Digital Transformation and Its Impact

Hello and welcome to this openSAP course Digital Transformation and Its Impact. My name is
Sven Denecken and I am SAP's Global Vice President for Cloud Solutions.


Next to focus on cloud strategy, I much appreciate the intensive contact with key customers
and partners via co-innovation engagements.


Those are a valuable sources to find out and sense the trends within the market, to confirm
and influence what we do and to determine what still needs to be done.


I will present this course together with my distinct colleague Bert Schulze who is Vice
President for Co-Innovation.


Before we start, I would like to introduce you to the concept of this course.


This openSAP course consists of four learnings weeks plus an additional week for our final


Each week, there will be a number of short and comprehensive videos, similar to the one you
are watching now.


At the end of each video, there will be a self-test to help you to measure your learning


And after each week we will have an assignment that will be graded and is counting towards
your record of achievement.


Furthermore, there is an online portal available to you so you have the chance to collaborate
and communicate with us and fellow students, but also to discuss and ask questions.


But now, let's start with Week 1, Unit 1: Defining Digital Transformation


Strategists love statistics, but they often throw them at you and leave you to figure it out.


In this course we would like to make it a clear link, especially as we discuss the why before the


There is an unprecedented pace of change that is causing the market to shift.


With a continuously growing middle class and more and more people actively using social
networks, the personal and business world is evolving.


But also millennials play an important role in driving change and causing businesses to be


This generation grew up with technology around them and they are highly connected, social
and always mobile.


This generation will not use applications that aren't easy to use, easy to consume and


But here are my top three. I: According to analysts by 2016 think that 75 percent of all IT
purchases will be cloud-based or hybrid.

Let us first define digital transformation. 00:04:53 Innovation is consumed almost transparently. 00:03:45 Today. 00:05:01 As businesses have become increasingly complex. 00:05:38 A single comment about a news article can become more influential than the publication itself.00:02:52 Number II: New companies with innovative ideas and competing against all known companies within the market. individual consumers have become exponentially more powerful. 00:04:32 Also the line between work and home is blurring more and more. smartphones enabled millions of applications. which means that you now. However. smartphones were not the norm and who has a smartphone used to be the question to ask. and it has the potential to be viewed more times online than a traditional TV commercial would ever be watched. 2 . transformation and innovation in order to avoid disruption. 00:04:04 Now.. 00:03:21 At the heart of this change is. With this we need to talk about digital transformation. That's no longer the case. 00:05:45 It has become much simpler for individuals to do significant things. checking a menu at a restaurant. smartphones are a commodity and almost everyone has one but this single device has disrupted millions of companies. 00:03:04 Number III: Businesses realize the need for change. best represented by the emergence of cloud computing. an alarm clock. well we can do everything with a blink of an eye. Airbnb and Tesla. there is a rapid state of change. we had a camera to take pictures. just think of Uber. this means the lines between work and home are blurring more and more. Why? 00:05:09 A consumer in today's network economy can perform tasks that only businesses could do five years ago. all of this is combined in one device and millions of companies who produced those products before were disrupted. 00:03:14 The consequences are dramatic. Technology and networks have made this possible. 00:05:31 An entrepreneur can have a big idea. 00:04:12 Moreover.. and smartphones have become a daily product of our lives 00:04:40 and probably even unimaginable to live and work without one. and smartphones make one thing clear: We want things now. a navigation system in our car and a video recorder. service-oriented economy. 00:05:17 An individual can create their own advertisement for free. 00:03:55 Before the smartphone. create a business plan and raise capital to launch it online. of course. 00:05:55 It is clear to see that technology is disruptive. making an appointment and connecting with people all around the world. 00:03:36 A few years back. 00:03:32 Let's drill deeper into this rapid status of change. 00:04:23 be it ordering a taxi.

flexible. 00:07:37 We work and use several devices simultaneously and it is now only going to intensify with wearable devices 00:07:45 such as smart glasses. 00:08:44 Managing the traditional IT scope is no longer sufficient. 00:06:14 digital transformation is the use of new technologies to drive significant business improvements. R&D and product divisions 00:07:22 to get the right information out of this data in order to transform data into essential business insights. structured and unstructured data is streaming into your data bank. 00:07:14 This is essential. mobility: We have officially entered the post-PC era. a relational database or non-relational datasets. 00:06:37 The cloud layer. customer service. 00:06:30 Let us look at the factors without which digital transformation would be impossible to achieve.existing and potential . 00:06:48 It is scalable. So it's going to impact all of us. he or she needs to embrace these changes or become relegated to a pure non-strategic operational role. SmartTags. marketing. 00:06:22 This includes capitalizing on new opportunities as well as effectively transforming existing businesses. Internet-as-a-platform or Cloud Computing: To run a successful digital transformed organization you will need a cloud environment. 00:09:01 CIO's need to re-think their strategic purpose within the organization and then start a journey to achieve this strategic purposes. Without cloud layer you will not achieve the required automation and orchestration for the next layer: 00:06:59 The data layer. partners. 00:08:12 It is designed for internal and external collaboration to optimize your business processes. for example. 00:08:18 The consequences are dramatic. here is what needs to be done: 00:08:27 To do this. 00:07:08 be it rational database. smart watches. CIOs have to move from a survival role like managing tasks to a revenuecontributor role. your sales. Big Data and Analytics.and the public. 00:07:30 Then the devices layer. 00:09:11 But what is digital transformation really about? Or did we just simply digitize old behaviors? 3 . vendors. to all of us.00:06:07 Driven by the combination of ever-growing digitization and evolving consumer demands. 00:08:50 For the CIO to stay relevant. new priorities need to be tackled. And if you are in an IT-related role. suppliers. the CIO's focus is fundamentally changing because the businesses are changing. Both. 00:08:35 This is the new world. the network layer. I would love to call it Collaborative Computing: 00:07:59 This is part of the exercise layer that creates a vibrant marketplace for your employees. 00:07:53 And last but not least. Instead. customers . elastic and cost-efficient.

00:10:02 We have given you a quick overview of the course and what you expect to learn in the next weeks. 00:09:30 If businesses want to outpace the disruption that is happening in the market. I'm looking forward to seeing you there again. they need to equip themselves with technology that will help them adapt to change quickly. 00:09:44 Companies need to achieve digital transformation based on disruptive technology to gain higher competitiveness. 00:10:09 You should have understood that change is inevitable and forcing companies to change or risking to being disrupted. 4 .00:09:19 Just copying the old patterns and augment them or maybe even disrupt them with new technology is not transformation or innovation. 00:09:52 And in the units to come we will drill into each of those aspects. 00:09:59 This concludes the first unit of Week 1. 00:10:17 Also you should know the definition of digital transformation 00:10:20 and how important it is to just not copying an existing framework but instead innovating and making use of previously not used technologies. 00:10:32 In the next unit we will focus on challenges that come with transformation of business.

digest. comply with new regulations at the same time. internal and external expertise networks are disconnected. Real-time. we will focus on Transformation or Disruption: What are the challenges? 00:00:34 The fight for scarce resources contending with disruptive digital business models create new pressures. 00:00:26 Today. and lead fast with an as-aservice attitude. 5 . 00:00:49 It is not only flooding us with new information that we must access. 00:00:41 From a technology angle: Social Collaboration. It is much more than that. It's changing the world rapidly. as seen in the first unit. 00:02:42 And even worse. 00:00:58 But it is also enabling new business models and competitors that are fundamentally shaking the roots of entire industries. 00:02:32 Processes are and stay dynamic. 00:02:00 Business can either transform by making use of the new technology and all the information that comes from it or will get disrupted. In the first unit we gave you a quick overview about the course structure 00:00:19 and defined digital transformation as the use of new technology to drive significant business impact. digital transformation is not about ripping apart an existing and working system 00:03:01 and copying and replacing it into just the cloud or just applying new technology. analyze faster than ever before. 00:02:11 But what does the digital transformation done well really mean? What are the challenges we need to master to digitally transform? 00:02:22 Digitizing was comprehensive but transformation often was spotty. Data silos we know do create chaos. 00:01:31 What will they do to your customer expectations? What new pressures will they put on your businesses? 00:01:40 And how will you adapt yourself and your business? You will need to reach to new markets. Unit 2. 00:01:06 Remember what happened to companies that you used to work with. We simply copied the analog world. Systems often are fragmented.WEEK 1. Mobile. 00:01:49 control new risks. 00:02:52 However. Repeatability was missing. UNIT 2 00:00:12 Welcome to Week 1. satisfy new empowered customer. consume products five years ago? 00:01:12 Think of them and then give some thought to what you think about new payment upstarts like Square or services like Pinterest? 00:01:21 Or crowdfunding services like Kickstarter? New disruptive models are often based on the opportunities of the digital transformation.

00:03:12 We need to prepare for the digitized world. 00:04:06 There are critical questions to ask: basic design principles for solutions to master digital transformation. Innovation is a game changer. 00:04:22 The smartphone has brought a deluge of disruption in our lives. 00:03:49 To truly transform we need to look for repeatable patterns via best practices and fast innovations. 00:04:14 I would call them core qualities. allow for new innovations. 00:06:22 Not everyone will adapt easily to digital transformation. customer engagement. but we need to balance it out properly. but instead as a helpful tool 00:05:41 that supports the employee and helps him and her in daily business tasks. 00:05:27 New ways to engage customers and employees. 6 . they need to be network-aware. 00:06:28 Inertia. but it has even transformed experiences in businesses like. internal politics and defensive attitudes could all pose a problem. 00:03:21 But why do we think is cloud such a core quality? It is because of the speed of innovation and some key design principles which are applied if done right. data and applications to get the full picture. 00:03:57 We need to connect the dots between people. 00:03:41 They need to cater to repeatable topics and. 00:05:22 There will be big efficiency gains so employees can refocus their efforts.we came to capitalize on new opportunities 00:05:04 as well as effectively transforming new existing businesses. 00:05:47 New technologies. 00:06:16 First challenge: Recognize the different levels of digital proficiency. data. Leaders will come across a number of challenges. 00:05:55 The Internet of Things will bring even more possibilities for new bringing change and challenge to one industry after another at a staggering pace. for example. last but not least. They need to be flexible and extensible. Let's remember the example I gave you in the last unit. 00:05:35 Digital transformation should not be seen as a threat. best leading with cloud as the transformation needs to be fast. 00:03:33 Solutions need to be designed for me as the end user. 00:04:54 With the help of the four main factors . with transforming and changing a business. Some may even resist. 00:04:46 Technology advances are disruptive so it is important to talk about digital transformation. networks and devices . 00:05:16 Another challenge going digital. processes. implementation of whole new business processes. it changed the way the businesses work. like real-time data and connectedness. there are some key challenges: 00:06:08 Challenge number one is the digital proficiency. 00:04:35 It has not only changed the way we interact with games and media. 00:06:00 But of course.

00:07:07 You can adopt cloud solutions that are still tied to existing systems. 00:08:37 Now can you think of companies that digitally transformed themselves and have overcome those challenges 00:08:45 or companies that have struggled along the way? 00:08:50 In this course we will hear more about digital transformation done right. 00:07:00 So capitalize on what works and transform where you need more speed. 00:07:49 Change will be disruptive. And they are there. 00:06:41 Challenge number two: Legacy systems. for example: Increase of efficiency.00:06:35 To combat these use training workshops: Teach the usage and benefits of digital initiatives. 00:07:23 But you need to strike for the right balance for your business and realize that preferences vary and change. 7 . as always. Restructuring of responsibilities is likely in order. 00:09:03 Unit 2 of the first week should have given you an overview of the benefits. Digital initiatives have implications. 00:06:50 Lack of integration makes the overall solution less efficient. better insights. security. legacy systems. and jobs becoming obsolete. There could be a trade-off between functionality and security. Ripping and replacing is not a good business case either. with change there are some challenges. 00:09:29 Looking forward to see you then. faster. 00:08:24 However. Leaders must consider security. 00:09:12 Please remember there is an online forum that you can ask any question and communicate and collaborate with us and your colleagues. 00:07:33 Challenge number four: Jobs are becoming obsolete. 00:09:21 In the next unit we will focus on the four different elements that digital transformation consists of. 00:08:56 Thank you for listening and learning about the challenges that could come with digital transformation. flexible for the end user just to name a few. 00:07:56 With the right education and training possibilities. We looked at the four challenges: 00:08:31 Digital proficiency. 00:07:40 It is predicted that about half of job categories may be taken over by machines or systems in the next two decades. 00:08:07 We have seen many reasons why businesses should transform. 00:07:12 Challenge number three: Security. as well as the challenges of digital transformation. employees can still add real value even when their previous job is now automated. Legacy systems are another possible challenge. 00:08:14 better engagement of customers.

00:02:22 Those are reshaping the future of business and acting as a catalyst to empower individuals as employees. Even you interact differently today. and as partners to increase their reach and relevance. 00:00:55 Driven by the combination of ever-growing digitization and evolving consumer demands. 00:02:59 All of these new customers. 00:01:40 but rather the transformational changes that we are experiencing now are due to a very real convergence of these four trends happening at once.massive amounts of data including dark data brought to light and available for analysis. it is less about the cloud as a deployment platform per se. we live in a networked world. and technology that enables it. 00:01:02 digital transformation is the use of new technologies to drive significant business improvements.means cheap. 00:02:36 As studies show. live and consume better. In the last unit we have looked at a few challenges that businesses have to overcome. 00:01:10 This includes capitalizing on new opportunities as well as effectively transforming existing businesses. networks which are connecting like never before inside and outside the enterprise. 8 . consumers. UNIT 3 00:00:12 Welcome to Week 1. Unit 3. legacy systems. you have used the online forum to post some questions. 00:03:11 Think about it: How many of you have checked your email today and how often? 00:03:16 Who has received a text message today? How many of you have checked Facebook or Twitter and are doing that while listening to me? So who has shopped online this week? 00:03:27 When you get right down to it. the four key challenges to master the digital transformation are: Digital proficiency. more than 60 per cent of CEO's expect 15 to 50 of their earnings growth in the next 5 years 00:02:46 to come from technology-enabled business innovations. 00:00:37 After discussing Transformation or Disruption: What Are the Challenges in the last unit. co-workers and friends interact much differently than they did just a few years ago. 00:01:20 Let's briefly also recap the environment we find ourselves in and how the very real convergences of those four trends are reshaping businesses today. 00:02:13 and big data . security. one that connects us to communities of people and help us learn. 00:02:53 The world today interacts differently.WEEK 1. 00:00:50 Let's recap the definition of digital transformation first. we will now dive deeper and focus on the four elements of digital transformation. 00:02:03 the pervasiveness of mobile like empowered users. 00:01:53 We do see a perfect storm for technology innovations: The convergence of cloud and commoditization of cloud . 00:01:33 And when we talk about cloud. 00:00:26 Now. and jobs becoming obsolete. and will change ever faster. 00:00:21 And hopefully.

if done right. new opportunities.are being powered by a new deliver mechanism: 00:04:30 The cloud. 00:06:33 The cloud is scalable. entire businesses need to have digital transformation in mind as technology and business are intertwined. 00:03:59 All of this is creating a big bang of data explosion. IT is the enabler of technology through the business. 00:04:48 More than ever. time to value and speed of innovation. flexible and accessibility which brings connectivity across the world. 00:06:41 In short. 9 . 00:05:43 which task is to align all lines of businesses and operational processes. efficiency. Our constituents are mobile. 00:05:55 As mentioned earlier in this series. we have four key building blocks: Cloud. Digital Transformation. More information has been created in the past 18 months than since the beginning of recorded history. mobile. share answers. You will hear more about the role of IT in a later unit. social and business networks. They ask questions. 00:06:18 Cloud computing: Cloud computing means freedom. It is about using the right data in the right context 00:06:57 which means smarter decisions. 00:06:49 Let's look at data. cloud stands for simplicity. and collaborate via social and business networks. basically everything as a apps. This is precisely why we need to talk about digital transformation and the four elements that build the foundation. new priorities need to be tackled. 00:05:34 And the IT role has definitely shifted: Now. 00:04:35 It is clear to see that technology is disruptive. data. analytics . and ultimately a big competitive advantage. Let us have a quick overview. 00:06:06 Together. spending. and networks. you name it will double again in the next 18 months. 00:04:58 In this new world. 00:06:25 With the cloud.00:03:40 This is not just a consumer phenomenon but also an enterprise one. And it's not only about big. the CIO's focus is fundamentally changing because the businesses are changing. Instead. 00:05:05 Managing the traditional IT scope is no longer sufficient. 00:05:13 For the CIO to stay relevant. 00:04:21 And all of these capabilities . he or she needs to embrace these changes or become relegated to a pure non-strategic operations role. 00:05:24 CIO and IT departments need to re-think their strategic purpose in the organization and start a journey to achieve the strategic purpose. and we will drill deeper in the next unit. 00:04:11 And we're moving so fast that this data on customer preferences. they drive the shift to a new way of business. 00:03:49 They conduct more and more activities via a growing number of mobile applications. markets. businesses can focus on their core businesses with better collaboration and always up-to-date solutions. and innovation.

00:07:16 Let's have a look at mobile. 00:08:51 So best is to adopt early to enable new insights. 00:07:50 Let's look at networks.3 billion people on social networks today. Next time we will look at Digital Proficiency. Thank you and see you then. mobile stands for the adaptability for the 21st century workforce. everything doable from anywhere. 00:08:33 As conclusion. new product strategies. 00:08:15 In short. and other services. Good news. mobile. 10 . new innovations. 00:08:43 These four building blocks make digital transformation possible for all businesses. 00:08:03 Networks provide the platform for people. and do their job better. and networks. and customers to share their experiences. And mobile is for all businesses. and new consumer relationships. that technology is available today. Tablets and smartphones can be equally functional. With over 1.00:07:04 In short. data. the four key elements of digital transformation are cloud. 00:07:27 The days of hauling laptops around are mostly over. it is not a surprise that networks play a large role in digital transformation. 00:07:39 In short. networks inside and between enterprises enable the hyper-connectivity fueled by digital communities 00:08:24 and social collaboration plus enabling the collaboration beyond the boundaries of an enterprise. 00:09:02 This is the end of our third unit in Week 1. and new ways to interact within and beyond your business. the right data stands for predictive insight driven by business strategy. employees. access content. Mobile takes the freedom and connectedness of the cloud further by allowing greater access.

Chile. mobile functionality and user-friendly interfaces are necessities. India. this emerging middle class will create a new segment of customers that represent extensive growth opportunities for your business. are and will become stretched and overloaded. 00:03:08 Customers act much different than they did just a few years ago. 00:02:24 At the same time. 00:00:29 Users today are more demanding than ever. 00:01:52 They will put increased pressures on natural resources. They may not live in big homes or drive fancy cars. now that they expect the same streamlined experience that they get from Google or Amazon within their enterprises. In fact. UNIT 4 00:00:12 Welcome to Week 1. This new middle class will come armed with different cultural biases and new ideas. 00:02:52 Think about what you will do to adapt to capitalize on this opportunity. data and network. 00:02:59 But there are differences from the customer point of view and the employees point of view. not just bonus features. 11 . three billion of them will be connected and running much of their daily lives from their smartphones. 00:00:53 Even business-to-business companies have to rethink themselves as business-to-business-toconsumer enterprises.WEEK 1. 00:02:17 In fact. and China. manufacturing. 00:00:22 Today we will cover digital proficiency and how it impacts the transformation. supply chains. Unit 4. The rules of engagement have changed. conveniently and always available. It is necessary to survive in the everything-as-a-service economy. let's look at both sides. 00:02:09 Most of them will never own a PC. 00:01:01 which essentially means understanding their customer's customers. 00:02:34 But the markets will need to be engaged and served in different ways. But they will be technology-savvy and mobile. 00:01:11 The customer wants things fast. 00:02:40 Consequently. the markets. However. 00:00:18 To put your big decisions in context. Last time we have looked at the four elements of digital transformation: Cloud. Malaysia. 00:00:48 Businesses must act accordingly or risk facing disruption. 00:01:33 The middle class will raise to 5 billion people in emerging markets like for example Brazil. and employee base. mobile. 00:00:39 Instant value. every aspect of your business strategy and execution. 00:01:26 First. 00:01:43 And you want to market there. customers and partners we reach will look a heck a lot of different. let's examine the mega forces you must now contend with. we're already seeing this with countries like China and Russia and other markets 00:02:01 buying up key resources from oil to grain to gold.

you must adapt your sales. 00:05:19 But not only customers are changing. and better informed. 00:05:02 engage them early in the customer journey. updating their relationship status. They don't use email but What's App. consistently meet their expectations along the way. 00:05:27 Employees are completely different. 00:04:02 They know more about you and your brand and your competitors than ever. again. 00:06:14 They are wired or rather unwired differently than we digital immigrants are: 12 . 00:04:53 If you're selling to other businesses. And if facing these new markets and customers weren't challenging enough. 00:04:45 And these dynamics of the new empowered customer hold true whether you're selling to the end consumer or not. 00:03:23 These customers live their lives in the moment. totally different. how we buy and consume. 00:03:37 They are literally changing the rules of engagement and. 00:05:51 These are digital natives. The millennials will comprise nearly half of the workforce by next year and 75% by 2020. customers are increasingly disloyal. if you are lucky enough to win new customers you are more likely to lose them. interacting with their friends 00:03:29 and sharing their likes and dislikes and opinions. 00:05:09 and earn their loyalty and trust through providing exemplary services which actually starts and that cycle starts over and over again. 60% of the buying process complete before the first interaction with Sales. 00:04:34 With more choices and new disruptive business models. through that. They've grown up with the Web and mobile. socially networked. 00:04:15 Sales as we know is obsolete. that this new empowered customer does to your business? Three things really: 00:03:52 Your customers are smarter than you. 00:05:35 Your workforce is different. becoming more empowered. 00:05:40 There is a new face of your new workforce. These connected customers are not relying on you to educate them on their products. 00:03:43 So what does this mean. 00:04:24 And your customers are less loyal. how we view brands. 60% are willing to switch brands for a better service.and customer care model to pro-actively identify prospects. 00:04:08 They are getting their information from their peers and your existing customers through new channels like LinkedIn and Twitter and Facebook. through the power of their mobile devices. you have this new challenge now. even your employees are changing.00:03:15 Today's customer is more digitally connected. 00:06:02 They are technology-savvy and are transforming traditional thinking on how and what information we share. in real-time. So. They live on social platforms like Facebook and Instagram. and how we work.

00:09:01 And then: Digital holdouts which resist and ignore digital. but be aware that they need your care as they will dominate your workforce soon. You need to make sure they collaborate well. brands. So the key aspect is that we can differentiate by unleashing the human potential. but they weigh the costs and benefits of technology to decide the direction of their digital initiative. 00:07:13 By the way. 00:07:24 And of course let us not forget: You will have five different generations in the workforce. 00:06:30 They believe information should be free and are eager to share information and collaborate with their co-workers. And last but not least. and business models. 00:08:14 And those potentials are products and services. He has five levels of digital proficiency: 00:08:41 No. 00:06:39 They are more comfortable with coopetition. 00:07:03 And forget work-life balance. They view work as a key part of life. 00:09:12 We would like to add one additional category . no. like me. 00:07:53 We can leverage collaborative. 00:08:55 3: Digital voyeurs are those who cautiously recognize the digital shift. not a separate activity that needs to be balanced. 00:08:23 According to Ray Wang from Constellation Research. which are adopters of digital. processes. 00:07:43 A key message to us all: We can leverage the tools of the networked economy and tap into minds everywhere on the planet to create differentiation. 00:09:37 In IT and in business. those are those who grew up and are comfortable with digital. who made a great point that we should not divide people by age. 00:08:00 We can invest in the new currency which is knowledge. 00:09:27 Digitally savvy. 00:09:19 This describes those who understand the use of technology but walk the middle ground between naysayers and instant adopters. the right mix of 13 . 00:08:48 2: Digital immigrants.00:06:21 They shun hierarchical command and control environments where only the top execs have access to information. 00:06:56 They are socially conscious and they rate working for a brand that gives them the sense of purpose and pride over financial compensation. 00:08:31 instead categorize people by digital proficiency. 00:06:44 They are catering and crowdsourcing their answers: An activity that many traditional companies are highly uncomfortable with.the digitally balanced. crowd-sourced talent from anywhere and disaggregate and democratize work. peers and partners. it is important to have enough digitally balanced people. 1: Digital natives. 5: The digitally disengaged who are those who give up on digital. regarding compensation they are pretty similar. 00:07:36 And there will be differentiation through the lever of the human potential. since proficiency knows no age.

14 . balanced and digitally disengaged users. we have looked at how the employees and customers have changed over the years and what it could mean for your business. 00:10:16 I hope to see you for our next unit that will cover the topic of Digital Transformation and the Cloud. 00:10:06 and how important it is that your company has the right balance between digitally native. 00:09:47 With this. 00:09:53 As a summary. And see you soon. 00:10:24 Thank you for your attention. 00:10:01 But we have also seen the different levels of digital proficiency. we finish the fourth unit of the first profiles.

00:01:20 If certain processes can be improved. and applications. for example. not the mean. Unit 5 of our openSAP course on digital transformation. 00:00:19 We have previously learned the different types of digital proficiency. 00:01:43 and now need a cloud that lets you customize and cheat. procurement by up to 75%. 00:01:36 The next one is: Is it flexible? We might have over-digitized in the cloud. enhanced and repeated leveraging best practices. process automation can reduce transaction costs like. 00:00:29 Today. experts around the problem to solve for the opportunity to grasp. 00:00:36 As one of the main parts of digital transformation. 00:01:08 Let's first look at the question: Is it repeatable? 00:01:13 Let's make a business example: Collaborative opportunity management. 00:02:28 And finally: Is it also network-aware? The answer is simple: 00:02:34 According to Ardent Partners. data. 00:01:01 But let's look at the questions that need to be asked best if you want to leverage the cloud at its best. 00:01:27 You can bring it to the end user fast and leverage scale. processes. then it is a perfect fit for cloud. customers and partners. 00:02:53 We need to instantly wrap the networks of employees. which is best supported by templatized work patterns which allow me to get my job done. 00:02:02 But then you will probably ask yourself: Is the cloud designed for me and my needs? 00:02:09 We need to move away from products designed to cope with a process because of a system. leveraging a platform as a service concept. we will look at Digital Transformation and the Cloud. 00:01:55 So make sure you have it based on a real-time and adaptable platform so it can conform with your needs. cloud gives you an innovative environment that is easy to scale and adaptable to your needs.WEEK 1. fast and efficient. but we have also looked at the different elements that digital transformation consisted of. UNIT 5 00:00:12 Hello and welcome back to Week 1. Technology at the end is an enabler. 00:03:04 Those four characteristics make the cloud tangible and effective and they enable true transformation. 00:00:52 You need to get the full picture inside and outside your organization. 00:02:19 The Me Web. 00:00:46 It is about connecting the dots between people. we need to turn solutions into a service. 00:02:45 and that benefit alone can justify the business case for network adoption. 00:01:50 You want the speed of cloud but with the flexibility to differentiate and win. 00:03:13 It is important for every business to recognize the potential of becoming an end user-focused 15 .

00:04:28 It releases immediately. 00:04:54 In short. 00:06:21 and of course insights like network intelligence. And the cloud is a great starting point because it offers fast innovation. you can enable new business processes. cloud-to-cloud or cloud-to-3rd-party is a must. and your cloud strategy needs to cater to this reality. 00:03:37 Successfully navigating digital transformation is the way to success especially with increased pace of disruption in a technology-driven world. 00:05:27 A good strategy centers around leveraging the right mix of cloud . hosted or private cloud. innovative business processes that advance your business. 00:05:55 Seamless process integration powered by pre-built standardized integration adapters for all scenarios. 00:03:59 tying mobile. 00:04:40 And with agile cloud platforms. With this you can enable new business processes 00:06:12 like. data and network together. 00:06:02 on-premise-to-cloud.managed. ultimate user-friendly solutions. 00:05:13 But the reality is hybrid. it is about the right mix. fast. employee and partner collaboration . and unlock new value for your business. 00:05:39 You do have very specific challenges and your are looking to solve business. 00:05:01 By extending your on-premise assets with the cloud. 00:05:46 But there are very specific investments you want to leverage. social analytics or labor benchmarks to unlock the new value for your business. social care. It is available to every consumer. 00:03:20 Every company eventually will become a software firm. 00:03:51 The key benefits of cloud computing for businesses are fast innovation. process-. it is And Better. 00:03:30 It is tailored to specific business outcomes and it ties mobile. or companyspecific extensions 00:04:47 to any application to achieve new. 00:04:06 Cloud today is already changing the way businesses work. But what does this mean entirely for name it. trading partner discovery. which means virtualized. for example. 00:05:22 We know that your move to the cloud must be a thoughtful evolution. and an on-premise technology. instant value tailored to business outcomes. gain new insights. no lengthy projects. dynamic discounting. in your new role? 00:04:16 You should be leading and you should be very clear that cloud often is a possibility to be faster but also change your business. cloud is no longer Either-Or. and no long training required. every customer with no lengthy upgrade cycles. 00:05:50 Your starting point on this journey will help you to define the right mix and what is right for you. social selling. you can quickly develop industry-. outsourced. 16 . it's not even And. data and devices and networks together. just to name a few.

legacy systems. mobile and big data technology. you can take Sales and Recruiting because you need to combine them anyhow. 00:07:13 That is what business velocity is all about. But let's quickly recap what we learned and what you should know by now: 00:08:55 In the first unit. 00:07:59 We have seen the key benefits of the cloud: Fast innovation. and it is user-friendly. a platform as a service approach underneath. security. you need to look at technologies. 00:08:11 But we also understand that it is impossible for you to place your entire business on the cloud. 00:09:23 You can now explain those four challenges in more detail. 00:07:21 If you are building a sales organization.00:06:31 And this solution should be running on a technology for real-time computing 00:06:38 and as cloud applications deployment for extensibility. 00:07:53 I hope you understand why cloud is so important in the process of digitally transforming yourself. 00:09:07 Secondly. 00:09:15 Four key challenges were named: Digital proficiency. 00:09:01 You should now understand and be able to describe it to any person who has never heard of digital transformation before. instant value tailored to business outcomes. Still want more details? Let us look at an example. 00:08:40 And with this create opportunities for innovation. remember the benefits that come with transforming your business and using new technologies. but also the challenges that come with transformation of a business. and jobs becoming obsolete. Add Learning and Travel to fully equip the sales team. social. 00:07:44 Add Finance and Sales and you have all the building blocks of your enterprise landscape. Procurement for the right parts or contractors. and Employee Central to help to find the right experts. leadership strategies and best practices. 00:08:16 This is why hybrid models become the reality. we had a look at the digital transformation and what it exactly means. as the right mix for you is important in order to make your business successful. we look at the benefits. 00:08:27 So what would you put down to a napkin from this week? 00:08:33 To conquer disruption through the digital transformation. 00:09:28 But not only the challenges. ties mobile. I hope. 00:07:32 Or to power your service organization. data and network together. 17 . 00:06:47 Let me share some insights from the many co-innovation projects when it comes to cloud: 00:06:52 In the past year we have seen that best-run companies are shifting from ad-hoc spending on point solution providers to investing in one orchestrated coherent platform: 00:07:05 One platform that can combine the right mix of cloud. on-premise. 00:08:47 This was the final unit for the week. all digitally transformed by the cloud. you can take our Service.

either in work or personal life. 00:11:17 Thank you very much and thank you for being curious. 00:10:34 And today. we hope you enjoyed the first week of this course. data. how the employees have changed 00:10:24 or maybe even what you are doing on a daily basis that would not have been possible five years ago if it wasn't for the digital transformation. you have a weekly assignment to complete that is counting towards your record of achievement at the end. We are looking forward to hearing and seeing you next week 00:11:06 when we will look at the four different building blocks in more detail as well as explain the role that leadership plays while mastering the change. the focus was laid on cloud and how the reality looks like. 00:10:58 If there are any questions or comments. we look at the four building blocks: Cloud. 00:09:58 All of those elements play an important role in digital transformation. 18 . your personal transformation.00:09:35 Could you name at least three benefits? And could you come up with companies that were facing those challenges 00:09:41 and have either failed to overcome them and as a result were disrupted. or that have overcome them successfully and transformed? 00:09:52 In the third unit. 00:10:11 Please think of examples that have happened to you. 00:10:17 An example of how different customers are now than maybe five years ago. 00:10:46 Please remember. I hope you know why. 00:10:03 We have also looked at the digital proficiency and how a changing middle class means changing customers and employees. With this. please use the online forum. mobile and networks.

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