NANYANG PROFESSIONAL MBA

Why Digital Transformation Leaders Need to Embrace a New Mindset – Perspectives from Nanyang Business School MBA Alumni

6 minute read.

Digital transformation is rapidly disrupting all aspects of business and impacting every industry, from financial services and education to healthcare and beyond. Companies can no longer sit on the side lines. With the unprecedented speed in digital advancement, if companies fail to adapt and pivot, they will be left behind. Given this imperative, how can business leaders be better prepared?

By consciously choosing to be proactive and embracing a change mindset, they can seize the opportunities inherent in digital transformation. And who better to learn from than established digital leaders at the top of their game? 

In a recent webinar organised by NBS Alumni Office on the topic “Seizing the Renewal Opportunities in Digital Transformation”, three accomplished industry experts and Nanyang Business School (NBS) MBA alumni discuss their digital transformation experiences and the challenges they have overcome. Through their stories, Jimmy Ng, the Chief Information Officer and Head of Group Technology and Operations; Tang Kim Yee, the Director of Technology & Architecture Office at Singtel; and Roland Liew, the Head of Digital Transformation at Parkway Pantai, provide guidance on how to orientate your professional and personal mindset to seize opportunities in digital transformation.

The session was moderated by Associate Professor Sia Siew Kien, Associate Dean of Graduate Studies at NBS, part of Nanyang Technological University, Singapore (NTU Singapore).

Innovate and Think Like a Start-up

Digital transformation is not just about adopting technology or adapting existing processes. It is a cultural shift, so organisations must learn to challenge the status quo, be more agile, and think like a start-up. But as an organisation, where do you start? How do you break away from entrenched legacy thinking to a more innovative mindset?

Organisations can take one of two paths to drive digital transformation: inside out or outside in. The inside-out approach works to drive change from within a company’s existing systems. The process of assessing current capabilities and adopting technology solutions to take advantage of market opportunities can at times be a slow, complex, and demanding process.

With the outside-in approach, an organisation charges a small team with setting up a new company outside the constraints of the existing firm. Unencumbered by legacy systems or processes, these smaller start-ups tend to be more nimble and agile and can pivot quickly. The success of this smaller project makes a persuasive case for change within the larger organisation. 

Applying the “Inside-Out” and “Outside-In” formula to change

DBS successfully adopted an inside-out approach by establishing a Transformation Group to establish a culture of innovation. Jimmy shared, “The Transformation Group’s mission was to inculcate a start-up culture of innovation within the bank — its goal was to get all employees to think, act, and behave like a start-up. The Transformation Group had a team of innovation catalysts who were not allowed to innovate on their own. Instead, they were tasked to create an environment conducive for innovation and develop programmes to teach the rest of the organisation on how to innovate.” For example, as part of building an innovative culture, DBS also leverages on ecosystem partnerships through a programme with start-ups to co-create solutions using emerging technologies such as AI, immersive media, and IoT.

On the other hand, HP experimented with an outside-in design when Roland was tasked to develop a new business. He rented a small office in a coworking space, which allowed Roland and his team to reimagine their business by interacting with different perspectives and fresh ideas. Roland said, “After six months, we nurtured new ideas and grew them into successful businesses for HP, including spearheading a brand-new product category idea and leading a business pilot with a strategic partner in the fast-expanding Voice/AI and IoT market in China.”

Addressing and Circumventing Corporate Resistance

Irrespective of the chosen approach, the panellists acknowledged that digital transformation is a challenging undertaking. Issues that repeatedly derail digital transformation — an entrenched culture, resistance to change management, lack of resourcing, and problems with funding — can be difficult to overcome. Clarity of vision, a clear and compelling purpose, and consensus on the why by company leadership are key to tackle these common issues. And even when this strategic vision has been achieved, the challenge would not be over.

Two common roadblocks business leaders must overcome are the scale of change and the cost of transformation. Rewiring an entire organisation to new ways of thinking is easier when there is confidence in the strategy. Rather than changing everything at once, the alumni panel recommended starting on a smaller scale. By focusing on developing a proof of concept or minimal viable product, Roland says companies can “learn fast, fail fast, and pivot quickly.” 

Funding and resource constraints are common issues in digital transformation, given the high cost of investment. Nevertheless, Jimmy urges business leaders to prioritise the impending value rather than the underlying cost of digital transformation. Though a project may cost $1 million, if the investment can generate $2 million in revenue, the investment would be worthwhile. Digital transformation looks ahead to focus not on the budget being spent, but on the value that will be generated. 

Embrace a Change Mindset and Start Where You Are

Many professionals express hesitation about diving into digital transformation roles. Some feel they lack opportunity, while others do not have the capacity or competence to attempt such a large undertaking. On a personal level, how can you get involved in digital transformation?  

At its core, digital transformation is not a job function but a mindset that proactively embraces change in what you do. Just as organisations must make a cultural shift to embrace digital transformation, individuals must adopt a shift in mindset. According to Kim Yee, “the goal of digital transformation is removing friction in an organisation.” Budding digital leaders should be mindful and curious. As you work through daily responsibilities, observe how business gets done and ideate how to remove friction, whether in time spent or cost to the company.

Grow into a Digital Leader by Taking Small, Creative Steps

Jimmy suggests embracing transformation as part of business as usual. Think about transformation not as something you do outside your role but as part of what you do every day. Having an ambidextrous mindset to balance the technical and creative aspects also trains you to connect the dots across industries and current affairs.

No matter your position, you can play a critical part in the success of your company’s digital transformation efforts and use technology as a force multiplier for the greater good. Being purpose-driven throughout the digitalisation process also elevates the awareness of how your efforts impact the wider organisation, your customers, and community at large.

Assoc Prof Sia Siew Kien sums it up, “Digital leaders are essentially problem-solvers. You must embrace and cultivate a change mindset and innovate like a start-up to seize new opportunities in digital transformation. Before you know it, you will be leading or driving digital transformation without even realising it.”