the digital enterprise shift: why it matters, and how you can avoid being sidelined
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This is a summary of a free analysis report that's available at www.mwdadvisors.com/digitalenterprise We constantly hear industry commentators talk about cloud computing, social business, mobile computing, big data or analytics. We also hear talk about how customers’ expectations are changing and how businesses need to deliver more joined-up, high-quality customer experiences. Often not explained, though, is how all these things are connected – and why the big change vectors driving everything are creating new business-technology capability requirements for enterprises. A shift to a new ‘Digital Enterprise’ operating model, which takes a ‘digital first’ approach to building, improving, linking and managing business capabilities wherever they may be, is happening. Digital Enterprises are fundamentally more economically efficient than others. You can see this as an opportunity or a threat; but you can’t ignore it.TRANSCRIPT
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a d v i s o r smwd
helping you get business improvement from IT investment
The Digital Enterprise shift
Why it matters, and how you can avoid being sidelined
Neil Ward-DuttonFounder, Research DirectorMWD Advisors
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Mass interconnectivity drives…
GlobalisationCustomers, partners, suppliers – and competition“Connectedness” is driving sophisticated value chains
TransparencyIndustry regulations, consumer pressure and competition driving openness
Smart, connected marketsEcosystem participants – particularly customers – see the “online world” as the natural place to look for information, services
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Every business is ‘close’ to every other; environments are becoming more unpredictable
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Large companies’ lifecycles are becoming ever shorter
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Competing purely on price or product is unsustainable. What about customer experience?
Service
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Home from home
These companies are setting your customers’ expectations for service and experience
Seamless
“Always”
Open
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Here’s what large enterprises are doing already
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+++ChannelsVenuesMedia
+++OutsourcingPartnering
Integrate, consolidate,
automate at the core
Processes are often a “cost of doing business”
Minimise cost, maximise
scalability and quality
“One
XYZ”
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As more activities are standardised, more value comes from knowledge work
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Customer intimacy is about joining dots
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Yourcustomer
Customer Journey stage 1
Customer Journey stage 2
Customer Journey stage 3
Customer Journey stage n
Customer Journey
stage n+1
Gather intelligence through each customer journey to make future experiences more engaging
Marketing
SalesOperations
Service
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Industry evolution has taken us down a challenging path
Your core
Your service centres
Partner A
Partner B
Supplier X
Supplier Y
Enterprises and value chains want to be dispersed, flexible
Great experiences want to be integrated
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Customer Experience Excellence runs counter to the status quo for many
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“IT Doesn’t Matter”? Frankly, that’s BS
Information storage Information communication, sharing, integration
Optimising individual or team productivity
Optimising enterprise value from knowledge
Old world(Efficiency, scale)
New world (Agility)
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Time to wake up and smell the coffee!this is your organisation
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Access devices
In the Digital Enterprise… Clouds, connectivity bring increased choice
Consumer technologies and networks are puncturing enterprise technology services
Applications
Platforms
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In the Digital Enterprise… Structures and connections are being remade
Control hierarchies Information networks
Work is a place you go Work is a thing you do
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Infrastructure usage
Service usage
Product usage
Events
In the Digital Enterprise… Everything can leave an information trail
Relatively cheap, fast, highly scalable
commodity technology
Conversations
Real-time insights, recommendations, optimisations
Commercial ‘data platform’ propositions
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Social + Mobile = Opportunity to reshape knowledge work
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Image/video capture
Audio/speech capture
Location/orientation
Gestures/signatures
More computing power than the entire Apollo 11 moonshot program!
Notifications/actions
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New pretenders: networks, platforms, ecosystems
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Opportunity is everywhere!• Quick, flexible ways to connect people,
information, knowledge, resources• Quick, flexible ways to build operational
capabilities• Ways to get smarter about operational reality
and opportunity, and act on insight quickly and flexibly
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In your organisation, work is ripe for reinvention in all six dimensions
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Who?
When?Why?
How?
What?
Where?
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But… There’s No Such Thing As a Free Lunch
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① Choice and disruption. How to prioritise technology investment and application in projects/programs?
② Fast, flat organisations. How to reshape attitudes to information sharing, collaborative working?
③ The need for agility. How to deliver information and technology access while managing cost, quality and risk?
④ Realising new value. How to extract new insights from new data in new ways so you can act on it effectively?
Opportunities come with challenges
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• Some areas of business are (or need to be) controlled, structured, predictable; others need to be highly adaptable, even experimental
• Conduct a domain-based analysis of business capabilities and match with appropriate technology strategies
• Accept that boundaries will change over time
A Digital Enterprise is flexible and adaptable.. where it needs to be
“The future is already here – but you should aim to distribute it unevenly”
- Paraphrasing William Gibson
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“Design thinking is… the analysis of the relationship between people and products, and of the relationship between people and people… there is an opportunity to transform it from a black art into a systematically applied management approach.”
- Tim Brown, CEO, IDEO
• As the actors of strategy and competition move from individual businesses to platforms and ecosystems, Design Thinking principles should shape your approach
• Take a customer/user-first perspective and explore possibilities from an outside-in viewpoint
• Structure customer-facing work to embrace exceptions and don’t purely chase efficiency
A Digital Enterprise is designed and maintained ‘Outside-In’
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“In the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed.”
- Charles Darwin
• Interest in improving levels of collaboration has exploded – with a focus on better sharing of knowledge, driving innovation, supporting distributed teams and building better relationships externally
• Tackle organisational structures, culture and workforce engagement simultaneously – and don’t rely on technology alone
A Digital Enterprise is Open, Collaborative
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“A point of view can be a dangerous luxury when substituted for insight and understanding.”
- Marshall McLuhan
• Technology platforms can gather and process more data from more places, more quickly – but increasingly we’re “data rich but insight poor”
• Getting the right insight to the right place at the right time requires serious skills and capabilities
• Empower your people and systems to make sense of and act on operational data
• Link analytics & information management people, technology investments to clear business strategies
A Digital Enterprise is ‘Data-Literate’
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In a Digital Enterprise, management systems are digital, integrated
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Organisations that can embrace this trend will have a massive Agility Advantage
Systems ofinsight
(information)
Systems ofEngagement
(people)
Systems ofco-ordination
(process)
Systems of record
Core business applications
Work procedures and practices
Corporate communications tools
Management information systems
Analog
Core business applications
Work procedures and practices
Corporate communications tools
Management information systems
Digital Integrated
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The management system integration trend is unfolding now
Systems ofinsight
(information)
Systems ofEngagement
(people)
Systems ofco-ordination
(process)
Systems of record
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PredictiveAnalytics
Decision management
Social Tasks, Processes, ProjectsCase Management
Social AnalyticsOperational Process Intelligence Collaborative
Decision Making
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• Design thinking for products, services, capabilities, processes– Work customer-/user-first, outside-
in– Bridge organisation silos and
perspectives– Embrace experimentation and
prototyping
• Data literacy– The evolving business value of data
– where can it take you?
• ‘Management’ revisited– Be prepared to reinvent how your
organisation works, to minimise management overhead and maximise collaboration
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Ready to face the new reality?Here are your priorities
“The real problem with humanity... is we have Paleolithic emotions, medieval institutions and God-like technology.”
- Edward O Wilson (“the father of sociobiology”)
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We’re observing, learning, advising
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Business process management (process)
Analytics and information management (information)
Collaboration and social software (people)
BUSINESS COMPETENCIES BUSINESS AND TECHNOLOGY IMPERATIVES, DISRUPTIONS
IN-DEPTH, PRACTICAL FIELD RESEARCH
Big Data
Cloud, SaaS
Mobile/m
obility
Real-time business
Reinventing customer experience
READINESS/ BENCHMARKING
STUDIES,
CASE STUDIES,
SURVEYS,
VENDOR/PRODUCT ASSESSMENTS
ETC.
Value of Knowledge W
ork
The MWD Advisors research landscape
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Digital technology is the biggest disruptive force in business. Where can it take you?
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