Table Of ContentManagement for Professionals
Xiaodong Ma
Methodology
for Digital
Transformation
Implementation Path and Data Platform
Management for Professionals
The Springer series Management for Professionals comprises high-level business
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excellence.
Xiaodong Ma
Methodology for Digital
Transformation
Implementation Path and Data
Platform
Xiaodong Ma
Suzhou Guoyun Data Technology Co., Ltd.
Beijing, China
University of Science and Technology
of China
Hefei, China
ISSN 2192-8096 ISSN 2192-810X (electronic)
Management for Professionals
ISBN 978-981-19-9110-3 ISBN 978-981-19-9111-0 (eBook)
https://doi.org/10.1007/978-981-19-9111-0
Jointly published with China Machine Press Co., Ltd.
The print edition is not for sale in China (Mainland). Customers from China (Mainland) please order the
print book from: China Machine Press Co., Ltd.
Translation from the Chinese Simplified language edition: “数字化转型方法论: 落地路径与数据中
台” by Xiaodong Ma, © 机械工业出版社 2021. Published by 出版社: 机械工业出版社. All Rights
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© China Machine Press Co., Ltd. 2023
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Preface
In recent years, the growth models of traditional industries have been disrupted by
modern digital technologies, particularly the mobile Internet, Internet of Things
(IoT), cloud computing, and big data. The relentless impact of digitalization has
meant that digital drivers have now become the key to solving the development bot-
tlenecks across all industries and an essential means for accelerating their growth.
The Artificial Intelligence of Things (AIoT) applications in all industries are gain-
ing traction in the research and development (R&D) field by employing data as the
primary resource and cloud storage as the logistical support. There is a constant
deep dive into the exploration of autonomous driving, “City Brain,” medical imag-
ing, intelligent speech interaction, and other fields. Regardless of the exploration
of AIoT or mining of the big data technology applications, they are all primarily
based on data, which continually enriches people’s work and lives.
Today, data intelligence services are ubiquitous among industries, and there
are pressing needs for digital transformation in all industries. The new model of
Alibaba’s “large digital platform, small front-end platform” has provided a tem-
plate for many companies to carry out digital transformation. Different companies
have varying business logic, technical strengths, and backgrounds, so it is challeng-
ing to completely replicate Alibaba’s data platform construction model. Without
proper professional guidance on digital transformation as well as the construction
and implementation of the data platform, it will only miserably backfire if any
company just copies wholesale from the transformation model of another company.
The purpose of authoring this book is to empower the company managers,
R&D personnel, business staff, data practitioners, and data technology enthusiasts
to have a better understanding of the significance of digital transformation, fully
understand the technical structure of the data platform as well as grapple with the
construction methods of the data platform.
By combining theoretical and practical approaches, this book aims to show how
companies can achieve digital transformation utilizing a suitable data platform,
providing readers with practical guidance on implementing and creating such a
platform.
This book is divided into eight parts.
Part I (Chaps. 1–2): Why Do You Implement Digital Transformation?
Part II (Chaps. 3–5): When Do You Implement Digital Transformation?
Part III (Chap. 6): What Is Digital Transformation?
v
vi Preface
Part IV (Chap. 7): Should You Implement Digital Transformation?
Part V (Chap. 8): Who Is Responsible for Digital Transformation?
Part VI (Chaps. 9–15): How Do You Implement Digital Transformation?
Part VII (Chaps. 16–19): Critical Tools of Digital Transformation—Data
Platform
Part VIII (Chaps. 20–24): Case Studies of Digital Transformation
Through the eight parts above, this book dissects the path to digital transforma-
tion layer by layer and clarifies the critical components of digital transformation
for its readers. Scan the QR code below to get more information about this book.
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In pursuing a perfect manuscript by the author, there may be some inadequate
parts. Thus, the author would like to seek positive criticisms and rectifications
from the experts, teachers, and readers.
The publishing of this book has garnered strong support from Fuchuan Yang,
Chief Editor of China Machine Press, and the author would like to express his
gratitude here.
Beijing, China Xiaodong Ma
Contents
Part I Why Do You Implement Digital Transformation?
1 The Significance of Digital Transformation ......................... 3
1.1 Five Drivers of Digital Transformation ........................ 3
1.1.1 The Demographic Dividend Is Disappearing Fast,
and Innovative Development Is Inevitable ............. 3
1.1.2 Persisting Trade Conflicts Between China
and the U.S. Drive Corporate Restructuring ........... 5
1.1.3 A Higher Market Supply Than Demand Enhances
Consumption Upgrading .............................. 5
1.1.4 A Stark Urgency in Ecological Protection Creates
the Need for Companies to Transform ................ 7
1.1.5 New Technologies Foster the Digital
Transformation of Companies ......................... 9
1.2 Dividend Beyond Conformism—Biggest Dividend
of Digitalization .............................................. 10
2 Three Types of Digital Disruptions to Traditional Companies ...... 13
2.1 Disrupting Traditional Industries from the Strategic Level ...... 13
2.2 Disrupting Traditional Industries from the Efficiency Level .... 14
2.3 Disrupting Traditional Industries from the User Experience .... 19
2.4 Two Misconceptions of Digital Transformation ................ 20
Part II When Do You Implement Digital Transformation?
3 New-Born Species of Digitalization ................................. 25
3.1 Digitalization Accelerates the Industrial Evolution ............. 25
3.1.1 The Prevalence of Digital Intelligence Speeds Up
the Obsolescence of Industries ........................ 25
3.1.2 Leading Industries of Digital Companies .............. 26
3.2 Digitalization Drives the New Industrial Giants ................ 26
3.3 Digital Transformation Boosts the Newly Emerging
Industrial Companies .......................................... 28
vii
viii Contents
4 Two Primary Reasons to Speed Up Digital Transformation ......... 31
4.1 The “Construction of New Infrastructure” Initiative Has
Sped Up the Pace of Digitalization ............................ 31
4.2 The New Coronavirus Pandemic Spurs the Pace
of Digitalization for Companies ............................... 33
5 When Do You Implement Digital Transformation? ................. 35
5.1 Opportunities for Digital Transformation ...................... 35
5.1.1 Price Scissors Theory ................................. 36
5.1.2 Matthew Effect of Digitalization ...................... 37
5.2 Timeline for Reference of Digital Transformation for Each
Industry ...................................................... 39
5.3 Misconceptions of Digital Transformation: If the Cost
of Adding Staff Is Low, Then the Solution Is to
Add More Staff ............................................... 39
Part III What Is Digital Transformation?
6 The Elements of Digital Transformation ............................ 45
6.1 Intelligent Business Operating System—Building Digital
Capabilities ................................................... 45
6.1.1 The Importance of an Intelligent Business
Operating System ..................................... 45
6.1.2 Relationship Between the Intelligent Business
Operating System and Digital Transformation ......... 49
6.2 The Barrel Theory Applies to Digital Transformation .......... 50
6.3 Digital Transformation Is a Systematic Project ................. 51
6.4 Six Indispensable Elements of Digital Transformation ......... 52
6.4.1 Data .................................................. 52
6.4.2 Applications .......................................... 54
6.4.3 Talents ............................................... 55
6.4.4 Tools ................................................. 56
6.4.5 Experiences .......................................... 57
6.4.6 Digital Platforms ..................................... 58
Part IV Should You Implement Digital Transformation?
7 Self-assessment of Digital Transformation .......................... 63
7.1 Digital MAX Maturity Model and Assessment ................. 63
7.1.1 Six Levels of the Digital MAX Maturity Model ....... 63
7.1.2 Assessment of the Levels of Digital Operations ....... 65
7.2 Nine Dimensions of the Digital Self-readiness Model .......... 71
7.2.1 Whether the Leaders Have Any Awareness
of the Digital Transformation ......................... 72
7.2.2 Whether the Company Has Any Digital
Transformation Talents ............................... 74
Contents ix
7.2.3 Whether the Company Has Any Digital
Transformation Culture ............................... 76
7.2.4 Whether the Company Has Prepared Any Digital
Transformation Budgets .............................. 77
7.2.5 Whether the Company Has Any Cumulative
Capabilities of Digital Transformation ................ 77
7.2.6 Whether the Company Has Any Implementation
Methods for Digital Transformation ................... 79
7.2.7 Whether the Company Has Any Technical
Facilities for Digital Transformation .................. 80
7.2.8 Whether the Company Has Any Advisory
Committee for Digital Transformation ................ 81
7.3 Four Misconceptions About Digital Transformation ............ 82
7.3.1 Misconception 1: There Is No Necessity
for Digital Transformation as Their Profits Are
Currently Ideal ....................................... 83
7.3.2 Misconception 2: Digital Transformation Is Only
for the Leading Companies ........................... 83
7.3.3 Misconception 3: Leading Companies
in the Industry Do Not Require Digital
Transformation ....................................... 84
7.3.4 Misconception 4: As There Are Few Success
Stories of Digital Transformation Among
Companies, There Is No Need for Any Digital
Transformation ....................................... 85
Part V Who Is Responsible for Digital Transformation?
8 The Main Driver of Digital Transformation ........................ 89
8.1 How Does a Board of Directors Drive the Company
to Implement Digital Transformation? ......................... 89
8.1.1 Three Challenges of Digital Transformation
Facing the Board of Directors ......................... 90
8.1.2 How to Build Digital Competitive Advantages ........ 92
8.2 How to Build a Leadership Organization for Digital
Transformation ............................................... 96
8.2.1 Understand the Limitations of Hierarchical
Leadership ........................................... 96
8.2.2 Build a Digital Leadership Organization .............. 97
8.3 How Does a CEO Build a Leadership Organization
for Digital Transformation .................................... 99
8.3.1 The Role that a CEO Plays in Digital
Transformation ....................................... 100
8.3.2 How Does a CEO Build a Leadership
Organization for Digital Transformation ............... 101
