How Does Digital Transformation Happen? The Mastercard Case Taking on Cash “One of the biggest things we did...

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General Management

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?

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Please please please LIKE THIS ANSWER so that I can get a small benefit Please Although news headlines warn established companies that they must disrupt or be disrupted the meaning of digital transformation continues to elude most business leaders Does it mean becoming a social network like Facebook an information platform like Google a booking exchange like Uber or a messaging service like WeChat What examples exist of successful digital transformations and what do firms do to make it happen Ironically when Ajay Banga became CEO of Mastercard in 2010 his aim was not to lead it through a digital transformation but to redefine its strategy Mastercard had spentdecades battling Visa but despite its best efforts remained in second place among global payment processors Banga started out from the observation that 85 of payments world wide were made in cash not cardsSo while the payment itans were spending millions to get a bigger share of the remaining 15 of the market the real blue ocean opportunity was competing with cash It was this strategic See Answer

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