NOTES
INTRODUCTION
1. Quentin Hardy, “Just The Facts. Yes, All of Them,” New York Times, March 24, 2012, www.nytimes.com/2012/03/25/business/factuals-gil-elbaz-wants-to-gather-the-data-universe.html?pagewanted=all&_r=0.
2. Marc Andreessen, “Why Software Is Eating the World,” Wall Street Journal, August 20, 2011, http://online.wsj.com/news/articles/SB10001424053111903480904576512250915629460.
CHAPTER 1
1. “Nike’s Just Getting Going: CEO Parker,” Bloomberg, October 9, 2013, www.bloomberg.com/video/nike-s-just-getting-going-ceo-parker-OdYc8j3aRr2fiNMbiNvpfg.html.
2. Vignette built from public sources and from Maël Tannou and George Westerman, “Nike: From Separate Level Initiatives to Firm Level Transformation,” white paper, Capgemini Consulting, 2012, www.capgemini-consulting.com/nike.
3. “Nike’s Just Getting Going: CEO Parker.”
4. Erica Swallow, “How Nike Outruns the Social Media Competition,” Mashable.com, September 22, 2011, http://mashable.com/2011/09/22/nike-social-media/.
5. Asian Paints, “Corporate Information,” www.asianpaints.com/company-info/about-us/corporate-information.aspx; currency conversion by oanda.com, accessed May 8, 2014.
6. Capgemini Consulting, “Building a World Leader Through Digital Transformation: An Interview with Manish Choksi,” Digital Transformation Review, no. 2, January 1, 2012, www.capgemini-consulting.com/digital-transformation-review-ndeg2, 42–47.
7. Ibid.
8. Ibid.; George Westerman et al., “Digital Transformation: A Roadmap for Billion Dollar Organizations,” white paper, Capgemini Consulting and MIT Center for Digital Business, November 17, 2011, www.capgemini-consulting.com/digital-transformation-a-road-map-for-billion-dollar-organizations, 14–15.
9. Asian Paints, “About Us,” www.asianpaints.com/company-info/about-us/corporate-information.aspx, accessed May 8, 2014.
10. George Westerman et al., “The Digital Advantage: How Digital Leaders Outperform Their Peers in Every Industry,” white paper, Capgemini Consulting and MIT Center for Digital Business, November 2012, http://ebooks.capgemini-consulting.com/The-Digital-Advantage/index.html, 9.
11. George Westerman et al., “Digital Transformation,” 61.
12. Westerman et al., “The Digital Advantage.”
13. Tannou and Westerman, “Nike: From Separate Level Initiatives.”
14. Michael Welch and Jerome Buvat, “Starbucks: Taking the ‘Starbucks Experience’ Digital,” Capgemini Consulting, October 4, 2013, www.capgemini.com/resources/starbucks-taking-the-starbucks-experience-digital.
15. Northwestern Mutual case study, interview with author; interviewee has asked to remain anonymous.
16. Interview with author; interviewee has asked to remain anonymous.
17. Westerman et al., “The Digital Advantage,” 6.
18. Ibid.
CHAPTER 2
1. George Westerman et al., “Digital Transformation: A Roadmap for Billion Dollar Organizations,” white paper, Capgemini Consulting and MIT Center for Digital Business, November 17, 2011, www.capgemini-consulting.com/digital-transformation-a-road-map-for-billion-dollar-organizations.
2. As of spring 2014, Ahrendts is senior vice president for retail and online sales at Apple. Capgemini Consulting, “Burberry’s Digital Transformation,” Digital Transformation Review, no. 2, January 2012, www.capgemini-consulting.com/digital-transformation-review-ndeg2. Austin Carr, “Apple Hires Burberry CEO Angela Ahrendts to Rejuvenate Retail Stores,” Fast Company, October 15, 2013, www.fastcompany.com/3019981/apple-hires-burberry-ceo-angela-ahrendts-to-rejuvenate-retail-stores.
3. Ibid. Burberry’s founder, Thomas Burberry, invented an original design for a coat originally sold to the British Army. The coat was made of a special type of fabric for comfortable, rain-resistant wear.
4. Capgemini Consulting, “Burberry’s Digital Transformation.”
6. http://kisses.burberry.com.
7. Capgemini Consulting, “Burberry’s Digital Transformation.”
8. Perry Manross, “Three Tenets of a Best Run Business,” SAP.info, May 15, 2012, http://en.sap.info/hana-in-memory-sapphirenow-orlando-2012/72972/3.
9. Capgemini Consulting, “Burberry’s Digital Transformation.”
10. “Burberry Goes Digital,” Economist, September 22, 2012, www.economist.com/node/21563353; “How Fashion Retailer Burberry Keeps Customers Coming Back For More,” Forbes.com, October 28, 2013, www.forbes.com/sites/sap/2013/10/28/how-fashion-retailer-burberry-keeps-customers-coming-back-for-more.
11. Capgemini Consulting, “Burberry’s Digital Transformation.”
12. For L2 Thinktank ranking, see www.l2thinktank.com/research/fashion-2013. For Fast Company ranking, see www.fastcompany.com/most-innovative-companies/2014/industry/retail and www.fastcompany.com/most-innovative-companies/2013/industry/retail. For Interbrand ranking, see www.interbrand.com/en/best-global-brands/2013/Best-Global-Brands-2013.aspx.
13. Michael Welch and George Westerman, “Caesars Entertainment: Digitally Personalizing the Customer Experience,” white paper, Capgemini Consulting, April 25, 2013, www.capgemini.com/resources/caesars-entertainment-digitally-personalizing-the-customer-experience.
14. Capgemini Consulting, “Allianz: Creating a Digital DNA,” Digital Transformation Review, no. 4, May 2013, www.capgemini-consulting.com/digital-transformation-review-4.
15. Michael Fitzgerald, “How Starbucks Has Gone Digital,” MIT Sloan Management Review, April 4, 2013, http://sloanreview.mit.edu/article/how-starbucks-has-gone-digital/.
16. Martha Heller, “How Vail Resorts Uses IT to Profile Skiers,” Cio.com, June 26, 2013, www.cio.com/article/734940/How_Vail_Resorts_Uses_IT_to_Profile_Skiers_.
17. Personae are clusters of users who exhibit similar patterns of behavior in their customer experience. These behavioral patterns are common to a personae type, regardless of age, gender, education, location, or other typical demographic data.
18. Heller, “How Vail Resorts Uses IT to Profile Skiers.”
19. Megan Burns, “The State of Customer Experience 2011,” Forrester Research, February 17, 2011, 1, 3, www.forrester.com/The+State+Of+Customer +Experience+2011/-/E-RES58635?objectid=RES58635.
20. Fitzgerald, “How Starbucks Has Gone Digital.”
21. James Wester, “Starbucks Still Feeling a Buzz from Mobile Payments,” Mobilepaymentstoday.com, January 28, 2013, www.mobilepaymentstoday.com/article/207367/Starbucks-still-feeling-a-buzz-from-mobile-payments.
22. Square, Inc., “Starbucks Accelerates Mobile Payments Leadership by Choosing Square for Payments,” Square web page, August 8, 2012, https://squareup.com/news/releases/2012/square-starbucks.
23. Starbucks, “Starbucks Coffee 2013 Annual Meeting of Shareholders: Adam Brotman,” Starbucks, March 20, 2013, http://media.corporate-ir.net/media_files/IROL/99/99518/asm13/ASM_SHOW_FINAL_AdamBrotman.pdf.
24. Sarah Vizard, “P&G Invests 30% of Media Spend in Digital,” Marketing Week, January 24, 2014, www.marketingweek.co.uk/sectors/fmcg/pg-invests-30-of-media-spend-in-digital/4009256.article.
25. Gartner, “US Digital Marketing Spending Survey 2013,” Gartner, March 6, 2013, www.gartner.com/technology/research/digital-marketing/digital-marketing-spend-report.jsp.
26. “My Starbucks Idea,” http://mystarbucksidea.force.com/.
27. Ashton D, “Introducing Starbucks Runner Reward,” My Starbucks Idea blog, August 27, 2012, http://blogs.starbucks.com/blogs/customer/archive/2012/08/27/introducing-starbucks-runner-reward.aspx.
28. Starbucks, “Starbucks CEO Hosts 2013 Annual Meeting of Shareholders,” transcript, Yahoo Finance, March 21, 2013, http://finance.yahoo.com/news/starbucks-ceo-hosts-2013-annual-055406090.html.
29. Andrew McAfee, “Big Data: The Management Revolution,” Massachusetts Institute of Technology, Center for Digital Business, Conference, Cambridge, MA, December 12, 2012, https://www.youtube.com/watch?v=T5AkD9gzchs#t=40.
30. Welch and Westerman, “Caesars Entertainment,” 3.
31. Liz Benston, “Harrah’s Launches iPhone App; Caesars Bypasses Check-In,” Las Vegas Sun, January 8, 2010, www.lasvegassun.com/news/2010/jan/08/harrahs-launches-iphone-app-caesars-bypasses-check/.
32. Capital One, “News Release,” http://phx.corporate-ir.net/phoenix.zhtml?c=70667&p=irol-newsArticle&ID=1080986&highlight=.
33. Trefis Team, “Capital One Buys Data Analytics Firm to Tap Spending Trends at Local Businesses,” Forbes, December 6, 2012, www.forbes.com/sites/greatspeculations/2012/12/06/capital-one-buys-data-analytics-firm-to-tap-spending-trends-at-local-businesses/.
34. Julie Shicktanz, “One Year After Its FinovateSpring 2011 Demo, Bankons Inks Deal with Capital One,” Finovate blog, May 7, 2012, http://finovate.com/2012/05/one-year-after-its-finovatespring-demo-bankons-is-acquired-by-capital-one.html.
35. John Adams, “Cap One’s Jamison Discusses Issuer’s New Digital Innovation Lab,” PaymentSource.com, November 28, 2011, www.paymentssource.com/news/cap-one-jamison-digital-innovation-lab-3008658-1.html.
36. nGenera, “Business Analytics: Six Questions to Ask About Information and Competition,” SAS.com, 2008, www.sas.com/offices/europe/uk/businessanalytics/research-report.pdf.
37. Data from www.google.com/finance; a 2000 net income equaling $467 million and a 2010 net income equaling $2,743 million provide a CAGR of 19.32 percent over ten years.
38. Michael Welch and Jerome Buvat, “Starbucks: Taking the ‘Starbucks Experience’ Digital,” Capgemini Consulting, October 4, 2013, www.capgemini.com/resources/starbucks-taking-the-starbucks-experience-digital.
39. Fred Bernstein, “Technology That Serves to Enhance, Not Distract,” New York Times, March 20, 2013, www.nytimes.com/2013/03/21/arts/artsspecial/at-cleveland-museum-of-art-the-ipad-enhances.html?pagewanted=all&_r=2&.
40. RightNow/Harris Interactive, Customer Experience Impact Report, RightNow/Harris Interactive, 2011.
41. Forrester, North American Technographics Customer Experience Online Survey, 2010, www.forrester.com/North+American+Technographics+Customer+Experience+Online+Survey+Q4+2010+US/-/E-SUS805.
CHAPTER 3
1. Codelco information based on author interviews with CIO Marco Orellana, 2011, and published sources.
2. Marco Orellena, “Digital Codelco,” PowerPoint presentation, 2013, http://tinyurl.com/mn8csbq.
3. Christina Torode, “Codelco CIO Transforms Business with Business Process Automation,” video interview, SearchCIO, June 15, 2011, http://searchcio.techtarget.com/news/2240036877/Codelco-CIO-transforms-business-with-business-process-automation.
4. Orellena, “Digital Codelco,” 30.
5. Torode, “Codelco CIO Transforms Business.”
6. Alexei Barrionuevo and Simon Romero, “Trapped 68 Days, First Chilean Miners Taste Freedom,” New York Times, October 12, 2010, www.nytimes.com/2010/10/13/world/americas/13chile.html?pagewanted=all&_r=0; Faaiza Rashid, Amy Edmondson, and Herman Leonard, “Leadership Lessons from the Chilean Mine Rescue,” Harvard Business Review, July–August 2013, http://hbr.org/2013/07/leadership-lessons-from-the-chilean-mine-rescue/ar/1, 113–119.
7. Orellana, “Digital Codelco.”
8. Torode, “Codelco CIO Transforms Business.”
9. Ibid.
10. James P. Womack, Daniel T. Jones, and Daniel Roos, The Machine That Changed the World (New York: Free Press, 2007); Steven Spear and H. Kent Bowen, “Decoding the DNA of the Toyota Production System,” Harvard Business Review, September 1999, http://hbr.org/1999/09/decoding-the-dna-of-the-toyota-production-system/ar/1.
11. Erik Brynjolfsson and Andrew McAfee, The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies (New York: W. W. Norton & Company, 2014).
12. See, for example, Zeynep Ton, The Good Jobs Strategy: How the Smartest Companies Invest in Employees to Lower Costs and Boost Profits (Boston: New Harvest, 2014).
13. J. March, “Exploration and Exploitation in Organizational Learning,” Organization Science 2 (1991): 71–87; M. Benner and M. Tushman, “Exploitation, Exploration, and Process Management: The Productivity Dilemma Revisited,” Academy of Management Review 28, no. 2 (2003): 238–256.
14. Erik Brynjolfsson and Adam Saunders, Wired for Innovation: How Information Technology Is Reshaping the Economy (Cambridge, MA: MIT Press, 2010), chap. 3.
15. Brynjolfsson and McAfee, The Second Machine Age, chap. 9. Recent research shows that over the past thirty years, technology has led to a hollowing-out of labor demand, with some routine manual tasks (such as patient care or housecleaning) still performed by people, but middle-skilled routine tasks, such as paper processing or accounting, rapidly being replaced by computers. Nonroutine cognitive tasks such as teaching and financial analysis have traditionally been safe from computerization, but this is changing rapidly.
16. Capgemini Consulting, “UPS: Putting Analytics in the Driver’s Seat—Interview with Jack Levis,” Digital Transformation Review, no. 5, Gearing Up for Digital Operations, January 2014, www.capgemini-consulting.com/digital-transformation-review-5.
17. Nadira A. Hira, “The Making of a UPS driver,” CNN Money, November 7, 2007, http://money.cnn.com/magazines/fortune/fortune_archive/2007/11/12/101008310/.
18. Capgemini Consulting, “UPS: Putting Analytics in the Driver’s Seat.”
19. Ibid.
20. Ibid.
21. Ibid.
22. Interview with author; interviewee has asked to remain anonymous.
23. Asian Paints vignette adapted from George Westerman et al., “Digital Transformation: A Roadmap for Billion Dollar Organizations,” white paper, Capgemini Consulting and MIT Center for Digital Business, November 2011, 14–15, and Capgemini Consulting, “Building a World Leader Through Digital Transformation: An Interview with Manish Choksi,” Digital Transformation Review, no. 2, January 1, 2012, 42–47.
24. Capgemini Consulting, “Building a World Leader Through Digital Transformation.”
25. Michael Welch and George Westerman, “Caesars Entertainment: Digitally Personalizing the Customer Experience,” white paper, Capgemini Consulting, April 25, 2013, www.capgemini.com/resources/caesars-entertainment-digitally-personalizing-the-customer-experience.
26. Capgemini Consulting, “Building a World Leader Through Digital Transformation,” Digital Transformation Review, no. 2, July 1, 2011, www.capgemini.com/resources/digital-transformation-review-no-1-july-2011, 42.
27. Ibid.
28. Association of Certified Fraud Examiners, Report to the Nations on Occupational Fraud and Abuse: 2012 Global Fraud Study (Austin TX: Association of Certified Fraud Examiners, 2012).
29. G. Collins, “Safeguarding Restaurants from Point-of-Sale Fraud: An Evaluation of a Novel Theft Deterrent Application Using Artificial Intelligence,” Journal of Hotel Business Management 2 (2013): 105.
30. Lamar Pierce, Daniel Snow, and Andrew McAfee, “Cleaning House: The Impact of Information Technology Monitoring on Employee Theft and Productivity,” MIT Sloan Research Paper No. 5029-13, August 24, 2013.
31. Lamar Pierce and Michael Toffel, “The Role of Organizational Scope and Governance in Strengthening Private Monitoring,” Organization Science 24, no. 5 (October 2013): 1558–1584.
32. Michael Schrage, “Q&A: The Experimenter,” MIT Technology Review, February 18, 2011, www.technologyreview.com/news/422784/qa-the-experimenter/.
33. K. Nagayama and P. Weill, “7-Eleven Japan, Inc: Reinventing the Retail Business Model,” MIT Center for Information Systems, January 2004.
34. Dan Siroker, A/B Testing: The Most Powerful Way to Turn Clicks into Customers (New York: Wiley, 2013).
35. James A. Cooke, “Kimberly-Clark Connects Its Supply Chain to the Store Shelf,” Supply Chain Quarterly, Q1, 2013, www.supplychainquarterly.com/topics/Strategy/20130306-kimberly-clark-connects-its-supply-chain-to-the-store-shelf/?utm_medium=email&utm_campaign=Preview+-+Q1+2013+-+2013+Mar+15&utm_content=Preview+-+Q1+2013+-+2013+Mar+15+CID_3581e3c0e4a6dd35057267737b0b40fc&utm_source=Email%20marketing%20software&utm_term=Kimberly-Clark%20connects%20its%20supply%20chain%20to%20the%20store%20shelf.
36. “Zara: A Case of Rapid-Fire Fast Fashion Strategy,” IPR Plaza, December 2012. http://ipr-plaza.com/state2/flow14950.
37. Sebastien Veigneau of Air France, interview with authors.
38. Ibid.
CHAPTER 4
1. Mark W. Johnson, Seizing the White Space: Business Model Innovation for Growth and Renewal (Boston: Harvard Business Press, 2010).
2. Michael Fitzgerald, Nina Kruschwitz, Didier Bonnet, and Michael Welch, “Embracing Digital Technology: A New Strategic Imperative,” MIT Sloan Management Review, October 8, 2013.
3. Tom Kaneshige, “Hailo Picks Up Speed as a Digital Disrupter for Taxis,” CIO.com, March 7, 2013, www.cio.com/article/729877/Hailo_Picks_up_Speed _as_a_Digital_Disrupter_for_Taxis.
4. Capgemini Consulting, “Hailo: Digitally Disrupting a Traditional Market—An Interview with Ron Zeghibe, Co-Founder and Executive Chairman,” July 26, 2013, www.capgemini-consulting.com/hailo-digitally-disrupting-a-traditional-market.
5. Ibid.
6. C. Zott, R. Amit, and L. Massa, “The Business Model: Theoretical Roots, Recent Development and Future Research,” working paper WP-862, IESE Business School, University of Navarra, Madrid, June 2010.
7. Alexander Osterwalder and Yves Pigneur, Business Model Generation: A Handbook for Visionaries, Game Changers and Challengers (New York: John Wiley & Sons, 2010); Mark W. Johnson, Seizing the White Space: Business Model Innovation for Growth and Renewal (Boston: Harvard Business Press, 2010); Constantinos C. Markides, Game-Changing Strategies: How to Create New Market Space in Established Industries by Breaking the Rules (San Francisco: Jossey-Bass, 2008); Henry W. Chesbrough, Open Business Models: How to Thrive in the New Information Landscape (Boston: Harvard Business Press, November 2006).
8. Henning Kagermann, Hubert Osterle, and John Jordan, IT-Driven Business Models: Global Case Studies in Transformation (New York: John Wiley & Sons, 2011); James McQuivey and Josh Bernoff, Digital Disruption: Unleashing the Next Wave of Innovation (Amazon Publishing, 2013).
9. Thomas Eisenmann, Geoffrey Parker, and Marshall W. Van Alstyne, “Strategies for Two-Sided Markets,” Harvard Business Review, October 2006, http://hbr.org/2006/10/strategies-for-two-sided-markets/ar/1. Geoff Parker and Marshall Van Alstyne, our colleagues at the MIT Center for Digital Business, have done pioneering work to understand the theory of two-sided platform strategy. See also Andrei Hagiu and Julian Wright, “Multi-Sided Platforms,” working paper 12-024, Harvard Business School, Boston, October 12, 2011; Andrei Hagiu, “Strategic Decisions for Multisided Platforms,” MIT Sloan Management Review, winter 2014, http://sloanreview.mit.edu/article/strategic-decisions-for-multisided-platforms/.
10. Sangeet Paul Choudary, Geoffrey Parker, and Marshall Van Alstyne, “Outlook 2014: Platforms Are Eating the World,” Wired, December 26, 2013, www.wired.com/insights/2013/12/outlook-2014-platforms-eating-world/.
11. Tomio Geron, “Airbnb and the Unstoppable Rise of the Share Economy,” Forbes, January 23, 2013, www.forbes.com/sites/tomiogeron/2013/01/23/airbnb-and-the-unstoppable-rise-of-the-share-economy/.
12. Thomas Friedman, “Welcome to the ‘Sharing Economy,’” New York Times, July 20, 2013, www.nytimes.com/2013/07/21/opinion/sunday/friedman-welcome-to-the-sharing-economy.html?_r=0.
13. Marriott Hotels, “Welcoming the Collaboration Generation into More Marriott Hotels: Workspace on Demand Expands,” press release, Market Watch, September 23, 2013, www.marketwatch.com/story/welcoming-the-collaboration-generation-into-more-marriott-hotels-workspace-on-demand-expands-2013-09-23.
14. Zipcar, “Zipcar Reports Fourth Quarter and Full Year 2012 Results,” press release, GlobeNewswire, February 15, 2013, http://globenewswire.com/news-release/2013/02/15/523986/10021911/en/Zipcar-Reports-Fourth-Quarter-and-Full-Year-2012-Results.html.
15. Beth Gardiner, “Jump In and Drive: Car Hire by the Minute Pulls on to UK Roads,” Guardian, August 22, 2013, www.theguardian.com/environment/2013/aug/22/on-street-car-hire.
16. Tim Worstall, “Explaining the Avis Takeover of Zipcar,” Forbes, February 2, 2013, www.forbes.com/sites/timworstall/2013/01/02/explaining-the-avis-takeover-of-zipcar/; Hagiu, “Strategic Decisions for Multisided Platforms.”
17. Eisenmann, Parker, and Van Alstyne, “Strategies for Two-Sided Markets”; see also Hagiu and Wright, “Multi-Sided Platforms”; Hagiu, “Strategic Decisions for Multisided Platforms.”
18. “The Last Kodak Moment,” Economist, January 14, 2012, www.economist.com/node/21542796.
19. Australia Post, Annual Report 2012, auspost.com.au, 2012, http://auspost.com.au/media/documents/australia-post-annual-report-2011-12.pdf.
20. Ibid.
21. eBoks, “70-årig er e-Boks-bruger nummer fire million,” e-boks.com, November 13, 2013, www.e-boks.com/dk/news.aspx?articleid=337.
22. eBoks, “Save at Least 80% on Postage—and Save Paper,” eBoks home page, accessed April 25, 2014, www.e-boks.com/international/default.aspx.
23. Maël Tannou and George Westerman, “Nike: From Separate Level Initiatives to Firm Level Transformation,” white paper, Capgemini Consulting, 2012, www.capgemini-consulting.com/nike.
24. Mark McClusky, “The Nike Experiment: How the Shoe Giant Unleashed the Power of Personal Metrics,” Wired, June 22, 2009, archive.wired.com/medtech/health/magazine/17-07/lbnp_nike?currentPage=all.
25. Austin Carr, “Nike: The No. 1 Most Innovative Company of 2013,” Fast Company, February 11, 2013, www.fastcompany.com/most-innovative-companies/2013/nike.
26. Trefis Team, “Why Nike Will Outpace the Sports Apparel Market’s Growth,” Forbes.com, May 3, 2013, www.forbes.com/sites/greatspeculations/2013/05/13/why-nikes-growth-will-outpace-the-sports-apparel-markets/.
27. Maël Tannou and George Westerman, “Volvo Cars Corporation: Shifting from a B2B to a ‘B2B+B2C’ Business Model,” Capgemini Consulting, June 22, 2012, www.capgemini.com/resources/volvo-cars-corporation-shifting-from-a-b2b-to-a-b2bb2c-business-model.
28. Bertrand Dimont, “Mobile Insurance: Are You Well Positioned for This Emerging Channel?” Capgemini Consulting, 2012, http://ebooks.capgemini-consulting.com/Mobile-Insurance/files/assets/basic-html/page5.html.
29. Tokio Marine Holdings, “Evolving to Drive Growth,” annual report, Tokio Marine Holdings, 2013, http://ir.tokiomarinehd.com/en/AnnualReport/IRFilingDataDownPar/0/IRFilingDownPar/0/PDFile/AR13_e _All%20pages.pdf.
30. Franklin Rios, “How Analytics Can Transform Business Models,” interview by Renee Boucher Ferguson, MIT Sloan Management Review, April 16, 2013.
31. Renee Boucher Ferguson, “Luminar Insights: A Strategic Use of Analytics,” MIT Sloan Management Review, February 2014.
32. Entravision Q4 2013 Analyst Call Transcript from SeekingAlpha, http://seekingalpha.com/article/2057273-entravision-communications-management-discusses-q4-2013-results-earnings-call-transcript.
33. Ibid.
CHAPTER 5
1. Case vignette based on interviews conducted by George Westerman with Jean-Pierre Remy and Nicolas Gauthier in 2011, 2013, and 2014. Information used with permission.
2. Hugh Schofield, “Minitel: The Rise and Fall of the France-Wide Web,” BBC News Paris, June 27, 2012, www.bbc.co.uk/news/magazine-18610692.
3. Based on author interviews with CEO Jean-Pierre Remy. Used with permission.
4. George Westerman et al., “Digital Transformation: A Roadmap for Billion Dollar Organizations,” white paper, Capgemini Consulting and MIT Center for Digital Business, November 17, 2011, www.capgemini-consulting.com/digital-transformation-a-road-map-for-billion-dollar-organizations, 63.
5. Didier Bonnet, George Westerman, and Michael Welch, “The Vision Thing: Developing a Transformative Digital Vision,” white paper, Capgemini Consulting and MIT Center for Digital Business, 2013, www.capgemini.com/resources/the-vision-thing-developing-a-transformative-digital-vision.
6. Ibid.
7. Jennifer Van Grove, “How Starbucks Is Turning Itself into a Tech Company,” VentureBeat, June 12, 2012, http://venturebeat.com/2012/06/12/starbucks-digital-strategy/.
8. Salesforce, “Burberry’s Social Enterprise,” video, Salesforce YouTube Channel, uploaded April 7, 2012, www.youtube.com/watch?v=XErGxMYuF2M.
9. Capgemini Consulting, “Beauty and Digital: A Magical Match—An Interview with Marc Menesguen,” Capgemini Consulting Digital Leadership Series, 2012, http://ebooks.capgemini-consulting.com/Marc-Menesguen-Interview/index.html.
10. Michael Welch and George Westerman, “Caesars Entertainment: Digitally Personalizing the Customer Experience,” Capgemini Consulting, April 25, 2013, www.capgemini.com/resources/caesars-entertainment-digitally-personalizing-the-customer-experience.
11. Commonwealth Bank of Australia, Annual Report, 2012, 5, https://www.commbank.com.au/about-us/shareholders/pdfs/annual-reports/2012_Commonwealth_Bank_Annual_Report.pdf.
12. Michael Schrage, Who Do You Want Your Customers to Become?” (Boston: Harvard Business Review Press, 2012).
13. Novartis, Annual Report, Novartis, 2012, www.novartis.com/investors/financial-results/annual-results-2012.shtml.
14. Proctor & Gamble, Annual Report, 2012, 5, www.pginvestor.com/Cache/1001174630.PDF?Y=&O=PDF&D=&fid=1001174630&T=&iid=4004124.
15. Boeing, “The Boeing Edge,” Boeing Company website, accessed April 25, 2014, www.boeing.com/boeing/commercial/aviationservices/integrated-services/digital-airline.page.
16. Ibid.
17. See, for example, Alexander Osterwelder and Yves Pigneur, Business Model Generation: A Handbook for Visionaries, Game Changers and Challengers (New York: John Wiley & Sons, 2010); and Mark W. Johnson, Seizing the White Space: Business Model Innovation for Growth and Renewal (Boston: Harvard Business Press, 2010).
18. Banco Santander, Annual Report, 2012, www.santanderannualreport.com/2012/en/, 7.
19. General Electric, Annual Report, 2011, 7, https://www.ge.com/sites/default/files/GE_AR11_EntireReport.pdf.
20. Progressive, “Progressive Background,” Progressive Company website, accessed April 25, 2014, www.progressive.com/newsroom/press-kit/progressive-background/.
21. Ian Ayres, Super Crunchers (New York: Bantam Dell, 2007), 33.
22. Progressive, “Innovative Auto Insurance Discount Program to Be Available to 5,000 Minnesotans,” Progressive, August 8, 2004, www.progressive.com/newsroom/article/2004/August/TripSense/.
23. Progressive, “Good Drivers Finally Get the Savings They Deserve as Progressive Unveils Snapshot Discount Countrywide,” Progressive Company Website, March 14, 2011, www.progressive.com/newsroom/article/2011/March/snapshot-national-launch/.
24. J. Barney, “Firm Resources and Sustained Competitive Advantage,” Journal of Management 17, no. 1 (1991): 99–120.
25. Westerman et al., “Digital Transformation”; Didier Bonnet, Andrew McAfee, and George Westerman, “Companies Must Use Digital Technologies to Transform, Not Substitute,” Financial Times, March 29, 2012, www.ft.com/cms/s/0/4fc3a520-79d4-11e1-9900-00144feab49a.html.
26. To perform this analysis, two expert coders jointly identified prototypical examples of substitution, extension, and transformation in each of four technologies: social media, mobile, analytics, and embedded devices. Subsequently, they independently coded interviews for each company to identify the most transformative initiative in each company by technology type. Where coding differed for a company, the two coders met to discuss the differences and identify a single answer for each technology for that company.
27. Westerman et al., “Digital Transformation,” 63.
28. “Prisa Grasps Liberty Lifeline,” Variety.com, November 29, 2010, http://variety.com/2010/biz/news/prisa-grasps-liberty-lifeline-1118028069/.
29. Westerman et al., “Digital Transformation,” 56.
30. Capgemini Consulting, “Building a World Leader Through Digital Transformation: An Interview with Manish Choksi,” Digital Transformation Review, no. 2, January 1, 2012, www.capgemini-consulting.com/digital-transformation-review-ndeg2, 42–47.
31. Ibid.
CHAPTER 6
1. Frederick F. Reichheld and Rob Markey, Loyalty Rules: How Today’s Leaders Build Lasting Relationships (Boston: Harvard Business School Press, 2001).
2. See, for instance, Michael Beer, High Commitment, High Performance: How to Build a Resilient Organization for Sustained Advantage (San Francisco: Jossey-Bass, 2009).
3. Rosabeth M. Kanter et al., The Challenge of Organizational Change: How Companies Experience It and Leaders Guide It (New York: Free Press, 1992).
4. For individual and team renewal, see Francis J. Gouillart and James N. Kelly, Transforming the Organization: Reframing Corporate Direction, Restructuring the Company, Revitalizing the Enterprise, Renewing People (New York: McGraw Hill, 1995). For psychological alignment, see Beer, High Commitment, High Performance.
5. Andrew McAfee, Enterprise 2.0: New Collaborative Tools for Your Organization’s Toughest Challenges (Boston: Harvard Business Press, 2009).
6. Capgemini Consulting, “Conviviality Goes Digital at Pernod Ricard,” unpublished case study, 2014.
7. Ibid.
8. Pernod Ricard, “87% of Pernod Ricard’s Employees Recommend Their Company,” press release, 2013, http://pernod-ricard.com/8931/press/news-press-releases/headlines/87-of-pernod-ricard-s-employees-recommend-their-company.
9. Capgemini Consulting, “Conviviality Goes Digital at Pernod Ricard.”
10. Ibid.
11. Ibid.
12. Ibid.
13. Ibid.
14. Ibid.
15. Ibid.
16. McAfee, Enterprise 2.0.
17. Interview with authors, interviewee asked to remain anonymous.
18. Apple, “Serving Up Innovation,” 2014, www.apple.com/iphone/business/profiles/kraft-foods/.
19. Mark Fidelman, “The World’s Top 20 Social Brands,” Forbes, November 20, 2012, www.forbes.com/sites/markfidelman/2012/11/20/the-worlds-top-20-social-brands/.
20. Stuart Elliott, “Coke Revamps Web Site to Tell Its Story,” New York Times, November 11, 2012, www.nytimes.com/2012/11/12/business/media/coke-revamps-web-site-to-tell-its-story.html?_r=0.
21. David F. Carr, “Coca-Cola on Chatter: Beyond the Secret Formula,” Information Week, September 20, 2012, www.informationweek.com/social-business/social _networking_private_platforms/coca-cola-on-chatter-beyond-the-secret-f/240007735? pgno=1.
22. Nestlé, “Digital Acceleration Team II,” video, uploaded June 13, 2013, www.youtube.com/watch?v=b2KjwoxhvAs.
23. L’Oréal, “Digital for All: Sustainable Development,” L’Oréal website, April 17, 2012, www.loreal.com/news/digital-for-all.aspx.
24. Popsi’it, “Management: Innovation Participative: Vos Idées Valent de l’OR,” Popsi’it blog, February 2014, http://blog.popsiit.com/wp-content/uploads/2014/02/19022014_art__001.pdf, 36–39.
25. George Westerman and Deborah Soule, “Learning to Foster Breakthrough Innovation: The Evolution of EMC’s Innovation Conference,” MIT Center for Information Systems Research, November 18, 2010.
26. EMC, “EMC Unites Thousands for Fourth Annual Innovation Conference,” press release, October 20, 2010, www.emc.com/about/news/press/2010/20101020-01.htm.
27. Westerman and Soule, “Learning to Foster Breakthrough Innovation.”
28. See, for instance, Henry William Chesbrough, Open Innovation: The New Imperative for Creating and Profiting from Technology (Boston: Harvard Business School Press, 2006).
29. Bruce Brown and Scott Anthony, “How P&G Tripled Its Innovation Success Rate,” Harvard Business Review, June 2011, http://hbr.org/2011/06/how-pg-tripled-its-innovation-success-rate/ar/1.
30. Procter and Gamble, “What Is Connect and Develop?” Procter and Gamble website, 2014, www.pgconnectdevelop.com/home/pg_open_innovation.html.
31. Brown and anthony, “How P&G Tripled Its Innovation Success Rate.”
32. The remaining quotes in this chapter are from interviewees who asked to remain anonymous.
CHAPTER 7
1. P&G Corporate Video, YouTube, “QA with Bob McDonald—Investing in Digital Technologies at P&G,” March 2011, https://www.youtube.com/watch?v=8m5LgZX27c4.
2. Jennifer Reingold, “Brainstorm Tech Video: P&G’s Bob McDonald Talks Tech,” Fortune, July 19, 2011, http://fortune.com/2011/07/19/brainstorm-tech-video-pgs-bob-mcdonald-talks-tech/.
3. Peter Weill and Stephanie L. Woerner, “The Future of the CIO in a Digital Economy,” MIS Quarterly Executive, June 2013, http://cisr.mit.edu/locker/WeillWoernerMISQE2013FutureofCIO.pdf.
4. I CIO, “Creating the World’s ‘Most Tech-Enabled Corporation,’” April 2012, www.i-cio.com/big-thinkers/filippo-passerini/item/creating-the-world-s-most-tech-enabled-corporation.
5. Ken McGee, “Interview with Filippo Passerini,” Gartner Fellows Interviews, January 2012, https://www.gartner.com/doc/1901015.
6. Heller Search Associates, “The Anticipator CIO: Procter & Gamble’s Filippo Passerini,” April 2014, http://blog.hellersearch.com/Blog/bid/196094/The-Anticipator-CIO-Procter-Gamble-s-Filippo-Passerini.
7. I CIO, “CEO & CIO United,” April 2012, www.i-cio.com/features/april-2012/p-and-g-ceo-bob-mcdonald-and-cio-filippo-passerini.
8. Ibid.
9. “P&G’s Global Business Services Organization Earns Praise,” P&G Corporate Newsroom, September 21, 2011, http://news.pg.com/blog/innovation/pgs-global-business-services-organization-earns-praise.
10. Filippo Passerini, “Transforming the Way of Doing Business via Digitization,” slideshare, November 2, 2011, www.slideshare.net/ericakirichenko/filippo-passerini-goind-digital.
11. TechWeb, “Procter & Gamble CIO Filippo Passerini: 2010 Chief of the Year,” December 3, 2010, www.techweb.com/news/228500182/procter-gamble-cio-filippo-passerini-2010-chief-of-the-year.html.
12. Passerini, “Transforming the Way of Doing Business via Digitization.”
13. TechWeb, “Procter & Gamble CIO Filippo Passerini.”
14. I CIO, “Creating the World’s ‘Most Tech-Enabled Corporation.’”
15. Ibid.
16. Ibid.
17. Information Week, “2010 CIO of the Year,” December 2010.
18. McGee, “Interview with Filippo Passerini.”
19. Information Week, “2010 CIO of the Year.”
20. Wikipedia, s.v. “governance,” last updated March 14, 2014, http://en.wikipedia.org/wiki/Governance.
21. Capgemini Consulting, “Burberry’s Digital Transformation,” Digital Transformation Review, no. 2, January 2012, 10, www.capgemini-consulting.com/resource-file-access/resource/pdf/Digital_Transformation_Review____Edition_2.pdf.
22. Additional analysis of 2012 global survey data to gain descriptive insights. Difference of 25.9 versus 17.2 on a summed composite of five survey items.
23. Interviewees in our study reported that the pace of business is much faster than five years ago (5.6 on a scale from 1 = much slower to 7 = much faster) and that it continues to accelerate.
24. Maël Tannou and George Westerman, “Volvo Cars Corporation: Shifting from a B2B to a ‘B2B+B2C’ Business Model,” Capgemini Consulting, June 22, 2012, www.capgemini.com/resources/volvo-cars-corporation-shifting-from-a-b2b-to-a-b2bb2c-business-model.
25. Printed with company permission; interviewee asked to remain anonymous.
26. Ibid.
27. Jennifer Van Grove, “How Starbucks Is Turning Itself into a Tech Company,” Venture Beat, June 12, 2012, http://venturebeat.com/2012/06/12/starbucks-digital-strategy/.
28. Pete Blackshaw, “How Digital Acceleration Teams Are Influencing Nestlé’s 2000 Brands,” interview by Michael Fitzgerald, MIT Sloan Management Review, September 22, 2013.
29. George Westerman et al., “Digital Transformation: A Roadmap for Billion Dollar Organizations,” white paper, Capgemini Consulting and MIT Center for Digital Business, November 17, 2011, www.capgemini-consulting.com/digital-transformation-a-road-map-for-billion-dollar-organizations.
30. Ibid.
CHAPTER 8
1. See, for example, Rosabeth M. Kanter, Barry A. Stein, and Todd D. Jick, The Challenge of Organizational Change: How Companies Experience It and Leaders Guide It (New York: Free Press, 1992).
2. Ashley Machin and Zak Mian, Lioyd’s vignette written from author interviews. Used with permission.
3. D. Preston and E. Karahanna, “Antecedents of IS Strategic Alignment: A Nomological Network,” Information Systems Research 20, no. 2 (2009): 159–179.
4. In our analysis: 22.97 versus 17.37 on a summed measure.
5. In our analysis, Digital Masters averaged 5.72, and nonmasters averaged 4.74 on a seven-point scale, in response to the question, “We are in control of our destiny for digital transformation.”
6. George Westerman, “IT Is from Venus, Non-IT Is from Mars,” Wall Street Journal, April 2, 2012, http://tinyurl.com/n6xu7p7.
7. Richard Hunter and George Westerman, The Real Business of IT: How CIOs Create and Communicate Value (Boston: Harvard Business Press, 2008), 13.
8. Capgemini Consulting, “Burberry’s Digital Transformation,” Digital Transformation Review, no. 2, January 2012, www.capgemini.com/resources/talking-bout-a-revolution, 12.
9. Westerman, “IT Is from Venus.”
10. Hunter and Westerman, The Real Business of IT.
11. John Allspaw and Paul Hammond, “10 Deploys Per Day: Dev and Ops Cooperation at Flickr,” Slideshare, 2009, www.slideshare.net/jallspaw/10-deploys-per-day-dev-and-ops-cooperation-at-flickr
12. Damon Edwards, “What Is DevOps?” Dev2Ops, February 23, 2010, http://dev2ops.org/2010/02/what-is-devops/.
13. Christina Farr, “An Idiot’s Guide to DevOps,” Venture Beat, September 30, 2013, http://venturebeat.com/2013/09/30/an-idiots-guide-to-devops/.
14. Charles Bobcock, “DevOps: A Culture Shift, Not a Technology,” Information Week, April 14, 2014, www.informationweek.com/software/enterprise-applications/devops-a-culture-shift-not-a-technology/d/d-id/1204425.
15. George Westerman et al., “Digital Transformation: A Roadmap for Billion Dollar Organizations,” white paper, Capgemini Consulting and MIT Center for Digital Business, 2011, 39, www.capgemini-consulting.com/digital-transformation-a-road-map-for-billion-dollar-organizations.
16. Average survey responses of Digital Masters and non-masters on a seven-point disagree-agree Likert scale for questions of the form “We have the necessary skills in …”
17. Capgemini Consulting, “Burberry’s Digital Transformation.”
18. Average survey responses of Digital Masters and nonmasters on a seven-point disagree-agree Likert scale for questions of the form “We have the necessary skills in …”
19. Capgemini Consulting, “Digital Leadership: An Interview with Markus Nordlin, CIO of Zurich Insurance,” 2013, http://ebooks.capgemini-consulting.com/Digital-Leadership-Zurich-Insurance/.
20. Nick Clayton, “E.U. ‘Grand Coalition’ to Fight IT Skills Shortage,” Wall Street Journal, March 6, 2013, http://blogs.wsj.com/tech-europe/2013/03/06/e-u-grand-coalition-to-fight-it-skills-shortage/.
21. Gartner, “Gartner Reveals Top Predictions for IT Organizations and Users for 2013 and Beyond,” Gartner, October 24, 2012, www.gartner.com/newsroom/id/2211115.
22. Marianne Kolding, Mette Ahorlu, and Curtis Robinson, “Post-Crisis: e-Skills Are Needed to Drive Europe’s Innovation Society,” IDC, November 2009, http://ec.europa.eu/enterprise/sectors/ict/files/idc_wp_november_2009_en.pdf.
23. Gartner, “Key Findings from US Digital Marketing Spending Survey,” Gartner, March 6, 2013, www.gartner.com/technology/research/digital-marketing/digital-marketing-spend-report.jsp
24. Barbara Spitzer et al., “The Digital Talent Gap,” Capgemini Consulting, 2013, www.capgemini.com/resources/the-digital-talent-gap-developing-skills-for-todays-digital-organizations.
25. Jeanne W. Ross, Peter Weill, and David Robertson, Enterprise Architecture as Strategy: Creating a Foundation for Business Execution (Boston: Harvard Business Review Press Books, 2006).
26. Interview with authors; interviewee asked to remain anonymous.
27. Ross et al., Enterprise Architecture as Strategy; George Westerman and Richard Hunter, IT Risk: Turning Business Threats into Competitive Advantage (Boston: Harvard Business School Press, 2007).
28. Westerman and Hunter, IT Risk.
29. Brad Stone, The Everything Store: Jeff Bezos and the Age of Amazon (New York: Little, Brown and Company, 2013), 133.
30. Average survey responses of Digital Masters and nonmasters on a seven-point disagree-agree Likert scale for questions of the form “We have an integrated view of …”
31. Erik Brynjolfsson and Andrew McAfee, “Investing in the IT That Makes a Competitive Difference,” Harvard Business Review, July–August 2008, 98–107.
32. Hunter and Westerman, The Real Business of IT.
33. P. Weill, C. Soh, and S. Kien, “Governance of Global Shared Solutions at Procter & Gamble,” MIT Center for Information Systems Research, Research Briefings vol. VII, no. 3A (December 2007).
34. John Furrier, “Google Engineer Accidently Shares His Internal Memo about Google+ Platform,” Silicon Angle, October 12, 2011, http://siliconangle.com/furrier/2011/10/12/google-engineer-accidently-shares-his-internal-memo-about-google-platform/.
35. Hunter and Westerman, The Real Business of IT.
36. Capgemini Consulting, “Building a World Leader Through Digital Transformation,” Digital Transformation Review, no. 2, July 2011, www.capgemini.com/resources/digital-transformation-review-no-1-july-2011, 42.
CHAPTER 9
1. Michael Fitzgerald et al., “Embracing Digital Technology: A New Strategic Imperative,” MIT Sloan Management Review, 2013, http://sloanreview.mit.edu/projects/embracing-digital-technology/.
2. Ibid.
3. Ibid.
4. Andy Grove, Only the Paranoid Survive: How to Exploit the Crisis Points That Challenge Every Company (New York: Crown Business, 1999).
5. Didier Bonnet and Jerome Buvat, “Digital Leadership—Hailo: Digitally Disrupting a Traditional Market,” An Interview with Ron Zeghibe, 2013, http://www.capgemini-consulting.com/digital-leadership-hailo-digitally-disrupting-a-traditional-market.
6. Fitzgerald et al., “Embracing Digital Technology.”
7. Joe Gross, “Allianz: Creating a Digital DNA,” in Digital Transformation Review, no. 4, Accelerating Digital Transformation, Capgemini Consulting, May 2013, www.capgemini-consulting.com/digital-transformation-review-4.
8. See, for example, Michael D. Michalisin, Robert D. Smith, and Douglas M. Kline, “In Search of Strategic Assets,” International Journal of Organizational Analysis 5, no. 4 (1997): 360–387.
9. American Bankers Association, “ABA Survey: Popularity of Online Banking Explodes,” American Bankers Association, September 2011, www.ababj.com/197-new-products-a-services/tech-topics-plus5/3250-aba-survey-popularity-of-online-banking-explodes.
10. Kevin S. Travis et al., “U.S. Muti-Channel Customer Research 2012: The Rise of the Virtually Domiciled,” Novantas Research, 2012, http://novantas.com/wp-content/uploads/2014/01/Novantas_US_Multi_Channel_Research_2012.pdf.
11. Rupert Jones, “Barclays to Sell Customer Data,” Guardian, June 24, 2013, www.theguardian.com/business/2013/jun/24/barclays-bank-sell-customer-data.
12. To analyze your current business model, use the business model canvas concept in Alexander Osterwelder and Yves Pigneur, Business Model Generation: A Handbook for Visionaries, Game Changers and Challengers (New York: John Wiley & Sons, 2010). There are also useful approaches to help you structure your business model thinking in Joseph V. Sinfield et al., “How to Identify New Business Models,” MIT Sloan Management Review, winter 2012; Raphael Amit and Christoph Zott, “Creating Value Through Business Model Innovation,” MIT Sloan Management Review, spring 2012. To generate new business model options, see Alexander and Pigneur, “Business Model Generation”; Mark W. Johnson, Seizing the White Space: Business Model Innovation for Growth and Renewal (Boston: Harvard Business Press, 2010); Constantinos C. Markides, Game-Changing Strategies: How to Create New Market Space in Established Industries by Breaking the Rules (San Francisco: Jossey-Bass, 2008), 23–54; W. Chan Kim and Renée Mauborgne, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant (Boston: Harvard Business School Press, 2005); Clayton M. Christensen, The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail (Boston: Harvard Business Review Press, 1997). To defend and respond to a new business model, see Markides, Game-Changing Strategies, 121–141.
13. George Westerman et al., “The Vision Thing: Developing a Transformative Vision,” Capgemini Consulting, June 11, 2013, http://www.capgemini-consulting.com/the-vision-thing-developing-a-transformative-digital-vision; Morten T. Hansen, Collaboration: How Leaders Avoid the Traps, Build Common Ground, and Reap Big Results (Boston: Harvard Business Press, 2009), chapter 4.
14. Michael Fitzgerald, “How Starbucks Has Gone Digital,” MIT Sloan Management Review, April 4, 2013, http://sloanreview.mit.edu/article/how-starbucks-has-gone-digital/.
15. Fitzgerald et al., “Embracing Digital Technology” (unpublished survey data).
16. Gross, “Allianz: Creating a Digital DNA.”
CHAPTER 10
1. Michael Fitzgerald et al., “Embracing Digital Technology: A New Strategic Imperative,” MIT Sloan Management Review, 2013, http://sloanreview.mit.edu/projects/embracing-digital-technology/.
2. Robert S. Kaplan and David P. Norton, The Balanced Scorecard: Translating Strategy into Action (Boston: Harvard Business School Press, 1996).
3. Tim Kastelle, “Is Your Innovation Problem Really a Strategy Problem?” Harvard Business Review, February 11, 2014, http://blogs.hbr.org/2014/02/is-your-innovation-problem-really-a-strategy-problem/.
4. Jeff Gothelf, “How We Finally Made Agile Development Work,” Harvard Business Review, October 11, 2012, http://blogs.hbr.org/2012/10/how-we-finally-made-agile-development-work/.
5. Michael Fitzgerald, “How Starbucks Has Gone Digital,” MIT Sloan Management Review, April 4, 2013, http://sloanreview.mit.edu/article/how-starbucks-has-gone-digital/.
6. A control group within an experiment is a group that doesn’t receive the treatment being tested. This isolates the treatment’s effects on the outcomes and can help rule out alternate explanations of the experimental results. Aim to use a control group wherever possible. If you need to conduct an experiment without a control group, be very careful in using the results. Many other factors besides the treatment you were testing may explain the results. A/B testing (or split-testing) has become a standard real-time testing method for digital experiments. It works by diverting a portion of users to a slightly different version of a given web page or mobile app, for example. The users’ behavior is compared with the mass of users on the standard site or app. If the new version shows better results—e.g., more clicks, longer visits, more purchases—it may replace the original; if the new version has inferior results, you can phase out the test, sparing most users from ever seeing it. A/B testing is used in many leading internet firms such as Google and Amazon.com. It allows you to put some data-driven rationale on seemingly subjective questions of design—color, layout, image selection, text, and so forth.
7. Jeanne W. Ross, Peter Weill, and David Robertson, Enterprise Architecture as Strategy: Creating a Foundation for Business Execution (Boston: Harvard Business Press, 2006).
8. George Westerman and Richard Hunter, IT Risk: Turning Business Threats into Competitive Advantage (Boston: Harvard Business Press, 2007).
9. George Westerman and Michael Welch, “Caesars Entertainment: Digitally Personalizing the Customer Experience,” white paper, Capgemini Consulting, April 25, 2013, www.capgemini.com/resources/caesars-entertainment-digitally-personalizing-the-customer-experience.
10. A. G. Lafley and Roger Martin, Playing to Win: How Strategy Really Works (Boston: Harvard Business Review Press, 2013).
11. Fitzgerald, “How Starbucks Has Gone Digital.”
12. See, for example, Bryan Maizlish and Robert Handler, IT Portfolio Management Step-by-Step: Unlocking the Business Value of Technology (New York: John Wiley & Sons, 2005); Robert J. Benson, Tom L. Bugnitz, and William B. Walton, From Business Strategy to IT in Action (New York: John Wiley & Sons, 2004); Catherine Benko and F. Warren McFarlan, Connecting the Dots: Aligning Projects with Objectives in Unpredictable Times (Boston: Harvard Business Review Press, 2003).
13. See, for example, George Westerman and Garrett Dodge, “Vendor Innovation as a Strategic Option,” MIT Sloan School of Management, Research Briefing, March 2008, http://cisr.mit.edu/blog/documents/2008/03/14/2008_03_1c-vendorinnoasstrategicop-westerman.pdf/.
14. CFO Research Services, “Uncrossing the Wires: Starting—and Sustaining—the Conversation on Technology Value,” CFO Research Services, March 2012, http://docs.media.bitpipe.com/io_10x/io_101990/item_457981/Cisco_CFO_SearchCIO_UncrossingTheWires_031312.pdf.
15. The translation problem for metrics is common in many areas, especially information technology. Doing this correctly can change the nature of the IT–business relationship and improve the value your company gets from IT. For examples and advice on how to do this, see Richard Hunter and George Westerman, The Real Business of IT: How CIOs Create and Communicate Value (Boston: Harvard Business Press, 2008).
CHAPTER 11
1. Michael Fitzgerald et al., “Embracing Digital Technology: A New Strategic Imperative,” MIT Sloan Management Review, 2013, http://sloanreview.mit.edu/projects/embracing-digital-technology/.
2. George Westerman et al., “Digital Transformation: A Roadmap for Billion Dollar Companies,” white paper, Capgemini Consulting and MIT Center for Digital Business, November 17, 2011, www.capgemini.com/resources/digital-transformation-a-roadmap-for-billiondollar-organizations.
3. Marc Menesguen, “Beauty and Digital: A Magical Match,” Digital Transformation Review, no. 1, July 2011, www.capgemini.com/resources/digital-transformation-review-no-1-july-2011.
4. John Young and Kristin Peck, “Pfizer: Think Digital First,” Digital Transformation Review, no. 3, November 2012, http://ebooks.capgemini-consulting.com/Digital-Transformation-Review-3/index.html#/1/.
5. David F. Carr, “Coca-Cola on Chatter: Beyond the Secret Formula,” Information Week, September 20, 2012, www.informationweek.com/social-business/social_networking_private_platforms/coca-cola-on-chatter-beyond-the-secret-f/240007735?pgno=1.
6. Ninon Renaud, “La Société Générale phosphore sur la transition numérique,” Les Echos, July 9, 2013, www.lesechos.fr/09/07/2013/LesEchos/21474-120-ECH_la-societe-generale-phosphore-sur-la-transition-numerique.htm.
7. Ibid.
8. Alison Boothby, “The End of the Workplace as We Know It?” Simply-communicate, January 25, 2013, www.simply-communicate.com/news/event-reviews/engagement/end-workplace-we-know-it.
9. Jorgen Sundberg, “Social Media from the Top: Influential CEO Leadership,” Enviableworkplace.com, September 27, 2013, http://enviableworkplace.com/ceos-and-social-media/.
10. Jacob Morgan, “ING Direct CEO Gives Employees ‘the Right to Bitch,’” CloudAve, March 19, 2013, www.cloudave.com/27297/ing-direct-ceo-gives-employees-the-right-to-bitch/.
11. Mark Fidelman, “How This CIO Helped Bayer Become Social,” Forbes, May 28, 2012, www.forbes.com/sites/markfidelman/2012/05/28/how-this-cio-helped-bayer-become-social/.
12. “Video: What Digital Transformation Means for Business,” MIT Sloan Management Review, August 06, 2013, http://sloanreview.mit.edu/article/video-what-digital-transformation-means-for-business/.
13. Laura Snoad, “The Vital Connection Between Staff and the Bottom Line,” Marketing Week, November 10, 2011, www.marketingweek.co.uk/analysis/essential-reads/the-vital-connection-between-staff-and-the-bottom-line/3031707.article.
CHAPTER 12
1. Joe Gross, “Allianz: Creating a Digital DNA,” Digital Transformation Review, no. 4, Accelerating Digital Transformation, Capgemini Consulting, May 2013, www.capgemini-consulting.com/digital-transformation-review-4, 13.
2. Coca Cola, “The Board of Directors of the Coca-Cola Company Elects Robert A. Kotick as Director,” press release, February 16, 2012, www.coca-colacompany.com/press-center/press-releases/the-board-of-directors-of-the-coca-cola-company-elects-robert-a-kotick-as-director.
3. Jack Neff, “Nestle Hires Pete Blackshaw as Global Digital Chief,” Ad Age, February 4, 2011, http://adage.com/article/news/nestle-hires-nielsen-s-blackshaw-global-digital-chief/148679/.
4. L’Oréal, “Reveal,” home page, accessed April 25, 2014, www.reveal-thegame.com.
5. Joshua Bjurke, “HR Must Step Up Recruitment/Motivation Game to Keep Employees,” Recruiter, June 19, 2013, www.recruiter.com/i/hr-must-step-up-recruitment-motivation-game-to-keep-employees/.
6. Capgemini Consulting, “Beauty and Digital: A Magical Match—An Interview with Marc Menesguen,” Capgemini Consulting Digital Leadership Series, 2012, http://ebooks.capgemini-consulting.com/Marc-Menesguen-Interview/index.html.
7. Jeanne C. Meister and Karie Willyerd, “Intel’s Social Media Training,” HBR Blog Network, February 3, 2010, http://blogs.hbr.org/2010/02/intels-social-media-employee-t/.
8. Bryon Ellen, “A New Odd Couple: Google, P&G Swap Workers to Spur Innovation,” Wall Street Journal, November 19, 2008, http://online.wsj.com/news/articles/SB122705787917439625.
9. Ibid.
10. Warc, “Reverse Mentoring Popular in India,” Warc, December 21, 2012, www.warc.com/LatestNews/News/Reverse_mentoring_popular_in_India.news?ID=30801.
11. Kering, “Digital Academy,” Kering.com, 2012, www.kering.com/en/talent/digital-academy.
12. Capgemini Consulting, “Burberry’s Digital Transformation,” Digital Transformation Review, no. 2, January 2012, http://www.capgemini-consulting.com/digital-transformation-review-ndeg2.
13. Heather Clancy, “GE, Quirky Collaborate on Sustainable Innovations via M2M,” Business Green, April 16, 2013, www.greenbiz.com/blog/2013/04/16/ge-quirky-collaborate-sustainable-innovations-m2m.
14. Ryan Kim, “Walmart Labs Buys Mobile Agency Small Society,” Gigaom, January 2012, http://gigaom.com/2012/01/04/walmart-labs-buys-mobile-developer-small-society/.
15. Dale Bus, “Mondelez Pairs Brands with 2013 Class of Mobile Futures Startups,” January 8, 2013, Brandchannel.com, www.brandchannel.com/home/post/2013/01/08/Mondelez-Mobile-Futures-2013-Class-010813.aspx.
16. Jeanne Ross, Peter Weill, and David Robertson, Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, (Boston: Harvard Business Press, 2006).
17. George Westerman and Richard Hunter, IT Risk: Turning Business Threats into Competitive Advantage (Boston: Harvard Business Press, 2007).
18. Ross et al., Enterprise Architecture as Strategy
19. Richard Hunter and George Westerman, The Real Business of IT: How CIOs Create and Communicate Value (Boston: Harvard Business Press, 2008).
20. Capgemini Consulting, “Burberry’s Digital Transformation.”
21. Michael Fitzgerald et al., “Embracing Digital Technology: A New Strategic Imperative,” MIT Sloan Management Review, 2013, http://sloanreview.mit.edu/projects/embracing-digital-technology/.
22. George Westerman et al., “Digital Transformation: A Roadmap for Billion Dollar Companies,” Capgemini Consulting, November 27, 2011, www.capgemini-consulting.com/digital-transformation-a-road-map-for-billion-dollar-organizations.
23. Jack Neff, “Walmart Brings Bricks and Mortar to Battle with Amazon,” Ad Age Digital, November 2011, http://adage.com/article/digital/walmart-brings-bricks-mortar-battle-amazon/230986/.
24. Ruddick Graham, “‘Success Online? It’s All About Shops Actually,’” Telegraph, April 20, 2013, www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10007746/Success-online-Its-all-about-shops-actually.html.
25. Andrew McAfee and Michael Welch, “Being Digital: Engaging the Organization to Accelerate Digital Transformation,” Digital Transformation Review, no. 4, May 2013, www.capgemini-consulting.com/digital-transformation-review-4.
26. John Gibbons, “Employee Engagement: A Review of Current Research and Its Implications,” Conference Board, November 2006, www.conferenceboard.ca/e-library/abstract.aspx?did=1831.
27. Gamification helps businesses measure and influence user behavior through the application of game mechanics to reward systems.
28. Mario Herger, “Gamification Facts and Figures,” Enterprise Gamification Consultancy, August 23, 2013, http://tinyurl.com/ksnnrsd.
29. McAfee and Welch, “Being Digital: Engaging the Organization to Accelerate Digital Transformation.”
30. Fitzgerald et al., “Embracing Digital Technology.”
31. Rory Cellan-Jones, “Fail Fast, Move On: Making Government Digital,” BBC News, July 18, 2013, www.bbc.com/news/technology-23354062.
EPILOGUE
1. Over the years, experts sometimes argue that Moore’s Law is coming to an end. However, over the past decades, these predictions have proven to be untrue. See, for example, Rebecca Henderson, “Of Life Cycles Real and Imaginary: The Unexpectedly Long Old Age of Optical Lithography,” Research Policy 24, no. 4 (July 1995): 631–643. However, even if Moore’s Law slows, digital technology’s growth trajectory will not screech to an abrupt stop. It will continue to advance powerfully into the future, bringing new business practices, capabilities, and customer demands with it.
2. See, for example, Henry William Chesbrough, Open Innovation: The New Imperative for Creating and Profiting from Technology (Boston: Harvard Business School Press, 2006).