obug experience 2015 - eindhoven - arjan kramer - digital transformation. you havent seen anything...

OBUG Experience 2015 - Arjan Kramer

Digital Transformation

You haven’t seen

anything yet…Digital. Two steps ahead

Copyright © Capgemini 2015 – All Rights Reserved 2

http://youtu.be/8Wc5BQ9BPoA





Digital Transformation

You haven’t seen anything yet…


About me

15

Papa Music

Cycling

Digital

38

People

Experience

Customer


Digital Transformation: a 3 year long Innovative

research journey by MIT and Capgemini

RESEARCH

THEMES

OBJECTIVES

RESEARCH

Define

“Digital Mastery”

50 Companies

160 Interviews

2011Digital Transformation

Framework

Performance /

Sector Maturity /

DNA

500 Companies


Performance

Uncover execution

challenges

> 2,500

Companies


Execution


Digital Transformation: Why should you care?


What do these great companies have in common?


The DNA of Digital Masters

Dig

ital C

apabili

ty

Leadership Capability

Using digital technology to transform the

customer experience, operational processes

and business models

Successful transformations depend as much

on how firms manage digital transformation

than solely on implementing new technologies

The What:

The How:

Research by MIT & Capgemini


4 levels of Digital Mastery

Fashionistas Digital Masters

Beginners Conservatives


Dig

ital C

apabili

ty



The time to act is now!

Digital Masters have significantly better Financial Performance

Basket of indicators:

• Revenue per Employee

• Fixed Asset Turnover

Dig

ita

l C

ap

ab

ility


Fashionistas


+9%+6%

-4% -10%

Dig

ita

l C

ap

ab

ility


Fashionistas Digital Masters


+26%-11%

-24% +9%

REVENUE GENERATION EFFICIENCY PROFITABILITY

Basket of indicators:

• EBIT Margin

• Net Profit Margin* Average performance difference for firms in each quadrant versus the average performance of all large firms in the same industry for the 184 publicly-traded companies in our sample


Digital Masters


“Be the first (fashion) company to be fully digital end to end”

WHAT HAVE THEY DONE?

• Engaging customers through social media

• Fusion of the online and instore experience

• Unifying data globally

HOW HAVE THEY DONE IT?

• Governing cross-channel consistency

• Engaging employees

• Developing new skills

• Strengthening IT-Business relationships

“Digital has been a catalyst for everything in the company” Angela Ahrendts, CEO

DIGITAL

CAPABILITY

LEADERSHIP

CAPABILITY

“Burberry’s flagship

stores feel like a

walk-in webshop”


“Get closer to our customers and the community around us”


• Start with listening to the main Social Media (FB & Twitter)

• Interact and share on these media and others

• Specific approach and focus per media


• Global team of Local Social Media managers

• Insourcing > own people with a “heart” for MAERSK

• Defined global set of house rules of engagement

“We see Social Media as a means of communication, not a means of marketing”

DIGITAL

CAPABILITY

LEADERSHIP

CAPABILITY

“Getting closer to our customers”


“From a physical-intensive model to a knowledge and technology-intensive one”


• Real time view of operations (1.0)

• Automation of processes & machinery (2.0)

• Intelligent mining model (3.0)


• Developed a radical digital vision

• Invested in cultural change

• Developed new competencies

• Strong governance & execution

“Our business in the past was related to physical labor.

Today our business is more related to knowledge and technology”

Marco Antonio Orellana Silva, CIO

DIGITAL

CAPABILITY

LEADERSHIP

CAPABILITY


But where do you start?


Start with why…

Simon Sinek – The Golden Circle


Ever wondered why Apple is doing so well?


They don’t sell: what and how…

Great camera, longer battery life, etc… Our products are just brilliant…


…Apple sells: why!

At Apple, in everything we do…

...we believe in challenging the status quo

… we believe in doing things differently

And the way we challenge the status quo is by:

…making our products beautifully designed

…easy to use and userfriendly

WE JUST MAKE GREAT PRODUCTS

WHY

HOW

WHAT


“Be the first (fashion) company to be fully digital end to end”


• Engaging customers through social media

• Fusion of the online and instore experience

• Unifying data globally


• Governing cross-channel consistency

• Engaging employees

• Developing new skills

• Strengthening IT-Business relationships

“Digital has been a catalyst for everything in the company” Angela Ahrendts, CEO

DIGITAL

CAPABILITY

LEADERSHIP

CAPABILITY


A companies “Why” & Digital Customer Experience

Access Experience Price Product Service

Friendly and clean

storeEasy to reach stores

Easy to navigate

storesCompelling

promotionsFreshness/ Quality

Maximum opening

hours

Availability

(no stock-outs)

No damaged goods

in store

Inspirational

Atmosphere

Customer Service

Complaints

handling /

return policy

Loyalty program

Wide and deep

assortment

Competitive pricing

Traditional

Relevancy

Criteria for

Physical Channels

Dynamic Pricing

Mobile in-store

Shopping support

Advanced /

visualized product

information and

(usage) advice

Product

Comparison

e-Commerce

(mobile, social,

web)

Flexible delivery-

options ( home,

store-pick-up etc.)

Personalized

Pricing

Additional

Relevancy

Criteria for

Digital Channels

Personalized offers

Technology-

enabled staff –

support in-store

Interactive service

via digital channels

(e.g. click-to-chat,

social media)

Wider and deeper

assortment

Solution Pricing

Inspirational

Content

Community

engagements

(share

experiences)

Social Shopping

Location-based

pricing

Price

Comparison

From: “The myth of Excellence”


How can you be most Relevant by applying Digital?

Successful companies dominate on one attribute, differentiate on a second and

compete at parity on the remaining three

4

3 3

5

3

Access Experience Price Product Service

2. Differentiate on a compatible

value attribute

3. Maintain parity on others

1. Dominate on one value attribute

Illustrative

From: “The myth of Excellence”


Now you know why, but what’s next?


Capgemini Engagement model for Digital Transformation

Focus the Transformation

ROADMAP – Outside Digital Masters,

only 25% have leadership aligned

around a roadmap

INVESTMENT CASE - Only 50% of companies

create business cases for digital initiatives

• Create framework for transformation, roadmap

and focus action two steps ahead

• Shape and run proof of concepts

• Iterate your business model

Frame the Digital Challenge

IMPACT – 78% of executives view digitaltransformation as critical...

... But 40% of companies say that

“lack of urgency” is the most important

obstacle to digital transformation

• Understand the Impact

• Assess Digital Maturity

• Develop Vision & Align Around It

Sustain the Transformation

INCENTIVES : 68% of digital masters tie

incentives to digital transformation against

39% for beginners

• Ongoing iteration and

re-assessment of Capabilities

• Realize benefit

Engage the Organisation

SHARED VISION – only 36% of senior

executives have shared a digital vision

PACE – 33% of employees think

the pace of digital transformation

is right against 54% for CEOs• Manage Organization and

Partner eco-system

• Drive cultural shift & evolve work practices


A simpler view of the same model

Sustain Frame

FocusEngage

Why

WhatHow

Last


Let’s focus on What

Sustain Frame

FocusEngage

Why

WhatHow

Last


Translating the why into what: Business & IT capabilities

Compelling Case for Change

Customer

Management

Content

Management

Commerce

Management

Fulfillment

Management

Finance &

Performance

Management

Business Proposition

Development

Innovation, Vision

and Roadmap

Business Case

Development

Single View

of Data

Integration &

Orchestration

Cross Channel

Service Management

Integrated Marketing &

Campaign Management

Web Content

Management

Digital Asset

Management

e/s/m commerce

Merchandising

Management

Pricing & Promotion

Management

Order Orchestration

Transport and Delivery

management

Payment / Fraud / FX

Management

Finance – Allocation

and KPI’s

Social Media

Engagement

Warehouse Mgt / 3rd

Party Mgt / DSV Mgt

Insight & Analytics Big Data and Warehouse

Standards based IntegrationBusiness Process

Orchestration


And mapping it to Technology vendors: an example with Oracle

Compelling Case for Change

Customer

Management

Content

Management

Commerce

Management

Fulfillment

Management

Finance &

Performance

Management

Cross Channel

Service Management

Integrated Marketing &

Campaign Management

Web Content

Management

Digital Asset

Management

Business Proposition

Development

Innovation, Vision

and Roadmap

Business Case

Development

e/s/m commerce

Merchandising

Management

Pricing & Promotion

Management

Order Orchestration

Transport and Delivery

management

Payment / Fraud / FX

Management

Finance – Allocation

and KPI’s

Social Media

Engagement

Warehouse Mgt / 3rd

Party Mgt / DSV Mgt

Single View

of Data

Integration &

Orchestration

Insight & AnalyticsMaster data

Big Data and Warehouse

Standards based IntegrationBusiness Process

Orchestration


Technology trends


Do you know: what is SMAC?

SMAC


Social Mobile

Cloud

Analytics


SMACT

Now, where did I leave my keys…?!?!

iBeacon: yes you found me!

Do you Like this jacket?


But How do you survive all these technologies?

Sustain Frame

FocusEngage

Why

WhatHow

Last


Integration & Orchestration

Security

Data governance

Service control

Performance

By applying an IT architecture framework that supports you.


Integration, Orchestration &

Data governance

Se

cu

rity

Pe

rform

an

ce

S

erv

ice C

ontro

l

Operational

Business

Services

Common

Data

Services

Personalisation & Interaction

Customer Management

Business

Support

Services

The Capgemini Immediate H-Model


Some live examples


Being on top without paying Google…


Do you know how you get recommendations?


Using Social feedback for Faceted searching


Getting all the information you need, and more…


Digital Transformation - You haven’t seen anything yet…D

igita

l C

apa

bili

ty


Digital Masters

Sustain Frame

FocusEngage

Why

Wha

t

Ho

w

Last


… so it’s time to act now…

… and become a Digital Master too!


Feel free to contact me!

Arjan

Kramer

Digital Solution Architect | Global OCommerce Solution lead

[email protected]

@arjankramer

www.linkedin.com/in/arjankramer

mailto:[email protected]

http://www.twitter.com/capgemini


The information contained in this presentation is proprietary and confidential.

It is for Capgemini internal use only. Copyright © 2015 Capgemini. All rights reserved.

Rightshore® is a trademark belonging to Capgemini.

www.capgemini.com

About Capgemini

With almost 145,000 people in over 40 countries, Capgemini is

one of the world's foremost providers of consulting, technology

and outsourcing services. The Group reported 2014 global

revenues of EUR 10.573 billion.

Together with its clients, Capgemini creates and delivers

business and technology solutions that fit their needs and drive

the results they want. A deeply multicultural organization,

Capgemini has developed its own way of working, the

Collaborative Business Experience™, and draws on Rightshore®,

its worldwide delivery model.

Learn more about us at www.capgemini.com.

http://www.capgemini.com/

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obug experience 2015 - eindhoven - arjan kramer - digital transformation. you havent seen anything...

Technology

digital end

title digital

business relationships

average performance

traded companies

great companies

large firms

customer experience