 Let me introduce Martin Mocker, he's the professor of information systems at the EBS Business School in Rettlinger University in Germany. He's a research affiliate at the Massachusetts Institute of Technology and is teaching focus on digital transformation of large traditional companies and aiming to stay competitive in a digital economy. And of course, he is one of the authors of Hold It Up, Pull It Up the Right Way Around Dave. The design for digital book, this has really become a Bible here at the open group. So I'm very anxious to hear what Martin Mocker is going to tell us about this. So thank you. Thanks so much for having me. I would like to start with a question. As an architect, what is your role in digital transformation? When you're big old, and we say that with lots of love, when your big old company is becoming more digital, how does that affect your role? That's what I would like to discuss with you today. And in order to approach that question, I guess we have to ask ourselves, what is so new about digital transformation that it affects the role of architects? We clearly live in difficult times. There is no denying that. But I submit that a bit of humor always helps. And I'm sure that you've seen this meme here in social media. And it asks, who led the digital transformation of your company? Is it the CEO, the CTO or COVID-19 and COVID-19 is circled here? I'm inclined to say it's funny because it's true, just that it's not true unless you view your digital transformation as enabling your employees to work remotely and using Zoom and Teams and Slack. In fact, we see two transformations going on in parallel at established big old companies, and they both involve digital technologies. They're both business transformations, very hard, and they both aim for substantial improvements in the firm performance. But that is what they have in common. Everything else is different. They're more different than they are similar. One transformation we call becoming digitized. And the other one we call becoming digital. Becoming digitized is about using digital technologies. Whatever those are, whether it's blockchain or machine learning or the Internet of Things doesn't matter, using digital technologies to create operational excellence in your company's business processes. To make those business processes, idea to market, market to order, order to cash, to make them more efficient and reliable. This is where a lot of investments during the pandemic have been made to enable the company to continue to operate reliably, even though everyone's working remotely. But companies have been working on using technologies to improve their business processes for many years. So that is not what is new. What is new is the second transformation that we're observing that is becoming digital. And that is about using digital technologies, not for operational excellence and not to support business processes. But to enable your company to rapidly innovate new customer offerings that enable you to solve problems for your customers that your company wasn't able to solve before, but you now can because of digital technologies. And why is that so new because it requires traditional established companies to act more like digital companies because digital technologies move into your offerings, into your revenue generating offerings towards your customers. And most companies are not designed to do that. And that takes transformation. And that's what I want to talk to you about becoming digital. All of that sounds terribly abstract. So let's let's look at an example of a company that is creating a new value propositions and digital offerings that are supposed to deliver that new value proposition. Talking about Royal Philips Health Tech Company. And their mission is to improve healthcare outcomes at lower cost. And digital technologies play an important role for them in achieving this mission. Here is a former executive committee member, Carla Krivet, who puts it this way. We're living in a world where healthcare costs are rising. The US almost 20% of the GDP are healthcare expenses. But at the same time, the outcomes we have to show for that are not improving necessarily. In fact, more and more people suffer from chronic diseases, whether they're heart related or breathing related respiratory issues, diabetes, you name it. And Carla Krivet is saying that smart technology, digital technology is the only way in order to close that gap between healthcare costs and outcomes. Obviously they are biased, but because they're selling that technology, but let's take a look at an example of what that means for their offerings. So let's imagine, let's not hope, but just for a few seconds, imagine that you haven't been sleeping well during the last few weeks. And it wasn't because you were so excited about the open group digital first event that is a reason to be excited, but not a reason to be not sleeping well. So you go to a medical doctor and she might diagnose you with sleep apnea that is a breathing related sleeping disorder. And she might prescribe you a CPAP device. You see a CPAP device on the slide here. And so you get that CPAP device and done problem solved right you sleep better. Unfortunately not for most people, because people try this out and what they see is that they don't sleep better. And the first week. Why not? Well, you're wearing a mask now during the night and you have a device next to you that is making strange noises and you can't move this freely anymore. So of course you're not sleeping better, but many patients actually then stop usage they stop compliance as they said to comply and their CPAP device is moving from the nightstand into the drawer never to be seen again. And that is the exact opposite of what Philips is trying to achieve. We have increased health care spending because you got reimbursed for that CPAP device. And at the same time health care outcomes did not improve. So Phil outcomes did not improve. We recognize that and their CEO Franz Van Houten said, Well, continue to only focus on separate products. Here's an MRI scanner or here's a cool new CPAP device that doesn't solve the problem for our customers. So it's not about how better how much better you make the product it's about how much better you make the entire system so we have to take that holistic solutions based approach. And this is what that means for their offerings. They connected their CPAP device to their cloud platform. And they share the data about CPAP usage with the medical doctor or a service team that can coach you and not you if you're not you if you're not using the device appropriately. And on the other hand, also with the health insurance that can tie reimbursement to actual use. And that is an incentive that many patients need in order to keep using that. So what Philips has done, and this is just one example, is that they have created what we call a digital offering. What is a digital offering? A digital offering is a information enriched solution for a problem that your customer has. And that solution is wrapped in a seamless personalized customer experience. To give you another example, think about Uber. Uber did not create a completely new service here. They're getting people from A to B that is not exactly new. But they made that really seamless and really smooth because you don't have to worry about, oh, did they get my booking for a cab? Where is that cab right now? When is it going to be here? How can I pay all of these things they've addressed with digital technologies? And that's a digital offering. Successful digital offerings are at the intersection of what customers want, what digital technologies can provide and of course what's economically viable. And in order to find that intersection, that sweet spot, you have to change a number of things and most companies are not designed to do that. In Royal Philips and Franz von Houten's words, he says, well, we had to change the way we worked in order to develop these integrated solutions as they call them. We had to change roles and responsibilities. We had to change the way we worked. Namely, we had to work together across silos more with our customers more. And so our entire behavior, the culture had to change and they're clearly not done with this. So this is an ongoing process. That is the essence of transformation. And in order to go through that transformation, you will have to redesign your company, your business, we call it digital business design. And that is the role of architects to redesign their businesses. Here's the definition. Digital design is the holistic organizational configuration of people, processes and technology. That's nothing new. You would claim that's enterprise architecture in different words, but what for? Well, to define value propositions and deliver offerings, these customer solutions that are made possible by the capabilities of digital technology. So design your company so it is able to become a digital company where digital technologies go into their offerings. And we identified five building blocks, five capabilities that companies established companies need to work on if they want to be able to continuously identify and deliver those digital offerings. And I want to talk about those five very briefly with those five building blocks. And I want to do that in the form of five questions that companies have to address and the role of architects going to be help those companies to find answers to those questions. So here's the first one shared customer insights. The question is, do you know what your customers value and are willing to pay for when it comes to digital. And the honest answer is no, if you're a traditional company most of the times. Let's say Porsche for example, I'm from Germany have to talk about German company factories. They had decades to find out what their customers like about sports cars. And the problem is that all of that insight might not apply to to digital offerings and they clearly didn't have those decades to find out what customers want when it comes to digital. So the way companies approach this is through lots of experiments and co creation. Royal Philips has a methodology that is called health suite labs and brings together and not just their customers with Philips but also other participants in the healthcare industry. For example, patients, of course, hospital CEOs, then policymakers and health insurance executives, in order to find out what is the problem that we actually all agree on we want to solve why can't we solve it and what do we need to do to solve that. They use design thinking and agile methodologies in those workshops and it's true co creation. Now the problem, of course, is that these are experiments and so many of them will go wrong and will not lead to anything that your customers want or it's just not possible to do that with digital technologies or it's not economically viable. And so you don't want to take a long time, like three years and 50 million euros to find out Oh, that doesn't work. So you want to go fast. But the problem, of course, when big old companies try to go fast is they create a mess, and you're all experts in dealing with those masses and trying to get rid of them in your operational systems but this time, we're going to recreate this mess in offerings towards customers and having lots of different systems that don't interconnect is not going to create a great seamless customer experience. We all agree on that. So the question is how can you rapidly build those digital offerings without creating that mess and the answer is also not new to you is in building digital platforms these shared components that avoid all of these digital offerings having to reinvent the wheel and their own wheel and then having incompatibilities. So it's the Lego dream coming through for offerings this time. And Royal Philips has health suite digital platform. That is their platform that they use and all of their most of their digital offerings are connecting to that sharing data there and using certain analytics algorithms for example, that is a digital platform. Once you have this digital platform, the question will come up that are you the only ones, your companies that the only one that is using that digital platform, and is your company able to develop all of the solutions to customers problems all on their own. Sounds like a rhetoric question I know, but the answer might very well be yes, for the beginning. For example, their digital offering one of theirs, the iPhone that came in the beginning with apps that were all provided by Apple. In fact, Steve Jobs was pretty fiercely against opening up their digital platform iOS to third party developers and only until someone convinced him that that would be a good idea they actually did it and turned out to be a great idea. Now executives business executives all over the world want to be like Apple and create these ecosystems powered by external developer platforms, opening up your digital platform to third parties and turn it into an innovation platform. What they often don't realize is that if you want to do that then you have a completely new product, namely a completely digital one, your digital platform that you offer to completely new customers that you didn't have if you were an established company, namely external developers. And so it's a completely new business, and it requires being good at the other four building blocks that we're going to talk about so that might help talking to your executives there. Another question is, who's building these new digital offerings and these digital components, and how are they going to do this. And that the way digital offerings are developed is very different from developing traditional offerings. So we see much more autonomous teams working, but these autonomous teams can just run around and do whatever they want. They also have to be aligned to the company's mission, of course. And another question is, do you want to develop these offerings in a separate unit like Porsche digital, for example, or do you want to do this in a more integrated way like Phillips state. And Phillips, by the way, has opened up their HSTP to external third parties. One example is HSTP.io you can go there and you can sign up to develop on their platform, kind of your healthcare related digital offerings. So accountability framework is another big challenge and a capability you have to develop. And finally, the fifth question is, do you have reliable operational processes and systems that support the new business models of your digital offerings. Hopefully, your operational backbone, the processes and systems that you have support your existing business models, but these digital offerings often come with new ones. So the question is, do they support it. For Phillips, they have worked on their operational backbone since 2011. It's called the Phillips integrated landscape. And it's their SAP system, their Salesforce system and product lifecycle management systems, and they had to adapt them quite significantly to support these new business models. And here's the link to digitization, right, where you see that digitization actually is to some degree, a prerequisite for becoming digital. You can't wait until you're perfect with the operational backbone and then delay your efforts of becoming digital until then, because that would be competitive suicide. So you have to work in parallel on some of these building blocks. But that is also a role of architects in digital transformation, not only to design these building blocks but also to help your company to prioritize which ones do you want to work on when. I want to get a bit more specific on the role of architects in digital transformation. There are lots of roles of architects in digital transformation. I just want to require a mindset shift and I just want to highlight two brief examples that require mindset shift. So on the one hand, there's the question of do you view your digital platform as a set of technology components that are equipped with APIs, or do you view your digital platform as a set of managed shared services that offer the digital innovation initiatives to take hassles off of their back. That's one question where it's a very different mindset, both about the digital platform, but you approach it with a digital mindset. And the other question here is, are you a team member on those offering initiatives that create digital offerings, or do you act as a co founder on those initiatives. Let's look at Munich re another company. They have initiative CTOs I CTOs that are architects who are working as co founders on those teams and their job is to do whatever it takes to make those initiatives successful together with the business founder of this as the CTO on the initiative. At the same time, the role of those architects the initiative CTOs is of course to identify problems that not only that initiative have has but also other initiatives have, and to design services these measures services as part of the digital platform that address common hassles and to reuse them or to make them reusable, obviously. Immune degree is not forcing their digital offering initiatives to use the digital platform, even though they have the mandate from the board, but they as we say entice them they sell the services to those initiatives and say here are SLAs for each of those components or services. This is what you get and this is the problem that we take care for for you. So you don't have to worry about that. But whatever your role is as an architect in a digital transformation. I would submit that the biggest impact you're going to have. If you can help your business leadership to take on the role as the chief digital designer to be the organizational architect of your company in a digital transformation. Because then you leverage yourself so much at Royal Phillips. I would say, there's CEO Franz van Houten, I would call the chief organization architect together with the exco. And it is very, very powerful. So with that I wish you lots of success. I hope that our book can help a bit with that. Buy it and give it to your business leaders had to put that plug in there. It's called designed for digital. And it's by Genie Ross Cynthia Beath and myself. Very much like Mac McCarthy's quote here about the book, she says, well, not all companies are born digital, for sure. But all of them will have to provide these new value propositions powered by digital technologies and digital offerings, or otherwise risk disruption from those who will. Hey, I am very much looking forward to the Q&A with my sewer and any questions that you might have. Thanks so much again for having me. Great. Well, thank you very much, Martin.