Thomas Kaiser · Oliver D. Doleski Advanced Operations Best Practices for the Focused Establishment of Transformational Business Models Advanced Operations Thomas Kaiser · Oliver D. Doleski Advanced Operations Best Practices for the Focused Establishment of Transformational Business Models Dr. Thomas Kaiser Oliver D. Doleski Siemens AG Fiduiter Consulting München, Germany Ottobrunn, Germany Translation: Global Translation Services (GTS). The translation costs from German into English were borne by Siemens AG. ISBN 978-3-658-27584-6 ISBN 978-3-658-27585-3 (eBook) https://doi.org/10.1007/978-3-658-27585-3 Springer Vieweg © Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2020 This work is subject to copyright. 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The registered company address is: Abraham-Lincoln-Str. 46, 65189 Wiesbaden, Germany This book Contains • Guidance concerning the structured selection of fields of application having a bearing on competition that will be critical for commercial success in the con- text of digital transformation • Assistance with the careful combination of use cases to achieve holistic busi- ness objectives • Description of a structured transition from the simple to the complex based on realistic expectations of outcomes • Presentation and explanation of an effective phase model for the focused establishment of digital business processes and models • Assistance with the development of competitive business models v Foreword This book originates from a chapter of the book “Herausforderung Utility 4.0- Wie sich die Energiewirtschaft im Zeitalter der Digitalisierung verändert” (“The Utility 4.0 Challenge—How the Energy Industry is changing in the Age of Digi- talization”), which was published by Springer in 2017 and appeared in the same year as a self-contained essential. The book, which amounts to 40 chapters in all, contains contributions from prominent authors from the academic and hands-on spheres illuminating key digital transformation issues in the energy sector against the background of the fundamental transition from an analog to a digital energy business. The authors do not limit themselves to an abstract depiction of a the- oretical digitalization concept for the energy sector, instead offering the reader a comprehensive insight into selected concepts, smart technologies and concrete business models for the digital energy system of tomorrow. This text is a translation into English of the complete revised and updated version of the chapter “Digital transformation, but how?—from ideas to realiza- tion planning” written by Thomas Kaiser. The original text had a particular focus on the energy industry, but this has been replaced with a broader, cross-sectoral perspective for publication in the Springer Vieweg. The other main change to the original text, alongside this move to a wider focus addressing all sectors and industries, has been the addition of a substantial amount of new content covering relevant questions and factors in relation to business model development. vii viii Foreword This book begins with a clear and concise introduction to the principles of the key term advanced operations. Thanks to its convenient format, this book is able to set out the principal elements of the advanced operations concept in concen- trated form over just a few pages. Munich Dr. Thomas Kaiser September 2019 Oliver D. Doleski Contents 1 Introduction ............................................... 1 2 Target Scenarios for Digitalization ............................ 5 2.1 Commercial Motivation for Digital Change .................. 6 2.2 Filling in the Detail of a Target Scenario Suitable as a Guide for Action ........................................ 7 2.3 Organization of Digitalization Initiatives ..................... 10 3 Development and Management of the Digital Use Cases .......... 15 3.1 Evaluation and Prioritization of Identified Use Cases ........... 15 3.2 Standard Procedure for the Focused Establishment of Digital Initiatives ..................................... 17 4 Implementation-Related Success Factors ....................... 25 5 The “advanced operations” Transformation-Capable Business Model ............................................ 31 5.1 Starting Point: The Business Model ......................... 31 5.2 Advanced Operations as a Business Model ................... 32 5.3 Pragmatic Hypotheses for Advanced Operations ............... 40 Bibliography ................................................. 45 ix About the Authors Dr. Thomas Kaiser serves as Senior Vice President for Siemens IoT Consulting Group headquartered in Munich, Germany. Based on his vast experience he became a trusted advisor for digital transformation to many management board members and across various sectors. Having been Managing Director for an US based global consulting firm before he embraced the full management and operational con- sulting experience—from its very early stages of the Big Data hype to the professional routines of IoT and digital related use cases in the meantime. Dr. Kaiser earned his doctorate degree in Economics while he strives for the balance between the inspira- tion of conceptual learnings versus their pragmatic applications in operational business life. xi xii About the Authors Oliver D. Doleski is a management consultant active in a wide range of industries and founder of Fiduiter Consulting. He studied economics in Munich and has held various senior positions in public service and with the German global market leader in the semiconductor industry. Today Oliver D. Doleski is particularly interested in digital trans- formation, process management and smart markets and his main area of research at the moment is busi- ness model development. He shares the expertise accumulated from his hands-on experience and research as the publisher and author of numerous publications and specialist books.