Scenario Planning and Digital Transformation
Digital Transformation and the New Customer
In 2011 the MIT Center for Digital Busines defined digital transformation as "the use of technology to radically improve performance or reach of enterprises." Since then, many companies have struggled to understand this term. One of the problems is that executives and board members alike often see digital transformation in just one horizon.
Many managers see digital transformation only as a collection of technologies that should be implemented. They put too much emphasis on "digital" and very little on "transformation." But in many sectors working on a 3-5 years horizon, as most strategic plans do, is not enough. Suppose customers and the market are changing as a result of digital disruption. In that case, the company will probably have to re-think its business model. But, when dealing with business model innovation, companies must think long term, maybe even very long term. Only then could executives prepare the company to cope with radical change.
Scenario planning, developed in the 60s by Mr. Wack and Ted Newland at Shell Corporation, is perhaps the best tool to help directors and executives think about the distant future. However, few companies use scenario planning. Many do not even know the tool exists and think scenario planning is the use of financial scenarios when it is indeed far from that. Many managers and directors are also uncomfortable at thinking long-term and creating various scenarios.
In this session we will propose a roadmap for digital transformation and explain how scenario planning can help firms achieve long-term transformation.
Prof. Julián Villanueva, Marketing, IESE Business School
Prof. Julián Villanueva is professor in the Marketing Department at IESE Business School. He holds a Ph.D. in Management (Marketing) from UCLA, an MBA at IESE, and a B.A. in Economics (Universidad Complutense de Madrid).
His interests fall in the area of digital marketing, customer equity (or customer lifetime value), branding and salesforce management, among others. His research has been published in the Journal of Marketing Research, Journal of Marketing and Quantitative Marketing and Economics, among others. Prof. Villanueva is also the author of several books, managerial articles and more than 50 case studies and technical notes. Two of his cases are in the Harvard Business School Premier Case Collection.
He regularly teaches MBAs and executives at IESE, and has also taught at CEIBS (China), Nile University (Egypt), INALDE (Colombia), IPADE (Mexico), IAE (Argentina), IDE (Ecuador), PAD (Perú), IEE (Costa Rica) and IEEM (Uruguay).
He joined IESE in 1997 as an Instructor in the Marketing Department. Before doing his MBA he worked for Promodès (currently Carrefour) as a product manager in the private labels? department. He has consulted for several companies such as Telefónica, Grupo Santander, Bankinter, Caprabo, Eroski, Antonio Puig, Mastercard, Nestle, Nabisco, Bosch/Siemens. He regularly serves as an expert witness in several litigation cases. He has also served as a board member of several firms, both for-profit and non-profit.