Index

ABB Robotics, 102

accountability, 174

adaptive organizations, 18, 78

Aeroflot, 32

after-sale service, 109110

agility, 18, 19, 21, 26, 38, 69, 78

AI-driven firms

building, 7592

competition and, 6172

See also artificial intelligence (AI)

AIG, 43

Airbnb, 11, 16, 18, 22, 3334

airline industry, 32, 124

algorithms, 6264, 66, 7173, 77, 97. See also artificial intelligence (AI)

Alibaba, 3, 22, 61, 62, 70, 72

Alipay, 61, 66

All Traffic Solutions, 107108

Alpha, 13

Amazon, 3, 6, 7, 8, 10, 22, 36, 62, 66, 72, 107, 139

analytics, 89, 90, 9899, 115

analytics translators, 80, 88, 89

Ant Financial Services Group, 6162, 66, 67, 73

Appear Here, 22

Apple, 15, 22, 163179

collaborative debate at, 171174

continuous innovation at, 166167

functional organization of, 163168, 169

leadership of, 168178

organizational structure, 163179

arenas, 10

Arm, 22

artificial intelligence (AI), 18, 6173

AI factory, 6264, 70

barriers to adoption of, 7980

change reinforcement for, 8991

competition and, 66, 6872

downsides of, 73

educating about, 87, 89

at firm’s core, 6869

investment in, 76, 8081

job losses to, 7172

leadership and, 7273

organizational use of, 7592

organizing to scale, 8287

oversight and execution of, 8687

prioritizing, 81

resistance to, 7879

scale, scope, and learning and, 6466, 73

strong, 63

successful use of, 7881

tracking adoption of, 9091

ways to derail programs, 88

weak, 63

See also AI-driven firms

asset sharing, 18, 19, 25, 26

assumption checkpoint table, 12

assumptions

rethinking, 7

testing, 8, 1213

AT&T, 159

augmented reality, 102, 110

Auto-ID Center, 106

automatic-execution strategy, 133136

automation, 62, 155

automotive industry, 71, 143145

autonomy, 97

Avnet, 37

Badhorn, Dayna, 37

barriers to change, 7980

Best Buy, 67

big data, 18, 21

Bing, 64

blockchain technology, 31

Blue Apron, 131132

Bonobos, 35

born-digital firms

assumptions in, 3

competition and, 10, 62

IT infrastructure and, 144

See also digital firms

Bosch Group, 122

Brilliant Factories initiative, 104105

Buffer, 1213

business models

complexity of, 85

definitions of, 1516

for digital transformation, 5, 139150

dominant, 16

platforms, 1112

smart devices and, 103104, 108

support for new, 103104

transformative, 1527

buy what we have model, 128130, 137

Canadian Imperial Bank of Commerce (CIBC), 5152, 5657

Canon, 22

Casper, 3

Caterpillar, 110, 122

Center for Energy Workforce Development (CEWD), 160161

centers of excellence, 123

Chalendar, Alice de. See de Chalendar, Alice

Chandler, Alfred, 64, 143, 165, 168

Chanel, 149

change reinforcement, for AI adoption, 8991

chief analytics officers, 86

chief data officers (CDOs), 43, 45, 48, 52, 5658, 119

Christensen, Clayton, 10, 66, 139, 143

closed-loop process, 18, 19

cloud technology, 20, 72

coaching behavior, 132133, 135

Coase, Ronald, 2

collaborative ecosystem, 18, 19, 21, 25, 26

collisions, 66

Collison, Patrick, 149

Comcast, 62, 67

command-and-control model, 116

commodity prices, 20

company culture, 79, 113

compensation models, 113, 167

competition

AI and, 62, 66, 6872

born-digital firms and, 10, 62

identifying, 10

competitive advantage, 66, 6971, 115, 137

connected devices. See smart devices

connected strategies, 127138

automatic execution, 133136

coaching behavior, 132133, 135

curated offering, 131132, 135

repeat dimension of, 136138

respond to desire, 130131, 134, 135

consumption patterns, 125

conventional products, 116

Cook, Tim, 165, 174

core competencies, 72

Coursera, 22

cross-business-unit steering committees, 123

cross-functional teams, 76, 8687, 118119

culture

company, 79, 114

learning, 156157

curated-offering strategy, 131132, 135

customer consumption chain, 11

customer focus, 3839, 115

customer needs, 129130, 132, 136137

customer preferences, 20

customer relationships, 107108, 136143

customer success management units, 117, 118, 120121

customer value proposition, 1516, 3034, 108109

customization, 137

cyberattacks, 111

DalleMule, Leandro, 4359

Dark, Jill, 161

data

big, 18, 21, 99

customer relationships and, 140142

defense versus offense, 4447, 5257

incremental improvement and, 147

versus information, 46

integration, 68

personal, 111112, 136

policies, 112

protection of, 147

raw, 46

scalability of, 146

security, 45, 111112

from smart devices, 97100

standardization, 46, 47

talent to manage, 182183

unstructured, 183

data analytics, 89, 90, 9899, 115

data architecture, 4652

data breaches, 43

data definitions, 50

data fraud protection, 45

data lakes, 51, 99, 104105

data-management functions, 4344, 48, 5758

data pipeline, 63

data privacy, 44, 69, 111112, 136

data rules, 50

data strategy, 4359

data warehouses, 51

Davenport, Thomas H., 4359, 181185

de Chalendar, Alice, 151161

decision making

by AI, 6264, 75, 7778, 92

data-driven, 7778

top-down, 77

Defense Advanced Research Projects Agency (DARPA), 99, 111

DelBene, Kurt, 70

Dell, 22

demand, 20

denial-of-service attacks, 111

detail orientation, at Apple, 169171

development-operations groups (dev-ops), 117121

DHL, 107

Didi, 66

Diebold, 110

differentiation, 114, 115

digital economy, 139140

digital firms

acquisition of, 3638

advantages of, 139

experimentation by, 34

physical businesses of, 35

structures of, 3

See also born-digital firms

digital networks, 6971

digital operating models, 6173

digital strategy, incremental approach to, 114

digital transformation

defined, 29

discovery-driven, 114

key areas for, 181185

legacy systems and, 139150

measuring progress on, 8, 10

myths about, 2942

payoff of, 1314

physical businesses and, 3436

talent for, 181185

digital twins, 99

diminishing returns, 65

Directive on Payment Services (PSD2), 41

direct-to-consumer businesses, 3

discovery-driven digital transformation, 114

discovery-driven planning (DDP), 2, 513

discretionary leadership model, 175178

Disney World, 127, 136, 137

disruption, digital technology and, 3034

disruptive innovation, 66, 152154

Dragon Innovation, 37

drones, 107

Drucker, Peter, 46

DuPont, 165

economic growth, 125

EdX, 22

employees

adaptability of, 151161

capabilities needed by, 6869

change incentives for, 91

educating about AI, 89

engagement of, 157158

expectations of, 154

optimism about future of, 154157

resistance to AI by, 7879

training of, 156157

ways to support, 156161

employment, 125126

energy sector, 36

entrepreneurial firms, 165

environmental stewardship, 125

Etsy, 22

evergreen design, 102, 114, 119

Expedia, 33, 40, 72

Expeditors, 157

experimentation, 3, 1213, 78, 90

experimentation platform, 6364

expertise, 112113, 168169

Facebook, 62, 63, 70

factories, smart, 104105

factor prices, 20

Fadell, Tony, 142

failures

fear of, 78

as lessons, 1213

toleration of, 39

fall-detection sensors, 134

feedback loops, 50, 142

Fidelity Investments, 62, 6768

Fields, Mark, 148

financial services sector, 41

Ford Motor Company, 119, 148

Fountaine, Tim, 7592

friction, 72

Fuller, Joseph B., 151161

functional organization, 163168, 169

Furr, Nathan, 2942

G7, 33

Galeries Lafayette, 31, 3435, 37

Gascoigne, Joel, 1213

General Electric (GE), 6, 12, 104105, 113, 123, 141, 146149

General Motors, 165

gig economy, 153154

Google, 7, 36, 61, 63, 64, 70, 107

Google AdWords, 22

governance, of digital assets, 69

guardian angels, 3738

hackers, 111

Hackster.io, 37

Haggerty, Myra, 173

Hamers, Ralph, 39

Handy, 22

Hansen, Morten T., 163179

Harry’s, 3

HBO, 149

health-care industry, 124

Healx, 2527

Heppelmann, James E., 93126

herding cats, 184

Honeywell, 62

hotel industry, 1617, 3334

hub-and-spoke model, 8287

Hubel, Paul, 167

hub firms, 7071

human resources, 112113. See also employees; workforce

Iansiti, Marco, 6173

IKEA, 23

Immelt, Jeff, 113

incumbent firms

incremental advantage of, 25, 14

legacy systems of, 139150

Indigo Ag, 62

industry analysis, 71

information, versus data, 46

information architecture, 4647

information engineering, 4647

information technology (IT)

changing nature of, 144

collaboration between R&D and, 116, 118119, 121

first generation of, 144

talent, 182

infrastructure, 64

ING, 3839

ING Netherlands, 158

innovation

disruptive, 66, 152154

technical, 8586, 154

transformative, 143145

integration, 114, 115116

interdependence, 143145

interdisciplinary collaboration, 76

interdisciplinary teams, 76, 8687, 118119

Interface, 23

intermediaries, 11

internet of things (IoT), 20, 106, 134

iPhone, 166, 167, 172174

iPod, 15, 22

iTunes, 15

job losses, to AI, 7172

Jobs, Steve, 163, 168169

Joly, Hubert, 6, 7

JPMorgan Chase, 61

JustPark, 23

Kaiser Permanente, 148149

Kavadias, Stelios, 1527

Klöckner, 45, 8, 1112

Kodesh, Harel, 149

labor demographics, 155

Ladas, Kostas, 1527

Lakhani, Karim R., 6173

Lawrence, Paul R., 114

leadership

AI and, 7273, 8990

at Apple, 168178

attention to detail by, 169171

discretionary model of, 175178

educating about AI, 87, 89

expertise of, 168169

at scale, 174178

lean manufacturing, 105

lean start-ups, 2

learning

from failure, 1213

by firms, 6466

machine, 18, 20, 71

learning culture, 156157

legacy systems, 4041, 67, 139150, 182

LEGO Factory, 23

Lending Club, 23

Levie, Aaron, 139150

Levitt, Ted, 10

LiveOps, 23

Loch, Christoph, 1527

logistics, 106107

Loop, 161

Lorsch, Jay W., 114

low-cost variability, 101102

Lyft, 23

machine learning, 18, 20, 71

MacMillan, Ian, 2

Maersk, 31

MagicBands, 127

manufacturing, 20

changes in, 94, 97100, 114116

differentiation and integration in, 114116

lean, 105

organizational structure in, 113121

skill shortages in, 112113

smart, 104106, 113

transitioning to new, 121123

Manzari, Johnnie, 173

Marineau-Mes, Sebastien, 173

marketing, 107109

markets, linking technology and, 19, 20

Marriott, 3334

Mastercard, 38

master data management, 4647

McCarthy, Brian, 7592

McDonald, Rory, 66

McGrath, Rita, 114

McGraw-Hill Education, 128, 136, 137

McManus, Ryan, 114

mechanical engineering, 101, 112

Medicast, 23

metrics

developing better, 148149

progress, 8, 9

Microsoft, 62, 69, 70

middleware, 4041

modularization, 143

MP3 technology, 15

M-Pesa, 23

multiple versions of the truth (MVOTs), 4752

Nadella, Satya, 62, 69, 70

nanotechnology, 20

Natura, 23

Nest, 140143

Nest Labs, 104

Netflix, 10, 136, 137, 141, 145, 147

networked devices, 93. See also smart devices

network effects, 11, 66, 7071, 142

networks, digital, 6971

Nike, 23, 128, 133, 137

Nordstrom, 67

Nwokah, Etugo, 13

Ocado, 62

one-stop service, 109

open-market transactions, 11

operating experience, 67

operating models, 6173

operating performance, 64, 66, 72

optimization, 97

organizational change capability, 184

organizational structures, 67

for AI scale, 8287

at Apple, 163179

of manufacturers, 94

smart, connected products and, 113121

transitioning to new, 121123

outcomes, identifying, 8

oversight, of AI, 8687

partnerships, 67, 108, 142143, 145, 149

performance metrics, 148149

Peri, Guy, 51, 53

personal data, 111112, 136

personalization, 17, 19, 21, 2526

personalized medicine, 2527

pharmaceutical industry, 2527

Philips (pay per lux), 23

physical businesses, 3436

pilot programs, in AI, 76

planning, discovery-driven, 2, 513

platforms, 1112, 1617

Podolny, Joel M., 163179

Porter, Michael E., 93126

power generation industry, 56

Predix (GE initiative), 12

preventive service, 110

price transparency, 11

pricing, usage-based, 18, 19, 21

process management, 184

Procter & Gamble, 51, 53, 146

product-as-a-service models, 103105, 114115, 120

product development, 101104, 119, 166167

product-focused mentality, 69

product life cycle, 116

products, smart. See smart devices

progress metrics, 8, 9

project goals, 8

quality management, of smart products, 103

radical disruption, digital technology and, 3034

radio frequency identification (RFID), 106, 127

Raman, Manjari, 151161

Randazzo, Ann, 160161

raw data, 46

Raynor, Michael, 66

Redman, Thomas C., 181185

regulations, 20, 155

regulatory bodies, 73

remote service, 109

research and development (R&D), collaboration between IT and, 116, 118119, 121

respond-to-desire strategy, 130131, 134, 135

return on investment (ROI), 8

return on time invested (ROTI), 8, 10

reverse engineering, 5

Ribau, Jose, 51, 5657

Ricoh, 23

risk aversion, 78

risk mitigation, 111112

role models, for AI adoption, 8990

Rolls-Royce, 23, 108

Rooted, 34

Rosner, Roger, 169, 176178

Rühl, Gisbert, 4, 11

Ryanair, 23

Saleh, Tamim, 7592

sales, 107109

Salesforce.com, 23

scale, 6466, 73, 8287, 146

Schneider Electric, 112113

scope, 6466, 73

search engines, 64

Second Industrial Revolution, 94

security, smart devices and, 110112, 118, 121

self-driving cars, 144145

sensors, 18, 29, 9899, 103105, 121, 134

service industries, 124

services

after-sale, 109110

value-added, 110

Shipilov, Andrew, 2942

shipping industry, 31

showrooming, 6

Shyp, 24

Siegel, Robert, 139150

Siemens, 149

Siggelkow, Nicolaj, 127138

siloed structures, 67, 76, 79

Simmonds, Jacky, 40

single source of truth (SSOT), 4752

smart devices, 20, 36, 93126

after-sale service, 109110

autonomy of, 97

broader implications of, 123126

customer relationships and, 140141

data from, 97100

evolution of, 93

human resources and, 112113

impact on services of, 124

interoperability of, 104, 108

IT and, 118119

logistics and, 106107

manufacturing and, 97100, 104106

marketing and sales of, 107109

new capabilities of, 95, 97

organizational structures and, 113121

product development and, 101104

quality management, 103

R&D and, 118119

security and, 110112, 118, 121

simplified components in, 105

software industry and, 114115

strategy implications of, 94

technology stack for, 9597

user interfaces, 102

value chain transformation and, 101113

smart factories, 104105

smart thermostats, 93, 104, 142

SmartThings, 108109

Smoove, 103

software, customer relationships and, 140142

software development, 69, 113, 114

software engineers, 101, 112

software industry, 114115

Sorenson, Arne, 33

specialization, 67, 72

speed, of service, 130131

Spotify, 62

“spot market,” for talent, 159

squads, 3839

stand-alone business units, 122123

standard industrial classification (SIC) codes, 10

start-ups

acquisition of, 3638

incumbents and, 139

leadership of, 5

pivoting by, 34

Steelcase, 161

steering committees, 123

Strategic Workforce Architecture and Transformation (SWAT) team, 161

strategy

connected strategies, 127138

conventional approaches to, 71

data, 4359

implications of smart, connected products for, 94

reshaping of, 72

Stripe, 149

strong AI, 63

supply chains, 142143

synergies, 71

Sysmex, 109

system interoperability, 104

talent

attracting, 113, 157161

collaboration for, 159161

for digital transformation, 181185

internal, 159

TaskRabbit, 24

taxi industry, 3233, 124

teams, cross-functional, 76, 8687, 118119

technological innovation, 8586, 154

technology

advances in, 2930

blockchain, 31

cloud, 20

linking market and, 19, 20

long-term trends in, 1820

platform, 1617

talent, 182

technology adoption, 15

technology hubs, 112113

technology stack, for smart, connected products, 9597

Telenor, 39

Tencent, 24, 62, 70

Terwiesch, Christian, 127138

Tesla, 103, 139, 140, 144145

test-and-learn mentality, 78

Thermo Fisher Scientific, 119

Thomas, A. Charles, 56

3-D printing, 20

Townsend, Graham, 169, 174

traditional firms

collision between AI-driven firms and, 66

rebuilding, 6669, 70

training programs, 156157

transactions, open-market, 11

TransferWise, 41

transformative business model, 1527

transformative innovations, 143145

travel industry, 36

TUI UK, 36, 4041

23andMe, 141

Uber, 21, 24, 3233, 66, 71, 72, 124, 139, 140

Udacity, 24

uncertainty, managing, 161

unified data organization, 117, 118, 119

unstructured data, 183

Uptake, 122

usage-based pricing, 18, 19, 21

user interfaces, 102

U.S. Food and Drug Administration, 111

value-added services, 110

value chain

constraints of existing, 140

transformation of, 101113, 145150

value creation, 1516, 66, 123, 139140

value proposition, 1516, 3034

van den Boogert, Vincent, 158

variability, in products, 101102

Ventana Medical Systems, 118119

venture capitalists, 4

Veon, 12

Visa, 67, 149

Vodafone, 67

Wallenstein, Judith K., 151161

Walmart, 8, 10, 62, 6869

Warby Parker, 3, 35

Washio, 24

Wayfair, 24, 62

Waymo, 63, 71

weak AI, 63

Wealthify, 41

wearable technologies, 134

WellMatch, 13

Wells Fargo, 56

Wessel, Maxwell, 139150

work

forces shaping future of, 152155

transitioning models of, 155

workforce

adaptability of, 151161

See also employees

Workforce 2020 strategy, 159

workplace skills, 112113, 125126, 152, 154

Xerox, 24, 103104

Zara, 24

Zebra Medical Vision, 62

Zipcar, 24

Zopa, 24

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