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Digital Transformation
1.
1 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Redefining Industries Prepared
and Published By : Vishal
2.
2 igitalTransformation,WorkinProgress,©AllRightsReserved Agenda Drivers Digital
Transformation Impact on Industries, IT and Stakeholders Digital Transformation – Model Digital Transformation – UX, SO, LO, MO, Gamification, Cloud Benefits, Adoption, Challenges Readiness, Operating Model Design Governance and Maturity Summary Disclaimer: This presentation acknowledges and gives credit to the work of others. Necessary validation have been taken to avoid copyright infringement. Any instances that violate terms can be removed when notified. All discussed thoughts & opinions are my own & not that of my employer or others parties.
3.
3 igitalTransformation,WorkinProgress,©AllRightsReserved Profile Summary Vishal has more
than 14 years of experience in Business and IT Advisory with a focus on providing advisory services to clients, securing lucrative client engagements and ensuring successful business transition. An able strategic advisor & business evangelist enthused by the potential of new emerging business trends and technologies to deliver expandable and streamlined business solutions with greater return on assets and investments. Vishal provides thought leadership with a focus to create new growth areas and untapped market segments. For further information or feedback, please contact: Name: Vishal Email: mail@sharmavishal.com Twitter Handle: sharmavishal Linkedin: http://au.linkedin.com/in/sharmavishal01 Disclaimer: This presentation acknowledges and gives credit to the work of others. Necessary validation have been taken to avoid copyright infringement. Any instances that violate terms can be removed when notified. All discussed thoughts & opinions are my own & not that of my employer or others parties.
4.
4 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Evolution (Physical to
Bits) 70 – Mid 80’s Finance (Transactions) Customer (Engagement) Internal (Ops.) Learning, Collaboration & Infrastructure Mid 80’s - 00 00 - Today TV, Telephone ATM, EFT Driven Collaboration. Driven by Voicemail, and Pagers Infra as PC and Magnetic Tapes Online (web), Telephone, TV Web Driven (e-commerce) Collaboration. Driven by email, IM, Cellphone Infra as Latptop, CD/DVD Web, Social Media Channels, Smart Devices Mobile and Smart Devices Driven (from m-commerce to cashless commerce) Collaboration. Driven by VOIP, Live Meeting, Social Networks Infra as Tablets, USB, Cloud • Digital world has evolved enormously from early 70’s to this date. • Today it has led to transformation of physical entities to bits (digitised).
5.
5 igitalTransformation,WorkinProgress,©AllRightsReserved Bandwidth Evolution (Internet) Only FTTH (250
MBPS) Late Cable, FTTH (100-200 MBPs) VDSL, Cable (25-50 MBPS) Bandwidth ISDN (128 KBPS) Basic Web Browsing Years ADSL (6-16 MBPS) DSL (1-2 MBPS) Advanced Basic Web Browsing P2P Music Sharing Basic 3D Video on Demand Video Streaming 3D Worlds & P2P IPTV 3D Emulation & Entert. Advanced to Basic App Hosting 3D Virtual Collab. End to end Remote Computing Source: NBN CO • Evolution of Internet is merging the gap between Physical and Digital world. • Internet led Digital disruption is resulting in new generation of digital services. • Internet has initiated a path of redefining industries and livelihood of human beings.
6.
6 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Disruption Led Disruption
across industries by digital evolution is swift and deadly • It is operating at the speed of thought • It turns assets into liabilities • It comes from any firm of any size and from anywhere Digital Disruption is driving fundamental shift in Business Model. This shift has led to deep impact on organisations operation, structure and, their culture. Its low barrier to entry is driving constant innovation and opening doors for non digital business. Source: Disruptors Handbook, Forrester.com 2012
7.
7 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Customer Behaviour
Led Stage 1 Internet & Dot Com e-Commerce with Control & Choice DriversOutcome Stage 2 Mobile Device m- Commerce Anywhere, Anytime Stage 3(Today) Smart Device with App Stores Cashless Commerce, User Exp. & Ubiquitous • Consumers driven by customer experience are adopting new platforms and technology. • Ubiquity of internet has led to Digital Transformation across vertical industries and merging the gap between physical and digital world. • Owning the digital ecosystem (like app stores) has become a vital channel for customer engagement, retention and revenue generation. Credit: Banking 2.0
8.
8 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Convergence Led •
Emergence of Social Platforms like Facebook, Twitter and Linkedin has redefined how customers are engaged in a digital world. Customers used these as a learning, sharing and collaborating platform. • Emergence of Smart Mobile Device(incl. Tablets) with superior and engaging UX has led customers to use this as a preferred platform for commerce and service consumption. • App Store led Commerce and Services in digital world is increasing in double digits (yoy). • Owning the digital ecosystem (like app stores) has become a vital channel for customer engagement, retention and revenue generation. • Emergence of GPS enabled devices have allowed localised targeting of services. • Convergence of SO, LO, MO is driving digital disruption across every industry. Source: TOP MOBILE INTERNET TRENDS , KPCB, 2011 Social Local Mobile LO MO SO Transformed Superior and Engaging Customer Experience Anywhere, Any device, Anytime
9.
9 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Value Proposition Different
organisation require different approach for leveraging benefits from digital transformation in their evolution. • Pure Digitisation leads to expansion of core business to digital platforms. • Pure Transformation leads to change in traditional business model to a new type of business model. • Combination of executing Digitisation (services and platforms) and Business Transformation (culture and business model) in parallel is less agile and difficult task to achieve. However this is the best option, executing either option individually or sequentially will not give the desired outcome. Core Business Diversification OrganicGrowthInorganic Digitisation Transformation Sweet Spot
10.
10 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Attributes • Simple •
Ubiquity – universal access to apps and services by consumers and enterprises • Personal • Affordabiltiy – pricing to make them affordable • Speed – extent to which digital services can be accessed in real time • Usabiltiy – ease of use • Empowering • Skill • Reliability – Quality of available digital services
11.
11 igitalTransformation,WorkinProgress,©AllRightsReserved Industries Cost Structure Profit Rent Media & Entertmt. Telecom Financial Services Education Healthcare
& Pharma Retail & Distribution Energy & Utilities Utilities Dep. Other Wages Purchases AverageCost(%ofRevenue) 11.70% 9.60% 12.20% 12.40% 20.00% 8.60% 4.80% 3.70% 1.20% 0.70% 1.00% 3.00% 10.60% 2.20% 0.10% 0.50% 1.80% 0.90% 71.00% 4.30% 0.80% 14.40% 2.70% 9.70% 3.40% 1.20% 56.50% 82.50% 47.30% 10.40% 44.70% 13.50% 0.90% 13.50% 6.10% 15.00% 17.40% 6.20% 52.50% 3.60% 8.50% 0.10% 9.20% 54.30% 19.40% 18.10% 7.90% Its vital to understand cost structure across the industries. Digital Transformation is driving a fundamental shift in Business Model and how services are offered and consumed. Example: Banks are prime place for this transformation before telco’s. As “money ” (physical form) is becoming more digital (non-physical) before voice (analogue to digital). Across the whole value chain of a bank, transactions will be digitised from end to end. This has led Banks to focus on digitisation of assets and services with customer centricity and customer experience as a prime driver and differentiator. Source: IBIS World
12.
12 igitalTransformation,WorkinProgress,©AllRightsReserved Industries Operating Condition Toady various
industries are going through different operating conditions impacted by various market forces. This matrix provides indicative view of current operating condition of following industries: • Media & Entertainment is Hazardous as content has become totally digital and media houses are still applying Old Media Model (explained later). • Telecom have become Stagnant as vertically integrated monopolies have gone or are going though structural separation (AT&T, BT, Telstra), impacting their top and bottom line. • Financial Services are Stagnant (Post GFC) as their Balance Sheet is heavily leveraged and their traditional market has matured. • Education - • Healthcare & Pharma - • Retail & Distribution - • Energy & Utilities are going through a Rollercoaster journey. High LowRevenueVolatilityHigh Hazardous Rollercoaster Blue ChipStagnant Low 5 Year Annualised Growth Financial Services (Post GFC) Financial Services (Pre GFC) Media & Entertainment Telecom Energy & Utilities
13.
13 igitalTransformation,WorkinProgress,©AllRightsReserved Impact on Industry
Structure Characteristics: • Integrated Components • Proprietary Interfaces • High Barriers to entry • All or Nothing Emerging Product Mkt. Emphasis: • Performance • Functionality Horizontal Industry Structure Vertical Industry Structure • Double Helix: All industries move between Horizontal to Vertical Structures. This shift from one structural side to another is w.r.t time is defined as clock speed. • Digital Transformation has distrupted clock speeds across all the industries fueled by evolution and penetration of internet. Clock speed has become faster for every vertical industry. Source: Clock Speed – Charles Fine Double Helix: Industries Move between Horizontal to Vertical Structures Characteristics: • Modular Components • Standardised Interfaces • Low Barriers to entry • Mix and Match Maturing Product Mkt. Emphasis: • Price • Flexibility • Customisation • Convenience Digital Transformation
14.
14 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Heat Map
- Impact on Industries Finance (Business Model) Customer (User Experience) Telecom Media & Entertmt. Financial Services Education Healthcare & Pharma. Retail & Distribution Energy & Utilities Internal (Ops.) Learning & Growth (Culture) Extreme Rating Low Moderate High Considerable
15.
15 igitalTransformation,WorkinProgress,©AllRightsReserved Impact on Industries
Cost Structure Profit Rent Media & Entertmt. Telecom Financial Services Education Healthcare & Pharma Retail & Distribution Energy & Utilities Utilities Dep. Other Wages Purchases Extreme Rating Low Moderate High Considerable Digital Transformation
16.
16 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Impact on
Telecom Develop Build SellOperate Integrate Serve Content & Communities Devices & Local Ntwks End User Svc Applications Platform Network Data Centers • There is a fundamental shift in Telco’s traditional model which was about generating revenue from analogue based voice and services. • Emergence of IP based networks has led to digitistiaon of voice. This has led to emergence of new players like Skype, Facebook and Google which is impacting their bottom and top line. • Infrastructure stack for services as highlighted on right hand side is now on the verge of becoming digital end to end. This is driving digitisation of services and business processes across the whole value chain. • End to end digitisation will allow telco’s to set up end to end service offerings in a virtual box. • Data growth will require massive investment in cloud computing and Network Infrastructure upgrade
17.
17 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Threat to
Telco’s Facebook • Social Networking (communication) as a core business service, largely asynchronous group comm. • Subsidised (free) to the end user and funded by advertisers • 600 M users on Mobile Source: Google, Microsoft.com, Cisco.com, Telco2research.com, STL Partners Telco • Communications as core business service, largely synchronous Peer-to-Peer (P2P) communication • Paid for by the end user Calls Conversations Relationships Communities Telephony SocialNetworks Rendezvous Volume • Telco’s conventional business model (PSTN based) is on decline because new digital players like Google, Skype and Facebook have innovated. Conversation and Engagement is driven by these digital platforms. • On Mobile front they are facing serious threat because of data growth driven by services launched in Mobile and Social domain. ROI to meet data growth is dinsiminishing
18.
18 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Opportunity for
Telco’s Vertical Industry Solutions • Energy • Healthcare • Education • Transport • Government • Entertainment Own Brand Over The Top • Social Networking Apps • Access independent communications services • Other app and appstores • M2M Service Enablement Core Services • Improvement of Core Product Portfolio • Redefine Customer Experience • Leverage online • Engaging Marketing Infrastructure Services • Data Centre Capabilities • Mobile Offload B2B Enabling Services (3rd Party) • Identity & Authentication • Marketing & Advertising • Payments • Customer Care Embedded Communications • Communications enabled business processes • Voice and messaging with games • M2M and Embedded mobility connectivity Source:Stlpartners,RoadmaptoTelco2.0
19.
19 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Create and Develop Production
Packaging Publishing Studios & Networks Entertainment Impact on Media Distribution and Sell Display
20.
20 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Media Failure
- Myspace Reason • Applied Old Media Business Model (advertising and Fees only) as Rupert grew his newspaper empire leveraging that locked in Advertisers (via Google Search) on Upstream Side, and let the Customers create content (primarily blogs). Didn’t let or opened Upstream Side to other Customers. No fees from Downstream Side consumer as they were subsidised. • Network effects on Downstream side are not leveraged on Upstream side – leading deterioration in asset and momentum shifting towards other platform like Facebook and Twitter Only 1 Customer (Advertisers) Content Distribution Customers (Subsidised) Revenue MYSPACE Platform Upstream Downstream Cost Source: Google, Strategies for 2 Sided Markets, Thomas Eisenmann, HBR • Rupert Murdoch identified an opportunity with Myspace (Social Media), but couldn’t leverage it. • Turned out to be a losing bet.
21.
21 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Media Success
- Facebook Source: Google, Strategies for 2 Sided Markets, Thomas Eisenmann, HBR • Mark Zuckerberg and his understood the potential of multi sided model opened Facebook's platform via APIs • Until now its paying him well. • Next challenge is leveraging Mobility and increasing revenue share from that. Reason • Applied New Media Model in a 2 sided market • Opened Platform for various Upstream Customers – Hosted Content from various players, Ads, 3rd party app Developers • Opened Platform for various Downstream Customers – Market Research Companies • Networks effects on Downstream side are leveraged on Upstream side – built mass and momentum Various Customers Content Distribution Customers Paid Data Research Revenue FACEBOOK Platform Upstream Downstream Cost Revenue Revenue Cost
22.
22 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Opportunity for
Media
23.
23 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Impact on
Financial Services
24.
24 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Impact on
Financial Services
25.
25 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Impact on
Banks end to end Operations Channels Mgmt. Info. Systems Security Infra. Fin Mgmt. (ERP) HR Info. Systems Business Rules Engine Risk & ComplMgmt Fraud Mgmt. Tele. Internet Mobile ATM POSAgents External Sales Customer Management Branch Govt .& Utilities SWIFT Network Collection Agents Visa/MC Network Clearing House Central Bank Market Feeds Foreign Banks & Branches Other Customer Sales/Service Collections Originating & Decisioning Dispute Resolution Systems & Asset Mgmt. and Monitoring Data Directory Services Customer Information Operational Svcs Data Store HR Management Enterprise Data Warehouse ……………… Integration Layer (Batch & Real Time) Enterprise Content Management BPM Workflow Core Banking Demand Deposits Time Deposits Retail Lend & Leasing Time Deposits Other Deposits Other Services Payments & Transfers Customer Info File (CIF) General Ledgers (GL) Comm. Demand Deposits Commercial Lending Comm. Time Deposits Corporate Lending Retail Commercial Front Office Apps Cards, Cash Mgmt, Wealth Mgmt., Product Specific (Insurance) Back Office Apps Stmts, Card Processing, Underwriting, Chq. Clrng & Issuance ExternalInterfaces
26.
26 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Impact on
Education
27.
27 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Evolution of
Retail Match Mismatch Mismatch Match Functional Products Innovative Products Responsive SupplyChain Efficient SupplyChain • Products - From Functional to Innovative Products • Services are becoming Personalised Source: HBR - What is the Right Supply Chain For Your Product
28.
28 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Impact on
Retail
29.
29 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Impact on
Utilities
30.
30 igitalTransformation,WorkinProgress,©AllRightsReserved Source: BCG Digital Transformation Impact
on IT, Relationships and Stakeholders Applications Speed& Cycle Time Methodology and Tools Skills Customer to Business Business to IT IT to IT IT to 3rd Parties Industrial (non Digital) Speed Digital Speed • Mature technologies with long life cycles • Emerging, short life time, built on fast changing technology with legacy technologies • Release cycle of 6 to 12 months driven by planned business needs • Quick cycles (<1 mth) from idea to deployment, driven by rapidly changing users needs and comp. • A hierarchical organisation using established frameworks and standardised approaches to design • Self organising teams using agile tools, fast evolving SDK and automated • Individuals with specialised skills • Jack of all trades who combines upto date knowledge of technologies and business • Predictable demand via established channels, products and processes • Unpredictable demands due to evolving trends, technologies and channels • Siloed and Fenced driven by mid and long term strategies • Highly collaborative and constantly changing • Siloed and Fenced, vertically integrated, tech stack is stable • Collaborative and horizontally integrated, tech stack is constantly evolving • Buyer – vendor relationship, IT controls the pace of interaction • Participating in 3rd party ecosystem, the ecosystem sets the pace
31.
31 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Customer Engagement
ViewMobile Social Web User Experience Local Gamification Customer Engagement in Digital Transformation Era
32.
32 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Functional View Mobile Social Local Customer
Experience Cloud as a Platform Services BigDataandAnalytics BoundaryLess (Information) Web Gamification
33.
33 igitalTransformation,WorkinProgress,©AllRightsReserved Source: Boersma’s T-Model
of UX - 2004 Information VisualDesign Introduction InformationArchitecture UsabilityDesign Copywriting Marketing&Communication Mobile,PC,SmartDevices User Experience Design Digital Transformation User Experience - Design Model
34.
34 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Why Social
Media Source: Capgemini - Social Business Transformation Low High Low Competitiveness SocialCustomersHigh Customer Engagement Corporate Branding Urgent Enterprise Wide Cost Reduction Customer Engagement • Marketing • Sales • Production • Service Enterprise Wide • All Process Corporate Branding • HR • Corporate Communication Cost Reduction • Product Develop. • Production • Procurement • Logistics Social Media is not a fad anymore, it is on the verge of becoming a mainstream medium in a B2B and B2C environment. It is driving major changes in 4 main areas, Customer Engagement, Branding, Cost Reduction and Enter prise wide processes. Following areas under each heading is leveraging this medium for facilitating Digital Transformation Social Media must be a part of Digital Transformation roadmap so that enterprise goals are aligned across all the business units. Risk of running a silo based Social initiative within an organisation or by marketing team only will not give benefits in terms of ROI.
35.
35 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Social Media
– More To Come Captures FutureCaptures PresentCaptures Past • There is more to come in Social Media. Digital platforms to this date have captured past and present of a customer quite well, courtesy of Facebook (Primarily Photos) and Twitter (Primarily Announcements). • For capturing future, like announcements, events, meetings, tasks, more work is required. Leveraging Data Analytics and Artificial Intelligence will drive emergence of a sustainable platform. Facebook (Photos) Twitter (Announcement) ?
36.
36 igitalTransformation,WorkinProgress,©AllRightsReserved Social Networks (Facebook, Twitter,
Foursquare, Linkedin) Monitoring & Analytics (Brand Monitoring, Insights) Aggregation (Identity Brokers, Aggregators) Publication (Apps, Management) Social Platforms (Community, Collaboration, Blogging, Innovation, Social Commerce ) Services Infrastructure Source: Altimeter Group, Business Stack Digital Transformation Social Media Business Stack This stack can be used to map current footprint of Social Media penetration within an organisation.
37.
37 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Gamification • Gamification
is composed of the incentives and rewards that the users are awarded for performing tasks or challenges, and achieving goals. It is critical to understand user objectives and motivations to create a game economy that implements a user-centric design. • One of the key distinctions of a gamified transformation is the calculated use of intrinsic rewards to create a meaningful experience for the users. Just like in real economies, in game economies, these currencies can easily become inflated and lose their value if they are overused. Scarcity is a key motivator to maintain the value of currencies in a game economy. • Four basic currencies that users accumulate in game economies — fun, things, social capital and self-esteem — that are implemented through game mechanics, such as points, badges and leaderboards. Source: Gartner 2012 Self Esteem Social Capital Fun Things Game Economy
38.
38 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Big Data Structured
Unstructured Batch Data Variety & Volume VelocityRealTime In Memory Analytics (Payments, POS, Weather) Hadoop Map Reduce (Video, Forums, SharePoint, Text Doc) Data Warehouse Big Data (Google+, Twitter, Facebook, Text Message, Clicks) Analytical Factory Big Data Top Down Business Issue • Big Data growth is predominantly driven new and emerging information goods like Facebook, Twitter. Integration with existing digital assets has become a business issue. • Big Data growth needs to be addressed with speed, agility and regular iteration as part of digital transformation journey. This data requires robust approach of design and analytics to give insights to business (known as BI). Bottom Up Internal & External Source: Booz & Co 2012
39.
39 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Big Data
- Analytics Low High Low Business Value ComplexityHigh Report (what happened) Monitoring (what’s happening now) Analytics (what didn’t happen) Forecasting and Prediction (what might happen) Prescriptive What Actions (Should be Taken)
40.
40 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Mobile Low High Low Computing Power PortabilityHigh Mobile/ Smart Device PC/Desktop Source:
Forrester 2011 Contextual Pull and Push Relevant Entertmnt. Local Personal Mobile Printer Wearable Devices Tablets
41.
41 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Mobile -
User Experience Motion (Gesture based) VoiceTouch Source: Forrester 2011 Future of Mobile is User Context To (iPhone) Vo (Siri) Mo (Samsung 4S)
42.
42 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Mobile –
App Ecosystem • App store based ecosystem is driving the shift towards massive uptake of smart devices by Consumers and Enterprises. • App Stores are a control point for o Discovery of apps o Distribution of apps o Monetisation of apps o Exit barrier for users o Consumer insights • In future, we'll see smarter, connected apps. There will be a shift from native to hybrid and web apps. Multiplatform apps will reign supreme. Low High Low Intelligence EngagementHigh Mobile Engagement Transformative App Mobile Intelligence Simple App Traditional/ Legacy Systems Source: Frog, Mobile Strategy - 2013, IBM
43.
43 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Mobile –
App Type and Distribution Source: Frog, Mobile Strategy - 2013, IBM Interoperability Functionality App Store Distribution Driven Web Distribution Driven Native App Cross Compiled App Hybrid App Web App Mobile Site
44.
44 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Mobile -
Cash and Card less Currency Contactless Payments SMS Transactions Direct Mobile Billing Mobile Web Payments • Mobile device (especially a smart device with NFC capability) has become a mode of payment transactions. • Users don't need to carry cash or a debit/credit card Credit: Bank 3.0 Virtual Payments P2P Payments In App Payments
45.
45 igitalTransformation,WorkinProgress,©AllRightsReserved Source: Mobile Strategy,
Dion Hinchcliffe Digital Transformation Mobile Stack – Functional View Security Ops Business Apps Messaging Customer Apps Content Enablement Platform Support Location ServicesApp Store
46.
46 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Localisation Place Vicinity Context Localisation Things Position Proximity
47.
47 igitalTransformation,WorkinProgress,©AllRightsReserved Source: APIs and
Open Platform –Federico Cargnelutti • Moving from licensing model to Utility and Brokerage (using API’s) • Commodity Software or Business Process will be enabled via Cloud Digital Transformation Cloud - Turning Products into Platforms
48.
48 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Cloud as
a Platform – Types, Benefits Source: Alan Quayle Blog Private Public Hybrid • Ease of Access, Anytime, Any where • Standard SLA • Cheap • Highly Secured • Customisable SLA • Expensive • Secured • Customisable SLA • Moderately Expensive • Shared Services and Expertise • Commodity Systems • Full Control • Sensitive and Mission Critical Systems • Moderately in Control • Scalability Means to Business BenefitsCloud Type Decentralised Centralised Slow IT TimetoMarket& Innovation Rapid Traditional/ Legacy Systems Cloud Hosted Systems 2nd Era Revenue Generation Side Business Transformative Systems/Apps 1st Era Cost Side Opex Control Driven Apps
49.
49 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Cloud as
a Platform – Services Model Characteristics Example Strategy • Procurement • E-mail • HR • Billing • Low Level of Change • Non Differentiating • Available in Cloud • SAAS, PASS, IAAS • (drives standardisation) • e-Channels • BPM • B2B services • High level of change • Differentiating • Need for speed • Build agile IT Platform with IAAS and PAAS • Large core banking platforms • Analytics and modeling • High stable volumes • Differentiating • High Performance • Build internal cloud Commodity Agile Scale • R&D • New markets and propositions • Uncertain demand • Uncertain requirements • Scalability • Maximise cloud sourcing for variable costs Growth Source: BCG IT Services Model
50.
50 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Challenges Finance (Transactions) Customer (Engagement) Internal (Ops.) Learning, Culture & Infrastructure Rapidly
Changing Customer Desire and Needs. Digital generation is always on the move. Business process are fragmented, need to digitise all, leveraging new digital platforms Resistance to Cultural Change Fail Fast is Missing Lack of unified Marketing, and fragmented Channels Old operating Model. Lack of Analytics and Intelligence on Digital Operations Ageing infrastructure and Information Overload. Ad hoc strategy to leverage and integrate social and mobile ecosystems. No well defined KPIs Lack of Customer Centric Services. Most services are functionality driven and aren’t intuitive Lack of collaboration and Silo based Approach hindering Boundary less information flow
51.
51 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Why It’s
Difficult Source: Creating Corporate Advantage , David J. Collis & Cynthia A. Montgomery Structure, System & Procedure Linkages & Alignment Intro Growth Maturity Decline C C Drives Behaviour People Shapes Culture Time Culture Shapes People Culture is the biggest challenge for any transformation to be successful. For matured organisation cultural challenge is magnified enormously as it drives the behavior of people. Any change to that is resisted vigorously. Cultural
52.
52 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Benefits
53.
53 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Adoption and
Management
54.
54 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Readiness
55.
55 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Organisation Maturity Low
High Low Transformation Intensity Digital Intensity High Beginners Conservatives Advanced (Desired State)Fashionists Source: Capgeminu Digital Transformation 2013
56.
56 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Capability Maturity Source:
UQ and EY, Digital Capability Maturity Framework. 2013 Strategy Digital User Experience Low Moderate Considerable High Extreme Design Meaningful Content Channel Integration Operations Governance Digital Infrastruc.
57.
57 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation IT Maturity Business Silos Standardised Technology Optimised Core IT
Maturity Business Modularity
58.
58 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Operating Model
Design
59.
59 igitalTransformation,WorkinProgress,©AllRightsReserved Financial Learning & Development Customer Internal Value Optimisation Governance
- Bus. & IT Goals Enterprise Goals Governance Objective Risk Optimisation Resource Optimisation Corporate Learning & Development Customer Internal Financial IT Goals Enterprise Goals Customer Internal Learning& Develop. Evaluate, Direct & Monitor Deliver, Service & Support Align, Plan & Organise Build Acquire & Implement COBIT (IT) Process IT Goals Corporate Customer Internal Learning& Develop. 1 2 3 Stakeholder Goals Mapping Cascade to Process Level Via Business & IT Transformation Source: COBIT
60.
60 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Summary
61.
61 igitalTransformation,WorkinProgress,©AllRightsReserved Digital Transformation Appendix
62.
62 igitalTransformation,WorkinProgress,©AllRightsReserved Services Product Design Service Strategy Service Portfolio Customer Segments & Insights GTM Approach Pricing Delivery Process
& Tools Op. Excellence & Metrics Service Organisation Service Culture Offering Sales Delivery Service Excellence Digital Transformation Impact on Service Industry