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But it provides much more than the most common travel necessities. It also features airport maps, weather forecasts, and an inte- grated guidebook, where you can create your own maps, rec- ommend destination sights and restaurants, and ask for advice from your friends.

Digital transformation report 2017

This puts the airline in a unique position to pioneer digital transformation in the industry. They are working on electronic bag tags, biometric scans, wearable technology, microchips, and virtual reality. SAS is a member of Star Alliance, which provides customers with access to a far-reaching network.

Altogether, Star Alliance offers more than 18, daily departures to 1, destinations in countries around the world. Dedicated next-level digital leaders with the right competencies relentlessly drive the digital transformation initiatives. Uncompromised executive sponsorship with a highly capable digital leadership giving full priority to digital initiatives, often at the expense of near-term traditional business priorities.

Importance Avg. This ideally entails getting the CEO in a lead role setting an ambitious digital transfor- mation agenda, taking ownership of the key pri- orities, and taking part in driving and ensuring the progress of digital transformation initiatives — both in own actions and through dedicated, next-level leaders with deep digital competencies.

Good to Know

Most, if not all, of the interviewed executives signal that the majority of senior management in their companies have the right intentions and focus their efforts on how to succeed. However, many also report that there are large differences in how important digital transformation is considered, especially when cascaded further down the organ- ization.

There are natural conflicts built in based on current short-term profit goals and long-term development goals as well as between the old and the new. In addition, a number of companies men- tion bridging the gap between senior management and the rest of the organization as a challenge. Even if CEOs and their executive peers are willing to take on risk, go into unchartered territory, and have the stamina to relentlessly drive efforts in transforming their companies, a large challenge seems to be to empower middle management in their efforts as well as in finding and developing next-level leaders who combine deep industry insights and hands-on digital experience.

Although most companies recognize the need for leaders who are both conversant across the current busi- ness and digitally diligent, having such leaders is in practice more often the exception rather than the rule. The highlighted characteristics of the leader- ship type that is sought after include the ability to understand the intrinsic values of the business they operate, and a visionary, daring mindset combined with digitalization experience.

The latter includes having a detailed understanding of the new ways of working, identifying the competencies necessary to build digitally-minded teams — and establishing the culture to attract these. In addition, having a doer attitude is necessary to succeeding in an en- vironment where speed of change is inevitable and increasing.

Another highlighted challenge is how to secure agility and speed of execution across organiza- tional silos.

Digital Transformation - Reports - World Economic Forum

It is proven difficult enough in projects and of course even more so in the line organization over time. Freedom to execute dig- ital initiatives in business units, but somewhat lack of an overall direction setting to ensure coher- ence and company-wide impact.

Optimal balance be- tween center and local, with a coherent digital transformation vision and direction, and suf- ficient local power to execute digitally in the line of business. To what degree do you have clarity of the functional responsibility for articulating a company-wide direction and for executing operational digital initiatives to secure agility and speed? In 7 of the interviewed companies, the business responsibility for digital transformation resides with the CDO or Group Strategy function, while there is no formal role in the 13 other cases.

No matter the chosen model, almost all surveyed companies seem to have a challenge in combining the top-down, coherent transformation approach with the more decentralized approach, which creates local ownership close to actual business decisions. There also seems to be a struggle in what should reside in the line function vs the IT function, and in how to prioritize initiatives across portfolios. Anchoring the mandate and getting company-wide acceptance for the responsibility is another chal- lenge mentioned by the companies establishing a CDO-like function.

Some companies address the challenges by es- tablishing separate digital innovation units with end-to-end responsibility outside the ordinary line organization.

The overall purpose is to overcome the challenges inherited in the traditional organi- zation structures. The mission varies between more ambitious disruptive agendas and reinventing certain products or processes. Others rely more on the established organization by creating additional structures and processes formal or virtual to make sure alignment is created between BUs, IT, and the corporate function. No industry is excluded from the power and change of digitalization.

In construction, new digital solutions are continuously entering the global market creating smarter business and more efficient use of natural resources. Con- structing companies are currently integrating virtual reality solutions to show new products, buildings and prototypes before they have even begun the building process.


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The ongoing adoption of 3D printers will also revolutionize the market for smaller projects, as minor players will be able to construct products on their own to lesser cost. Robot- ics and automatization will also transform the daily activities for many construction workers. It is only a matter of time and cost versus benefit before these trends will be fully adopted by the major- ity of construction companies.

Promoting an overdue digital transformation in healthcare

NCC decided to focus their first digital disruptive business model around digital recycling connected to the handling of surplus materials. Current handling is costly, time-con- suming, wasteful and bad for the environment — so there was much that could be done in the area. The project was initiated as a startup to create the right progressive atmosphere, able to attract the best startup talent available. The business solution connects those who are in need of material with those who wants to get rid of it. Both parties share the working and transportation costs and becomes a part of the new circular sharing economy — like Tinder for construction materials.

All Loop Rocks users benefit by reducing time, costs, and envi- ronmental impact by using less virgin masses and unnecessary transportation resulting in lower CO2 emissions and excavation impact, adding value from both a financial and environmental standpoint. Loop Rocks provides transparency, working to make the entire construction industry more circular.

With the Nordic region as its home market, NCC is active throughout the value chain developing and building residential and commercial properties and constructing industrial facilities and public buildings, roads, civil engineering structures, and other types of infrastructure. NCC also offers input materials used in construction and accounts for paving and road services.

NCC creates future environments for working, living, and communicating based on responsible construction operations that result in sustainable interaction between people and the environment. It is a user-centric app, which simply connects supply and demand of construction materials. NCC Case Study Not at all 0 3 1 Low degree Some degree High degree Very high degree To what degree is a startup mindset and methodologies processes, tools, etc. Since the beginning of the 21st century, the lean startup approach, rooted in the lean manufacturing methodology and particularly relevant in relation to digital transformation, has become highly regarded both academically and by corporate frontrunners such as GE, Coca-Cola, Cisco, etc.

1. Demographics

The main characteristics of these processes, which include minimum viable products, sprints, fail fast, and build-measure-learn loops, are the strong focus on customers and users and the high speed and agility of digital development. All companies in this study acknowledge the im- portance of adopting these new approaches and methodologies, and most of them have to some extent introduced one or several of the new and more agile ways of working.

However, the majority of respondents still indi- cate that there is a long way to go before the new working practices are fully adopted into the daily routines. Most companies are still in the very early stages of testing out new concepts like sprints, pilots, and MVPs in pockets of the organization.

In order to en- courage a positive attitude toward new initiatives, many companies actively seek to highlight internal examples where new and more agile ways of work- ing have enabled the successful development of concrete solutions. Such examples are necessary to boost internal change readiness and the facilitation of increased cross-functional collaboration — both are key success factors in driving digital transfor- mation.

In addition, many indicate the challenges with the integration and co-existence of traditional and new ways of working where many state that both are needed for the foreseeable future. A further necessity is the ability to assim- ilate these new competencies into the core of the business to create digitally enabled teams that combine and integrate new functional competencies and deep industry experience.

Understanding of which competencies to seek and attract, but a yet unproven track record in retaining the new competencies due to challenges with integrat- ing them into core of the business. Strong ability to not only attract but also retain new competency profiles by actively engaging relevant communities, configuring effective teams, creating desirable working environments, etc.

Not at all 0 0 13 3 Low degree Some degree High degree Very high degree To what degree are you able to identify, attract, assimilate, and retain the necessary competencies to succeed with your digital transformation agenda?

The Latest Thinking. In Action.

Competition comes not only from traditional larger players, but also from smaller-scale startups, which can often offer a work culture that is more attractive to the sought-after profiles. The participating companies generally have good employer brands in the market and appear to be skilled in both identifying and attracting new digi- tal competencies. With only two companies assessing themselves as having a high degree of success in both attracting and retaining new essential digital competencies, this is a digital transformation driver with a lot of improvement potential.

Generally, the supply side of talent is currently falling short of the growing demand for emerging competency profiles. Additionally, the sought- after profiles tend to value fast-growing and less established work settings and cultures, meaning the established corporations not only fight each other for these profiles, but also the smaller-scaled companies and startups.

Companies in this survey point out that key drivers of getting the right com- petencies are environments that foster creativity and innovation, digitally savvy managers who can speak the language and attract younger talents, and a clear and exciting description of the digital transformation journey the company is on. This appears to be easier said than done. To supplement in-house digital competencies, companies are relying heavily on external resourc- es to provide specialized digital knowledge and fill potential capability gaps, and some companies are struggling to find the right balance between inter- nal and external resources.