Creating Business Impact and Gaining your Competitive Edge: Digital Transformation Lessons from Dr. Carsten Linz

Glean perspective from a world-renowned digital transformation leader. In this episode, Tony is joined by guest Dr. Carsten Linz, who probably needs no introduction. He is a board member, co-author of the best-selling book Radical Business Model Transformation, a member of the World Economic Forum Expert Network on Digital Economy and New Leadership, and serves as an advisor to boards and CxOs around the world. In nearly 20 years in leadership roles focused on software, data, and digital growth, he has built multiple 100 million euro businesses and led enterprise-wide transformation programs impacting more than 60,000 employees. His most recent roles include Group Digital Officer at BASF, Business Development Officer at SAP and Global Head of the Centre for Digital Leadership. Dr. Linz teaches in executive programs at the European School of Management & Technology Berlin, Mannheim Business School, University of St. Gallen and Stanford Graduate School. In this “Masters of Digital Transformation” episode, Carsten shares insights from more than 20+ years leading companies through the digital transformation journey. Key Takeaways Leading at the Intersection of Business Model and Digital Transformation When embarking on a digital transformation, improvements that only scratch the surface of what’s possible isn’t enough. For real change to take shape, companies must develop a radically different value proposition and embrace new ways of creating, delivering, and capturing value. In this regard, business model transformation helps leaders to "orchestrate" their digital transformation initiatives, make their transformation sticky, and gain a competitive edge for the organization. Shifting to an Entrepreneurial and Transformational Leadership During a digital transformation, leaders may have to refocus their priorities. If a leader is primarily geared towards efficiency gains and automation wins, that does not move the needle in a transformation context. New technologies inherently enable new types of innovation and creativity in a domain, rather than simply enhancing traditional methods. In the intelligent age, leadership is about co-creating the future and leaders should put more focus also on business model and operating model transformation, changes that are more substantial, more sticky, and more entrepreneurial in nature… Scaling-out Digital Business Impact In contrast to the prevailing "separate-then-integrate" model in consumer-facing companies, digital transformation in industrial companies in particular rather follows an "embed and then scale up" approach. New digital technologies were already embedded within a division, and the process of scaling them up often involved working from the customer/user backwards, giving them greater autonomy to facilitate their growth, and securing robust sponsorship and backing from the top.