Enterprises are no more in experimentation mode as far as digital is concerned. The digital technologies, and digital transformation strategies seem to be taking the center stage in the enterprise mindset. At a time when businesses doing e-commerce show a very healthy growth across Asia and other parts of the world, digital transformation is in the heart of it all. If corporations – small to medium to large – have to take the real advantage of the digital revolution, they need to come out of their apprehensions about the digital technologies and look at a total digital transform. Investments in the digital infrastructure and commensurate focus on leadership, strategy and culture can reap huge benefits for the enterprises. Becoming a Digital Enterprise can provide market-winning capabilities an enterprise may require to compete. Kapil Dev Singh is a sought-after authority on Organization Change and Development. He regularly advises CXOs on leadership development in the context of their roles and business needs of their organizations. He is the Founder of Coeus Age, which brings new age perspectives on Change Consulting, Change Leadership and Change Technology. Kapil has over two decades of rich experience and headed IDC in India for close to 8 years as a Country Manager. He is an Engineer, and an MBA. He is also a doctorate from Management Development Institute, Gurgaon, India. His doctoral thesis dealt with the phenomenon of CIO Role Effectiveness.

1. Competing on Capabilities
Building a Digital Enterprise
&
A Research initiative of
Kapil Dev Singh
Coeus Age

2. The Research
 What is a Digital Enterprise?
 How to Operationalize the
Definition of a Digital Enterprise?
 Understanding Capability?
OBJECTIVES
DESIGN
 30+ face to face Interviews
 Secondary Research/ Literature
Review
 116 CIOs’ Survey

3. Put Capability in the Centre
Social, mobile devices and
apps, analytics/ big data,
cloud, open standards,
RFID/ sensors , semantic
web, interoperability, web
services, middleware, other
new technologies
Social shifts leading to
empowerment of youth,
global shifts, connected
and content consuming
generation, aspirational,
value seeking, power
defiant
Many yet fleeting opportunities,
collaborations and weak ties,
pressure on revenue, cost
challengers, new aggregators,
digital value chain
Customers
Institutionalized
Entrepreneurship
Digital
Enterprise
Capability
Stable
Enterprise
Enabling
Leadership
Digital
Infrastructure
Empowered
People
Digital
Strategy
Digital
Boundary
Communication/
Collaboration
Digital
Culture
Enabling
Mechanisms
Performing and
Innovation culture

4. Processes Build Capability
 Relevance, Awareness, Leverage and
Imitability
 Capabilities are
- Processes (as the building blocks)
- Competitive success on transforming key
processes into strategic capabilities
- Strategic investments in support
infrastructure that links SBUs and functions
- Champion of a capability based strategy is
the CEO
Intentions
Capability
Outcomes
 New Product/ Service
Development & Differentiation
 Customer Centricity
 Cost Leadership
 Change Readiness
 Leadership Development

5. 7 Aspects Define a Digital Enterprise
Institutionalized
Entrepreneurship
Digital
Enterprise
Capability
Stable
Enterprise
Digital Leadership
Digital
Infrastructure
Empowered
People
Digital
Strategy
Digital
Boundary
Communication/
Collaboration
Digital
Culture
Enabling
Mechanisms
Performing and
Innovation culture
Digital Market Place/
Value Chain
1
2
3
4
5
6 7
Customers

6. Digital Enterprise as the Engine of Capability
 Digital Enterprise is an IT driven business model created either in response
to the emerging digital market place and digital value chains or with the
desire to create such shifts or both
 The Digital Enterprise is built upon the use of IT to automate the processes
(both internal and external) to create a digital boundary enabling all
stakeholder interactions. This also creates immense amount of information to be
consumed and acted upon
 The automational and the informational side of a digital enterprise is converted
into a transformational drive through the right digital leadership, a fitting digital
strategy and a supportive digital culture
 Digital Enterprise thrives upon digital capabilities to compete in the market
place, which requires an ‘inside-out’ view of strategy to compliment the ‘outside-
in’ view
 Digital Enterprise is built upon an agile and responsive digital infrastructure to
support the automational, informational and the transformational drive

7. Digital Enterprise Framework
Digital Leadership
Digital Strategy
Digital Boundary
Digital Culture
Digital Infrastructure
Digital Capability &
its Leverage
Digital Market Place/
Value Chain
116 Enterprises
Low Digital
Score
Medium
Digital Score
High Digital
Score
18%
51%
31%

8. Be the First Mover
 Digital Market Place/ Value
Chain
 Digital Leadership
 Digital Boundary
 Digital Strategy
 Digital Culture
 Digital Infrastructure
 Digital Capability
1. IT savvy Customers
2. Customers willing to transact online
3. Competitors use IT to compete
4. Competitors invest significantly on IT
5. Players from other industries are
entering
6. The distributors are IT savvy
7. New IT based distributors emerging
8. Suppliers in our industry are IT savvy
9. New IT based supply intermediaries
emerging
10.Institutions promote use of IT
Response Low Medium High
Respond to Others 33.3 10.2 5.6
First Movers 14.3 33.9 52.8
Competitive Market 52.4 54.2 41.7
New Digital Business 0.0 1.7 0.0
116 Enterprises

9. Generate CXO Pull
 Digital Market Place/ Value
Chain
 Digital Leadership
 Digital Boundary
 Digital Strategy
 Digital Culture
 Digital Infrastructure
 Digital Capability
1. CEO’s participation and
guidance
2. CXOs’ participation and
guidance
3. Pull for IT projects from the
users
4. Cordial relationships between IT
and Business
5. No power struggle regarding IT
6. Agreement on CIO’s role
7. Adequate IT budgets
3.5
4.8
5.9
Low Medium High
116 EnterprisesOn a 7 point scale

10. Create Digital Boundary
 Digital Market Place/ Value
Chain
 Digital Leadership
 Digital Boundary
 Digital Strategy
 Digital Culture
 Digital Infrastructure
 Digital Capability
1. Core Business Operations
2. Supporting Operations
3. Finance & Accounts
4. Business Planning, Demand Forecasting, Other
Management Processes
5. HR & Admin.
6. Purchase
7. Sales/ Marketing/ Customer Services
8. Inter-organizational processes with the customers
9. Inter-organizational processes with the suppliers
10.Inter-organizational processes with the
distributors/ dealers
11.Inter-organizational processes with external
institutions
12.Inter-organizational processes with business
partners
116 Enterprises
10%= transactions are completely manual and very
low level of digitization
30%= transactions are generally manual with some
isolated digitization
60%= transactions are generally digitized with some
manual intervention
90%= transactions are completely digitized with very
low of manual intervention
29%
51%
61%
Low Medium High

11. Define New Structure & Architecture
 Digital Market Place/ Value
Chain
 Digital Leadership
 Digital Boundary
 Digital Strategy
 Digital Culture
 Digital Infrastructure
 Digital Capability
1. The business strategy clearly indicates the
role of IT
2. The IT strategy is developed in concurrence
with the business strategy
3. The IT strategy is developed using inputs from
all concerned
4. Specific roles and responsibilities to
support the business and IT strategy are
well defined
5. The governance structure to support the IT
strategy implementation is well defined
6. The governance structure to support the IT
strategy implementation is well practiced
7. The processes and practices to support the
IT strategy implementation are in place
8. Enterprise Architecture Defined and
Implemented
116 EnterprisesOn a 7 point scale
4.0
5.5 6.2
Low Medium High

12. Skillfully Leverage Information
 Digital Market Place/ Value
Chain
 Digital Leadership
 Digital Boundary
 Digital Strategy
 Digital Culture
 Digital Infrastructure
 Digital Capability
1. Business decisions are generally based on facts, with or
without IT
2. There is adequate level of collaboration among the
employees, groups and functions, with or without IT
3. The top management exploits the information available
from the enterprise IT system to take decisions
4. There is one instance of any information available from
the enterprise IT system
5. The top management encourages middle and junior
managers to participate and use information from the
enterprise IT system
6. The employees participate in IT enabled processes and
transactions
7. The employees leverage the information available from the
enterprise system
8. The employees generally talk positive about their
experience with IT
9. The meetings and discussions often use information
available from the enterprise system
10.The employees are skilled to identify the right
information and use it effectively
11.IT has created collaboration among employees, groups,
functions
12.The partners/ suppliers participate in IT driven processes`
13.The partners/ suppliers generally talk positive about their
experience with IT
14.The customers generally talk positive about their
experience with IT
116 EnterprisesOn a 7 point scale
4.0
5.4 6.0
Low Medium High

13. Build an Agile IT Infrastructure
 Digital Market Place/ Value
Chain
 Digital Leadership
 Digital Boundary
 Digital Strategy
 Digital Culture
 Digital Infrastructure
 Digital Capability
1. IT planning and management processes
2. Regular update of IT management policies and processes
3. Adequate IT infrastructure (computing, storage and
networking)
4. Consolidated, rationalized and optimized data centre
5. BCDR site outside the organizational premises
6. Adequate IT security infrastructure, processes and policies
7. New generation technologies underlying the IT infrastructure
8. Complete suite of enterprise applications
9. Complete range of supplier facing applications
10.Complete range of customer facing applications
11.Applications well integrated within the enterprise boundaries
12.Enterprise applications well integrated with external
stakeholders’ (partners, suppliers, banks etc.) systems
13.New generation technologies underlying the enterprise
applications
14.Multiple digital channels for the customers (web, mobile apps,
call centre)
15.Multiple digital channels for the partners & suppliers (web,
mobile apps, call centre)
16.Architecture defined at data level
17.Architecture defined at application level
18.Architecture defined at technology level
19.Architecture defined at communications level
20.A unified communications technology platform
21.IT skills development and training processes
22.New technology identification and development processes
23.BYOD policy
116 EnterprisesOn a 7 point scale
3.7
5.3 5.9
Low Medium High

14. Invest in Catalyst Technologies
3.1
3.0
3.0
2.9
2.9
2.9
2.9
2.8
2.8
2.7
2.7
2.6
2.5
2.5
2.2
2.2
2.1
2.0
1.9
1.0 2.0 3.0 4.0
Server Virtualization
Network Optimization
Enterprise Portal
Video/ Web Conferencing
Web Services
Storage Virtualization
Content and Document…
IT Workflow Management
Web Publishing
Business Process Management
Application Modernization
Data Management Platform
Middleware
Services Oriented Architecture
Storage Defined Storage
Desktop Virtualization
Software Defined Network
NoSQL Database
RFID/ Sensors
Neither Owning/
Nor Planning
Owning and
Planning
116 Enterprises

15. Use Core and Catalyst Technologies to Build
6 Foundation Layers
• Information, Aesthetics, Access, SpeedExperience Layer
• Digitized, Secured, Dynamically RetrievableDocuments Layer
• Automated, Agile, Managed , ContextualizedProcess Layer
• Integrated, Open, Managed, Optimized,
OrchestratedApplication Layer
• Secured, Quality, RationalizedData Layer
• Automated, Consolidated, Standardized,
Optimized, VirtualizedIT Infra Layer

16. Deploy SMAC+ Technologies
Neither Owning/ Nor Planning Owning and Planning
2.9
2.8
2.8
2.6
2.5
2.5
2.4
2.4
2.2
2.1
2.1
2.0
1.9
1.9
1.8
1 2 3 4
Mobile Applications
Business Intelligence
Mobile Apps
APIs
Infrastructure on Cloud
Application on Cloud
Mobile Devices Management
Platform on Cloud
Enterprise Social Platform
Mobile Platform Middleware
Big Data
Business Processes on Cloud
Social CRM
Social Analytics
Cloud Orchestration/ Broker
116 Enterprises

17. The SMAC+ Journey
Move from Casual Flirting to Serious Performing
First experience
with SMAC+ by
adopting on a
piece-meal basis.
Mostly at the
periphery, these
are low hanging
fruits and isolated
initiatives. The
exuberance,
however, is high.
The flirting with
individual elements of
SMAC+ and the
resulting experience
and learning often
evolves into focused
build up around one
or more elements.
However, the build up
remains largely
separate and isolated
The maturity in more
than one elements of
SMAC+ and the
resulting learning
prompts enterprises to
look at converging
them together. E.g.
how mobility and social
CRM or cloud and
analytics converge
A highly converged
SMAC+ platform also
means that the
underlying IT also has
evolved to support it.
A new enterprise
architecture, a
matured IT base,
digital leadership,
strategy, culture and
skills sets are natural
allies for SMAC+ to
give performance
benefits
Flirting
Building
Converging
Performing
Digital Infrastructure
Experience
Applications
Data
IT Infrastructure
Document Management
Process
Information, Aesthetics, Access, Speed
Digitized, Secured, Dynamic Retrieval
Automated, Agile, Managed , Contextualized
Integrated, Open, Managed, Optimized, Orchestrated
Secured, Quality, Rationalized
Automated, Consolidated, Standardized, Optimized, Virtualized

18. Identify the Limiting Factors
Flirting
Building
Converging
Performing
Digital Infrastructure
Experience
Applications
Data
IT Infrastructure
Document Management
Process
Information, Aesthetics, Access, Speed
Digitized, Secured, Dynamic Retrieval
Automated, Agile, Managed , Contextualized
Integrated, Open, Managed, Optimized, Orchestrated
Secured, Quality, Rationalized
Automated, Consolidated, Standardized, Optimized, Virtualized
Limited by Silos or by
Weak Foundation
Limited by Focus
Limited by Leverage

19. Can You Reverse the Pareto?
Flirting
Building
Converging
Performing
Digital Infrastructure
45%
37%
14%
03%
116 Enterprises
Low 61.9% 28.6% 9.5% 0.0%
Medium 42.4% 49.2% 8.5% 0.0%
High 41.7% 22.2% 27.8% 8.3%

20. Strategically Exploit Digital Capability
Capability and its Strategic Exploit Low Medium High
% % %
No Unique Business Capability 14.3 10.2 0.0
Unique Business Capabilities but not Leveraged 57.1 23.7 19.4
Unique Business Capabilities for Temporary Edge 14.3 30.5 25.0
Unique Business Capabilities for Sustained Edge 14.3 35.6 55.6
IT and Capability Low Medium High
% % %
Minimal IT Impact 0.0 1.7 2.8
Isolated Processes Made Efficient 30.0 3.4 2.8
Multiple Processes Made Efficient 30.0 11.9 11.1
Process Capabilities in Certain Fns. 25.0 20.3 2.8
Process Capability at the Orgn. Level 10.0 35.6 50.0
Revenue Enhancement 5.0 27.1 30.6
1
2
 Digital Market Place/ Value
Chain
 Digital Leadership
 Digital Boundary
 Digital Strategy
 Digital Culture
 Digital Infrastructure
 Digital Capability

21. Putting Capability at the Centre of the Enterprise
1. What are your organization’s capabilities?
Structures and Practices
Culture
Leadership and Strategy
Strategy
(Change) Leadership
Technology
2. Is your organization exploiting its
capabilities?
3. Is your organization aware of its
capabilities?
4. Are these capabilities in synch with the
market realities?
5. What current capabilities does the
organization need?
6. How to build these capabilities?
7. How to develop the 6 defining aspects to
build the required capabilities?

22. Influence Change!
 Digital Enterprise is a business
paradigm and a much broader concept
than currently understood and
appreciated
 The Digital Enterprise Framework and
the instrument can help an organization
map its current digital reality
 Focus on Organization Capability as
the central theme, answer the 7
questions

23. Thank You !
Kapil Dev Singh
Founder, Coeus Age
98117 71187 | kds@kdsnext.com
www.coeusage.com
www.cioleadingchange.com
www.emergententerprise.com
#dskapil
&
A Research initiative of