In case you missed attending the CDO Summit in New York, here is what Didier Bonnet presented during his Keynote. He discussed the findings from Leading Digital - the book he coauthored along with George Westerman and Andrew McAfee from MIT Center for Digital Business. More information on Leading Digital: https://www.capgemini-consulting.com/leadingdigital

1. TURNING TECHNOLOGY INTO BUSINESS
TRANSFORMATION
LEADING DIGITAL
CDO SUMMIT NYC – APRIL 29TH, 2015

2. Copyright © 2014 Capgemini Consulting. All rights reserved.
Leading Digital Transformation has become
an imperative for organizations

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What Do These Great Companies
Have In Common?

4. Copyright © 2014 Capgemini Consulting. All rights reserved.
DigitalCapability
Leadership Capability
The DNA Of Digital Masters
The What:
Using digital technology to transform the customer
experience, operational processes and business models
The How:
Successful transformations depend as much
on how firms manage digital transformation than solely on
implementing new technologies

5. Copyright © 2014 Capgemini Consulting. All rights reserved.
4 Levels Of Digital Mastery
DigitalCapability
Leadership Capability
FASHIONISTAS DIGITAL MASTERS
CONSERVATIVESBEGINNERS
• Many advanced digital features
(such as social, mobile) in silos
• No overarching vision
• Underdeveloped coordination
• Digital culture may exist in silos
• Strong overarching digital vision
• Excellent governance across silos
• Many digital initiatives generating
business value in measurable ways
• Strong digital culture
• Management skeptical of the
business value of advanced digital
technologies
• May be carrying out some
experiments
• Immature digital culture
• Overarching digital vision exists, but
may be underdeveloped
• Few advanced digital features,
though traditional capabilities may be
mature
• Strong governance across silos
• Active steps to build digital skills and
culture

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* Average performance difference for firms in each quadrant versus the average performance of all large firms in the same industry for the 184 publicly-traded companies in our sample
The Time To Act Is Now: Digital Masters Have
Significantly Better Financial Performance
Basket of indicators:
• EBIT Margin
• Net Profit Margin
DigitalCapability
Leadership Capability
REVENUE GENERATION EFFICIENCY
+6%
Basket of indicators:
• Revenue / Employee
• Fixed Asset Turnover
+9%
-10%-4%
DigitalCapability
Leadership Capability
PROFITABILITY
% +26%
+9%-24%
-11%

7. Copyright © 2014 Capgemini Consulting. All rights reserved.
The Time To Act Is Now: Every Industry We’ve
Studied Already Has Digital Masters

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BUSINESS
MODEL
CUSTOMER
EXPERIENCE
OPERATIONS
Digitally-modified businessCustomer Understanding Process digitization
New digital businessTop Line Growth Worker enablement
Digital globalisationCustomer Touch Points Performance management
The What: Building Blocks Of Digital
Capability

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• Identify Strategic
Assets
• Transformative/
Think Big
• Intent and Outcome
• Evolve over Time
• Connect the
Organization
(Wire)
• Encourage
business Use
Cases (Adoption)
• Foster New Ways
of Working (Scale)
• Rethink IT/
Business
Relationship
• Build Digital Skills
• Digital Platforms
• Digital
Committees
• New Digital Roles
• Shared Digital
Units
The How: Leadership Capabilities Turn
Digital Investment Into Digital Advantage
IT/BUSINESS VISION
ENGAGEMENTGOVERNANCE

10. Copyright © 2014 Capgemini Consulting. All rights reserved.
Digital Masters Create Dedicated Governance to
Drive Transformation
28%
29%
40%
27%
29%
50%
15%
22%
16%
14%
0% 10% 20% 30% 40% 50% 60%
We don’t have any formal governance practices
around Digital Transformation
A cross-functional innovation group that
evaluates the business impact of emerging
technologies
A cross-functional steering committee to make
strategic decisions and allocate resources
Dedicated digital leadership roles in different
units
A dedicated senior leadership role with
responsibility across all digital initiatives
Non-masters
Digital Masters
% of respondents

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Sustain the Transformation
• Build Foundation Skills
• Align Incentives & Rewards
• Measure, Monitor & Iterate
Frame the Digital Challenge
• Build Awareness/Understand
Impact
• Know your Starting Point
• Craft Vision & Align Top Team
Focus Investments
• Translate Vision into Action
• Build Your Governance
• Fund the Transformation
Mobilize the Organization
• Signal your Ambitions
• Earn the Right to Engage
• Set New Behavior &
Evolve Culture
Digital Transformation Is A Job For Now…and
CDOs Can Help Accelerate Those Transformations

12. Copyright © 2014 Capgemini Consulting. All rights reserved.
Digital Technology Will Remain The Endless Agitator Of The Business World
Augmented Reality
Robotics Artificial Intelligence
Sharing Economies Wearables
3D Printing
You Ain’t Seen Nothin’ Yet

13. Thank you!
Follow us on twitter at:
@GWESTERMAN
@DIDIEBON
@AMCAFEE
@CAPGEMINICONSUL
#Leadingdigital
Or visit our website at:
www.leadingdigitalbook.com