Paul.Gromball@tmg-muenchen.de1June 2016

Creating the learning Enterprise

Discussion Paper

Winning with Agile Networks

Building the Digital Team Platform

Digital Team Platform

2

For Companies who want to build agile networks, the Digital Team Platform delivers Digital Leadership Capabilities which enables dynamic value creation trough the collective intelligence of cross-boundary interactions and cooperation.

Situation:The Evolution of the Digital Business creates two different Value Segments

3

Smart Products Smart ServicesCustomer

HardwareSoftware/

User InterfaceNetworking/Data/AI

+

The emerging Digital Business Architecture

Key Factor of Success:

EfficiencyKey Factor of Success:

Adaptability

Smart Products Smart Services

4

Challenge: The “proliferation” of Smart Products reduces profits which shifts the fundamental constraint for growth to the Smart Service “production”

Source:Kim, Chan et al: Blue Ocean Strategy, Harvard Business School, 2015Base: 150 global companies in 30 industries

Initiatives

Revenue Impact

The Profit and growth consequences of Smart Service Bottleneck

Profit Impact

Smart Product Initiatives Smart Service Initiatives

86 % 14 %

62 % 38 %

39 % 61 %

Bottleneck

5

Solution:Companies need an efficient & adaptive Organization to meet the

challenges of Smart Products and Smart Services

3Build an efficient & adaptive Organization

Fast changing andinter-connected market environment

Business Sphere of Activity

Smart Products Smart ServicesCustomer1 2Reshape

the portfolio Sustain innovation

in R&D

Key Factor of Success:

EfficiencyKey Factor of Success:

Adaptability

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Digital Leadership Framework

Digital Leadership balances Efficiency with Adaptability

Management-driven hierarchy

Digital Team PlatformLeadership driven network

Smart Products Smart Services

Mastering the Slide Control

Digital Leadership as…

Typical Digital Team areas:

• High degree of creative work• Global business areas• Cross-boundary work• Large basic processes• Areas with knowledge gaps

Efficiency & Excellence Adaptability & Innovation

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The Digital Team Activity Sphere

Customer Opportunities and cross-functional Use Cases are the focus of Digital Team Value-Creation

A) Customers with opportunities B) Cross-functional Use Cases

Project Management

InnovationManagement

Business Process

Management

Topic –specific

Networks

Expert Networks

Information Management

Stakeholder Management

Management & Reporting

Councils, Boards,

Committees

Smart Products

Smart Services

Customer

Reshapethe portfolio

• sustaining Leadership • building competitive Position• exploring strategic Options

Sustain innovationin R&D

• Strengthen Pipeline• R&D 2.0 Model

• R&D Collaborations

The Digital Team Live Cycle

Building the Digital Team Organization in Waves

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Customer Opportunities & Use Cases

Building& Operating

The Leadership Model of Digital Teams

Basis: Haufe Quadrant

Selecting Digital Team Initatives

Org

aniz

atio

nD

esig

nSe

lf-O

rgan

ized

Doer: Duplication

Creator: Innovation

Role of the employee

Social accountabilityHigh trust Management / StaffClear goals and transparencyJoint consciousnessEmpowered Execution

Clear routine processesEfficient executionPredefined workflowsEmployees follow instructionsTop-down organizational structure

Co

ntr

olle

d

Self-organization of employeesClear instructions are missingUnclear objectivesExceedances of planningEmployees feel overloaded

High momentum of employeesEmployees follow own agendaLimited transparencyLimited co-decisionFunctional teams with rigid project planning

Management-driven hierarchy

Digital TeamsLeadership driven network

Strained Organization

Shadow Organization

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The Digital Team Building Blocks

The three Building Blocks for the Digital Team

Periphery

Matchmaking

Tasks

Digital Team

Job-to-be-done Global Talent Pool

Center

Scope of Initiative1

2 3

Work Graph

Talent

Deploying the Digital Team Platform

The Value Ecosystem

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Job

Sub-Jobs

Workstreams

Tasks

Community Integrator

On-boarding

Launch

Adapt

Optimize

DIGITAL TEAM PLATFORM

Designing Primary Activities Managing Support Activities

Team of Teams

Primary Activities of Digital Team : Agile Networking

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The Digital Team of Teams Structure

1) Job-to-be-done Sphere

2) Sub-Job

3)WorkStream

4)Task

Digital Team

Lead Link

Rep Link

DIGITAL DESIGN PLATFORM

Roles

Support Activities for Digital Teams: Governance

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The Digital Team of Teams Governance

Governance: Weekly

Activation Sessions

Doing Work in clear

roles

Sensing Tension

as Challenges

or opportunities

I) Empowered Execution

to act on tensions

II) Joint Consciousness on achieving the goals

Job-to-be-done

DIGITAL DESIGN PLATFORM

Tension drives progress

Community Integrator

Community Integration is empowered by the Cloud

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Community Integration as a Service

DIGITAL PLATFORM

Online-Learning Phase 1: Tuning-in

PLAYBOOKS

Phase 2: Primary Activities Phase 3: Support Activities

Community: Digital Team of Teams

Repository of repeatable best practices and re-usable components

Community Integrator

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Digital Teams take Friction out of Smart Service Co-Creation

The Smart Service Network: The Platform

• High adaptability/agility for Customer Signals• Joint Consciousness of pet owners need• Mastering Complexity of dynamic value creation• Network Effects are key growth driver

• Controlled Platform Access for Firm & Customer• Knowledge/Benchmark Exchange is enabled• Unity-of-Effort across boundaries• Global BI synergies for local but common themes

Digitally Engage Customers

Value Creation: Periphery Value Creation: CustomerValue Creation: Center

Enabling the Periphery Teams

Smart Talents: Community IntegratorPhase I Phase II

Transformed Value Creation: The Platform Business Model

Digital Team Platform

VALUE UNIT

Touch Points

Enabling the Center Team

VALUE UNIT

Services

Company Company

Patient

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The Digital Team Difference Freeing Resources for value-creating Activities and Growth

Res

ou

rces

(co

sts,

em

ail t

ime.

.)

Cooperation

Structured Organization

Digital Teams

The Effect on Business Performance

Digital Transformation

Time-Reduction

30 -50%

SpeedFast Responses

Reduction of

non-value added expenses

25 -30%

Efficiency Work Productivity

Additional Value-Creation

by Cooperation between “Boxes”

20 -25%

GrowthCollective Creativity

Limits of Growth: Knowledge Resources

Growth Effect

Source: Morieux, Yves: Six Simple Rules