Digital DNA

Drive Your Business

Digital DNAUnraveling the mystery of the digital enterprise

2 ©2016 WGroup. ThinkWGroup.com

When we talk about digital DNA, we’re talking

about something more than the digital push taking

place in almost every industry. Just like the unique

qualities of every human being are defined by

their DNA, today’s businesses are set apart by

their ability to successfully integrate digital into

the very essense of their corporate makeup.

That transition isn’t easy to navigate. New

technologies and disruptive trends continue to

emerge, so adapting requires a clear understanding of

what processes will actually drive business outcomes.

This paper outlines five key components that make up

the framework of a strong digital enterprise, followed

by six strategies for an effective digital transformation.

Foreword

– Tony IoeleManaging Principal , WGroup

3 ©2016 WGroup. ThinkWGroup.com

IntroductionThe push to digital is a constant topic of discussion among today’s business leaders. But

the road map to digital is often confusing and unclear. What is the role of the CIO in the

digital enterprise? What about the IT team and the capabilities needed to infuse digital

into the DNA of the organization? These and many other questions must be answered

in order for an organization to become a modern digital enterprise. Understanding the

foundational building blocks of cutting edge IT and how to use them to drive business goals

is critical to maintaining a competitive advantage and truly becoming a digital business.

Achieving digital means enabling your innovation-minded people with the organizational

structure, governance, and technologies so that functional silos are removed and the

organization operates as one delivering unique and impactful customer experiences.

4 ©2016 WGroup. ThinkWGroup.com

The digital DNA componentsAs the breadth of new technologies being developed and disruptive trends increase

exponentially, it can be challenging for companies to understand these changes and

how to adapt to them. At the heart of an effective digital enterprise are several key

components that allow the company to leverage cutting-edge technologies and processes

to drive business outcomes. Understanding this framework and how to successfully

refine it to the needs of the company is key to achieving success in the digital era.

Systems ofengagement

Systems ofrecord

Systems ofinsight

Systems ofintelligence

Systems ofprotection

1. Systems of record

2. Systems of engagement

3. Systems of intelligence

4. Systems of insight

5. Systems of protection

The digital DNA components

are comprised of five systems:

The six strategies to a successful

digital transformation are:

1. People and organizational assessment

2. Develop a digital-transformation strategy and roadmap

3. Data management and governance

4. Relationship management

5. Engagement model with the business

6. Quality management

5 ©2016 WGroup. ThinkWGroup.com

The rise of information governance and MDM

As technology systems develop and IT

processes adapt to be more business-

focused, information governance

and master data management

(MDM) are becoming increasingly

important. Paper records are rapidly

becoming a thing of the distant

past, and companies are looking

for new ways to maintain and improve the accuracy and accessibility of their information.

Data holds all of the digital DNA components together, yet most organizations don’t invest

enough in master data management and data governance to allow the ecosystem of digital

systems to interact seamlessly. This means taking new, holistic approaches that seek to

address issues relating to compliance, organization, access, and retrieval. Implementing

a comprehensive information-governance program supplemented by MDM can help

ensure that the company’s systems of record are effective, accurate, and accessible.

A company’s systems of record include core business transaction systems, including ERP

systems (finance, HR, payroll, CRM, materials management, inventory, supply chain, and

distribution) and record-keeping systems (financial services, healthcare, and all insurance

verticals). These systems of record maintain and provide access to the key information

businesses need for compliance, accounting, supply chains, and strategic planning.

Because the data maintained on systems of record can be extremely sensitive and

valuable, transitions to new technologies require care. Changes are often complex

and time intensive. Business leaders should be cautious when implementing new

systems of record to ensure that they will deliver the level of accuracy necessary.

The release cycles for most companies will usually not exceed three a year.

Systems of record

How fast these systems can change:

6 ©2016 WGroup. ThinkWGroup.com

Web and mobile applications facilitate interactions by allowing companies to quickly and easily

reach out to customers and communicate internally. Recent statistics show that more than 10

apps are downloaded each year for every human being on the planet.1 Apps such as Uber have

already disrupted countless industries, while new technologies

and innovations are likely to disrupt many more.

Similarly, SaaS applications have revolutionized sharing and collaborating internally and

with partners worldwide. This makes it easier for companies to expand into new markets

and source better talent, while still maintaining close, constant contact across offices.

1 http://www.statista.com/topics/1002/mobile-app-usage/

Systems of engagement

Whether they are customers, employees, or partners, human beings are the driving force of

every company. Systems of engagement are the interface between technology and humanity,

connecting your team with business leaders, colleagues, and customers worldwide. Systems

of engagement include mobile applications, SaaS tools, wearables and a wide range of

other new technologies that have allowed businesses to engage more effectively.

Systems of engagement can change

much more rapidly than systems of

record. Companies can easily add

functionality because most of the systems

rely on web or micro services, allowing

companies to deliver new capabilities

in as little as two or three weeks.

Cloud and mobility

How fast these systems can change:

7 ©2016 WGroup. ThinkWGroup.com

Automation and cognitive computing

Automation is a human-productivity multiplier.

It takes many of the time-consuming,

repetitive, and error-prone tasks traditionally

done by human workers, and allows them

to be done faster and more accurately by

machines. This includes simple customer

service interactions, the basic assembly of

manufactured goods, and the automatic

repair of IT systems and services. This

list will only continue to grow in coming

years, as a greater number of tasks are

able to be done by computers more

accurately and with greater efficiency.

Systems of intelligence

At the cutting edge of digital technology

are systems of intelligence. These

systems include the automation, cognitive

computing, smart sensors, and cloud

solutions that allow companies to drive

efficiencies, predictability, and accuracy

across the enterprise. They represent

some of the most exciting and potentially

disruptive changes in the digital enterprise,

but they are also the least developed.

IoT

Systems of intelligence often extend into the

realm of IoT (Internet of Things), collecting,

analyzing, and acting on information and

interactions that devices have in the real

world. This can have significant implications

Although automation and cognitive computing

are relatively nascent technologies, they can

provide value to companies today. However, it

is important for the organization to be mindful

of how implementing automation technology

will impact the company, its customers,

and its employees. It is often necessary to

gradually shift employees away from smaller

tasks such as IT tickets, with automation

tools acting as a supplement to the human

worker, rather than a replacement. As these

systems become more robust, it is likely that

they will continue to allow companies to make

greater improvements to their efficiency,

customer service, and profitability, as well

as provide an alternative for outsourcing.

How fast these systems can change:

for business, as companies can develop

new business models and improve existing

ones through more effective manufacturing,

monitoring, and customer interactions.

8 ©2016 WGroup. ThinkWGroup.com

Business intelligence and analytics

Having the right information at the

right time is one of the most important

elements of effective business. However,

it is important to remember that it’s not

enough simply to collect data. The key

to powerful business intelligence is

collecting the right data and extracting

the most value from it. New technologies

have made it easier to collect

massive amounts of data, but data analysis has been relatively slow to catch up. With

new innovations and better insight strategy, companies can more easily locate the

most valuable insights and more effectively use them to drive business goals.

Systems of insight

Systems of Insight are the tools companies need to better understand customers,

optimize their operating model, and gain a competitive advantage. IoT smart

sensors and applications collect data, while effective business intelligence and

analytics allow companies to make better, more informed decisions.

Data lakes

Data lakes provide organization-wide data management built to allow users to manipulate and

analyze data across many formats and applications. This brings the power of Big Data into

more areas of the company, potentially helping to improve efficiency and productivity across the

enterprise. However, just because data lakes allow for easier access to data doesn’t mean that

everyone within the company will have the motive or know-how to use them. This is an area in

which it’s critical to ensure the required talent and training is in place before implementation.

IoT

Network connected devices also can play a significant role in a company’s insight infrastructure.

By collecting real world data in areas like manufacturing lines, vehicles, and storefronts,

companies can increase efficiency, reduce problems, and better meet customers’ needs.

9 ©2016 WGroup. ThinkWGroup.com

Systems of protection

As a company undergoes a digital transformation, it becomes increasingly important that its

digital assets be well-protected. Hiring key talent and investing in robust systems of protection

is critical to avoiding breaches, downtime, or other damaging problems. Companies are

being built on digital systems and cannot afford to have their very foundation exposed.

Proactive & defensive information security

Information security is one of the most critical elements of a risk-management

strategy. Most companies are content to simply implement defensive information

security systems. These might include firewalls, anti-virus software, and staff on

hand to respond to breaches. However,

for the digital enterprise, this is simply not

enough. Companies should be proactive

in their efforts to improve the security

of their IT systems. This means hiring

third parties to conduct full penetration

testing, engaging with industry groups

to identify and respond to threats, and

building more robust systems of security.

Risk management

A company’s information

security efforts should only be part of a broader risk-management strategy.

This includes implementing systems of data backup, having offsite workplaces,

and other solutions to mitigate the overall risk to their IT systems.

10 ©2016 WGroup. ThinkWGroup.com

Digital transformation isn’t just about new

technology; it’s about re-envisioning the organization

as a whole. That means ensuring that the workforce

is up to the task of making digital an integral

part of their work life and using it to improve the

business on a day-to-day basis. This doesn’t just

include the IT department, but every single worker

in the company. Business leaders must engage

with their team and help them build the skill set

necessary to succeed in the digital enterprise.

Six Steps to a Successful Digital Transformation

People and organizational assessment1

Identify deficiencies

Does the team have a product mindset and are they exceptional at collaboration,

communication, problem solving, learning and troubleshooting? The most effective digital

workers understand technology, how it can be used to improve the business, and are

comfortable working and learning with it every day. Attempt to find areas in which team

members may be lacking, and use that information to build a strategy going forward.

Train and hire

If there are areas in which the workforce is lacking, it may be necessary to make

adjustments. This might include investing the necessary resources to equip staff with

the skills required to harness the digital transformation. It may also require hiring new

professionals to implement and execute the digital-transformation strategy.

11 ©2016 WGroup. ThinkWGroup.com

Develop a digital-transformation strategy and roadmap

2

Undergoing digital transformation requires careful planning and deliberate execution. It is important

for business leaders to be aware of both the potential opportunities and risks of implementing

the strategy. This involves working with key stakeholders in the company, both on the IT and

business sides, to develop a plan that meets the needs of the entire organization and end users.

An effective digital-transformation strategy:

• Considers the business opportunities and aligns to the business strategic plan

• Educates and communicates the changes required of all stakeholders

• Pilots automation and cognitive solutions with clear success metrics

• Aligns ITSM processes to account for multi-speed IT

12 ©2016 WGroup. ThinkWGroup.com

3

Data is the fabric that binds the components of digital DNA together, and good data governance

is one of the core tenets of an effective digital enterprise. This should include the specification

of decision rights and an accountability framework to encourage desirable behavior in the

valuation, creation, storage, use, archiving, and deletion of

data and information. It should also include the processes,

roles, standards, and metrics that ensure the effective

and efficient use of data and information in enabling an

organization to achieve its goals. This provides a solid

foundation on which to build a digital enterprise that uses

data to make it more efficient, profitable, and competitive.

Data management and governance

4As third-party services rapidly become more important and zero-footprint IT becomes a

reality, relationships become increasingly important to the digital enterprise. Relationship

management spans IT, vendors, and customers; it forms the foundation of effective long-lasting

partnerships. It’s critical that business leaders set clear expectations for those they work with

and maintain complete transparency. That means holding vendors accountable to their SLAs

and ensuring that they are actually meeting the real needs of the business and the end users.

Relationship management

13 ©2016 WGroup. ThinkWGroup.com

5

Digital DNA must be an integral part of the business and should be fully engaged with

it. The digital enterprise must have technology embedded in the lines of business

with a reporting structure both to the business head and the CIO. This ensures

accountability and that the core focus is always on driving business goals.

Engagement model with the business

Establish product owners

Each piece of the Digital DNA – including systems of

insight, intelligence, engagement, protection, and record

– must have a designated product owner. These product

owners are accountable for both the outcomes and

capabilities of their respective components. This is a very

different way of thinking about traditional IT. Outcomes

and capabilities foster a mindset of value – value to the

business, customers, partners and shareholders.

6The digital enterprise is complicated and multifaceted. It is extremely important that the

business leaders take steps to ensure every component is working properly and delivering

the expected business results. This means conducting end-to-end testing as part of doing

business. Each digital DNA component will be moving at a different velocity, and ensuring all

the components work properly needs to become a core part of the company’s mission.

Quality management

14 ©2016 WGroup. ThinkWGroup.com

In summaryDigital transformation reinvents the organization by implementing wide-ranging processes

and technologies that can improve performance and drive business goals. But going digital

isn’t just about physical technology; it’s about the people and processes that use that

technology on a daily basis. Building a strong digital enterprise means fundamental changes

to the way the business operates, including implementing good systems of governance,

training, and staying abreast of new developments. The digital enterprise is dynamic and

constantly adapting to changing technology and trends. Building a team, infrastructure, and

technology portfolio that are product-focused and adaptable is key to future success.

15 ©2016 WGroup. ThinkWGroup.com

Tony Ioele has 30 years of experience across the Information Technology disciplines

with demonstrated ability to transform business opportunities resulting in a competitive

advantage, increased customer satisfaction and positive financial impact for his customers.

Tony is a senior leader with a unique blend of strategy, technology, security, risk, finance,

personnel, operations, business and process management skills and experiences.

Tony is known for his astute sourcing and vendor stewardship as well as his broad knowledge

and experience in the areas of enterprise architecture, ITIL process management, COBIT/

SOX controls creation and enforcement, technical services delivery, customer services delivery,

application development and delivery, infrastructure services and security and risk management.

Tony holds a BS from East Stroudsburg University of PA and a Masters

Certificate, Applied Project Management from Villanova.

See more at Tony’s LinkedIn profile

About the Author

Tony Ioele, Managing Principal

Drive Your Business

Founded in 1995, WGroup is a technology management consulting firm that provides Strategy,

Management and Execution Services to optimize business performance, minimize cost and create

value. Our consultants have years of experience both as industry executives and trusted advisors

to help clients think through complicated and pressing challenges to drive their business forward.

Visit us at www.thinkwgroup.com or give us a call at (610) 854-2700 to learn how we can help you.

150 N Radnor Chester Road Radnor, PA 19087

610-854-2700

ThinkWGroup.com