Digital Enterprise Transformation A Roadmap

A Presentation By

Nityo InfotechApril 2016

The background context... to go Digital

Forums – Usenet in the 70s, web based forums & bulletin board services start ‘94 – online journals ‘94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

Being Digital – Nicholas Negroponte – moving atoms to bits – published Jan ‘95Wikis – Ward Cunningham installs first wiki Mar ‘95

Blogging – term “weblog” Dec ’97, “blog” used as noun and verb Peter Merholz Apr ‘99Wikipedia – opens Jan ‘01

WordPress – first released May ‘03LinkedIn – launches May ‘03

Flickr – launches Feb ‘04, acquired by Yahoo Mar ‘05 Facebook – launches Feb ‘04

iPhone – announced Jan ‘07, available Jun ‘07

iPad – launches Apr ‘10

Twitter – 1st tweet Mar ‘06, SXSW Mar ’07, Apr ‘07

Instagram – Oct ‘10

Snapchat – Jul ‘11

Tumblr – Feb ’07

WhatsApp – Feb ‘09

Pinterest – Mar ‘10

20 years of a World Gone DigitalThe development of social media, social networks , Cloud and mobile computing

YouTube – launches Feb ’05, acquired by Google Oct ‘06

Skype – launches Aug ’03, acquired by eBay ‘05, Microsoft May ‘11

We are living in a hyper connected world... It’s time for Businesses to be Digital

Every 60 Seconds

The Leaders are Challenged often… by smart Digital businesses

Fortune 500 are not spared too…

Digital Disruption is Stronger and Faster

1/10th the cost

Source: Assess your digital disruption Readiness Now - Corinne Munchbach, Forrester Research

10 x the innovators

Web

Dis

rupt

ion

Digital D

isruption

100 x the power

1001

What is a Digital Enterprise? And Digital Transformation? How do they help our business?

Let’s Define Digital Transformation...

The re-alignment of, or new investment in,

technology and business models to more effectively

engage digital consumers at every touchpoint in

the customer experience lifecycle

The goal of digital transformation is to make businesses relevant in a digital era while growing opportunities and profits, as well as scaling efficiently in the process.

Customers don’t see departments; they see one brand. These new “digital strategists” serve to optimize the entire customer journey and aid in delivering real results against over-arching business goals. That’s the essence of digital transformation.

Digital transformation represents the quest to understand how disruptive technology affects the digital customer experience.

Mobile and real-time marketing join social in disrupting business models that cannot keep up with more connected, nimble, and informed customers.

The Key for business success in a Digital world is... Consistent Customer Experience across all channels

Today’s digital customer expectsa relevant and delightful customer experience

at all times and across all channels

Source: Accenture Interactive

What to expect... What is the experience so far?

What to expect from Digital...• Follow your customer always…• Better Customer Experience…• Lower Cost Per Acquisition

& Per transaction…• Higher margins…• Drives more business & operational

efficiencies

Industry’s experience so far...• “Digirati” are 26% more

profitable• Enjoy 12% higher market

valuation• Generate 9% more revenue

Other Benefits from Digital Transformation

The Digital Enterprise Wave

ride it

or go under!

How do we go about the Digital Transformation for our business?

Digital Enterprise eco system...

Assess where your business stands today...

Foundation Intermediate Advanced World Class

Emergent

Managed

Optimised

Pioneers, driven by personal

interest

Transformed

Companies that achieve Digital Excellence out- perform their peers in innovation, agility and responsiveness

People

Process

Technology

Inadequate measurement,

ineffective control and direction

Legacy systems, poorly designed,

difficult to operate

All necessary people knowledgeable and

engaged

Strategic direction in silos, some identified targets, some form of

measurement

Some integrated systems part-managed or auto- mated , fit--

for -purpose

All necessary people knowledgeable,

engaged directed and managed

Fully integrated systems, designed to specification and fully

fit-for -purpose

Strategic direction, targets, planned

measurement and response

Source: Econsultancy

Building Blocks for… a strong and sustainable Digital Enterprise

Digital Technology

Vision & Strategy

Digital Technology Capabilities

Digital Technology Architecture

& Governance

Digital Applications/

Apps

Digital Infrastructur

e

DIGITAL ENTERPRISE

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ital

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Key aspects to be considered and key steps & actions involved

Center of Gravity is shifting towards customer…

Center of gravity is the IT infrastructure

Center of gravity is the customer

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eill/The Cloud World

The Digital World

• Responsiveness– Tactical value

• Resilience– Risk mitigation

• Innovativeness– Strategic value

Ability to respond to change in the business environment and leverage change for competitive advantage is key imperative to be in business…

1. Social, Mobile & Real-Time are causing significant disruption2. Digital Transformation is becoming a priority for organizations3. Digital Transformation is driven largely by customer behavior4. Digital Transformation is based on 3 key elements: leadership, optimizing

customer experience, and a digital experience ‘swat team’

The DET process should be executed incrementally, and iteratively using Agile methodologies

Prioritized EDT solutions should implemented in an iterative and incremental manner

People

Tech

Implementation Complete

Digital Solution 1

Digital Solution 2

Digital Solution 3

Digital Solution 4

Implementation in process

Agile methodology is used in the development of the digital solutions

Digital Priorities

Update Product Backlog

AGILE DEVELOPMENT

Create Sprint Backlog

Prepare People, Technology & Org

Structure feature by feature

Implement Digital Solution incrementally and iteratively

feature by feature

Sprint Review

Prioritized bucketlist of features, bugs and development

work by the Product Manager

A list of prioritized features to be built for the next sprint

Digital Capabilities should be augmented

incrementally to enable the implementation of

the feature being currently built

Review for early warning of broken/

incompatible features

Incremental execution of prioritized digital solutions

Process

Skills

Web

Metrics

Continuous Tracking

Training

Cloud

Performance

Execution

Mobile

Results

Delivery

Social

Iteration

The End-to-End Digital Challenge

• Digital technology begins at the customer touchpoint

• Web & mobile apps include numerous third-party services– Generally run in cloud

• Apps connect to back end databases & systems of record– In cloud & on premise

Technology

People

Processes

Ecosystem Connect

C

A

B

D

• Introduce Digital Roles • Hire/acquire talent from digital hotspots• Foster Product Development Capabilities• Create Alternative Technical Career Paths

• Implement• Distributed Agile • Scaled Agile Framework

• Implement agile, quick-turn around IT environment

• Introduce New Age Technology and Tools

• Establish partnerships with:• Cutting Edge Technology Companies• Service Providers with a Digital DNA• New Age Start Up• Universities with Digital Focus

Key enablers in Digital Transformation Journey

Right planning & efficient execution essential... in the digital transformation journey

•Learning industry best- practices

•Determining key enabling technologies

•Understanding internal & external data sources

•Strategies, initiatives and activities of digitally native enterprises & start-ups

•Evaluating current state & desired state of business initiatives and prioritizing them in terms of:• Business Impact,

Benefits and Risk• Ease of

Implementation: People, Structure & Technology

•Determining a step-by-step Road-map for creating a digital enterprise:• People • Processes • Infrastructure • Ecosystem • Connectivity• Integration

• Phase wise implementation of digital solutions incrementally and iteratively along with the required IT infrastructure for those solutions

KnowledgeBuild EDT knowledge base and understand

possibilities

Digital PriorityAssess business & digital

priorities

Org. ReadinessEstablish a step-by-step

framework for digital readiness

Implementation Implement digital

solutions incrementally and iteratively

1 2 3 4

Beware of the myths…

Well-defined team structure & activities... Help drive the DET initiative to success & resultant benefits

28

Close Collaboration

SMAC-skilled technologists

User Experience

Experts

Other Skills- REST APIs, Linux, etc.

SCRUM Master,

DevOps and other Agile

roles

CEO

Chief Information

Officer

Chief Digital Officer

Cross-Functional

Digital Strategy

Team

1 Define• The HR, BU Leaders, CDO & the CIO should Define &

design DT structure, design collectively• Determine program structure and focus areas

keeping in mind business requirements, existing & required talent, presence of CoEs

• Ascertain Delivery model: Internal, External, outcome based outsourcing, Impl. partners

2 Allocate Dollars

• Allocate budget to implement DT program• Budget could come from the IT, Marketing, the CDO,

CFO for different phases of the DT program

3 Spread Awareness

• Actively spread organization-wide awareness on the purpose of the program and its goals

4 Implement

• Implement the program in Agile frameworks, customer relevance, tools , frameworks , acquire required skills domain knowledge

• Deploy innovative methods to fast execution and showing positive results, outsource, take on board products & integration partners appropriately as may be required. Replicate the model for next level of maturity

5 Assess• Assess success for program as well as employees• Metrics for program evaluation include alignment to

business, customers, suppliers, employees• Use Analytics, Metrics , results to be make the

system more robust, fail-proof, efficient, larger scale, by adding more channels, adding more skills etc.

Digital L&D Team

Digital Effectiveness Monitoring

Team

Enterprises need to establish Platform, products, integration partnerships across the ecosystem…

Partnerships

Solutions/Services Providers

University/Research Connects

Platform Partners

StartUp Connect

1 2

43

Changes the Digital Transformation Brings along...

Changes in a Digital Enterprise... ...Customers

Experience will be critical throughout the entire customer lifecycle

Most buying decisions will be made before contacting vendor

Most purchases will be done online Marketing will have to be relevant - ‐

utilize location, situation, and presence

Changes in a Digital Enterprise... ...Employees

By 2020, majority of the workforce will be digital natives

The workplaces of the future will be: Social rather than hierarchical

Ideas are what’s valued

Flexible, mobile, global

Technology savvy

Changes in a Digital Enterprise... ...Suppliers

#AIIM14

Digital enterprise will create a demand for a real-time value chain integrating with suppliers, agents, and business partners

Fast, agile, and accurate supply chain will become critical for customer experience

Changes in a Digital Enterprise... Collaboration & Partnering

The CIO needs to partner with Sales and Services to help them open more doors, close more business and achieve higher levels of customer satisfaction

“It’s important to make everyone feel they have ‘skin in the game’ for digital transformation to work across departments. We use RASCI to organize roles and define how we share different assets in disparate channels to stay well integrated.”- Perry Hewitt, CDO, Harvard

Digital Enterprise Fabric...

Digitization

Social

Governance

Applications

Security

Processes

Integration

Experience

The shift to Digital Business... How do we build it?

• Enterprise 2.0 → Social Business → Digital Transformation• Social technology - markets are conversations• Cloud technology drives scale, reduces cost• Mobile technology increases reach, penetration• Analytic technology increases focus, impact• It’s about much more than technology

Nexus of forces3rd Party Platforms Big wheel of Disruption

Information Management in a Digital Enterprise

Mobile Access Social Engagement Sensors & Wearable Devices Digital Financial Models and Transactions Connected Devices Digital Content Management

Discovery Business Process

Management

Enterprise Content

Management

Customer Experience Management

Information Exchange

Transforming the Enterprise

Digital Maturity Assesment

DigitalStrategy

Digital Program Management

Digital ‘Fabric’

Gap AnalysisExperience & Engagement

Digital Foundation

Transformation Framework

Business Case(s) Digital Business Models

Digital Architecture

Digital Asset Maturity

Competitive Threat ‘Mobile-first’ impact Program Execution & Management

Hyper-connected, multi- model

accessAssess

Strategize

Execute

Transform

Digital Transformation is driven by emerging technologies ...

DESIGN FOR DIGITAL

• We may categorize technology trends in 6 distinct clusters, aiming to better understand and position an abundance of new technologies

• Each cluster consists of 5 technology trends• Each trend is described through actions to take, tools

to consider and insights to gather• There are also 7 design principles (Design for

Digital) that should be considered and applied throughout

• Depending on the challenge an enterprise wants to address, relevant building blocks are selected and woven together in Digital Transformation story lines

• These story lines can be used to discuss, test, validate and strategize

.. The technology clusters ...

• YOU EXPERIENCE: creating a highly individualized user experience for customers, employees and partners, leveraging multiple channels, notably mobile

• COLLABORATE: building on the power of social media to connect, create and interact in new ways

• THRIVING ON DATA: getting actionable insight and business value from structured and unstructured data outside and inside the enterprise

• PROCESS ON THE FLY: adding the next level of agility and manageability to enterprise processes

• SECTOR AS A SERVICE: rebuilding core applications into a standardized catalogue of enterprise business services

• INVISIBLE INFOSTRUCTURE: transforming the IT infrastructure towards a true utility that provides the foundation for technology-driven change

DESIGN FOR DIGITAL

.. each with unique change challenges ..

• Outside-in perspectives. New ways of understanding and reaching out to clients, partners and employees. Leveraging all new channels. High speed. Organic growth. Potential change of business model. Possible cannibalization.

• Creating better business capabilities by transforming data into actionable insight and new value. Better sensing of crucial outside and inside events. Enhanced abilities to immediately respond to changing circumstances. Business proximity.

• Rebuilding the foundation for technology-driven business change. Cost reduction. Simplification. Extreme rationalization. Integration, orchestration and platforms. Catalogue-based delivery of services. Redefining the IT department.

DESIGN FOR DIGITAL

Some Digital Enterprise Examples

• Burberry: Connected in-store experience• Nike: Customer Engagement• Volvo: Digital CRM• Harrah’s: Location-based marketing• Starbucks: Mobile payments, loyalty points, incentives

• Virgin America: Twitter-based customer service• L’Oreal: Customer engagement channels• Intel: Recruiting via Social Media• P&G: Improved productivity and enterprise

innovation

Digital transformation isn’t an end goal; it’s a continuous journey. It’s the result of learning more about the relationship between technology and customer behavior to earn relevance among them.

How Nityo can help your business transform into a Digital Enterprise

Nityo’s Digital Enterprise service offerings - Consulting

• Develop a Business case for your business:– Assess as-is state of your digital readiness, identify to-be state and create

a business assessing budgeting and costing details.

• Create Digital Enterprise Transformation Strategy and Roadmap– Assess as-is state of your digital readiness, identify to-be roadmap, Create

DET strategy, plan and roadmap, identify phases and timelines for implementation

• Program manage end-to-end digital transformation initiative– Create business case, road map, identify the right technology platforms,

solutions, integration requirements, identify vendors, and oversee implementation of end-to-end DET program, create new business processes

Nityo’s Digital Enterprise service offerings - Technology Solutions implementation

• Develop DET architecture plan and Implement the plan– Create unified master Architectural framework, covering technologies

namely Networks, Mobility, Analytics, Cloud, Security, Social. Implement the identified technology solutions stack and roll it out across the organization and functions in a phased manner.

– Implement SMAC (Social, Mobility, Analytics, Cloud) frameworks/solutions/Integration process or implement Big Data or Artificial Intelligence solutions as may be specifically required for your business.

Nityo’s end-to-end Digital Enterprise service offerings - Services

• Create Digital marketing infrastructure, integrate with your back-end systems, and payment methods, and perform Digital Marketing services and activities for your business.

• Implement, maintain and support your SMAC infrastructure and applications with our onsite, near-shore and offshore resourcing and service delivery models