29f
traditional vs. digitally native organizations, 26f
“Managing Your Innovation Portfolio” (Tuff and Nagji), 106
manufacturing resource planning (MRP), 165
massive transformative purpose (MTP) defined, 72
disruption empowerment and, 68–69
exponential technologies, 83
iterative execution and, 54
role for organizations, 63
Mattress Factory, 4
Mayer, Marissa, 44
McDonalds “Innovate” program, 78
McKinsey & Company, 44
meat alternatives, 176
medical diagnostics industry, 175
Metric Conversion Act (1975), 63–64, 65
metric system, 63–66
Microsoft Corporation, 44, 68, 157
moonshot thinking at Google, 107–109
Mueller, Ed, 44
Murray, Jerome, 91–92
Murray, Marilyn, 91–92
Musk, Elon, 144
Myanmar, 64
Nagji, Bansi, 106
National Bureau of Standards, 63–65
National Institute of Standards and Technology (NIST), 65
natural language processing (NLP) bots, 174
Nemeth, Julio, 15, 70, 148–149
Netflix, 151
digital leverage points, 75–78
organizational culture, 77
record of repeated disruptions, 76
role of innovation velocity, 56
serial disruption by, 75
Networked Readiness Index (NRI), 37, 40
New York Times newspaper, 66, 142–144
Next Generation Services (NGS) program (P&G), 18–19, 30, 205–206
change management model, 169–170
“clock speed” issues, 57
effective change model, 89–102
enlisting help of digital ambassadors, 132–133
evolution of shared services, 147
factors for success, 63
feeder pipeline for starting disruption, 71
focus on 10X ideas, 109
identification of middle management leaders, 100
immune system management, 99–100
innovation “firewall,” 58
innovation theater as enemy of, 104–105
iterative execution approach, 52, 53f, 54, 57, 59
leverage partnering companies for education, 131–132
massive transformative purpose, 68–70
opening data to others via APIs, 132
openness of leaders, 71
operating model, 21
P&G’s transformation of, 163–170
reward systems, 58–59
role of artificial intelligence, 164–167
scouting trips for solutions, 128
staying current strategies, 127–136
strategy sufficiency at, 104, 112
10-5-4-1 portfolio approach, 89
10X potential projects, 165
“two worlds” issues, 58–59
NGS. See Next Generation Services (NGS) program
Nine West, 4
Obama, Barack, 50
Oldfield, Mike, 111
Olsen, Ken, 158
Online Business Licensing Service (OBLS, Singapore), 40–41
Oracle platform, 22
Osterwalder, Alexander, 80, 81f
Page, Larry, 106–107
Palmisano, Sam, 44
Partially Synchronized stage (digital transformation model)
change management failure, 90–91
disciplines checklist, 87f, 88f
effective change model, 102f, 181–182
strategy sufficiency, 182
take off/staying ahead checklist, 29f
traditional vs. digitally native organizations, 26f
Payless ShoeSource, 4
Preece, William, 158
Proctor & Gamble (P&G). See also Global
Business Services; Next Generation Services (NGS) program acquisition/integration of Gillette, 42–43, 93–96
best-in-class ERP system, 42–43, 45
branded cryptocurrency, 127
disruptive innovation by, 21
intuitive risk identification system, 148–150
staying current, 127–136
use of blockchain technology, 127
Project Glass (Alphabet/Google), 108
Project Loon (Alphabet/Google), 108
Project Wing (Alphabet/Google), 108
Qwest Communications, 44
Rackham, Horace, 157
Radio Shack, 4
Randolph, Marc, 76
Reagan, Ronald, 64
Reason, James, 27–28
“Redefining Boundaries-Insights from the Global C-suite Study” (IBM Institute for Business Value), 153
Research in Motion (RIM), 155
retail sector bankruptcies, 4
robotics and drones disruptive potential of, 134, 172, 176, 193
practical information about, 194–195
software robotics, uses, 82
use cases, examples, 193–194
Rockport, 4
Ryan, Fred, 66
Salesforce ERP system, 22, 42, 189
SAP ERP system, 22, 42–43, 95, 121, 189
Schmidt, Eric, 105–107
Sears, 4
Sebelius, Kathleen, 50
Second Industrial Revolution, 6–8
self-driving cars (autonomous vehicles), 108
70-20-10 innovation formula (Google), 105–108
shared services industries. See also Global Business Services; Next Generation Services (NGS) program
benchmark costs of, 164
context/description, 15
disruptive possibilities within, 164
evolution/growth of, 16–17, 19–20
information gathering from, 163–164
levels of maturity, 30
massive transformative purpose and, 54, 69
NGS’s role in creating, 131, 167
suppliers of, 149
use of AI in enterprises, 187
Shared Services Innovation Alliance, 131
ShotSpotter, AI tool, 164
Siloed stage (digital transformation model)
causes of failure, 61t
description, 22, 23f, 25t, 61t
digital disruption and, 61
digital leverage points, 181
digital transformation challenges, 63
disciplines to address risks, 61t
disruption empowerment, 73f, 180–181
take off/staying ahead checklist, 29f
traditional vs. digitally native organizations, 26f
Singapore
Civil Service Computerization Programme, 40
digitization outcomes, 40–41
five-stage digital transformation in, 37–38
leadership role in committed ownership in digital transformation, 39–41
NRI digitization index ranking, 37, 40
Smart Nation digitization strategy, 39, 40
World Bank’s ranking of, 40–41
Singularity University (SU), 17, 80, 131, 195
Siri, 165–166
skin in the game, by leaders, 39, 63, 66–67, 70–72, 180t
Skunk Works group, Lockheed Martin, 98
smart cities, 176
Smart Nation and Digital Government Group (SNDGG, Singapore), 39, 40
smart process automation, 129, 185
examples, 189–190
practical information about, 190
Southeastern Grocers, 4
SpaceX, agile culture at, 144–145
special-function technologies, 129, 185
disruptive potential of, 195–196
practical information about, 197–198
specific industry, 197
Sports Authority, 4
staying current, 127–136
creating learning opportunities, 130–131
description, 29f, 34f, 62f, 88f, 115t
enlisting help of digital embassadors, 132–133
enterprise-related blockchain solutions, 127–128
Exponential Five strategies, 129–130
insights on disruptive products, 129
leveraging partner companies for education, 131–132
necessary discipline, 130
NGS strategies, 128–136
opening data to others via APIs, 132
partnering with VCs, start-ups, 130–131
Stephenson, John G, 7–8
strategy sufficiency, 103–116
description, 103
disciplines checklist, 113f
at Next Generation Services, 112
organic change and, 97
Partially Synchronized stage and, 87t
volume part of, 109–110
Studebaker Corporation, 9–10, 12
Swiss cheese model, of accident causation, 27–28
Systrom, Kevin, 44
Third Industrial Revolution, 6, 21, 30
3D printing, 173
touchscreen technology, 155
Toys “R” Us, 4
Transformation Office, 119, 123
transformation takeoff
disciplined checklist approach, 13, 28, 29f, 30
Fourth Industrial Revolution predictions, 12–13
in P&G’s Global Business Services, 11
transportation industry aircraft engine evolution, 118–119
John Stephenson Company, 7–8, 10, 12, 147
metamorphosis of, 7–8
Studebaker Corporation, 9–10, 12
“Tubular Bells” (Oldfield), 111
Tuff, Geoff, 106
Turing, Alan, 20
Turing test, 20
tweeting, 128
20th Century Fox, 157
“two worlds” issues, 58–59
U.S. House of Representatives, 65
U.S. Metric Board (USMB), 64–66, 72
U.S. Metric Study, 65
Usenet Internet groups, 92
venture capitalists (VCs), 131, 133, 134f, 149–151, 158, 163, 168
Virgin Group intrapreneurship, 110–112
Virgin Health Bank, 111
Virgin Records, 111
virtual bartenders, 176
voice recognition technology, 174
Wall Street Journal article (2011), 172
Walmart, 78
Washington Post turnaround, 66–69, 71–72, 143
Watson, Thomas, 158
Waymo, driverless car company, 108
Wessel, Maxwell, 177
WhatsApp app, 128
Whittle, Frank, 118
“Why Preventing Disruption in 2017 Is Harder Than It Was When Christensen Coined the Term” (Wessel), 177
“Why Software is Eating the World” (Andreessen), 172
Wondo (business start-up), 19–20
World Bank, 40
Wright brothers, 118
X (Alphabet/Google company), 107–108
Xerox, 44
Xiaomi, 173
XPRIZE, 68
Yahoo!, 44
Year 2000 (Y2K) crisis management success, 91–92
Zanuck, Darryl, 157
Zara, fashion retailer, 173