ARTICLE SUMMARY BY: GERALD C. KANE, DOUG PALMER, ANH NGUYEN PHILLIPS, DAVID KIRON AND NATASHA BUCKLEY KAYNAK : MIT-SLOAN MANAGEMENT REVIEW WİTH DELOITTE «STRATEGY, NOT TECHNOLOGY, DRIVES DIGITAL TRANSFORMATION» July 14, 2015 Prepared By Yusuf Deniz İNAN1

RESEARCH SCOPE and LEVEL MIT Sloan Management Review and Deloitte’s conducted 2015 global study of digital business to understand the challenges and opportunities associated with the use of social and digital business. Conducted its fourth annual survey of more than 4,800 business executives, managers and analysts from organizations around the world. The survey, conducted in the fall of 2014, captured insights from individuals in 129 countries and 27 industries and involved organizations of various sizes. Yusuf Deniz İNAN2

FINDINGS Maturing digital businesses are focused on integrating digital technologies, such as social, mobile, analytics and cloud, in the service of transforming how their businesses work. Less-mature digital businesses are focused on solving discrete business problems with individual digital technologies. Digital Strategy drives digital technology. (15%) The power of a digital transformation strategy lies in its scope and objectives. (Falling into the trap of focusing on technology over strategy. Maturing digital organizations build skills to realize the strategy. (4-5 Times) Employees want to work for digital leaders. Taking risks becomes a cultural norm The digital agenda is led from the top The strength of digital technologies — social, mobile, analytics and cloud — doesn’t lie in the technologies individually. Instead, it stems from how companies integrate them to transform their businesses and how they work. What separates digital leaders from the rest is a clear digital strategy combined with a culture and leadership poised to drive the transformation. Yusuf Deniz İNAN3

Lack of a digital strategy is the biggest barrier to digital maturity. Competing priorities and concerns over digital security become the primary obstacles. Yusuf Deniz İNAN4 STRATEGY, NOT TECHNOLOGY, DRIVES DIGITAL TRANSFORMATION

Humanyze analyzed the travel company’s workforce and discovered that people eating lunch together shared important insights that made them more productive. Humanyze found that employees typically lunched with either four or 12 people. ???? Yusuf Deniz İNAN5

6 STRATEGY, NOT TECHNOLOGY, DRIVES DIGITAL TRANSFORMATION

Yusuf Deniz İNAN7 The ability to adapt quickly to change also stands out as an important capability «The 21st century is about agility, adjustment, adaptation and creating new opportunities.» Emory professor Konsynski Training to fill skill gaps is increasingly offered online and on a just-in-time basis.(Video) Developing talent is reducing the risk of losing it. Employees of all ages are on the lookout for the best digital companies and opportunities. STRATEGY, NOT TECHNOLOGY, DRIVES DIGITAL TRANSFORMATION

Yusuf Deniz İNAN8 The construction and real estate sector, ranks lowest in terms of digital maturity Top five industries reaping digital gains by improving work with partners and employees Consumer goods companies sit squarely in the middle of the digital maturity spectrum but fall short on digitally enabling employees. Manufacturing sector is providing digital skills to employees but has yet to realize digital gains. STRATEGY, NOT TECHNOLOGY, DRIVES DIGITAL TRANSFORMATION

Yusuf Deniz İNAN9 Many new ideas arise through collaborative efforts among people of different backgrounds. Digitally maturing companies are in a position to recognize the benefits from collaboration Taking Risks Becomes a Cultural Norm «Failure is a valid outcome» Dr. John Halamka STRATEGY, NOT TECHNOLOGY, DRIVES DIGITAL TRANSFORMATION

Culture drives technology adoption X Technology changes the culture is still an open question. “Culture leads the adoption of technology “ Halamska X The change started with a technology experiment # Culture and technology are inextricably linked. The answers must line up with the overall culture and direction that leaders want to take the company Yusuf Deniz İNAN10 STRATEGY, NOT TECHNOLOGY, DRIVES DIGITAL TRANSFORMATION

Conclusion: The Contours of the End State Yusuf Deniz İNAN11

Yusuf Deniz İNAN12 STRATEGY, NOT TECHNOLOGY, DRIVES DIGITAL TRANSFORMATION

Yusuf Deniz İNAN13

Digitally maturing organizations are committed to transformative strategies supported by collaborative cultures that are open to taking risk Leaders and employees at digitally maturing organizations have access to the resources they need to develop digital skills and know-how Digital maturity is the product of «Strategy, culture and leadership» Digital strategies at maturing organizations go beyond the technologies themselves. They target improvements in innovation, decision making and ultimately, transforming how the business works Change will be rapid and intense, and the road ahead is probably long. Yusuf Deniz İNAN14 Conclusion: The Contours of the End State

THANK YOU … YUSUF DENİZ İNAN Yusuf Deniz İNAN15 STRATEGY, NOT TECHNOLOGY, DRIVES DIGITAL TRANSFORMATION