{"id":7113,"date":"2021-03-24T02:43:14","date_gmt":"2021-03-24T02:43:14","guid":{"rendered":"https:\/\/berg-software.com\/?p=7113"},"modified":"2022-07-12T08:34:23","modified_gmt":"2022-07-12T08:34:23","slug":"digitalisation-how-to-create-evaluate-manage-value-2-of-6","status":"publish","type":"post","link":"https:\/\/www.berg-software.com\/en\/digitalisation-how-to-create-evaluate-manage-value-2-of-6\/","title":{"rendered":"Digitalisation \u201chow to\u201d: create, evaluate and manage digital value (2\/6)"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; fullwidth=&#8221;on&#8221; _builder_version=&#8221;4.4.1&#8243;][et_pb_fullwidth_post_title meta=&#8221;off&#8221; featured_placement=&#8221;background&#8221; _builder_version=&#8221;4.6.6&#8243; title_font=&#8221;||||||||&#8221; title_text_color=&#8221;#ff6317&#8243; title_font_size=&#8221;3.5em&#8221; meta_font=&#8221;|300|||||||&#8221; meta_text_color=&#8221;#ffffff&#8221; meta_font_size=&#8221;1em&#8221; background_enable_color=&#8221;off&#8221; use_background_color_gradient=&#8221;on&#8221; background_color_gradient_start=&#8221;rgba(248,248,248,0.85)&#8221; background_color_gradient_end=&#8221;rgba(248,248,248,0.75)&#8221; background_color_gradient_overlays_image=&#8221;on&#8221; min_height=&#8221;20vh&#8221; height=&#8221;400px&#8221; custom_padding=&#8221;6vh||6vh||false|false&#8221; global_module=&#8221;403&#8243; locked=&#8221;off&#8221;][\/et_pb_fullwidth_post_title][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; admin_label=&#8221;intro&#8221; _builder_version=&#8221;4.4.6&#8243; custom_padding=&#8221;|||0px||&#8221; locked=&#8221;off&#8221;][et_pb_row use_custom_gutter=&#8221;on&#8221; _builder_version=&#8221;4.4.6&#8243; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;6vh||||false|false&#8221; border_color_left=&#8221;rgba(0,0,0,0)&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.1&#8243;][et_pb_text _builder_version=&#8221;4.7.7&#8243; text_font=&#8221;||||||||&#8221; text_font_size=&#8221;1.1em&#8221; text_line_height=&#8221;1.6em&#8221; quote_font=&#8221;|700|||||||&#8221; quote_text_align=&#8221;left&#8221; quote_font_size=&#8221;16px&#8221; header_2_text_color=&#8221;#ff6317&#8243; header_2_font_size=&#8221;1.5em&#8221; header_2_line_height=&#8221;0.9em&#8221; header_3_font_size=&#8221;23px&#8221; header_4_font=&#8221;||||||||&#8221; header_4_font_size=&#8221;16px&#8221; header_4_line_height=&#8221;1.5em&#8221; header_5_font_size=&#8221;14px&#8221; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;||||false|false&#8221; border_color_left=&#8221;#ff6317&#8243;]<\/p>\n<p>Our <a href=\"https:\/\/berg-software.com\/insights\/how-digitalisation-starts-1-the-spark\/\" target=\"_blank\" rel=\"noopener noreferrer\">previous article on digitalisation<\/a> ended with:<\/p>\n<p>\u201c<em>[\u2026] We think that a company\u2019s readiness and attitude towards innovation are essential. And if it all comes down to delivering value for stakeholders [\u2026], then continuous exploration and advancement are essential.<\/em>\u201d<\/p>\n<p>Since creating value is highly important in digitalisation projects, let\u2019s have a look at how value is created, assessed and steered.<\/p>\n<p>&nbsp;<\/p>\n<ol>\n<li><a href=\"#Wheredoesdigitalisationcreatevalue\">Where does digitalisation create value?<\/a><\/li>\n<li><a href=\"#Howcanyouassessthevalueofdigitalisation\">How can you assess the value of digitalisation<\/a>?<\/li>\n<li><a href=\"#Whatisyourdigitalisationflightplan\">What is your digitalisation flight plan<\/a>?<\/li>\n<li><a href=\"#Doyouthinklikeastartup\">Do you think like a startup<\/a>?<\/li>\n<\/ol>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=&#8221;on&#8221; _builder_version=&#8221;4.4.6&#8243; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;6vh||||false|false&#8221; border_color_left=&#8221;rgba(0,0,0,0)&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.1&#8243;][et_pb_text _builder_version=&#8221;4.7.7&#8243; text_font=&#8221;||||||||&#8221; text_font_size=&#8221;1.1em&#8221; text_line_height=&#8221;1.6em&#8221; quote_font=&#8221;|700|||||||&#8221; quote_text_align=&#8221;left&#8221; quote_font_size=&#8221;16px&#8221; header_2_text_color=&#8221;#ff6317&#8243; header_2_font_size=&#8221;1.5em&#8221; header_2_line_height=&#8221;0.9em&#8221; header_3_font_size=&#8221;23px&#8221; header_4_font=&#8221;||||||||&#8221; header_4_font_size=&#8221;16px&#8221; header_4_line_height=&#8221;1.5em&#8221; header_5_font_size=&#8221;14px&#8221; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;|20px|||false|false&#8221; border_color_left=&#8221;#ff6317&#8243;]<\/p>\n<h2 id=\"Wheredoesdigitalisationcreatevalue\">1. Where does digitalisation create value?<\/h2>\n<p>Your current business can create value in many ways (such as, but not restricted to):<\/p>\n<ul>\n<li>have a superior service or product,<\/li>\n<li>that\u2019s made with better employees\/partners,<\/li>\n<li>at lower cost \/ higher margins than the competition,<\/li>\n<li>delivered quicker \/ at a better price \/ through more sales channels,<\/li>\n<li>and\/or monetised through the most appropriate payment methods.<\/li>\n<\/ul>\n<p>These and more areas of competitive advantages have been mapped into a neat Business Model Canvas (by <a href=\"https:\/\/twitter.com\/AlexOsterwalder\" target=\"_blank\" rel=\"noopener\">Alexander Osterwalder<\/a> \/ <a href=\"https:\/\/www.strategyzer.com\" target=\"_blank\" rel=\"noopener\">Strategyzer.com<\/a>):[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.7.7&#8243; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;6vh||||false|false&#8221; border_color_left=&#8221;rgba(0,0,0,0)&#8221; use_custom_gutter=&#8221;on&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.1&#8243;][et_pb_gallery gallery_ids=&#8221;7116&#8243; fullwidth=&#8221;on&#8221; hover_icon=&#8221;%%186%%&#8221; _builder_version=&#8221;4.7.7&#8243; _module_preset=&#8221;default&#8221; max_width=&#8221;65%&#8221; module_alignment=&#8221;center&#8221;][\/et_pb_gallery][et_pb_code _builder_version=&#8221;4.7.7&#8243; _module_preset=&#8221;default&#8221;][\/et_pb_code][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=&#8221;on&#8221; _builder_version=&#8221;4.7.7&#8243; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;6vh||||false|false&#8221; border_color_left=&#8221;rgba(0,0,0,0)&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.1&#8243;][et_pb_text _builder_version=&#8221;4.7.7&#8243; text_font=&#8221;||||||||&#8221; text_font_size=&#8221;1.1em&#8221; text_line_height=&#8221;1.6em&#8221; quote_font=&#8221;|700|||||||&#8221; quote_text_align=&#8221;left&#8221; quote_font_size=&#8221;16px&#8221; header_2_text_color=&#8221;#ff6317&#8243; header_2_font_size=&#8221;1.5em&#8221; header_2_line_height=&#8221;0.9em&#8221; header_3_font_size=&#8221;23px&#8221; header_4_font=&#8221;||||||||&#8221; header_4_font_size=&#8221;16px&#8221; header_4_line_height=&#8221;1.5em&#8221; header_5_font_size=&#8221;14px&#8221; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;|20px|||false|false&#8221; border_color_left=&#8221;#ff6317&#8243;]Since businesses can create value in many ways, so can digitalisation. By digitalising any (or all) competitive areas(s), a company can further increase the delivered value, thus becoming \u201cfaster, higher, stronger\u201d.<\/p>\n<p>The first example: let\u2019s look at the \u201cKey Activities\u201d field, applied to manufacturing. The last 20 years showed that by digitalising production, maintenance and communications flows, a company can significantly decrease costs and increase manufacturing speed. (See Berg Software\u2019s case studies on <a href=\"https:\/\/berg-software.com\/case-study\/dynamic-workflows-delivery-manufactured-items\/\" target=\"_blank\" rel=\"noopener\">Dynamic workflows in manufacturing<\/a> and <a href=\"https:\/\/berg-software.com\/case-study\/dynamic-workflows-delivery-manufactured-items\/\" target=\"_blank\" rel=\"noopener\">Preventive maintenance in manufacturing<\/a>.)<\/p>\n<p>Then, the \u201cKey Resources\u201d field: now that everyone (forcefully) found out that permanent physical presence in an office is not absolutely needed, the companies discovered that commercial real estate investments are (also) not absolutely needed. Digitalisation of office work thus freed-up a lot of capital that can now be invested into product \/ employee \/ sales channels development. (Or chocolate. Chocolate always works.)<\/p>\n<p>Last but not least, the \u201cCustomer Relationships\u201d field: for good or worse, a lot of \u201crelationships\u201d work via Facebook, Instagram, TikTok &amp; co. But firms can also build their own digital assets that keep the users\/customers informed, engaged and returning. For example, emailing chains that keep you informed about the delivery status. Or <a href=\"https:\/\/www.bmw.de\/de\/landingpage\/PreCON-5er-Touring.html?icp=de_konfigurator_b\" target=\"_blank\" rel=\"noopener\">addictive product configurators<\/a> that keep you immersed into the options. Or as is the case with many product + app packages, guide you on how to correctly use the product for the most benefit. (Have you tried Philips\u2019 <a href=\"https:\/\/www.philips.at\/c-e\/ho\/philips-nutriu-app.html\" target=\"_blank\" rel=\"noopener\"><em>NutriU<\/em><\/a> and <em><a href=\"https:\/\/apps.apple.com\/gb\/app\/groomtribe\/id1260946476\" target=\"_blank\" rel=\"noopener\">GroomTribe<\/a><\/em>, or Oral-B\u2019s <em><a href=\"https:\/\/apps.apple.com\/us\/app\/oral-b\/id698092608\" target=\"_blank\" rel=\"noopener\">Oral-B<\/a><\/em>?)<\/p>\n<p>Our learning: all pieces of a business model can benefit from digitalisation. Just make sure you are 100% objective when assessing and developing the digitalisation projects (as opposed to pure wishful thinking).[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=&#8221;on&#8221; _builder_version=&#8221;4.4.6&#8243; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;6vh||||false|false&#8221; border_color_left=&#8221;rgba(0,0,0,0)&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.1&#8243;][et_pb_text _builder_version=&#8221;4.7.7&#8243; text_font=&#8221;||||||||&#8221; text_font_size=&#8221;1.1em&#8221; text_line_height=&#8221;1.6em&#8221; quote_font=&#8221;|700|||||||&#8221; quote_text_align=&#8221;left&#8221; quote_font_size=&#8221;16px&#8221; header_2_text_color=&#8221;#ff6317&#8243; header_2_font_size=&#8221;1.5em&#8221; header_2_line_height=&#8221;0.9em&#8221; header_3_font_size=&#8221;23px&#8221; header_4_font=&#8221;||||||||&#8221; header_4_font_size=&#8221;16px&#8221; header_4_line_height=&#8221;1.5em&#8221; header_5_font_size=&#8221;14px&#8221; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;|20px|||false|false&#8221; border_color_left=&#8221;#ff6317&#8243;]<\/p>\n<h2 id=\"Howcanyouassessthevalueofdigitalisation\">2. How can you assess the value of digitalisation?<\/h2>\n<p>Just by digitalising a piece of your business does not automatically guarantee any benefits for you and your stakeholders. At Berg Software, we think that this is done on two separate levels:<\/p>\n<p>\u2014 <span style=\"text-decoration: underline;\">Metrics<\/span>: build a set of clear, objective KPIs that closely reflect value creation for your specific case.<br \/>\n\u2014 <span style=\"text-decoration: underline;\">Processes<\/span>: the way you track the project and make decisions about what\u2019s next.<\/p>\n<p>Let\u2019s start with the processes: as <a href=\"https:\/\/berg-software.com\/insights\/how-digitalisation-starts-1-the-spark\/\" target=\"_blank\" rel=\"noopener\">we wrote before<\/a>, \u201c<em>the right mix of technologies, markets and strategies cannot be known beforehand<\/em>\u201d. That\u2019s why we recommend adopting at least a simplified design thinking framework, where you build, measure and learn on a continuous basis. In other words, you would build the product\/solution (in its simplest, MVP version), then measure users\u2019\/clients\u2019 response, in order to learn how to further develop (or not) the product\/solution. The quicker this loop is performed (and -if case- the sooner the digitalisation project fails), the better.<\/p>\n<p>Regarding the metrics, depending on your company\u2019s \/ product\u2019s specifics, you should look at several different things:<\/p>\n<ul>\n<li><span style=\"text-decoration: underline;\">Costs<\/span>: yes, digitalisation can be a shiny North Star, but is it worth it (in general, or at least now)? Try looking into project\u2019s costs, either as total investment, burn rate (how much loss can you take every month, and for how long), and\/or CAC\/Customer Acquisition Costs (relevant especially in new tech-related situations, where users might not quickly \u201cget it\u201d).<\/li>\n<li><span style=\"text-decoration: underline;\">Growth targets<\/span>: what are your growth milestones? Do you need to start bringing revenue quickly (therefore focusing on the MRR\/ARR i.e., monthly\/annual recurring revenue)? Or can you afford to develop a community of users (that you can measure through growth- and churn-rates), before sales kick in?<\/li>\n<li><span style=\"text-decoration: underline;\">Bottom line<\/span>: will you make any profit if you digitalise? How much would each user contribute to this profit (through their LTV\/Lifetime Value)? Or the corollary: what will be the losses if you do not digitalise?<\/li>\n<\/ul>\n<p>Andrew Chen (of growth-hacking fame, now an <a href=\"https:\/\/a16z.com\/about\/\" target=\"_blank\" rel=\"noopener\">Andreessen Horowitz<\/a> partner), <a href=\"https:\/\/andrewchen.com\/the-critical-metrics-for-each-stage-of-your-saas-business-guest-post-by-lars-lofgren-of-kissmetrics\/\" target=\"_blank\" rel=\"noopener\">splits these metrics<\/a> along your product\u2019s lifecycle: before and after product-market-fit. For even more detailed insights, have a look at his <a href=\"https:\/\/andrewchen.com\/investor-metrics-deck\/\" target=\"_blank\" rel=\"noopener\">investor metrics deck<\/a>.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.7.7&#8243; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;6vh||||false|false&#8221; border_color_left=&#8221;rgba(0,0,0,0)&#8221; use_custom_gutter=&#8221;on&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.1&#8243;][et_pb_gallery gallery_ids=&#8221;7123&#8243; fullwidth=&#8221;on&#8221; hover_icon=&#8221;%%186%%&#8221; _builder_version=&#8221;4.7.7&#8243; _module_preset=&#8221;default&#8221; max_width=&#8221;65%&#8221; module_alignment=&#8221;center&#8221;][\/et_pb_gallery][et_pb_code _builder_version=&#8221;4.7.7&#8243; _module_preset=&#8221;default&#8221;][\/et_pb_code][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=&#8221;on&#8221; _builder_version=&#8221;4.7.7&#8243; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;6vh||||false|false&#8221; border_color_left=&#8221;rgba(0,0,0,0)&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.1&#8243;][et_pb_text _builder_version=&#8221;4.7.7&#8243; text_font=&#8221;||||||||&#8221; text_font_size=&#8221;1.1em&#8221; text_line_height=&#8221;1.6em&#8221; quote_font=&#8221;|700|||||||&#8221; quote_text_align=&#8221;left&#8221; quote_font_size=&#8221;16px&#8221; header_2_text_color=&#8221;#ff6317&#8243; header_2_font_size=&#8221;1.5em&#8221; header_2_line_height=&#8221;0.9em&#8221; header_3_font_size=&#8221;23px&#8221; header_4_font=&#8221;||||||||&#8221; header_4_font_size=&#8221;16px&#8221; header_4_line_height=&#8221;1.5em&#8221; header_5_font_size=&#8221;14px&#8221; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;|20px|||false|false&#8221; border_color_left=&#8221;#ff6317&#8243;]However complicated this looks, assessing the value of your digitalisation project should not be a super-complex thing. As long as you keep objective, you can manage it with the right process and a simple set of (6-8) KPIs.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=&#8221;on&#8221; _builder_version=&#8221;4.4.6&#8243; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;6vh||||false|false&#8221; border_color_left=&#8221;rgba(0,0,0,0)&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.1&#8243;][et_pb_text _builder_version=&#8221;4.7.7&#8243; text_font=&#8221;||||||||&#8221; text_font_size=&#8221;1.1em&#8221; text_line_height=&#8221;1.6em&#8221; quote_font=&#8221;|700|||||||&#8221; quote_text_align=&#8221;left&#8221; quote_font_size=&#8221;16px&#8221; header_2_text_color=&#8221;#ff6317&#8243; header_2_font_size=&#8221;1.5em&#8221; header_2_line_height=&#8221;0.9em&#8221; header_3_font_size=&#8221;23px&#8221; header_4_font=&#8221;||||||||&#8221; header_4_font_size=&#8221;16px&#8221; header_4_line_height=&#8221;1.5em&#8221; header_5_font_size=&#8221;14px&#8221; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;|20px|||false|false&#8221; border_color_left=&#8221;#ff6317&#8243;]<\/p>\n<h2 id=\"Whatisyourdigitalisationflightplan\">3. What is your digitalisation flight plan?<\/h2>\n<p>So\u2026 you just decided in favour of digitalising. Now what? Once your targets, metrics and initial plan are clear(er), you will probably want two things:<\/p>\n<ul>\n<li>Learn as much, as quickly as you can about your digital product\u2019s users and business case.<\/li>\n<li>Not risk huge amounts of money and effort on something that\u2019s still insecure.<\/li>\n<\/ul>\n<p>For both, the solution is the MVP: a minimum viable product (~\u201dprototype\u201d) that can act as a placeholder, in order to maximise business-related learning, while minimising costs and effort.<\/p>\n<p>In the words of Eric Ries (<em>The Lean Startup<\/em>, <em>The Startup Way<\/em>), \u201c<em>the minimum viable product is that product which has just those features (and no more) that allows you to ship a product that resonates with early adopters; some of whom will pay you money or give you feedback<\/em>\u201d. (Source: <a href=\"http:\/\/www.startuplessonslearned.com\/2009\/03\/minimum-viable-product.html\" target=\"_blank\" rel=\"noopener noreferrer\">Venture Hacks interview<\/a>)<\/p>\n<p>Need it more specific? Here are some examples:<\/p>\n<ul>\n<li>AirBnb founders\u2019 original MVP was a website where they posted pictures of their apartment, available for rent to business-conference visitors. While this was good enough to start with, they eventually developed further features and services on their way to becoming a 100-billion-euro company.<\/li>\n<li>Back in 1994, Amazon started with the simplest of all websites, that only sold books at low prices. Many learnings (and anticompetitive investigations) later, Amazon is nowadays ubiquitous.<\/li>\n<li>Dropbox didn\u2019t even build a product \u2013 <a href=\"https:\/\/www.youtube.com\/watch?v=w4eTR7tci6A\" target=\"_blank\" rel=\"noopener noreferrer\">just a video<\/a> explaining the concept to be teased with potential users\/clients.<\/li>\n<\/ul>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.7.7&#8243; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;6vh||||false|false&#8221; border_color_left=&#8221;rgba(0,0,0,0)&#8221; use_custom_gutter=&#8221;on&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.1&#8243;][et_pb_gallery gallery_ids=&#8221;7127&#8243; fullwidth=&#8221;on&#8221; hover_icon=&#8221;%%186%%&#8221; _builder_version=&#8221;4.7.7&#8243; _module_preset=&#8221;default&#8221; max_width=&#8221;65%&#8221; module_alignment=&#8221;center&#8221;][\/et_pb_gallery][et_pb_code _builder_version=&#8221;4.7.7&#8243; _module_preset=&#8221;default&#8221;][\/et_pb_code][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=&#8221;on&#8221; _builder_version=&#8221;4.7.7&#8243; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;6vh||||false|false&#8221; border_color_left=&#8221;rgba(0,0,0,0)&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.1&#8243;][et_pb_text _builder_version=&#8221;4.7.7&#8243; text_font=&#8221;||||||||&#8221; text_font_size=&#8221;1.1em&#8221; text_line_height=&#8221;1.6em&#8221; quote_font=&#8221;|700|||||||&#8221; quote_text_align=&#8221;left&#8221; quote_font_size=&#8221;16px&#8221; header_2_text_color=&#8221;#ff6317&#8243; header_2_font_size=&#8221;1.5em&#8221; header_2_line_height=&#8221;0.9em&#8221; header_3_font_size=&#8221;23px&#8221; header_4_font=&#8221;||||||||&#8221; header_4_font_size=&#8221;16px&#8221; header_4_line_height=&#8221;1.5em&#8221; header_5_font_size=&#8221;14px&#8221; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;|20px|||false|false&#8221; border_color_left=&#8221;#ff6317&#8243;]<\/p>\n<p>So when building your MVP, keep in mind that (A) it should -ideally- be an existing product, (B) built with minimal effort, (C) to test your business value assumptions.<\/p>\n<p>Where do you go from an MVP? Obviously, there\u2019s the possibility of finding success with a great digital product\/solution. But if not, one can always try to pivot \u2013 i.e., change the strategy without changing the overall direction. Although it sounds unstable, it actually does result in \u201cvalue\u201d:<\/p>\n<ul>\n<li>Netflix pivoted from DVDs to streaming,<\/li>\n<li>PayPal pivoted from Palm Pilot payments to web payments,<\/li>\n<li>Instagram is a result of Burbn (a whiskey-dedicated app) pivoting upon its photo-sharing feature.<\/li>\n<\/ul>\n<p>What if a pivot doesn\u2019t help, either? Then maybe just accept that your digitalisation project cannot create value within the current technology\/market\/channels\/revenue-streams context, stop it, and find other ways to create digital value.<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=&#8221;on&#8221; _builder_version=&#8221;4.4.6&#8243; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;6vh||||false|false&#8221; border_color_left=&#8221;rgba(0,0,0,0)&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.1&#8243;][et_pb_text _builder_version=&#8221;4.7.7&#8243; text_font=&#8221;||||||||&#8221; text_font_size=&#8221;1.1em&#8221; text_line_height=&#8221;1.6em&#8221; quote_font=&#8221;|700|||||||&#8221; quote_text_align=&#8221;left&#8221; quote_font_size=&#8221;16px&#8221; header_2_text_color=&#8221;#ff6317&#8243; header_2_font_size=&#8221;1.5em&#8221; header_2_line_height=&#8221;0.9em&#8221; header_3_font_size=&#8221;23px&#8221; header_4_font=&#8221;||||||||&#8221; header_4_font_size=&#8221;16px&#8221; header_4_line_height=&#8221;1.5em&#8221; header_5_font_size=&#8221;14px&#8221; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;||||false|false&#8221; border_color_left=&#8221;#ff6317&#8243;]<\/p>\n<h2 id=\"Doyouthinklikeastartup\">4. Do you think like a start-up?<\/h2>\n<p>Going back briefly to the MVP, we need to emphasise that its purpose is to test business value, and not specific features and\/or functionalities. This means that the actual digital product\u2019s development should only start once things are clear (well, clearer\u2026).<\/p>\n<p>Of course, this impacts your digitalisation team\u2019s size and setup.<\/p>\n<p>For actual digital-native start-ups, things are clear: because of all the reasons (size, lack of resources and\/or revenue etc.), they would start as small as possible. The clich\u00e9 of two partners working on a side project in a garage is resilient \u201cbecause it\u2019s true\u201d.<\/p>\n<p>But how can this work in a corporate\/enterprise environment with (tens of) thousands of employees and (tens of) billions of euro in yearly revenue? In the previous article, we mentioned the internal start-ups that various large companies put together in order to validate new technologies.<\/p>\n<p>How does this work? Here\u2019s Eric Ries\u2019 The Startup Way (again) full-blown framework:<\/p>\n<p><span style=\"text-decoration: underline;\">At team level<\/span>:<\/p>\n<p>\u2014 Start small, figure out what works and what doesn\u2019t for your company.<br \/>\n\u2014 Once critical mass is reached, scale up the number of teams\/programs\/accelerators.<br \/>\n\u2014 Eventually, this should become \u201cthe way we work\u201d.<\/p>\n<p><span style=\"text-decoration: underline;\">At division level<\/span>:<\/p>\n<p>\u2014 First, enlist a small list of \u201cinternal sponsors\u201d\/\u201dsenior champion leaders\u201d to make exceptions to company policies as needed.<br \/>\n\u2014 When reaching scaling phase, train all the senior leaders, including those who are not directly responsible for innovation.<br \/>\n\u2014 Finally, establish growth boards, innovation accounting (see metrics\/KPIs above) and strict accountability for all senior leaders.<\/p>\n<p><span style=\"text-decoration: underline;\">At enterprise level<\/span>:<\/p>\n<p>\u2014 Begin with reaching senior leaders\u2019 agreement on what success looks like (e.g., criteria, timeline) and recruit \u201cchampion leaders\u201d among them.<br \/>\n\u2014 In order to scale, develop company-wide rules, finance models and accountability tools.<br \/>\n\u2014 The last and most complicated phase will be to realign the deepest systems with the digitalisation targets (things like compensation, promotion, supply chain etc.).<\/p>\n<p>Because it can get messy and complicated, be sure to make the most out of the opportunities offered by your initial, \u201cstart-up team building an MVP\u201d phase: build a minimal product to learn while keeping the costs down, set your business basics straight, strive for delivering value to users\/customers.<\/p>\n<p>And because we are a software company, we think that the lean start-up concept also makes sense from a pure software development angle. Especially in sequential projects (\u201cC can happen only when A and B are done\u201d), it is a good practice to work with a small team on a reasonable timeline, then to use the brute force of a larger team with short\/compressed milestones.[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=&#8221;on&#8221; _builder_version=&#8221;4.4.6&#8243; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;6vh||||false|false&#8221; border_color_left=&#8221;rgba(0,0,0,0)&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.1&#8243;][et_pb_text _builder_version=&#8221;4.7.7&#8243; text_font=&#8221;||||||||&#8221; text_font_size=&#8221;1.1em&#8221; text_line_height=&#8221;1.6em&#8221; quote_font=&#8221;|700|||||||&#8221; quote_text_align=&#8221;left&#8221; quote_font_size=&#8221;16px&#8221; header_2_text_color=&#8221;#ff6317&#8243; header_2_font_size=&#8221;1.5em&#8221; header_2_line_height=&#8221;0.9em&#8221; header_3_font_size=&#8221;23px&#8221; header_4_font=&#8221;||||||||&#8221; header_4_font_size=&#8221;16px&#8221; header_4_line_height=&#8221;1.5em&#8221; header_5_font_size=&#8221;14px&#8221; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;||||false|false&#8221; border_color_left=&#8221;#ff6317&#8243;]<\/p>\n<h2>Conclusion<\/h2>\n<p>Digitalisation is on everyone\u2019s minds. That\u2019s good because it pushes us to innovate. That\u2019s also bad, especially if it sets unreal expectations. <strong>Our advice: make sure you focus on creating and delivering value, and that you are able to manage it all.<\/strong><\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.4.1&#8243; custom_padding=&#8221;|||0px||&#8221; locked=&#8221;off&#8221;][et_pb_row use_custom_gutter=&#8221;on&#8221; gutter_width=&#8221;3&#8243; admin_label=&#8221;\uff3f&#8221; _builder_version=&#8221;4.4.6&#8243; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;4vh||8vh||false|false&#8221; border_color_left=&#8221;rgba(0,0,0,0)&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.6&#8243;][et_pb_text _builder_version=&#8221;4.7.7&#8243; text_font=&#8221;||||||||&#8221; text_font_size=&#8221;1.1em&#8221; text_line_height=&#8221;1.6em&#8221; quote_font=&#8221;|700|||||||&#8221; quote_text_align=&#8221;left&#8221; quote_font_size=&#8221;16px&#8221; header_2_text_color=&#8221;#ff6317&#8243; header_2_font_size=&#8221;1.5em&#8221; header_2_line_height=&#8221;0.9em&#8221; header_3_font_size=&#8221;23px&#8221; header_4_font=&#8221;||||||||&#8221; header_4_font_size=&#8221;16px&#8221; header_4_line_height=&#8221;1.5em&#8221; header_5_font_size=&#8221;14px&#8221; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;||||false|false&#8221; border_color_left=&#8221;#ff6317&#8243;]<\/p>\n<h2>\uff3f<\/h2>\n<p>Feel like sharing your own digitalisation experiences? Please <a href=\"https:\/\/berg-software.com\/contact-berg-software\/\" target=\"_blank\" rel=\"noopener noreferrer\">get in touch<\/a>!<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;3.22&#8243; background_color=&#8221;#eeeeee&#8221; custom_padding=&#8221;50px||50px||false|false&#8221; border_color_top=&#8221;#ff6317&#8243; global_module=&#8221;1642&#8243;][et_pb_row column_structure=&#8221;1_3,1_3,1_3&#8243; _builder_version=&#8221;4.4.1&#8243; custom_padding=&#8221;0px|||||&#8221; locked=&#8221;off&#8221;][et_pb_column type=&#8221;1_3&#8243; _builder_version=&#8221;4.4.1&#8243;][et_pb_social_media_follow _builder_version=&#8221;4.4.4&#8243; text_orientation=&#8221;left&#8221;][et_pb_social_media_follow_network social_network=&#8221;linkedin&#8221; url=&#8221;https:\/\/www.linkedin.com\/company\/berg-computers-srl\/&#8221; _builder_version=&#8221;4.4.4&#8243; background_color=&#8221;#007bb6&#8243; follow_button=&#8221;off&#8221; url_new_window=&#8221;on&#8221;]linkedin[\/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=&#8221;twitter&#8221; url=&#8221;https:\/\/twitter.com\/berg_software&#8221; _builder_version=&#8221;4.4.4&#8243; background_color=&#8221;#00aced&#8221; follow_button=&#8221;off&#8221; url_new_window=&#8221;on&#8221;]twitter[\/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=&#8221;facebook&#8221; url=&#8221;https:\/\/www.facebook.com\/bergCOMPUTERS&#8221; _builder_version=&#8221;4.4.4&#8243; background_color=&#8221;#3b5998&#8243; follow_button=&#8221;off&#8221; url_new_window=&#8221;on&#8221;]facebook[\/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=&#8221;instagram&#8221; url=&#8221;https:\/\/www.instagram.com\/berg_software\/&#8221; _builder_version=&#8221;4.4.4&#8243; background_color=&#8221;#ea2c59&#8243; follow_button=&#8221;off&#8221; url_new_window=&#8221;on&#8221;]instagram[\/et_pb_social_media_follow_network][\/et_pb_social_media_follow][\/et_pb_column][et_pb_column type=&#8221;1_3&#8243; _builder_version=&#8221;4.4.1&#8243;][et_pb_post_nav in_same_term=&#8221;on&#8221; show_next=&#8221;off&#8221; _builder_version=&#8221;4.4.1&#8243; title_text_color=&#8221;#ff6317&#8243; custom_padding=&#8221;|25px|||false|false&#8221;][\/et_pb_post_nav][\/et_pb_column][et_pb_column type=&#8221;1_3&#8243; _builder_version=&#8221;4.4.1&#8243;][et_pb_post_nav in_same_term=&#8221;on&#8221; show_prev=&#8221;off&#8221; _builder_version=&#8221;4.4.1&#8243; title_text_color=&#8221;#ff6317&#8243; custom_padding=&#8221;|||25px|false|false&#8221;][\/et_pb_post_nav][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; admin_label=&#8221;CONTACT&#8221; _builder_version=&#8221;4.4.1&#8243; background_color=&#8221;#d2d2d2&#8243; custom_padding=&#8221;75px||75px||false|false&#8221; global_module=&#8221;1544&#8243;][et_pb_row column_structure=&#8221;1_4,3_4&#8243; admin_label=&#8221;Service Section Title&#8221; _builder_version=&#8221;4.4.1&#8243; custom_padding=&#8221;||25px||false|false&#8221; animation_direction=&#8221;top&#8221; locked=&#8221;off&#8221;][et_pb_column type=&#8221;1_4&#8243; _builder_version=&#8221;3.25&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][\/et_pb_column][et_pb_column type=&#8221;3_4&#8243; _builder_version=&#8221;3.25&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.4.1&#8243; text_font=&#8221;|300|||||||&#8221; text_text_color=&#8221;#ffffff&#8221; text_line_height=&#8221;1.1em&#8221; header_5_font=&#8221;|600|||||||&#8221; header_5_text_color=&#8221;#ffffff&#8221; header_5_font_size=&#8221;14px&#8221; header_5_line_height=&#8221;1.5em&#8221; custom_margin=&#8221;||||false|false&#8221;]29 years in business | 2700 software projects | 760 clients | 24 countries<\/p>\n<h5>We turn ideas into software. What is yours?<\/h5>\n<p>[\/et_pb_text][et_pb_text admin_label=&#8221;Title&#8221; _builder_version=&#8221;4.4.6&#8243; header_text_align=&#8221;center&#8221; header_2_font=&#8221;|300|||||||&#8221; header_2_text_align=&#8221;left&#8221; header_2_text_color=&#8221;#ff6317&#8243; header_2_font_size=&#8221;50px&#8221; header_2_line_height=&#8221;0.9em&#8221; custom_margin=&#8221;||||false|false&#8221; custom_padding=&#8221;25px||25px||false|false&#8221;]<\/p>\n<h2 id=\"Getintouch\">Get in touch<\/h2>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=&#8221;1_4,3_4&#8243; _builder_version=&#8221;4.4.4&#8243;][et_pb_column type=&#8221;1_4&#8243; _builder_version=&#8221;4.4.4&#8243;][\/et_pb_column][et_pb_column type=&#8221;3_4&#8243; _builder_version=&#8221;4.4.4&#8243;][et_pb_contact_form email=&#8221;contact@bergsoftprod.wpengine.com&#8221; custom_message=&#8221;WEBFORM MESSAGE||et_pb_line_break_holder||\uff3f||et_pb_line_break_holder||FROM: %%Name%%||et_pb_line_break_holder||EMAIL: %%Email%%||et_pb_line_break_holder||PHONE NUMBER: %%Phone_number%%||et_pb_line_break_holder||COMPANY: %%Company_name%%||et_pb_line_break_holder||TERMS &amp; CONDITIONS: %%Terms_and_Conditions%%||et_pb_line_break_holder||DATA PRIVACY POLICY: %%Data_Privacy_Policy%%||et_pb_line_break_holder||\uff3f||et_pb_line_break_holder||MESSAGE:||et_pb_line_break_holder||%%Message%%&#8221; success_message=&#8221;Thank you for reaching out! 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We will get back to you right away.&#8221; _builder_version=&#8221;4.4.4&#8243; form_field_background_color=&#8221;#d2d2d2&#8243; form_field_text_color=&#8221;#ffffff&#8221; form_field_focus_background_color=&#8221;#ffffff&#8221; form_field_focus_text_color=&#8221;#000000&#8243; title_level=&#8221;h2&#8243; title_font=&#8221;|300|||||||&#8221; title_text_color=&#8221;#ff6317&#8243; title_font_size=&#8221;30px&#8221; form_field_line_height=&#8221;1.5em&#8221; custom_button=&#8221;on&#8221; button_text_size=&#8221;14px&#8221; button_text_color=&#8221;#ffffff&#8221; button_bg_color=&#8221;#ff6317&#8243; button_border_width=&#8221;0px&#8221; button_border_radius=&#8221;0px&#8221; button_icon=&#8221;%%3%%&#8221; button_on_hover=&#8221;off&#8221; border_color_all=&#8221;#ffffff&#8221; border_width_bottom=&#8221;1px&#8221;][et_pb_contact_field field_id=&#8221;Name&#8221; field_title=&#8221;Name *&#8221; fullwidth_field=&#8221;on&#8221; _builder_version=&#8221;4.4.4&#8243; form_field_background_color=&#8221;#d2d2d2&#8243; 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