{"id":370839,"date":"2020-09-29T11:57:07","date_gmt":"2020-09-29T10:57:07","guid":{"rendered":"https:\/\/pulse.microsoft.com\/?p=370839"},"modified":"2021-02-05T16:56:27","modified_gmt":"2021-02-05T15:56:27","slug":"fa1-how-microsoft-became-an-intelligence-driven-organization-and-how-your-business-could-do-the-same","status":"publish","type":"post","link":"https:\/\/pulse.microsoft.com\/en\/transform-en\/na\/fa1-how-microsoft-became-an-intelligence-driven-organization-and-how-your-business-could-do-the-same\/","title":{"rendered":"How Microsoft became an Intelligence Driven Organization \u2013 and how your business could do the same"},"content":{"rendered":"<p class=\"intro\">Microsoft has learned how to make digital transformation work, not just from projects undertaken with customers, but also by committing to its own transformation journey.<\/p>\n<p>Digital transformation may be a buzzword, but that doesn\u2019t make it meaningless. Far from it \u2013 a journey of transformation can open up infinite possibilities for organizations of any size and in any sector.<\/p>\n<p>In recent years, Microsoft has supported large-scale transformations across many industries, delivering real, measurable results.<\/p>\n<p>Robotics giant ABB saw a <a href=\"https:\/\/customers.microsoft.com\/en-us\/story\/abb-manufacturing-azure\" target=\"_blank\" rel=\"noopener noreferrer\">20% increase in customer satisfaction<\/a> after Microsoft\u2019s Azure AI products helped transform its workforce management solution. Rockwell Automation <a href=\"https:\/\/customers.microsoft.com\/en-us\/story\/831528-rockwell-automation-manufacturing-m365\" target=\"_blank\" rel=\"noopener noreferrer\">achieved $300,000 in savings every day<\/a> after transitioning to Office 365. A chatbot Microsoft created for UPS engaged in over <a href=\"https:\/\/customers.microsoft.com\/en-us\/story\/ups\" target=\"_blank\" rel=\"noopener noreferrer\">200,000 customer conversations<\/a> in its first eight months alone.<\/p>\n<p>These are some examples of the outcomes that can be realized when data is leveraged with Artificial Intelligence (AI). But digital transformation is not about isolated achievements. It is about recalibrating the entire organization around collecting, analyzing and using data. It is about becoming an organization with the ability to learn and evolve.<\/p>\n<p>It\u2019s not a one-time fix, it\u2019s a journey. And it\u2019s one Microsoft has been on itself.<\/p>\n<h2>Making it happen at Microsoft<\/h2>\n<p>Over four decades, Microsoft has grown from a small start-up to a $110 billion business with more than 130,000 employees. As the 4th Industrial Revolution hit, Microsoft felt the need for its own digital transformation to be at the forefront of the digital age.<\/p>\n<p>The company set out to become a truly Intelligence Driven Organization with data at its heart. But to transform on such a massive scale, everyone from the CEO down had to align behind a vision that could inspire real change. It meant committing to new ways of working that would transform every process on which Microsoft was built. The whole business would need to work differently, experimenting more and learning from failure.<\/p>\n<p>The transformation was a strategic imperative from the beginning. Looking back, you can follow the journey Microsoft was taking through CEO Satya Nadella\u2019s public announcements. In April 2014, Satya said: \u201cYou have to build deeply into the fabric of the company a culture that thrives on data.\u201d From that point on, everyone at Microsoft embraced a way of working that was centered around leveraging data to better understand and make decisions.<\/p>\n<p>In 2017, Satya wrote the book Hit Refresh, covering the transformation at Microsoft within the context of AI and its impact on everyday life \u2013 a story encapsulated in his statement that \u201cAI is the runtime that is going to shape all of what we do going forward.\u201d<\/p>\n<p>One year later, he introduced the idea of Tech Intensity, explaining that, \u201cevery organization will need to have what I describe as tech intensity\u2026to be a fast adopter of digital technology\u2026to build their own <strong>proprietary digital capability<\/strong>.\u201d<\/p>\n<h2>A growth mindset<\/h2>\n<p>At the heart of Microsoft\u2019s transformational journey was the concept of a growth mindset: the idea that everyone can change, learn and grow. To bring this vision to life, Microsoft identified four attributes that would allow this mindset to flourish.<\/p>\n<p>The first attribute was obsessing over the people who matter most \u2013 the customers \u2013 and really understanding what truly matters to them. Second, Microsoft wanted to become a more diverse and inclusive organization. Third, the company wanted to break down its siloes and start operation as a single unit. And finally: to make a difference to the lives of each other, customers and the world around them.<\/p>\n<p>As Satya pointed out, \u201cas a culture, we are moving from a group of people who know it all to a group of people who want to <em>learn it all<\/em>.\u201d<\/p>\n<p>To track the progress of their cultural transformation, Microsoft began by asking employees if they were seeing evidence of positive change. This data was then evaluated against attributes that were measured over time. They included quantitative and qualitative analytics, with regular focus groups to ensure the trends that emerged were fully understood. To drive openness and transparency, all findings were regularly shared with senior management.<\/p>\n<h2>Becoming intelligence driven<\/h2>\n<p>Microsoft\u2019s digital transformation offering is delivered by <a href=\"https:\/\/www.microsoft.com\/en-us\/msservices\" target=\"_blank\" rel=\"noopener noreferrer\">Microsoft Consulting Services<\/a> (MCS). With a long list of global clients from Toyota to the UN Refuge Agency, MCS applies enterprise technology to business problems by understanding goals, identifying risks, and guiding digital transformation.<\/p>\n<p>It helps organizations unlock powerful insights, empower teams with organizational agility, and enhance security for a competitive edge. And it offers support at every step \u2013 helping businesses make the best use of the Microsoft ecosystem.<\/p>\n<p>In short, MCS helps its customers become <strong>Intelligence Driven Organizations<\/strong>. That is, an organization that leverages data combined with AI-technologies to foster growth, innovation, speed to market and cost efficiency.<\/p>\n<p>It\u2019s an approach to digital transformation that is shaped not only by Microsoft\u2019s own story, but also by years of conversations with business leaders the world over undertaking their own transformations.<\/p>\n<p>Together, these influences led directly to the development of the Intelligence Driven Organization (IDO) model.<\/p>\n<h2>The IDO model<\/h2>\n<p>The IDO model is not a tech solution, or an offer. It\u2019s MCS\u2019 approach to helping organizations navigate their own transformations.<\/p>\n<p>The IDO model helps organizations identify their \u2018north star\u2019 \u2013 that is, the set of business outcomes they wish to achieve and where they want to go in the future.<\/p>\n<p>Then, it provides a roadmap that allows organizations to design the processes that will generate these outcomes \u2013 and build the capabilities to digitalize those processes so that they can be implemented, monitored, measured and continuously improved over time, creating digital feedback loops.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-440226 size-full\" src=\"https:\/\/pulse.microsoft.com\/uploads\/prod\/2020\/09\/300239026-018_DFLH2_Pulse-Image_Q3Refresh_02022_.png\" alt=\"Digital Feedback Loop\" width=\"1100\" height=\"620\" data-contrast=\"ok\" srcset=\"\/wp-content\/uploads\/2020\/09\/300239026-018_DFLH2_Pulse-Image_Q3Refresh_02022_.png 1100w, \/wp-content\/uploads\/2020\/09\/300239026-018_DFLH2_Pulse-Image_Q3Refresh_02022_-300x169.png 300w, \/wp-content\/uploads\/2020\/09\/300239026-018_DFLH2_Pulse-Image_Q3Refresh_02022_-768x433.png 768w\" sizes=\"(max-width: 1100px) 100vw, 1100px\" \/><\/p>\n<h2>Digital feedback loops<\/h2>\n<p>Digital feedback loops can be seen as flows of information that emerge when a business process has been redesigned around data. That process could be an interaction with customers (e.g. website use, sales enquiries or product purchases). It could concern back-office operations. It could involve employee activity (e.g. intranet use or response to a survey) or it could involve the real-time usage of products (e.g. application crash data transmitted back to the software developer). The data is collected and used to optimize that process by AI-enabled applications. Crucially, all information can be surfaced to the business processes that need it. There are no data silos.<\/p>\n<p>Digital feedback loops are a central component to becoming an Intelligence Driven Organization \u2013 creating a foundation that fuels positive change, enabling organizations to be more productive at scale and become increasingly customer centric.<\/p>\n<p><strong>The four axes of the IDO model<\/strong><\/p>\n<p>The IDO model provides a framework for organizations to make digital feedback loops a reality. It distills everything Microsoft has learned globally about how to approach digital transformation and breaks it down into four key axes.<\/p>\n<p>The first involves development of an <strong>executive strategy<\/strong> that will see an intelligence driven culture take root. The second axis ensures the right <strong>technical capabilities<\/strong> are in place, creating a foundation for the journey ahead. It concerns the capabilities that will be needed, along with where they should be developed and when. Third comes a look at the <strong>day-to-day execution<\/strong> of the transformation, before the fourth and final stage \u2013 this is where the organization must envision and prioritize a set of scenarios that represent the desired <strong>business outcomes.<\/strong><\/p>\n<p>Framing an approach to transformation through the four axes helps organizations overcome the key obstacles to becoming intelligence driven that are often <a href=\"https:\/\/www.oreilly.com\/data\/free\/ai-adoption-in-the-enterprise.csp\" target=\"_blank\" rel=\"noopener noreferrer\">highlighted in research<\/a>. These include availability of data, a shortage of data science skills, a difficulty envisioning the right business use cases and, most importantly, a culture that struggles to understand the need to be data driven.<\/p>\n<h2><span class=\"TextRun SCXW163746374 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW163746374 BCX0\">The right way to rebound<\/span><\/span><\/h2>\n<p>In April 2020, Satya Nadella said:<\/p>\n<blockquote><p>\u201cwe\u2019ve seen two years\u2019 worth of digital transformation in just two months.\u201d<\/p><\/blockquote>\n<p>Now a new normal is emerging in the way people travel, work and shop. Organizations must respond quickly, becoming more efficient, more agile and more adaptable.<\/p>\n<p>The principles behind Microsoft\u2019s digital transformation can form the basis of similar projects in any organization. By becoming a business driven by data and AI \u2013 one that learns and evolves \u2013 companies can build the resilience they need to face the challenges of the future.<\/p>\n<p>Microsoft Consulting Services can help business leaders use this moment as a trigger to transform, repositioning their organizations for a more competitive age. In the future, change will come even faster. To thrive, everyone must adapt.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Microsoft has learned how to make digital transformation work, not just from projects undertaken with customers, but also by committing to its own transformation journey. Digital transformation may be a buzzword, but that doesn\u2019t make it meaningless. Far from it \u2013 a journey of transformation can open up infinite possibilities for organizations of any size [&hellip;]<\/p>\n","protected":false},"author":665,"featured_media":377942,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1911],"class_list":["post-370839","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital-transformation-en","specials-transform-en","stories-data-insights-intelligence","stories-how-can-i-use-ai-en","businessPriorities-digital-transformation"],"_links":{"self":[{"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/posts\/370839"}],"collection":[{"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/users\/665"}],"replies":[{"embeddable":true,"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/comments?post=370839"}],"version-history":[{"count":18,"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/posts\/370839\/revisions"}],"predecessor-version":[{"id":440277,"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/posts\/370839\/revisions\/440277"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/media\/377942"}],"wp:attachment":[{"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/media?parent=370839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pulse.microsoft.com\/en\/wp-json\/wp\/v2\/categories?post=370839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}