DIGITAL LEADERSHIP

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QUESTION
 
B) Case study:
ABCZ is a mid-size family-owned company in the beauty & skincare sector. They have their own brands, and they produce and sell their beauty and
skincare products to traditional retailers. They have a traditional functional organization, with very developed Marketing and Production teams. The
organization is structured as follows: the CEO, the Sales & Marketing Director, the Production Director, the HR Director and the Finance and Support
Services Director. The Finance and Support Services Director supervises the Finance & Accounting Manager, the Information & Technology Manager and
the Legal Manager, each of them having a team.
The CEO is noticing a clear decline in the performance of the business, as well as some internal problems:
– Their sales have decreased substantially due to the lower traffic in-store.
– Some retailers have reduced their orders arguing that younger generations do not seem to be interested into their products.
– The sales department complains that sometimes they pass orders to ship products and invoice them, but when the order needs to be delivered, there
are not enough units of the requested products available.
– The production director complains that the sales department does not verify the availability of products before making new orders. Apart from that,
the implementation of the new ERP is a failure: it is not adapted to their needs, and it requires too much time and effort to implement it. The team is
exhausted.
– The finance and shared services director argues that the production team is not collaborating enough with the implementation consultants for the new
ERP, and that the main problem is that they are reluctant to change the way they work.
Extended questions:
o 1) Discuss the main company areas to build up a digital business leadership, outlining the existing problems and your recommendations to solve
them.
o 2) Explain to the CEO why the digital business leadership is important for this company, and the potential gains it involves for the business and
the whole organization.
 

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