digital transformation in europe - legal management · pdf filecompetencies to innovate new...

Digital Transformation in Europe

Archana VenkatramanSenior Research Analyst

European Research team, IDC

What is Digital Transformation

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

Digital Transformation is the continuous process by which enterprises adapt to or drive disruptive changes in their customers and markets (external ecosystem) by leveraging digital competencies to innovate new business models, products, and services that seamlessly blend digital and physical and business and customer experiences while improving operational efficiencies and organizational performance.

Imagine an Economy Where...

25% of manufacturers will generate over half of their

revenue from digitally based services.

3

Source, IDC 2016 Digital Transformation Predictions - Preview

40% of FT500 European companies will increase productivity by 20% by

transforming human processes to automated ones

65% of large enterprises will be information based

companies

Improve operational efficiencies

In this Digital Economy...

Organizations adapt to changes in their ecosystem by leveraging digital technologies to create digitally enhanced, customer centric business models.

Create new customer

experiences

Generate new revenue

streams Rapidly respond

to changing conditions

4

Thrivers Versus Survivors


The Global 2000 Largest Companies

2/3rd

Survivors

In reactive mode risking company survival

1/3rd

Thrivers

Digital transformation at the center of their corporate strategy

Digital Transformation Dimensions


Leadership Transformation

Omni-Experience Transformation

InformationTransformation

Operating ModelTransformation

WorkSource Transformation

Managed

Digital TransformerOpportunistic

Digital Explorer

Ad Hoc

Digital Resister

Repeatable

Digital Player

Optimized

Digital Disrupter


Source: IDC, Digital Transformation Maturity Model, 2015

IDC’s Digital Transformation MaturityScapeDigital Transformation is the approach by which enterprises drive changes in their business models and ecosystems by leveraging digital competencies.

Managed

Digital TransformerOpportunistic

Digital Explorer

Ad Hoc

Digital Resister

Repeatable

Digital Player

Optimized

Digital Disrupter

Comparing the U.S. versus European Digital Transformation Maturity Distribution Across the Stages


Digital Resister Digital Transformer

Digital PlayerDigital Explorer Digital Disruptor


Those Who Thrive in this Digital Economy will be the Organizations that:

Can execute upon a vision for

digital transformation

Can execute upon a vision

for digital transformation

Digital Transformation is a CEO Priority


‘We’re taking advantage of the

immense business opportunities

offered by digitalization’

Joe Kaeser,

CEO Siemens

‘The possibilities of the digital

revolution must be put to good use’

Tom Enders,

CEO Airbus

‘Everything we do in this networked world has to be

open’

Volkmar Denner,

CEO Bosch

‘We felt we have to go digital in a

much more proactive way’

Paul Bulcke CEO Nestlé

`

11

‘Up to half the world's banks may lose out and disappear due to failure to keep pace with digital disruption’BBVA chairman and CEO Francisco Gonzalez

Reality Check:


14% of European Organizations believe that their LEADERSHIP is aggressively disruptive in the use of

new digital technologies and business models to affect markets and create new businesses

Source: IDC, European Digital Transformation European Maturity Model Benchmark, 2015; n= 200 IT and LOB Executives, April, 2015

Leadership Transformation





Blend digital and physical

experiences to garner customer

allegiance

Blend digital and physical experiences

to garner customer allegiance

M&S Virtual Reality Showroom



In 2014, Domino’s Pizza sold €185 million worth of pizza via its mobile platform in the UK and Ireland alone

http://www.google.com/url?sa=i&rct=j&q=dominos+pizza&source=images&cd=&cad=rja&docid=HXJ5-s0DmGUw7M&tbnid=IYIU9JPRW__8WM:&ved=0CAUQjRw&url=http://choucroutegarnie.fr/choucroutes-maison/notre-mega-test-dominos-pizza/&ei=LOEAUq2nC4q1hAfFj4GQDg&bvm=bv.50310824,d.ZG4&psig=AFQjCNHB8kQspPMn22frXfNh9Abr4uyIfQ&ust=1375875753111805

http://www.google.co.uk/url?sa=i&rct=j&q=dominos+mobile+app&source=images&cd=&cad=rja&docid=UDVtM45kK2-ZDM&tbnid=wL-tVr_gLqn9oM:&ved=0CAUQjRw&url=http://www.bmobilized.net/blog/dominos-pizza-android-app-serves-up-140000-downloads/&ei=WeEAUvDlI8LMhAfunYFo&bvm=bv.50310824,d.ZG4&psig=AFQjCNGPOh5zfLmC7gEfxkIchQEFHjpRUA&ust=1375875790523584

Reality Check:


17% of European Organizations believe that they deliver breakout innovation in the use of digital

connections, influences, impressions and triggers to transform the value of the ecosystem experience


Omni-Experience Transformation







allegiance

Turn information into a

competitive advantage

Turn information

into a competitive advantage


The hidden gem in the

Caesars bankruptcy assessment

Its US$1 Billion information

asset

Reality Check:


15% of European Organizations view ‘information’ as representing the highest value

differentiator for the company


InformationTransformation







allegiance



Create new digital revenue streams from

connected systems


connected systems

Reality Check:


23% of European organizations have put in place an independent digital group

to support new operating models

Operating ModelTransformation







allegiance




connected systems

Leverage technology to win

the talent wars

Leverage technology to win the talent

wars


Customer centric wallet

Reality Check:


11% believe that top talent is tapped wherever it is whether through

employment, contingent, contract, or freelance

WorkSource Transformation

Comparing the U.S. versus European Digital Transformation Maturity Distribution Across the Stages


Digital Resister Digital Transformer

Digital PlayerDigital Explorer Digital Disruptor

How Do You Get There?


29

Re-Think IT

1

3 Actions We Can Take to Move from “Digital Explorer” to “Digital Transformer”

Define new Processes

2

Make Bold Bets

3

30

Re-Think IT

1



____% of European organizations have gone through a major IT re-organization

in the last 12 months

IDC European IT Executive Survey. April 2015, n=1451

55

33


Define new Processes

2

35


Make Bold Bets

3

This is what continuous improvement can get you

Product Enhancements

Innovation

Continuous Improvement Versus Innovation


The 3rd Platform Driving IT Growth…


4 core pillars of 3rd platform:▪ Cloud▪ Big

Data/Analytics▪ Mobility▪ Social Business

… But Don’t Underestimate the 2nd Platform Just Yet… Think Hybrid!


Cloud, mobile, social is great but what about:• Data Protection

• Existing Investment

• Are Your Customers Comfortable

Choose a Technology Partner that is willing to

move at your pace and one that shares your ideologies

on the future of ITcan support on core

technology and innovation plans








allegiance




connected systems

Leverage technology to win

the talent wars


And if Done Right…This is Your New Organization

InformationYour greatest competitive differentiator3

2 Omni-ExperienceSelf adapting to customers changing needs

4 Operating ModelRapidly responding to changing conditions

5WorkSourceEcosystem-based

1 LeadershipDispersed throughout enterprises and ecosystems


Archana Venkatraman @archanatweets [email protected]

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