IMD-OWP23-POSTEVENT-REPORT

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Action points

To stay competitive and generate an advantage today, companies – in particular, legacy firms – must learn how to leverage advancements in technology and data. This includes appreciating the value of interactive, real-time data, the importance of digital ecosystems, and the potential of new technologies such as AI and automation. In addition, it is necessary to anticipate new competitors and understand the implications of their competitive strategies. The ethical considerations of digital transformation, such as privacy concerns and the responsible use of customer data, are also key. Grasping these factors is crucial for businesses to navigate the digital age, maximize the value of new technologies, and remain competitive and profitable. From the golden arches to new loans An example of a legacy business adapting to the new environment can be seen in the way that McDonald’s has implemented self-service capabilities in its restaurants to respond to changing customer demands and technologies. On the flip side, disruptive new market entrants such as Alibaba and Tencent have taken significant market share in consumer loans and deposits from traditional Chinese banks by using the data they hold on customer spending patterns and financing needs. From the above examples, we can see it is crucial for companies to adapt to the latest

technologies, harness the potential of data driven decision-making, and to anticipate and understand disruptive competitors. How can companies master these new capabilities and insights? Executives should first ensure that there is a clear understanding of what digital transformation means in their organizations, framing it through digital ecosystems which amplify the value of data and products. AI and automation, alongside repurposed skillsets, should be embraced, while companies must also seek to avoid “digital myopia” by asking themselves what business they are really in, in ways that are pertinent to the new era of data and digital ecosystems. Instead of treating experts as competitors, organizations should consider collaborating with them to leverage their expertise for a competitive advantage. Digital transformation also creates ethical questions about privacy and the use and sharing of customer data. Businesses must investigate how they can generate value for customers from interactive data in a way that is sensitive to privacy and ethical concerns and regulatory restrictions.

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Embrace AI as a tool to enhance creativity: AI should not be seen as a replacement for human creativity but as a tool to enhance it. Implement AI tools in your organization in a manner that complements and boosts human creativity and problem-solving capabilities. Foster experimentation and learning: Encourage a culture of experimentation in your organization. A dynamic, non sequential process of problem-solving can lead to innovative solutions and continuous improvement. Promote teamwork and diversity: Implement strategies to foster collaboration and understanding among team members. Encourage diverse perspectives as they can enhance problem-solving and creativity. Regular feedback and open communication within teams should also be prioritized.