From 2000 to 2014, Microsoft’s stock was still relatively depressed, not to say that it did not make money, but to say that people believed that Microsoft had lost its market leadership position, and that its market leadership position in the future had disappeared.

Microsoft realized it was time to make the switch.

Let’s go! Let’s see how elephants dance!

First, what is the starting point of reform?

After Satya came to power, a series of digital changes began. And prompted Microsoft to transform the driving force, there are four main.

1.1 The speed of industrial environment change is accelerating year by year

This is the external driving force of Microsoft’s transformation. In the PC era, Microsoft was the sole proprietor and made a lot of money. But with the emergence of smart phones, great changes have taken place in Microsoft industry environment, with PC as the king of time has passed, but entered a smartphone as the core, give priority to with the mobile Internet in the new era, people’s life and learning mode with the great changes have taken place, Microsoft is also here may not be the same time!

1.2 Enterprises are too confident that they can catch up with their competitors

This is one of the intrinsic drivers of Microsoft’s transformation. When the smart phone first appeared, Microsoft did not pay much attention to it, thinking that it was just an upgrade of the phone and would have no impact on the business model. But who ever thought that mobile Internet, smart phone represents the trend and the future!

1.3 Companies are too afraid to disrupt successful business models of the past

This is the second intrinsic driving force behind Microsoft’s transformation. As an old saying goes, only when you give up can you gain. Digital transformation also requires letting go and letting go, and not being encumbered by past “successes”, so as to explore a new digital road. Since must change, so, “rather than waiting for others to change your life, it is better to start from yourself”! And so we see the series of changes that Microsoft CEO Satya Nadella has led in the video.

1.4 Return to original intention, return to mission

C: I understand. That’s what we Chinese mean by staying true to our original aspiration. The so-called beginner’s mind is the value of how to behave and do things. One should have a beginner’s mind when doing anything. For enterprises, this initial aspiration is more reflected in their mission and vision. For example, the original mission of Microsoft is “to put a computer on everyone’s desktop”, while the current mission of Microsoft is “to empower every individual and every enterprise and help them achieve extraordinary achievements”.

2. What has Microsoft learned during its digital transformation?

2.1 Cultural change — culture is an important support for strategic implementation — to build empathy

Enterprise digitization can not take root without the soil that nourishes it. Appropriate corporate culture soil is the key factor for success. In my opinion, cultural change is the essence of digital transformation.

  • First of all, we need to build digital awareness.
  • Secondly, it is based on digital cognition and then implement the corresponding digital measures/actions to achieve the “combination of knowledge and action”, so as to promote the successful transformation of enterprises.
  • Finally, building an empathetic corporate culture is an important safeguard to drive digital change.

Empathy, also known as empathy, is the ability to feel and understand another’s feelings by putting oneself in his or her shoes. The digital transformation of enterprises to establish a culture of empathy is also a change. On the one hand, there should be empathy between leaders and employees, rather than relying on the traditional command of leaders. On the other hand, there should be empathy between IT and business. IT needs to make technological transformation from the perspective of business, while business also needs to upgrade from the perspective of IT.

2.2 Generate from within — clarify the vision and strategy of the organization through continuous communication — form broad consensus (continuous and repeated communication, perfect communication channels, and constantly listen to the voices of the front line)

As I mentioned in the series of articles on data governance, both the digital transformation of the enterprise and the enterprise data governance need the enterprise to have the drive, and the drive is not that the senior leadership thinks we need to transform, we need to govern the data, Instead, leaders at all levels of the organization, as well as employees on the ground floor, need to develop a common digital understanding — an agreement on goals. Of course, this process requires repeated communication!

From the inside, I think there is another meaning, that is, the digital transformation of enterprises should emphasize “me as the main”. We can learn from and learn from the successful experience of others, but learning and learning from others is not the same as simply adopting the principle of adopting. We must adhere to the principle of focusing on ourselves and using them for our own use. We must carefully identify and reasonably absorb them, and we must not adopt ‘comprehensive transplantation’, still less copy them. Whether it is the digital overall strategy or the digital action program, enterprises need to think and define by themselves. Other people’s experience can only be used as a reference, and do not rely too much on consulting companies to determine your strategy. Many practical cases have proved that the strategy formulated by consulting companies is often difficult to be implemented.

2.3 Utilize technology — Empower employees through technology and quantified data to change their behavior

This is very important. Transformation is change, not only means the change of habits, but also means the redistribution of benefits. How can employees not resist and actively participate in the transformation process? This is certainly not a problem that you can solve with a few times of training. It needs to be considered from many aspects such as organizational structure, assessment mechanism and technical empowerment.

III. Challenges Microsoft faces in the digital transformation

3.1 Change of performance appraisal mode

What kind of KPI determines what kind of behavior! This is the essence of business management, which is also necessary to solidify the digital corporate culture. For example, Microsoft’s performance appraisal reform of sales staff: “The appraisal of cloud business does not mean that your performance is completed after selling the cloud, but that you must let customers use the cloud to calculate your cloud performance!” . This point, to do cloud business enterprise has reference significance very much.

3.2 Transformation Change the thinking of employees, and more importantly, change their actions!

Through communication (publicity, training) to cultivate and change the thinking mode of employees, to establish the digital age, “data to speak, data management, data decision-making” thinking mode.

Empower employees and change their actions through advanced and technical and quantitative data. , for example, an enterprise by integrating sales data, financial data, customer data for sales staff can assign, through the APP to sales staff, customer visit customers collection business such as real-time warning, and purchase intention of customers, purchasing preferences, purchasing power, credit risk analysis, assist sales staff to business decisions.

3.3 Digital transformation culture should come first, followed by digital strategy, process and organization reform!

Digital culture is a data-driven enterprise culture that promotes scientific decision-making and team cooperation, and is the product of modern management science and digital practice.

As the enterprise, the data the deepening of the construction of the culture, “rule of man” will gradually give way to “the rule of law”, adaptation assessment mechanism, objective data analysis, encourage enterprise culture of “curing in” digital key, in order to realize the enhance employee data quality, regulate the behavior of employees, improve the level of management, improve enterprise brand.

In the process of enterprise digital transformation, to give full play to the enterprise’s senior leaders lead by example, senior leaders should actively shape the digital culture, promote the team collaboration and data sharing, and creating a relaxed working environment for staff to help employees to realize their potential, rather than blindly that a “carrot and stick”.

Four, in the digital transformation, three elements of Microsoft leadership

  • Clarification of direction with subordinates — continuous communication
  • Build team capacity – Empower employees
  • Perform Performance Tasks — Do get the job done

What kind of leadership do leaders need for the digital age? The video sums it up very well — the four dimensions of digital leadership: knowing, doing, caring, and being human.

  • Know: Have a clear direction — vision, mission, strategy
  • Accomplishment: To be able to implement and achieve goals
  • Heart to: to inspire people, with everyone to rush forward
  • People to: to cross boundary assistance, internal and external personnel connection and collaboration, to create an ecosystem

5. Elephant dance — Microsoft’s experience in digital transformation

5.1 Urgency — Continuous progress after setting goals

  • First, digitalization is the inevitable stage of information technology evolution and the inevitable trend of the development of The Times. In this digital wave, every enterprise will be inescapable, will ride the waves or die on the beach. This is the external drive.
  • Second, no matter the traditional enterprise, or digital enterprise, no matter the enterprise is TOB, TOC, TOG, its essence still lies in “profit”, “cost reduction and efficiency increase, enterprise growth, business innovation” is the eternal pursuit of the goal of the enterprise. This is the drive.

5.2 Empowerment — Enhance employees’ ability to make decisions and create a better future

  • Tools Empower: With digital tools at your fingertips, you can dramatically increase the efficiency of your business, reduce business costs, and get more done with less.
  • Technology Enabling: Digital transformation is the process of reshaping the business model and information environment of an enterprise by using digital technology. Therefore, digital transformation cannot be separated from digital technology.
  • Data Enabling: “Push the right data to the right users at the right time” to support “Data Insight”, “User Portrait”, “Product Portrait”, “Intelligent Touch”, “Thousand People, Thousand Faces”… And other application scenarios.

5.3 Learning culture and environment — technical certification of all staff

We are living in an environment of rapid technological development, fast-changing markets and many uncertainties. For enterprises, they need to provide employees with a strong learning atmosphere and constantly improve their knowledge and ability. The establishment of a learning organization can give full play to the creativity of employees to deal with the uncertainties brought about by changes.

For employees, it is important to realize that learning is not an added “burden” imposed by the company or leaders, but rather the digital cognition and skills that must be mastered in the digital age. As companies seek to transform in the digital age, each and every one of us needs to keep learning to stay relevant.

Is it by accident or necessity that the giant Microsoft can be transformed successfully? Does it have reference significance for the digital transformation of traditional enterprises? What has Microsoft’s digital transformation inspired you? Welcome to leave a comment and discuss!

Source: Talk about data


Author: Shi Xiufeng


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