Post on 09-Jun-2020
Digital and
Operational
Transformation:
A Roadmap to Drive Disruption
Globe North
Digital is
transforming our
world…
At home
On our commute
At work
Bot Career Path – on the fast track
• Automation is moving incredibly fast up the capability curve
• As machine intelligence improves, the type and number of
“robotic” tasks that can be turned over to them increases,
freeing up humans to focus on human work.
Data DecisionAnalysis Precision
Developer
Bot
Analyst
Bot
Chatbot
Data
Entry Bot
Artificial Intelligence
Deep Learning
Machine Learning
Natural Language Processing
Autonomics
Robotic Process Automation
Scripting
Inst
ruct
ive
Ad
ap
tive
Co
gn
itiv
e
AI Value Trend
Biz Value of AI Will Pass $1 Trillion This Year
By John K. Waters04/30/2018
The total business value derived from artificial intelligence (AI) is going to
reach $1.2 trillion this year, industry watchers at Gartner believe. That's
an increase of 70 percent over last year across all enterprise vertical
sectors, globally, that the analyst firm covers. Gartner also expects that
number to reach $3.9 trillion by 2022.0
500
1000
1500
2000
2500
3000
3500
4000
2017 2018 2022
$B
Digital Disruption has upended whole
industries - and launched new ones
What is the likelihood of
your organization being
“digitally disrupted?”
Market
Guide to
Digital
Disruption
Source: Accenture Digital, Feb. 2018
“Every industry debates whether the Internet will disrupt their business. In the
beginning, everyone says, ‘No, no—our
business is safe.’ But it’s only a matter of time before digital disrupts every industry
that exists in our economy.”- Aaron Shapiro, CEO of digital agency Huge
Example: Amazon Goes Grocery Shopping
Following its $200 million acquisition of meal kit startup Plated last fall, grocery chain Albertsons announced this week it would roll out Plated’s meal kits to hundreds of stores by the end of 2018. The meal kits will also be made available for 2-hour delivery through Instacart, same-day and scheduled home delivery, and for in-store pickup through Albertsons Companies Drive Up and Go service. While Albertsons’ acquisition of a meal kit startup was a first for a national grocery chain, it’s becoming clear that meal kit options are becoming a baseline for grocery competitors across the board as they prepare to battle with the likes of Amazon and Walmart, Blue Apron and more.
Albertsons will offer Plated’s meal kits across hundreds of stores this yearSarah Perez@sarahintampa / Apr 6, 2018
The 4 Ways Amazon Has Changed Whole FoodsNatalie Walters, The Moteley Fool / Apr 25, 2018 at 8:02PMAmazon (NASDAQ:AMZN) CEO Jeff Bezos excited the company's 100 million Prime members last week by saying they could expect more benefits at Whole Foods in the future.Bezos' comments came in his annual letter to shareholders, sent on April 18. He wrote that the company had started "the technical work" needed to bring more perks to Prime members who shop at Whole Foods.Exciting changes have already rolled out since Amazon scooped up the grocer last June. Some benefits are for Prime members only, while others are available to everyone.
1. Amazon lowered prices at Whole Foods -- twice! 2. Amazon started free two-hour delivery from Whole Foods 3. Amazon displayed Alexa devices at Whole Foods4. Amazon offers pickup and return of its shipments at Whole Foods
6/11/2018Copyright Globe North, LLC 2018 All rights reserved.
12
Is this a Threat or an Opportunity?
• The Threat: Amazon plans to mine data of consumer grocery spending from Whole Food’s vast database. The goal is to cost-effectively and automatically deliver the foods you buy each week to your door. Supermarkets need a way to differentiate themselves or they will gradually go the way of the video stores and large department stores.
• The Opportunity: Many consumers will opt for an online buying service, but many will not. There will emerge even more convenient options that will be more appealing. Supermarkets need to understand how the “On Demand” generation will want to adapt to this changing marketplace.
The answer: Both
Digital Acuity is the ability to see both digital threats and opportunities.
But what does it really
mean to “go digital?”
Example: Banking Goes Digital
• Nearly 50% of WeChat’s billion users have now paid at a retail store using a QR code, while Alipay (with another 500 million users) is
seeking to bypass the phone entirely with its “pay with a smile” facial recognition system.
• According to 79% of bankers, collaborative robots (cobots) will be
working alongside humans in their banks within two years, and will
eventually be the first point of contact for most bank-customer
interactions.
• 70% of bankers say blockchain will become a critical technology
within the next three years. The distributed ledger technology can
also facilitate ‘plug and play’ architecture that can help banks decommission many legacy systems.
What's Next? 5 Technology Trends That Will Shape Retail And Commercial Banking
Alan McIntyre, Forbes April 30 2018
Is this a Threat or an Opportunity?
• The Threat: Worldwide banks are facing disruption from new vehicles for payment. We are rapidly ,moving to a card-less, cashless society. According to a recent survey from the Boston Consulting Group (BCG), profits among the world’s corporate banking institutions is significantly declining – but digitization could halt that trend.
• The Opportunity: In 2017, the top 3 U.S. banks controlled 32% of deposits, up
from 20% in 2007, and also took 50% of new account openings. Alternative lending firm Kabbage recently found that mobile lending is on the rise among small businesses, with a more than 360 percent increase in the number of SMB loans accessed via mobile device between April 2014 and February 2018. The answer: Both
Digital Agility is the ability to rapidly pivot to and scale new technologies.c
“The financial stakes are very high. Over the next five years, we expect 30 percent of traditional corporate banking revenues to be accessible solely through digital channels.”- BCG senior partner Dr. Carsten Baumgärtner
How do you make a
coherent “digital strategy” out of all this?
RPA
Machine Learning
Artificial Intelligence
Internet of Things
Web
Mobility
Apps
Data
VR/ AR
Cloud
Analytics
XaaS
Applications
NLP
Autonomics
Blockchain
HCI
“Banking has reached an inflection point with the merging of financial services and technology, or FinTech. But innovation can’t be fueled by technology alone. Our customers are crucial to the ideation and creation process, so we’ve included them since day one and are always looking for new and better ways to incorporate their insights as we design our digital products. This co-creation process is now at the heart of everything we do.”- Carey Kolaja, Global Chief Product Officer for Citi FinTech
Start with what isn’t changing - Customer
Customer
Experience
Design Thinking begins with the end user’s experience in mind.
Start with what isn’t changing - Process
“My top priority is to deliver a successful no- and low-touch experience, establishing digital as the one channel for the entire customer lifecycle. Eighty percent of our customers want digital access, which is why our highest priority for transformation this year is to create an even-better customer experience — one with more transparency and a streamlined purchase path.”- Bertram Schulte, Chief Digital Officer SAP
Lean
Design
Process is at the front end of Smart Automation.
Start with what isn’t changing - Culture
“First, foundation – what do we have to do to enable the technology platform
that supports change? Second, leadership – the skills, the innovation and
the culture that are required to get transformational change. And finally,
digital services – that’s service redesign and it’s about fundamentally shifting our core design principles, so we focus on user experience.”- Martyn Wallace, CDO Scottish Local Government Digital Office
Strategy•Anticipate digital threats
•Seize digital opportunities
Capability
•Adopt and scale new technologies.
•Partner to complement core digital capability
Culture•Hire/promote digital talent
•Encourage & incent constant innovation
Digital Acuity
Digital Agility
Digital Affinity
Digital Affinity is comfort with and aptitude for human / digital collaboration.
Digital
Transformation
Keyboard
Top 5 wrong turns on
the digital journey
5. Focusing on technology vs. people and process
4. Failure to develop critical internal competencies
3. Taking an a-strategic approach and expecting material impact
2. Believing the hype
1. Not believing the hype
Digital
Transformation
Cycle
Customer
Concept
CapabilityCompetency
Capacity
Successful Digital Transformation
continuously cycles, working out from
customer needs - imagining new capabilities,
experiences, services, and business models –developing and deploying them at scale.
From Customer Need to Concept
Learning
Insight
Capability
Personalization
Accuracy
Speed
Reach
Scale
Intelligent Automation
Analytics
Inte
rne
t of T
hin
gs
Blo
ckch
ain
Cloud
Big Data
Services / Apps / Roles
Mo
bility
Inte
rface
s
From Concept to Capacity
Key Decisions
• What problem to solve
• Which tools to employ
• Build, buy or partner
• How fast to go
Customer Experience
Current Process
Needs & Pain Points
Use Case
or Problem
Digital Enablers
Proof of Value
Customer Need
Capability
Operating
Model
Build /Buy Acquire
Business
Plan
Competency
Customer Value Required
Digital Capability Needed
Sourcing Model Preferred
Engage Stakeholders
Mobilize
Resources
Launch & Scale
Capcity
Deployment Approach Selected
Threat or Opportunity
Desired Outcome
Applications
Scripts
Workflow
API’sRPA
Cognitive
Machine Learning
NLP
Artificial Intelligence
Smart Process & Automation
• Value
• Strategy
• Enablement
Roadmap
• Opportunity
• Prioritization
• Assessment
Pipeline• Eliminate
• Simplify
• Automate
Results
• What we automate is a process.
• How we automate is a process.
• Deciding what to automate is a process.
•
Summary
• Digital transformation is sweeping through every industry, opening up remarkable new possibilities and posing existential challenges.
• Organizations must be acute in their market scans, sensing threats and agile in seizing opportunities.
• To make sense of the dynamic digital landscape, start with what’s not changing - the primacy of customer, process and culture.
• Digital transformation is not a journey to one place, it is a continuous cycling, bringing to bear new capabilities and creating new value.
• Smart Automation starts with a focus on process, leverages the right technology and provides the needed level of improvement within the required timeframe.
Copyright 2018 Globe North, LLC All rights reserved.
Globe North has decades of global experience
successfully leading:
• Enterprise Transformation
• Process and Automation
• Change Management
We help organizations zoom out, see the big
picture, capitalize on new technology and take
organization performance to the next level.
gregory.north@globenorth.com
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Continue the conversation:
Transformation is a journey...
you’re going to need a roadmap.