00:10Professor Hein studies the effect of
00:12technology on teams collaboration and
00:15Innovation she's conducted extensive
00:17research on the Dynamics of
00:19cross-boundary work teams and particular
00:21those spanning National borders so
00:24welcome to folks all over the world
00:27um Professor Hines Pam
00:29also has a body of research on human
00:31robot interaction in the work
00:33environment and the Dynamics of human
00:35robot teams and most recently Pam has
00:39been looking at the changing nature of
00:41work in the face of emerging
00:43Technologies including the nature of
00:46coordination and open Innovation and
00:48changes in work and organizations
00:50resulting from 3D printing and other and
00:54the work of data analysts
00:56before we begin for our audience please
01:00remember you can enter in a question at
01:04any time and I do encourage you to
01:07submit your questions earlier
01:09um during the webinar so don't wait
01:10until the last minute go ahead and put
01:11them in um and we'll go ahead and take a
01:13look at those um as we're going through
01:19Pam welcome so delighted to have you
01:22with us today and um uh let's go ahead
01:27um would you discuss what you
01:31position think of is what is digital
01:34transformation yeah great question
01:37um and and it's kind of a complicated
01:38question because there are a lot of
01:40different definitions that are floating
01:41out there and and people think of it in
01:46um and it's different in different
01:47contexts but I think that generally and
01:50this is the way I think of digital
01:52transformation is a radical reimagining
01:56of how an organization uses technology
02:00particularly emerging kinds of
02:03to fundamentally change
02:06their business models and business
02:08performance and that includes rethinking
02:12products Services processes and includes
02:17emerging Technologies like AI machine
02:19learning the expansion of data The
02:23Internet of Things robotics social media
02:26platforms and so forth so a host of
02:28different kinds of emerging Technologies
02:31but the key for me in the definition is
02:35that it's not about incremental change
02:38it's really this radical reimagining of
02:42what we are delivering in terms of
02:46products and services to our customers
02:49and how we are operating you know what
02:53our internal processes are for
03:00great thanks you know with that in mind
03:04um you do talk a lot about culture
03:07why is that important to digital
03:11yeah I think it's it's critically
03:13important because when there's a lot of
03:16evidence at this point that
03:20um successfully achieve digital
03:23undergo significant cultural change or
03:27they're a new organization that has a
03:30culture that aligns with what is
03:33required to operate effectively and I'll
03:36go into more detail on that
03:38um but the bottom line is it can't be
03:43um existing processes systems and
03:46structures from a decade or more ago and
03:50part of the reason for that is because
03:52it requires continual Innovation
03:56um continual meaning that you know it's
03:59not just you know a Skunk Works
04:01operation that comes up with a new great
04:02idea but it's something that an
04:05organization needs to attend to on a
04:09really constant basis in order to
04:13to stay up on these rapid changes in the
04:19technology and in the business
04:21environment and that means that there
04:24are fundamental changes in the
04:25organization that are required
04:28um for organization organizations to do
04:30this because historically we just
04:32haven't had to move that quickly and be
04:36that externally focused
04:39um you know and one of the things that
04:41people ask is well isn't it really about
04:43getting good digital Talent you know
04:45knowing about these Technologies and
04:47being able to use them effectively in
04:50these Transformations absolutely that
04:53that is a necessary but not a sufficient
04:56condition for digital transformation
05:00um because you can get overly focused
05:03and we see organizations do this all the
05:06time get overly focused on the digital
05:08piece the technology piece and not on
05:11the transformation piece
05:13um and you know we're really talking
05:16again this more fundamental radical
05:20um to the way that we do business
05:27great thank you for that
05:30um you know you talk about the
05:32characteristics and culture needed for
05:34digital transformation and I'm going to
05:36put up a slide that you and I have
05:38talked about uh that we wanted to
05:41discuss as part of this fireside chat
05:43and it's kind of it's the integral
05:45component you go into this in your your
05:47course in the program can you talk about
05:51the characteristics of digital culture
05:54this diagram in particular and how it's
05:57fundamental for every transformation
06:02um so wait the way that this diagram
06:04came about is I read broadly about the
06:08digital Transformations that were
06:09successful and were unsuccessful
06:12um over you know a I'd say decade-long
06:17um and there's quite a bit that's
06:18written there are a number of really
06:19good books um that talk about you know
06:22that provide these examples of
06:25organizations that have been able to do
06:29and what I did was I distilled these
06:31into the five elements that you see here
06:36um one that's right in the center is
06:38being customer Centric
06:40um so we'll describe that in a minute
06:42but also being Nimble and fast
06:46really focusing on voracious learning or
06:50a learning based culture
06:52unbounded collaboration and appetite for
06:56risk so those are the the five that you
06:58see in this diagram customer Centric is
07:01in the middle of the diagram because all
07:05of these capabilities you know Nimble
07:07and fast voracious learning and so forth
07:09are employed in service of providing
07:12customer value oftentimes through these
07:15new business models but also new
07:17products services and so forth so it
07:21needs to be you know the organizations
07:22that are most successful really focus
07:25first on what can be provided to the
07:28customer what needs are out there that
07:31are not yet being met that can be met
07:34through these Transformations so that's
07:37the customer-centric piece
07:39Nimble and fast the reason that that's
07:42on there is because the pace of change
07:46as we are embarking on these digital
07:51requires rethinking the direction that
07:54we're going and pivoting regularly we
07:57need to be in a position to be able to
08:00act on new initiatives without you know
08:04spending a lot of time
08:06um retooling and transitioning so it's a
08:10combination of innovation and speed that
08:15and in order to be nimble and fast
08:18oftentimes we need to rethink our
08:21organizational structures you know
08:23oftentimes our traditional hierarchical
08:25structures get in the way of being able
08:28to move quickly they're they're designed
08:30for reliability not for Speed and the
08:34same thing with our internal processes
08:36approval processes and so forth
08:39um can get in our way of being able to
08:44take advantage of these opportunities
08:49the next one is voracious learning
08:52um and and basically what this means is
08:54having a culture in the organization
08:57that's really about learning and
09:00curiosity in order to drive new
09:06um you need to have people willing to
09:10um you know go out and and figure things
09:12out not just willing to but passionate
09:14about going and learning new things and
09:18thinking in new ways as opposed to you
09:21know again of a very traditional
09:23organization would be focused on hiring
09:26people who know what you know have the
09:29expertise that you need and then
09:31exploiting that expertise
09:34in this new environment of the digital
09:39we don't necessarily know what it is
09:42um that is going to be important the
09:45expertise that's going to be required
09:47and it's going to be new expertise that
09:51um so it's really important that we have
09:53a Workforce that is excited about and
09:56supported in learning
09:59um in terms of unbounded collaboration
10:02um what I'm talking about there is being
10:04willing to work willing to and
10:07incentivized for working across
10:11boundaries that are traditional within
10:16um so having cross-functional groups
10:18working together more actively sometimes
10:20it means working outside of the
10:22organization where you need to have
10:24access to expertise that doesn't exist
10:28um the the organization itself and this
10:32um two digital transformation because
10:35these complex digital offerings
10:37often require bringing together very
10:41different kinds of expertise different
10:48and where we may have historically been
10:51been able to do that in tandem where
10:54you've got one group that works on it
10:55and hands over to another group that
10:57hands over to another group
11:00um and and you know there's this
11:04that's just not fast enough anymore
11:07um so what it requires is bringing all
11:10the right people into the room at the
11:11beginning and working through these
11:15ideas and and also that's that's a way
11:19um come up with really new and novel
11:22ideas if people are really building on
11:25the knowledge and expertise
11:29um and then finally we have appetite for
11:32risk and what I mean by that is an
11:36organization that has a culture as well
11:39as processive processes incentive
11:42systems structures and so forth that
11:45encourage and support risk taking
11:48why is that important well it's because
11:51people won't take risks they won't
11:54innovate they won't try new things if
11:58they are afraid that they are going to
12:03um you know be punished in some way or
12:05embarrassed in some way within the
12:07organization you know they're going to
12:09take a route that is safer for them
12:13um so it's really important that people
12:16feel like that it's actually a good
12:19thing to try new things even if they
12:23fail what's important though about this
12:25is that it doesn't mean that everybody
12:28can just make mistakes in their work Amy
12:31Edmondson who's a professor at Harvard
12:33talks about preventable failures
12:36these are things where we we know how to
12:40do it right and we just got sloppy
12:42that's not the kind of risk that I'm
12:47I'm talking about what she calls
12:49intelligent intelligent failures at the
12:52and these are failures that provide new
12:55knowledge to the individuals and
12:59um and are good for the organization
13:01they're actually learning opportunities
13:04for the organization and particularly in
13:07cases when we we actually don't know the
13:10answer in advance we don't know whether
13:14um you know this new solution is is
13:17going to work we don't know whether or
13:19not there's really going to be a market
13:20for it so how can we experiment fail
13:27so I know I spoke a lot here Anita uh
13:30but in you know kind of in summary um to
13:33your question you know I think that
13:35digital transformation is as much about
13:41and the transformation piece requires
13:44really rethinking organization culture
13:47structures and systems
13:49um you know in the way that people think
13:51about their work and work together
13:55excellent thanks Pam
13:58um and thanks for for going deep in some
14:01of these topics so uh really appreciate
14:03you expanding on some of these ideas
14:06um next question and
14:10uh this is more of a you know say
14:13somebody is is not a digital
14:16transformation leader they're they're
14:17not leading an initiative or they're a
14:21member but they're not necessarily the
14:24leader or they'd like to learn to get
14:26involved or make change in their
14:28organization so why is it important to
14:31learn about digital transformation
14:33even if you're not going to be the
14:35leader but you will be a participant
14:37yeah now that's a great question
14:40um and you know my answer is that
14:43nobody's immune even if you're not
14:45leading digital transformation today
14:48you're likely to be impacted by it
14:51um and if not today sometime soon
14:53according to the world economic for
14:55Forum no industry is going to be able to
14:59avoid digital transformation so you know
15:02if you're thinking that well I'm in an
15:03industry that it's not going to affect
15:05yeah ultimately it probably will or if
15:09you're in a role that you don't think
15:11um will be affected or you'll be called
15:14on to respond to digital transformation
15:17that you know it's possible but there's
15:19a really high likelihood that it will
15:22affect every role throughout the
15:24organization and and one of the reasons
15:27is if you go back to you know what I was
15:28talking about before in terms of the
15:30cultural chains cultural change that's
15:32just not just in one part of the
15:34organization the cultural change has to
15:37span the entire organization
15:40um so it's it's useful to learn I think
15:42about digital transformation so that you
15:44understand why the organization is
15:47shifting in the way that it is and and
15:50actually being able to support and help
15:53the organization in doing that even if
15:56you're not right now on the front line
16:00you know digital transformation in terms
16:03of a particular product or service
16:07um you know as I mentioned even
16:08industries that are typically thought
16:10about as being low-tech
16:13um will be and are experiencing radical
16:18so it's important to be ready I actually
16:21over the last few months have been
16:22spending time at dairy farms and dairy
16:26Farm's one of the the new technologies
16:28that's coming in is new robotic milking
16:32machines and they're just amazing
16:35um you know they they're the cows
16:38actually choose when they want to be
16:41um and they go into this system and the
16:43system is complete with sensors there's
16:46a dashboard that the dairy men or women
16:49can use to monitor the health the milk
16:52production and so forth of their cows
16:55it'll flag whether or not there is a cow
16:57that they should go check on and they
17:00can do that from anywhere you know on an
17:03on an iPad these days
17:05um so you know even agriculture which we
17:07think of as being pretty low-tech there
17:10are amazing things that are happening
17:13and happening rapidly and really
17:16transforming what it means to work in
17:21um the other thing I would say is that
17:23because successful digital
17:25transformation requires this significant
17:27overhaul of most organizational cultures
17:31um you know as I said earlier most
17:33employees are going to be affected at
17:35least to some extent
17:37and if you understand
17:41requirements you can actually position
17:45yourself on the front end of those
17:47changes and help your organization
17:50instead of being surprised and
17:53potentially lagging behind
17:57um and and one of the things I'll say to
17:58Anita is in our digital transformation
18:00program uh what we've done is identified
18:03four courses that we think are really
18:05important for Learners to start with
18:08um that provide you know I think a nice
18:10coverage of the types of changes that
18:14are needed in organizations for
18:16transformation ways to think about the
18:19different kinds of technological
18:20advances that might make sense for
18:23particular organizations or contexts or
18:27and importantly how to effectively lead
18:30these efforts so those courses are
18:34they all start with this x d g t I'm
18:38going to ignore that first one is number
18:40100 and that is foundation's digital
18:43transformation and that goes into more
18:45detail on what I was talking about
18:47earlier in terms of those five different
18:49aspects of uh the the foundational
18:53culture that an organization needs
18:57uh the next one I'll mention is 224
19:00which is building an AI enabled
19:03organization and this is a really I
19:05think fun course because it looks across
19:09a broad swath of Industries at the
19:12different ways that AI can actually
19:18new products and services
19:21so that's I I find that course to be
19:24really kind of inspirational
19:27um the other one is 223 which is
19:29building a product platform strategy to
19:33accelerate growth so in this course we
19:38products and kind of the traditional
19:41product strategy and platforms and how
19:44you bring those together in a way that
19:48is really aligned with what you're
19:50trying to accomplish and what the
19:52strategy is for the organization
19:54and Professor Eisner teaches that brings
19:57in lots of nice case studies and so
20:01and then the the last one I'll mention
20:03is the in the fourth one on the list is
20:09um and this course is systems leadership
20:11managing uncertainty in the digital age
20:15um and this very much focuses on how to
20:18be a more effective leader when things
20:21are uh more complex and more uncertain
20:26um so that's one that that everybody can
20:28benefit particularly in this day and age
20:34thank you and and thanks for talking
20:37about the the core courses that's
20:39something new that we've added to the
20:40program to uh give uh our Learners our
20:47um a Learning Journey that would uh be
20:50appropriate for them depending upon
20:51where they are in their career
20:53um whether they're focused more on a
20:55managerial path or technical uh
21:00um so that thank you for expanding on
21:02that um why we picked those four courses
21:04and then I also do want to mention that
21:07um on your screens for those of you who
21:09are with us today you can also see
21:11another opportunity this is one of our
21:14first opportunities to invite uh
21:18Learners customers to come to the
21:20Stanford campus in late January we're
21:23hosting a course on campus where you can
21:26learn from digital transformation our
21:28faculty members that teach in this
21:30program and you can learn more by
21:33clicking on there's is a link there for
21:36the program which is called Innovation
21:39strategy in a digital world and our
21:41customer service can answer any
21:43additional questions you might have
21:46we have about five minutes left and so I
21:51would love it if you would answer a
21:53question from one of our guests here
22:00um how do you overcome organizational
22:03resistance to transformation
22:06and we we know this one comes up a lot
22:10um especially when uh the folks in
22:14um uh might not be aligned
22:17um to support that change
22:20um and uh you know you talk about risk
22:23and not only this from the the the the
22:26people that are actually going to make
22:29the change implement the changes whether
22:31it's managerial process technology but
22:34the executives that have to be
22:35comfortable with that risk can you talk
22:38a little bit about that
22:39yeah I mean that that's hard
22:42um because for the type of
22:45um change that I'm talking about
22:47um it really requires high level
22:49leadership if you're going to change
22:51your organizational structures if you're
22:52going to change your organizational
22:54culture if you're going to encourage and
22:56not punish risk and that really does
22:58trickle down from the top of the
23:01organization in the absence of that
23:04somebody who is sort of leading from
23:07the middle if you will uh one of the
23:10things that has worked really well
23:14is what we call small wins and that is
23:19doing something look more locally
23:23to prove out the importance of doing
23:27um so that you know because because
23:29oftentimes the reason that people are
23:30resistant is because
23:33um they are concerned about the risk
23:35they're not convinced that it really is
23:37important or is going to be successful
23:39or the organization can do it
23:41effectively so to be able to prove that
23:44out in small ways with the resources
23:47that you have available
23:48is a good way to get people's attention
23:55um you know publicize those small wins
23:58and hopefully over time
24:01um although hopefully quickly too
24:03because things are moving quickly
24:07um support from leadership in the
24:10organization and the other thing too is
24:12to to look for leaders that are
24:13supportive you know even if there is
24:15some resistance there are probably other
24:17leaders in the organization that get it
24:21um so you know uh working with them as
24:29you know a team that can kind of develop
24:36um these these small wins and these
24:43um I I'm going to try and squeeze in one
24:46um and um what do you foresee as a
24:49future of digital transformation
24:54um so that's the million dollar question
24:57um and I wish I had a crystal ball
25:00um to predict but you know in terms of
25:04details of it it's hard because because
25:07these are Innovations and we don't know
25:09right by the nature of
25:12um what we're talking about in terms of
25:13transformation we don't know but what I
25:16can say with confidence
25:20we we can pretty much guarantee that
25:23there will be continued disruptions
25:26um to organizations and to Industries
25:29driven by these advances in Technologies
25:32and these Innovative new business models
25:34products services and so forth
25:37that capitalize on those Technologies
25:39and those advances and that includes
25:42everything that we're seeing out there
25:44AI machine learning sensors digital
25:48traceability virtual and augmented
25:51reality smart materials Robotics and so
25:55on and so forth and and perhaps most
25:57importantly the integration of these
26:02um for new products services and
26:05processes within the organization so I
26:08guess the two things just to summarize
26:10that I would predict is we're going to
26:14see continued disruptions and we're
26:16going to see more and more integration
26:19of these Technologies in order to affect
26:24the kind of transformation
26:26that we're going to be seeing
26:34um let's see here I'm trying to see if I
26:36can squeeze in one more question
26:38one more minute if you if you had to do
26:43um one last thing good few words of why
26:47digital transformation in one minute
26:51why digital transformation oh
26:55um why why is it happening
26:59uh why why the program
27:04um yeah I guess it would go back to what
27:06I was saying earlier which is this is an
27:12um for for all of us right and it's not
27:16you know even in in education we're
27:18experiencing this you know it's it is it
27:21is pervasive and you know I I it is
27:26always better to be in the know and be
27:31able to anticipate some of these things
27:33so that so that we can get ahead of them
27:36and and have an impact and make a
27:39contribution and potentially even you
27:42know choose different career paths
27:47where we think we can
27:53fantastic thank you Pam thank you for
27:55that last impromptu question to you
27:59um I want to thank everybody who joined
28:04um your participation the there will be
28:06a recording of This that um will be
28:08shared with you within a few days and
28:12um thank you again Pam and thank you all
28:15for joining us for this first of a kind
28:17uh fireside chat for the Stanford
28:20digital transformation program and I
28:23wish you all a wonderful day
28:27um and journey through your career
28:30thanks thank you thank you Anita and
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