How Does Digital Transformation Happen?
The Mastercard Case
Taking on Cash
“One of the biggest things we did was to redefine ourcompetition. Once we got [that] right, then the vision of thecompany became very clear.”
Ajay Banga, CEO, Mastercard1
Although news headlines warn established companies that theymust “disrupt or be disrupted”, the meaning of digitaltransformation continues to elude most business leaders. Does itmean becoming a social network like Facebook, an informationplatform like Google, a booking exchange like Uber, or a messagingservice like WeChat? What examples exist of successful digitaltransformations, and what do firms do to make ithappen?......................................
- Why did the share price of MC rise faster than that of Visabetween 2010 and 2017 even though Visa reported $6.3 billion morein revenues in 2017?
- Is it possible to compete with cash?
- What in MC’s approach to innovation works well? What does notwork well?
- Should the Smart Stickers concept go ahead or be stopped?
- What is an ‘adaptive ecosystem’ and why did MC adopt such astrategy?
- What role did adaptive ecosystems play in MC’stransformation?
