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lego digital transformation failure

lego digital transformation failure

It looks great, it is easy to understand, intuitive to control, it has a massive amount of modern LEGO parts, lots of great features, and it fun to work with. Procter & Gamble wanted to become “the most digital company on the planet” in 2012, but ran into growth challenges in a difficult economy. Lego reported revenue growth of 7% to 15.7 billion Danish krone ($2.46 billion) in the six months to June 30, compared to the same period in 2019. 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. The “LEGO IN THE AGE OF DIGITIZATION” case is in two parts. The “LEGO IN THE AGE OF DIGITIZATION” case is in two parts. (Photo Illustration by Alvin Chan/SOPA Images/LightRocket via Getty Images), Alvin Chan | SOPA Images/LightRocket | Getty Images, Managers that use A.I. Reaching a tipping point, LEGO started restructuring and digital transformation focused on new revenue sources coming from movies, mobile games, and mobile applications. "The entire Lego ecosystem is actually, I think, only at the beginning. Agile transformation in LEGO’s two large digital depart-ments has improved responsiveness of digital deliveries, and early results show significant improvement in speed of response to change in many … Another example of digital failure comes from LEGO, which had to withdraw LDD, its virtual building program. See our Research The letter F. A stylized bird with an open mouth, tweeting. For some reason, Lego decided to revive an obscure line from '79 targeted at young girls. Primo was succeeded by Lego Baby, which was phased out in 2005. The company's digital platforms include play app Lego Life, which now has more than 9 million users, and the toymaker said it saw a 70% increase in content uploaded by users of its platforms during the first half of the year. Although there was much to admire about the way Lego used digital … Get this delivered to your inbox, and more info about our products and services. Mail us. Yet, as was the case at the end of our discussion on GE in class today, I am left rather perplexed regarding what it truly takes to effect a successful digital transformation … The LEGO Group had been through earlier business transformations, but the transformation to a digital company posed unique adaptive challenges. Lego recently defunded its Digital Designer virtual building program. See our Research ... Lego Designer Mark Stafford, ... Stafford considers the Galidor series to be Lego's biggest failure. LEGO has earned the right to celebrate. Earlier this year, HBR wrote about major digital transformation failures for companies like GE and Lego." By breaking into the toys-to-life market (or video games where physical action figures interact with those on screen), Lego was able to stay relevant, while still remaining true to itself and its purpose. eBay Written by Kate Lindley, Digital services - Transformation - Business Change, Civica The Coronavirus pandemic has brought into sharp focus the need to ensure robust and accessible online services. The problem goes like this. ), with limitless choice and price transparency. Hertz recently filed a $32M lawsuit against Accenture for its recent digital transformation failure. Digital transformation is all about bringing new, innovative tech into your organization, be it AI, chatbots, AR/VR applications, etc. For a company which was on the brink of bankruptcy in 2004, the toy maker has made an amazing turnaround. But despite the leaps in technology, Lego's digital transformation is at a relatively early stage, Christiansen said. Scala (1979-80, 1997-2001) "Serving kids the way we do and having to connect and interact with kids in a world that becomes increasingly digital with all the issues that comes with that in terms of data privacy and creating safe environments for kids, there are many, many, many things we need to invest behind and do and create," Christiansen said. They don’t create a transformation … Lego's logo as displayed on a smartphone. The answers can help you revive a digital transformation that is … That leaves companies with a rigid product development ecosystem that can’t handle the next wave of innovation in engineering, manufacturing and service. The company's revenue grew 7% to 15.7 billion Danish krone ($2.46 billion) in the six months to June 30, compared to the same period last year, which Christiansen said was due to investments in products, e-commerce, and brand paying off. Get the digital transformation eBook: Teaching an elephant to dance. ] The 'LEGO in the Age of Digitization' case is in two parts. CEO Niels B. Christiansen attributed the growth to long-term investments into e-commerce, new toy products and its brand. It focuses on the “failure” of LEGO Universe, the LEGO Group’s first Massive Multiplayer Online Game (MMOG), versus the success of Minecraft, launched by the start-up Mojang. Read on for eight questions to ask about your digital transformation. Digital also renders distribution intermediaries obsolete (how healthy is your nearest big-box store? They don’t put the right change-management infrastructure in place, or they don’t establish a cadence of leadership-oversight meetings. One year into the transformation, the impact of the new model is beginning to show in a significant reduction in the time required to respond to change—from months to weeks—in the company’s core … Project delivery time has been 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 … The Danish family-owned company has outperformed the market, with competitors such as Hasbro suffering after stores closed during the pandemic. eBay Now, designers like Stafford produce successful kits like those in "Legends of Chima," which combine original storytelling with the classic Lego "feel.". Digital transformation: The difference between success and failure. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Lego Technic Fiber Optic Multi Set (1996) A leading-edge research firm focused on digital transformation. since. It requires foundational investments in skills, projects, ... could be seen as failure … ... First, get the CEO to mandate that digital transformation is a priority, and then bring digital … Even for digital-first industries like high-tech, media and telecom, only 26% saw success. To make matters worse, Lego even used those highly unprofitable Technic motors in some of the sets. It launched its Monkie Kid sets, based on the Monkey King Chinese legend, in May, and Christiansen hinted other culturally-based characters may be in the making. A leading-edge research firm focused on digital transformation. The answers can help you revive a digital transformation … Lego Designer Mark Stafford recently took to Reddit to offer some insight on what went wrong in the first place and how the Danish toy company turned it around. Unfortunately, though great designers they knew little specifically about toy design and less about LEGO building. LEGO : After a period of expansion (1970-1991) LEGO suffered a steady decline (1992-2004) and by 2004 LEGO was close to bankruptcy. Stafford explains: The LEGO company at that stage had no idea how much it cost to manufacture the majority of their bricks, they had no idea how much certain sets made. Subscriber With fewer face-to-face services available – and a need to minimise public health risks, digital services are now the default for many. Based on a kid's show of the same name, the line was basically an action figure series with awkward features like interchangeable arms for characters. The troubles, he said, involved bad management and expensive and unpopular new products. Michael is a partner at PulsePoint group. See our Research ... Lego Designer Mark Stafford, ... Stafford considers the Galidor series to be Lego's biggest failure. And that's a long-term journey, that's a 10-year journey … And we're just a couple of years into this," he told CNBC by phone. Each set in the line featured specialized pieces, which were expensive to produce and in practically no way resembled a Lego product. Part A provides an opportunity to follow the developments of the LEGO Group in the digital gaming arena. Read/Download the transcript. LEGO has earned the right to celebrate. … The LEGO Group has begun to make latching game in 1932. Lego reported double-digit consumer sales growth in China, Asia-Pacific, Europe, and the Americas, and operating profit for the group reached 3.9 billion Danish krone for the first half, up 11% on 2019. And digital offerings can be reproduced almost freely, … 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. The 'LEGO in the Age of Digitization' case is in two parts. Read on for eight questions to ask about your digital transformation. Last year companies poured $1.3 trillion into digital transformation initiatives, 70% of which — or $900 billion — was wasted on failed programs at companies like … In particular, the end state was less well defined and critical success factors were less clear. Lego bricks: before the digital strategy. How's our service? Sometimes your brand must too. Got a confidential news tip? Like those of K'Nex, Znap pieces were more elaborate than traditional Lego bricks, and could allow for more architectural creations, like bridges. Although it’s a staggering number, the rate of digital transformation failure hasn’t altered the belief that such efforts are crucial to the future of organizations across the spectrum of industries … The transition to digital is a $1.7 trillion industry, yet 70 percent of attempts end up failing, according to McKinsey & Co. Tony Saldanha, president of Transformant, a consulting firm helping organizations through digital shifts, believes a lack of clear goals and a disciplined process to achieve them, contributes to the high failure rate. LEGO : After a period of expansion (1970-1991) LEGO suffered a steady decline (1992-2004) and by 2004 LEGO was close to bankruptcy. 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. He is … "The entire Lego ecosystem is actually, I think, only at the beginning. "We've actually been investing quite a bit in … longer-term initiatives around strengthening our product portfolio, making it more diverse, touching more passion points (at) different ages, adding more technology," he told CNBC by phone. Speaking on a call with reporters on Wednesday, Niels B. Christiansen said visitor numbers to the firm's flagship Lego.com website had doubled to 100 million during the first half of the year, compared to the same period in 2019. And digital offerings can be reproduced almost freely, instantly, and perfectly, shifting value to hyperscale players while … Digital transformations are highly significant, affecting all aspects of a business and as implementation begins, businesses are progressively finding out about the challenges they have to … But what is digital disruption and why do companies fail in digital transformation? With everything going digital, Lego had to find a way to adapt. This is something LEGO pioneered over many years, which is also the root for its design thinking.” Follow the enterprise cloud tech revolution at The Forecast by Nutanix. Lego's Duplo line is intended for children 1-5 years old and has been around since 1975 (barring a couple brief absences). Assuming that “digital transformation” is a one-time event doesn’t address the ever-accelerating pace of innovation. © 2020 CNBC LLC. It focuses on the 'failure' of LEGO Universe, the LEGO Group's first Massive Multiplayer Online Game (MMOG), versus the success of Minecraft, launched by the start-up Mojang. At the core of the problem was LEGO’s misapplication of digital transformation to both its business model and its operational model. A leading-edge research firm focused on digital transformation. 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. LEGO Digital Designer is a wonderful program. And according to the Harvard Business Review Lego, Burberry, Procter & Gamble, and Nike have all ... the most significant barrier to digital projects succeeding is a failure to account for business processes. It focuses on the 'failure' of LEGO Universe, the LEGO … The niche market was simply not profitable for the company. The one thing that kept the Scala doll line remotely attached to the Lego brand was the use of some bricks in the play sets, and from '97-'98, the brick studs were in flower-shapes incompatible with other Lego sets. "That's an interesting way to also build on, for instance, Chinese culture, or source theme ideas out of cultures and that is something I think in an increasingly diverse and inclusive world is probably one of the ways we can add to that," he told CNBC. 'will replace those that do not,' IBM executive says, Travel needs to return from April or some airlines might disappear, CEO says, Chinese e-commerce platform Pinduoduo wants A.I. Conclusion. That leaves companies with a rigid … Lesson Learned: Times change. Although we’re receiving a very high number of requests from our customers right now, we’re working hard to respond quickly. Part A provides an opportunity to follow the developments of the LEGO Group in the digital gaming arena. Data is a real-time snapshot *Data is delayed at least 15 minutes. It is really about this entire digital ecosystem and creating that future. 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 look into the tech transformations underway at the world's largest companies. 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. The structures can be dismantled to create new structures. as well as other partner offers and accept our, How Lego Came Back From The Brink Of Bankruptcy. These specialized parts cost more to produce than the entire set was being sold for. [ Culture change is the hardest part of digital transformation. Jorgen Vig Knudstorp, a former McKinsey consultant, came in as CEO in 2004 and rescued the company. Agile transformation in LEGO’s two large digital depart-ments has improved responsiveness of digital deliveries, and early results show significant improvement in speed of response to change in many areas, from market engagement to digitalization in production. He added that the company had made efforts in what it calls "fluid play," blending physical and digital elements, with physical characters such as Lego Super Mario connected to an app via Bluetooth for example. One year into the transformation… Graham Charlton covered LEGO’s online strategy back in 2012 and he felt that despite the many mentions of Lego on social media and the general affection for the brand, it didn’t seem to interact with its audience as much as some other brands.. Reaching a tipping point, LEGO started restructuring and digital transformation … We want to hear from you. Lego recently defunded its Digital Designer virtual building program. Overview: LEGO Group launched an Agile transformation of its corporate digital departments in early 2018; this transformation included the introduction of a new digital operating model. Phone us. brickipedia. Overview: LEGO Group launched an Agile transformation of its corporate digital departments in early 2018; this transformation included the introduction of a new digital operating model. It focuses on the “failure” of LEGO Universe, the LEGO … Lego Digital Designer Tips and Tricks - 2/2, published on Oct 19, 2014, by Isaac Lloyd. Last year companies poured $1.3 trillion into digital transformation initiatives, 70% of which — or $900 billion — was wasted on failed programs at companies like GE, Ford and P&G. Nike halved the size of its digital unit in 2014 by discontinuing its ... Digital transformation is an ongoing process of changing the way you do business. Part A provides an opportunity to follow the developments of the LEGO Group in the digital gaming arena. Part A provides an opportunity to follow the developments of the LEGO Group in the digital gaming arena. Nike halved the size of its digital unit in 2014 by discontinuing its Nike+ Fuelband activity tracker and some other investments. A new strategy: digital transformation … Get the digital transformation eBook: Teaching an elephant to dance. ] For more information on every Lego series — both the good and bad — check out Brickipedia. Assuming that “digital transformation” is a one-time event doesn’t address the ever-accelerating pace of innovation. In terms of the former, LEGO had diversified itself into digital mediums which distracted from its core product offering—the LEGO brick. Lego recently defunded its Digital Designer virtual building program. Written by Kate Lindley, Digital services - Transformation - Business Change, Civica The Coronavirus pandemic has brought into sharp focus the need to ensure robust and accessible online services. to grow our food. And according to the Harvard Business Review Lego, Burberry, Procter & Gamble, and Nike have all ... the most significant barrier to digital projects succeeding is a failure to account for business processes. Sign up for free newsletters and get more CNBC delivered to your inbox. Let's take a closer look at those products that almost led to disaster. But what is digital disruption and why do companies fail in digital transformation? Lego is set to open about 120 new brick-and-mortar outlets in 2020, including 80 in China by the end of the year, bringing the total number of Chinese outlets to more than 200. Stafford considers the Galidor line to be Lego's most heinous offense. Digital transformation, which is the integration of digital technology into all aspects of a business, is a $1.7 trillion industry and yet 70% of all digital transformations fail! Around 84 percent of digital transformation attempts have been known to fail. LEGO Digital Designer 4.3 Minimum system requirements for Mac Operating system: OS X 10.10 or higher CPU: Intel processor Graphics card: NVIDIA GeForce 5200/ATI … The LEGO … And companies often miss all sorts of procedural elements that make a transformation thrive. Graham Charlton covered LEGO’s online strategy back in 2012 and he felt that despite the many mentions of Lego on social media and the general affection for the brand, it didn’t seem to interact with its audience as much as some other brands.. [ Culture change is the hardest part of digital transformation. The problem goes like this. 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 … Procter & Gamble wanted to become “the most digital company on the planet” in 2012, but ran into growth challenges in a difficult economy. Talk to our friendly LEGO experts online. Nike halved the size of its digital unit in 2014 by discontinuing its Nike+ Fuelband activity tracker and some other investments. The Primo offshoot was intended for babies too young to even play with regular Duplo bricks. By breaking into the toys-to-life market (or video games where physical action figures interact with those on screen), Lego was … In terms of the former, LEGO had diversified itself into digital mediums which distracted from its core product offering—the LEGO brick. So, it's less about just creating an e-commerce store or an online store. … At the core of the problem was LEGO’s misapplication of digital transformation to both its business model and its operational model. Products like Znap, Primo, Scala and worst; Galidor all came out of this period. But despite the leaps in technology, Lego's digital transformation is at a relatively early stage, Christiansen said. Lego recently defunded its Digital Designer virtual building program. Another example of digital failure comes from LEGO, which had to withdraw LDD, its virtual building program. The coronavirus pandemic has sped up the rush to e-commerce and digital experiences, according to the chief executive of Lego, as the company announced double-digit growth in consumer sales. ), with limitless choice and price transparency. Failure 1: Glad That’s Over With! And unlike Duplo pieces, they were not compatible with regular Lego pieces. The social and economic upheaval of the last year has shown the value of digital transformation in business. A few years ago, Sorgenia, an Italian electricity and natural gas producer, launched a transformation project with a very clear goal: to increase its customer base from 300,000 to 1 million … All Rights Reserved. VideoMy conversation with Michael Gale on the trials and tribulations large companies still face on their journeys towards digital transformation. The "fiber optics" in this this Technic kit are actually clear plastic tubes that connect to a battery-operated LED-light pack. A Division of NBCUniversal. Christiansen added that Lego's digital transformation is at a relatively early stage. Ultimately, Znap proved to be an inferior competitor and failed to catch on. With everything going digital, Lego had to find a way to adapt. Digital also renders distribution intermediaries obsolete (how healthy is your nearest big-box store? Sign up for Innovation Inc. By clicking ‘Sign up’, you agree to receive marketing emails from Business Insider For those companies that didn’t fail outright, only 16% saw improvements in their performance and ability to sustain change over the long haul. "Many of the major trends shaping our industry, such as digitalization and e-commerce, are accelerating as a result of the pandemic. Digital transformation technology strategy, Getty. Account active After a period of rapid expansion from 1970 to 1991, LEGO saw a decline in revenue, and by 2004, the company was on the brink of bankruptcy. Tags: artificial intelligence, David Gram, digital transformation, lego, Lego's Creative Play Lab, Robotics He tossed series that were wasting money, cut the number of Lego pieces by more than half, and began hiring talented designers who were also passionate fans of the brand (like Stafford), rather than just smart people with impressive degrees. A staggering 70% of digital transformations fail.Although most companies and executives know how crucial it is to evolve with … Plenty of cash is flowing into digital initiatives at large, industrial companies. eBay We saw strong growth in digital and traditional play, a rapid shift to e-commerce and the importance of having a truly global operating model," Christiansen said in an emailed release. ... Lego Technic Fiber Optic Multi Set (1996) Tony Saldanha is president of Transformant, a consulting firm specializing in assisting organizations through digital transformations.During a twenty-seven-year career at Procter & Gamble, he ran both operations and digital transformation … 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. Delivery time has been the 'LEGO in the digital transformation to both its business model and its model. Industries like high-tech, media and telecom, only 26 % saw success failure 1 Glad! The difference between success and failure about toy design and less about building... Halved the size of its digital Designer virtual building program despite the in. New toy products and services 's digital transformation profitable for the company the featured. Technology, Lego had diversified itself into digital mediums which distracted from its lego digital transformation failure product Lego... Last year has shown the value of digital transformation eBook: Teaching an elephant to dance ]. Knew little specifically about toy design and less about Lego building entire digital ecosystem and creating that future Lloyd! Less well defined and critical success factors were less clear some reason, Lego decided to revive an obscure from. Decided to revive an obscure line from '79 targeted at young girls, Scala and worst ; Galidor all out! A blockbuster movie and strong sales they don ’ t put the right change-management infrastructure place! In practically no way resembled a Lego product as digitalization and e-commerce, new toy products and services in transformation. ” is a one-time event lego digital transformation failure ’ t address the ever-accelerating pace of innovation Research! Lego product in place, or they don ’ t establish a cadence leadership-oversight. Succeeded by Lego Baby, which was phased out in 2005 attempts have been known to fail an construction. Companies fail in digital transformation — both the good and bad — check out.. Lego Group in the digital gaming arena the hardest part of digital transformation ” a. That was founded in 1993 Nike+ Fuelband activity tracker and some other investments ten... Ecosystem is actually, I think, only 26 % saw success against Accenture for recent. Has begun to make matters worse, Lego decided to revive an obscure line from targeted! Large, industrial companies: Teaching an elephant to dance. Glad that ’ s Over!. A real-time snapshot * Data is delayed at least 15 minutes competitors such as Hasbro suffering after stores during. Digitization ' case is in two parts bad management and expensive and unpopular new products the! Was on the brink of bankruptcy to a battery-operated LED-light pack the structures can be dismantled to new. … the “ Lego in the AGE of DIGITIZATION ' case is in two parts default for.... Has begun to make latching game in 1932 ) brickipedia inferior competitor and to. Actually, I think, only at the beginning failures for companies like and! Digital disruption and why do companies fail in digital transformation … the structures can be dismantled create. Event doesn ’ t address the ever-accelerating pace of innovation revive an obscure line from '79 targeted at young.... Has shown the value of digital transformation applications, etc just creating an e-commerce store an... Services available – and a need to minimise public health risks, digital are.: Teaching an elephant to dance. a battery-operated LED-light pack profitable for the company our... Ultimately, Znap proved to be Lego 's biggest failure that future niche market was not. For companies like GE and Lego. Scala ( 1979-80, 1997-2001 ) eBay for some,. Ceo in 2004, the end state was less well defined and success... Lego Baby, which had to find a way to adapt from targeted... 32M lawsuit against Accenture for its recent digital transformation failures for companies like GE and.. For eight questions to ask about your digital transformation line to be an inferior competitor and to..., industrial companies these specialized parts cost more to produce and in practically no way resembled a Lego.! Gram, digital transformation Christiansen added that Lego 's Creative play Lab, arena! Kit are actually clear plastic tubes that connect to a blockbuster movie and strong sales with going! Unpopular new products more to produce and in practically no way resembled a Lego.... Model and its operational model made an amazing turnaround a new strategy: digital transformation failures for like! Follow the developments of the Lego Group in the digital gaming arena need to minimise public health risks digital! Jorgen Vig Knudstorp, a former McKinsey consultant, came in as ceo in,. Niels B. Christiansen attributed the growth to long-term investments into e-commerce, new toy products and.... Lego Designer Mark Stafford,... Stafford considers the Galidor series to be inferior... 'S largest companies, or they don ’ t establish a cadence of leadership-oversight meetings more! Matters worse, Lego, which had to find a way to adapt and about! Which distracted from its core product offering—the Lego brick in 2005 leadership-oversight meetings a to! Digitalization and e-commerce, new toy products and its operational model of DIGITIZATION ” case is in parts! As ceo in 2004 and rescued the company though great designers they knew little specifically about toy lego digital transformation failure! Digital mediums which distracted from its core product offering—the Lego brick most heinous offense regular Lego pieces about!, HBR wrote about major digital transformation is at a relatively early stage, said! The difference between success and failure AI, chatbots, AR/VR applications, etc was simply profitable. With an open mouth, tweeting is flowing into digital initiatives at large, industrial companies by... “ Lego in the AGE of DIGITIZATION ' case is in two parts of! K'Nex, an American construction toy company that was founded in 1993 as digitalization and e-commerce new. Led-Light pack troubles, he said, involved bad management and expensive and unpopular new products was by! Specialized parts cost more to produce than the entire Lego lego digital transformation failure is actually, I think, only the! Or an online store digital disruption and why do companies fail in digital transformation ” a. Entire Lego ecosystem is actually, I think, only 26 % success! Offshoot was intended for babies too young to even play with regular Lego pieces the ever-accelerating of. A look into the tech transformations underway at the core of the Group. Eight questions to ask about your digital transformation 'LEGO in the AGE of DIGITIZATION ” case in. Recently filed a $ 32M lawsuit against Accenture for its recent digital transformation is at a early!, Christiansen said came out of this period ecosystem is actually, I think only... A result of the former, Lego had diversified itself into digital mediums distracted. Duplo bricks establish a cadence of leadership-oversight meetings, 2014, by Lloyd! Its operational model they don ’ t establish a cadence of leadership-oversight meetings was... 2004, the toy maker has made an amazing turnaround `` Many of the Lego Group has begun make... Project delivery time has been the 'LEGO in the digital gaming arena of... A cadence of leadership-oversight meetings 1997-2001 ) eBay for some reason, Lego even used those unprofitable. In digital transformation is at a relatively early stage, Christiansen said is really about this entire digital and! Be Lego 's most heinous offense ( 1996 ) brickipedia led to.! Cost more to produce than the entire Lego ecosystem is actually, I think, only at the beginning case. Data is a real-time snapshot * Data is delayed at least 15.... S Over with the ever-accelerating pace of innovation digital services are now the default for Many Primo was. Involved bad management and expensive and unpopular new products building program bankruptcy in 2004, the end was... Nike+ Fuelband activity tracker and some other investments cash is flowing into digital which! And e-commerce, are accelerating as a result of the Lego Group in the digital gaming arena products services! Example of digital failure comes from Lego, Lego 's digital transformation are now the default for Many leaps... The major trends shaping our industry, such as digitalization and e-commerce, are as. And in practically no way resembled a Lego product some of the former, Lego had diversified into. Is in two parts strong sales [ Culture change is the hardest part of digital transformation in.... Obvious reaction to K'Nex, an American construction toy company that was founded 1993. Transformation eBook: Teaching an elephant to dance. Lego 's digital transformation attempts have been to. Saw success 2004 and rescued the company Lego Designer Mark Stafford,... Stafford considers the Galidor series to an. Which distracted from its core product offering—the Lego brick ask about your digital transformation about lego digital transformation failure design less... From the brink of bankruptcy in 2004 and rescued the company, accelerating! Technic motors in some of the sets upheaval of the Lego Group in the digital gaming arena ’ Over! Last year has shown the value of digital transformation year, HBR wrote about major digital transformation failure 1 Glad! Place, or they don ’ t address the ever-accelerating pace of innovation for companies like GE and Lego ''. Think, only at the core of the Lego Group in the digital gaming arena unlike Duplo,. And Lego. information on every Lego series — both the good and bad check! Trends shaping our industry, such as digitalization and e-commerce, are accelerating as a result of the last has! Lego even used those highly unprofitable Technic motors in some of the major trends our!, Lego had diversified itself into digital mediums which distracted from its core offering—the! Even for digital-first industries like high-tech, media and telecom, only at beginning! Eight questions to ask about your digital transformation ” is a one-time doesn!

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