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ACCELERATING DIGITAL TRANSFORMATIONMEREDITH WHALENSENIOR VICE PRESIDENT, IT EXECUTIVE, INDUSTRY, SOFTWARE AND SERVICES RESEARCH

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 2

Two and a Half Years Ago We Were all Experimenting

The power of crowdsourcing design

Keyless entry as a loyalty program perk

Robotic bartender for cruise ship “wow factor”


Source: IDC DX Leadership Sentiment Study. A/P sample n= 277, March, 2017. Q: Is Digital Transformation a priority for your organization?

Today,Digital Transformation is a Priority for 82% of Organizations in Asia Pacific


2017: Australian Organizations Are Advancing in their DX Journey

Source: IDC, Australia Digital Transformation Maturity Model Benchmark, 2017; n= 100, May 2017

5%

33%30% 28%

4%

Digital Resister Digital Explorer Digital Player Digital Transformer Digital Disrupter

32%


Many Australian Organizations Are at a DX Impasse

Source: IDC, Australia Digital Transformation Maturity Model Benchmark, 2017; n= 100, May 2017

5%

33%30% 28%

4%

Digital Resister Digital Explorer Digital Player Digital Transformer Digital Disrupter

63%

© IDC 6

Organizations are Being Held Back by a Series of Challenges

Outdated KPIsDX Performance

Scorecard

Siloed DX Initiatives

DX Organization

Structure

Tactical PlansDigital

Roadmaps

Limited Expertise

Digital Capabilities

Silos of Innovation

Digital Platform

DIGITAL NATIVE

ENTERPRISE


How Do We Accelerate Our Digital Transformation Efforts?

IT Organizational Approach

InnovationMethods Applied

Technology Investments Made

7

Enables Executional Capability Determines Time to Market Provides Unique Differentiator

EXECUTION SPEED COMPETITIVE ADVANTAGE


Digital Acceleration Methods

8



Determines Time to Market


Provides Competitive AdvantageEnables Executional Capability

9

Digital Organization Structure

The DX Special Projects Team

DX

Discovering DX

Define DX Mission

The Office of Digital Transformation

DX

Establishing DX Governance

Establish DX Prioritiesfor Enterprise

DX DX DX DX

The Embedded Digital Business

Accelerating DX

Implement DXAcross Enterprise

DX

The Digital Business Unit

Creating innovative offerings

Create a disruptivebusiness

22% 51% 13%14%

Source: IDC DX Leadership Sentiment Study. APJ sample n= 168, March, 2017.

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Pushing for Consent, Not Consensus

• Created a multifunctional organization group called Digital Innovation Team – digital product managers, digital marketing, creative content, web designers, digital analytics experts, restaurant operations

• Technology, Marketing and Restaurant Operations are the three stakeholders invested in making the digital unit successful. All have a voice at the inception of every idea.

BLOOMIN’ BRANDS DIGITAL INNOVATION TEAM

ADVICE ABOUT ORGANIZATIONAL STRUCTURE

• Consent over consensus. “When you are dealing across multiple business functions, you can waste a lot of time seeking consensus.”

• Collaborative humility. The leader of the digital unit has to be humble and collaborative. “His great skill is his character – even more than his functional knowledge”

Donagh HerlihyEVP Digital and CIOBloomin’ Brands

“We started to say,‘Let’s understand which moves or decisions are

safe to try’.”

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From Projects to Products

• 3500 IT professionals shifted focus from IT projects and support to digital products and engineering

• Functional/departmental org replaced with “experience value streams” –client, advisor, and employee.

• Hundreds of positions eliminated and refilled with digital skills• Offshored commoditized infrastructure and development moving to

managed services.

IT ORG NOW CALLED CLIENT AND DIGITAL EXPERIENCE GROUP

SELF-AUTONOMOUS TEAMS FOCUSED ON BUSINESS OUTCOMES

• 20+ job descriptions down to 7 core jobs• All in with Agile/Lean and DevOps• Teams are assembled and reassembled by workload needs and backlogs

Karl GourverneurVP and Head of Digital Innovation and Workplace

Northwestern Mutual



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Determines Time to Market


Provides Competitive AdvantageEnables Executional Capability


Innovate through Acquisition

http://www.bmw.com/com/en/insights/corporation/bmwi_ventures/

BMW i Ventures has invested in 16 car-related start ups in the past several years.

“Now, we aim to become the leading tech company and innovation driver in the field of mobility.”CEO, Harald Krueger

http://www.bmw.com/com/en/insights/corporation/bmwi_ventures/


Innovating From Within

Source: IDC DX Leadership Sentiment Study. Australia sample n= 25, March, 2017. Q: Please indicate which of the following actions you are using to drive innovation at your organization

InnovationCenters

48%

Internal Kickstarters

40%

Ideation Retreats

40%

TOP STEPS TO DRIVE INNOVATION IN AUSTRALIA


Creating Innovation Centers that DeliverBloomin’ Brands Aligned with Needs of Customers and Business

“Not ready for Prime Time”Their customers want a more social experience

Evolve concept to messaging platform

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Understand How Technology is Already Being Used

Source: IDC ConsumerScape 360° Survey. Document # US41562216, n= 42,328 worldwide consumers. Document #US41564616, n=1122 US consumersSource: 2016 Consumer Internet of Things Survey, March 2016, N=889 16

Life Activities

12% of consumers

primarily get their TV programming through

paid online video streaming services

26% of consumers’ time spent on their own personal PC is for

work related activities

LEISURE ENTERTAINMENT

WORKING AND STUDYING

43% of health and fitness

band users track sleep at night

43% of consumers use

intelligent assistants for navigation

RESTING TRAVEL

17 Hoursa week. The average

amount of time consumers spend in social and messaging

sessions.

34% of consumers willing

to share more personal information

to get discounts

70% of health and fitness

bands consumers use them daily

SOCIAL AND FAMILY

DINING AND SHOPPING

HEALTH AND SPORTS

“We are really focused on how we can integrate our offerings smoothly and seamlessly into the digital life of our customers.”Thom Brenner, BMW Group Vice President of Digital Life

Techniques Employed By IT Organizations to Meet the Needs of Customers

17Source: IDC CIO Sentiment Survey, June, 2017 – 150 IT Executives

How do you ensure that IT digital transformation work meets business and customer needs?

DESIGN THINKING

VALUE STREAM

MAPPING

LEANSTARTUP

PRACTICES

62% 54% 47%

CUSTOMERJOUNREY

MAPS

43%

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Uncovering Moments of Truth

• Adopted design thinking principles

• Dispatched developers to learn directly from customer about what they want and need

• Evolved from client-focused systems design practices (usability testing) to uncovering “moments of truth” – situations where stepping up the client experience would make a significant positive impact and could represent a defining moment in the client’s relationship with Vanguard

HOW VANGUARD’S IT ORGANIZATION LEARNS ITS CUSTOMERS NEEDS

John MarcanteCIO, Managing DirectorVanguard



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DeterminesTime to Market


Provides Competitive Advantage

Enables Executional Capability


Dubai is Betting on Transformational TechnologiesReinvent the City

Embracing technology innovation

Making Dubai the most efficient, seamless, safe and impactful experience for residents and visitors.

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Technologies A/P Digital Leaders See as Transformational

Source: IDC DX Leadership Sentiment Study. APJ sample n= 168, March, 2017. Q: From a business impact perspective, select whether each technology is transformational, incremental, opportunistic, or not applicable in enabling your organization's Digital Transformation?

61%

40%

35%

32%

17%

IoT

Robotics

Blockchain

3D Print

AI


Taking the Lead

22

How IDC Sees Technology Transforming Industry

202150% of large

retailers use robots in customer facing roles such as store

greeters, or assistants.

202625% of paramedics

and emergency rooms use field-

ready 3D printers to deliver real-time

wound care.

2019Usage Based

Insurance (UBI) will account for at least 15% of the global vehicle insurance

market

202040% of ecommerce

is enabled by cognitive personal

shoppers and social networks

2026more than 40% of

US field service calls in manufacturing are managed by

virtual service technicians.

2020 Blockchain/

distributed ledger technology will be adopted by 20% of

trade finance worldwide

15% 40% 50% 40% 20% 25%


© IDC 23

Once Through the Challenges, You are Cleared to Digitally Transform

20202017 2027

Full Digital Transformation

2022

Innovation Realization

Getting Digital Done

The DigitalImpasse

63%of Australian

organizations are still in stage 2 or 3

80% of revenue growth will

depend on digital offerings and operations

75% of organizations will

have digitally transformed

50% of total technology

spending will be data related investments


Accelerating Your Digital Transformation

Execution Speed Advantage

For More Information

LinkedInhttps://www.linkedin.com/company/idc

Twitterhttps://twitter.com/@IDC

www.idc.com

Meredith [email protected]

© IDC 25

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