He can … “An operational backbone is the underlying foundation of standardized, automated business processes to ensure operational excellence in your core business,” said Ross. Peter Weill (@peterdweill) is chairman and senior research scientist at the MIT Sloan School of Management’s Center for Information Systems Research, where Stephanie L. Woerner (@SL_Woerner) is a research scientist. Non-degree programs for senior executives and high-potential managers. “We've seen a couple of companies — GE is the big example — that started by saying, ‘Why don't we build a platform?’ But if you don't have a strong operational backbone, which they didn't, and if you don't have strong customer insights and a way to keep ratcheting those up, the platform you build is much more likely to be a waste of money,” Ross said. “, A digital platform provides components — business, data, and infrastructure — that you can assemble and reuse as you create digital offerings for your customers,” said Ross. Ross’s word of advice: “Don’t start with an external developer platform, and don’t start this too soon. A non-degree, customizable program for mid-career professionals. A digital company innovates to deliver enhanced products, services, and customer engagement. Gerald C. (Jerry) Kane, professor at Boston College Carroll School of Management, shares four strategic steps organizations can take on their trajectory toward digital maturity. Three of the five are technology platforms: an operational backbone, a digital platform, and an external developer platform. Major makeovers should benefit — and be noticed by — those who buy a company’s products and services. “And those are the companies that are multiple years into their digital journeys,” Ross said. At MIT Sloan, we invent the future. MIT ideas every week. Pressured by disruptive startups on one side and tech behemoths on the other, established companies in nearly every market segment are feeling pressure to transform themselves into digital organizations. Platforms provide the technological and organizational basis for developing digital offerings, but they’re worthless if companies don’t leverage them to develop offerings that customers find valuable, Ross said. This 20-month MBA program equips experienced executives to enhance their impact on their organizations and the world. Ben Shields, senior lecturer at the MIT Sloan School of Management, outlines three steps to steward a data-driven culture inside your organization. A rigorous, hands-on program that prepares adaptive problem solvers for premier finance careers. “It involves a lot of experiments, innovation, and tests to see what your customers actually want.”. Get free, timely updates from MIT SMR with new ideas, research, frameworks, and more. Digital transformation is better thought of as adaptation to a constantly changing environment. “That’s five years of having a vision and pursuing that vision, and revenue from digital offerings is accounting for just 5% of their [total],” Ross said. These dynamic digital … In a changing digital landscape, a framework for success. Shared customer insights — organizational knowledge about what kinds of digital offerings customers want and are willing to pay for. “There’s an impatience to get going and show results, but becoming a successful digital business is not easy,” said Jeanne Ross, principal research scientist at the MIT Sloan Center for Information Systems Research. Work smart with the Thinking Forward newsletter. In the rapidly changing digital economy, you can't succeed by merely tweaking management practices that led to past success. Earn your MBA and SM in engineering with this transformative two-year program. Drawing on cutting-edge research conducted at MIT Sloan’s Center for Information Systems Research (CISR), this course provides a powerful framework for transforming businesses on two dimensions: … General Electric Co. ambitiously set out to develop Predix, its cloud-based platform for the “industrial internet of things,” but grossly underestimated demand. Through intellectual rigor and experiential learning, this full-time, two-year MBA program develops leaders who make a difference in the world. The new digital transformations framework includes 3 main domains: customer experience, operations and employee experience. MIT Initiative on the Digital Economy MIT Sloan School of Management 245 First St, Room E94-1521 Cambridge, MA 02142-1347 617-452-3216 An external developer platform helps foster a community capable of delivering end-to-end solutions to customers, much in the way that Amazon and Apple have extended their platforms with integrated offerings from partners. The framework of the course is based on the book Machine, Platform, Crowd: Harnessing Our Digital Future written by MIT Sloan faculty and New York Times best selling authors Erik Brynjolfsson and … Our next-generation campus has expanded online and distance-learning opportunities to address the evolving demands of executives. Businesses are scrambling to leverage an ever-evolving array of digital technologies — social, mobile, analytics, cloud, artificial intelligence, blockchain, and the “internet of things” — to develop new value propositions for their customers. The backbone typically incorporates customer resource management, enterprise resource planning, and other enterprisewide systems and processes. The mission of the MIT Sloan School of Management is to develop principled, innovative leaders who improve the world and to generate ideas that advance management practice. 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