Orchestrating Transformation - Preview

Orchestrating Transformation

Intrigued, Ann-Christin accepted the position. Then came the hard part—what to do next. Her responsibilities weren’t clear, and she had no team, budget, or defined set of objectives. Ann-Christin’s situation is not uncommon. Today, senior executives see digital opportunities and threats, and feel the need to act. Even if they are in a strong market position, they worry that a new competitor, technology, or business model could instantly upend the dynamics of their industry. They’re right to feel anxious. During the first wave of digital disruption, the hardest-hit industries were those where the core product or service could be readily digi- tized, namely media and entertainment, financial services, telecom- munications, and high tech. Companies in these industries have had to build new capabilities, shift resources and structures, and recon- struct legacy businesses. Some have been successful. Others have fallen by the wayside. Now, a second wave of disruption is upon us. This wave is focused not only on digitizing products and services, but also on business models, processes, and value chains. As a result, it’s not just crashing onto industries prone to the digitization of offerings. It’s also affecting sec- tors that offer physical products, as well as companies operating in the business-to-business (B2B) realm—companies like TechnipFMC. TechnipFMC is a fairly representative B2B player. It offers services to large companies in the oil and gas industry. It doesn’t find the gas but helps to move it from where it is to where it needs to go next. It doesn’t refine the oil, but helps to build, commission, and maintain the refineries that do. The company concentrates on specialized work, often complicated and dirty, with long timelines and thin margins. It’s a tough business, but a relatively stable one. In a world where many organizations are concerned about being “Uberized” or “Am- azoned,” the space in which TechnipFMC operates is unlikely to dis- appear. The business environment has seen few new entrants and no “digital giants” (there is no Netflix—yet—in the oil and gas field services sector). Traditionally, the biggest worry for TechnipFMC has been the

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