Plenty of cash is flowing into digital initiatives at large, industrial companies. Get this delivered to your inbox, and more info about our products and services. In particular, the end state was less well defined and critical success factors were less clear. Phone us. Tags: artificial intelligence, David Gram, digital transformation, lego, Lego's Creative Play Lab, Robotics eBay Let's take a closer look at those products that almost led to disaster. A leading-edge research firm focused on digital transformation. The company continued to grow the success of the massively popular Bionicle line, as well as licensed series spearheaded by "Star Wars" sets. This was combined with a decision to 'retire' a large number of the LEGO Designers who had created the sets from the late 70's through the 80's and into the 90's and replace them with 30 'innovators' who were the top graduates from the best design colleges around Europe. A leading-edge research firm focused on digital transformation. Part A provides an opportunity to follow the developments of the LEGO Group in the digital gaming arena. as well as other partner offers and accept our, How Lego Came Back From The Brink Of Bankruptcy. We want to hear from you. The most shocking finding was about sets that included the LEGO micro-motor and fiber-optic kits — in both cases it cost LEGO more to source these parts then the whole set was being sold for — everyone of these sets was a massive loss leader and no one actually knew. Read/Download the transcript. Digital also renders distribution intermediaries obsolete (how healthy is your nearest big-box store? VideoMy conversation with Michael Gale on the trials and tribulations large companies still face on their journeys towards digital transformation. But despite the leaps in technology, Lego's digital transformation is at a relatively early stage, Christiansen said. It focuses on the 'failure' of LEGO Universe, the LEGO … Primo was succeeded by Lego Baby, which was phased out in 2005. Most organisations are seeking to step up their digital transformation efforts, but history has shown that such efforts can be doomed to failure if they take the wrong approach. © 2020 CNBC LLC. The 'LEGO in the Age of Digitization' case is in two parts. Reaching a tipping point, LEGO started restructuring and digital transformation focused on new revenue sources coming from movies, mobile games, and mobile applications. The number of parts climbed rapidly from 6000 to over 12,000 causing a nightmare of logistics and storage and a huge amount of infrastructure expansion for no gain in sales. Not only are kids playing with more mini LEGO people than there are human beings on the planet (Delingpole J, 2009) but in 2015, they were nominated by Forbes as the most powerful brand in the world. Talk to our friendly LEGO experts online. At the core of the problem was LEGO’s misapplication of digital transformation to both its business model and its operational model. With fewer face-to-face services available – and a need to minimise public health risks, digital services are now the default for many. Got a confidential news tip? Why So Many High-Profile Digital Transformations Fail "GE is hardly the only company to run into performance issues and sooner-than-expected executive departures in the midst of a huge digital transformation effort. Robertson’s forthcoming book, Brick by Brick: How LEGO Reinvented Its Innovation System and Conquered the Toy Industry, was the basis for the seminar titled, “Learning From Failure … Than the entire Lego ecosystem is actually, I think, only the... `` Fiber optics '' in this this Technic kit are actually clear plastic tubes connect... Telecom, only at the core of the former, Lego has recovered from brink. Are now the default for Many 15 minutes 's biggest failure elephant to dance. 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