Digital Transformation: What to Cultivate and What to let go!
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Transcript of Digital Transformation: What to Cultivate and What to let go!
A Digital Transformation Journey
Sriram Sabesan
Summer Conference Ottawa 2017
7/24/2017 1
About
7/24/2017 2
• Sriram Sabesan• Partner, Conexiam• [email protected]• 20+ years in Consulting
• Active in improving architecture profession
• Active in Open Group• Board of The Open Group
• Open CA Certification Board
• Architecture and Open Platform 3.0TM
Forum
• Shares knowledge openly• Whitepapers
• Webinars
• Training
• IEEE• Digital Transformation • IASA
Conexiam
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Management consulting company
• Uses an enterprise architecture approach
• Operates in North America, Europe& the Middle East
Two core services
• Develops client’s EA teams
• Delivers Enterprise Architecture
Contributing thought leaders
The Open Group
IT4IT™ Forum, Digital Transformation, Architecture Forum, Cloud Forum, Real-time Forum, Platform 3 Forum, Security Forum
The SABSA Institute
Public commentary
Agenda
My Journey to the Great Reveal
The Seven Levers
Cultivating the Mindset
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Most Common View!
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This Mattered!Lack of good understanding is bad for business
Simplify and Guide is our motto!
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Phase 1: Austin ‘16
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Assessment
Validation
Value Realization
Portfolio Manager
Enterprise Architect
View Slides here
Phase 2: San Francisco ‘17
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Engagement
Revenue
Delivery Acceleration
Enterprise Architect
Product Owner
View Slides here
What Gave us a Pause?
Reception and Conversation made us think more!
Blurry Big Picture!
Who is the right Audience?
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The Back Story
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Meet Meena – the Quantifier
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Work
Owns RFID manufacturing Company
Home
Time is of essence!
Personal
Stay Fit!
Meet Sukhi – a Kindred Spirit
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Solving similar Customer Challenges
Significance of Enterprise Boundary
Cyber-Physical Continuum
Meet Tom – the Customer who wants to be known
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Hi Amy, I will take the “Usual” today!
Usual = Knowing
past orderShipment
Billingpayment
signature preference!
20+ Touchpoints
5 Processes
80+ Applications
4 Data Centers
Sales Fulfillment Billing Logistics
The a-ha Moment
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CxO
From Value Chain to Value Networks!
Surface to CoreEnd to End
The Whole Board – Seven Levers!
• Strategy, Not
Technology is key to
Digital Transformation
• Objective & Periodic
validation of directional
correctness
• Duh! Of course it takes
a village. Culture
eats…Risk EthicsSecurity
Not This – Do That
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Business Process ManagementNOT THIS
“I love the new app that allows to scan the items in the cart and pay for them digitally. But my appreciation for their foray into digital transformation faded very quickly when I had to return something. The electronic receipt did not suffice. I needed my physical membership card and my physical credit card to get it done!” – Ajith K
Digital transformation is looking beyond shiny apps and websites.
We need to re-architect the business processes
to empower our customers to self-direct
their experiences.
Avoid brick-walls and dead ends that jolts them to unexpected physical interactions.
Business Process ManagementDO THAT
Vehicle History Reporting Company Connected Business processes
Rooted in a single question:
How can my service become indispensable for the dealer?
The answer requires various function to work together, connect processes and correlate to derive intelligence.
Business Process ManagementTHE TAKEAWAY
Instrument for intelligence on outcomes you enable
Think impact to cycle times, agility, ease of use
Customer Experience and Engagement NOT THIS
The Booking appears to have been completed elsewhere than on < .com> with either a travel agent or another location
Don’t throw a tantrum that spells, “ If not from my website I will make your experience poor”
Ditch the short sighted view - Broaden your
perspective!
Trade Global for International!
Customer Experience and Engagement DO THAT
An airline designing seamless experience
Engage at the customer’s touchpoint
• Engage at the customer’s touchpoint
• Fold their needs and progress into your value proposition
Picture Credit : KLM Airline blog
Customer Experience and Engagement THE TAKEAWAY
Focus on customer and employee Progress
Prioritize Emotional Engagement
Product and Services
NOT THIS DO THAT
Comfort in market share of
current product!
Over Experimentation
Improving productivity
Ease of Upgrade
Offer adjacent services
Product and ServicesTHE TAKEAWAY
Focus on customer outcomes and empowerment
Proactive, Predictive and Personalized services
IT is the root cause of…
NOT THIS DO THAT
Failed Projects
Need Citizen IT
Using for Competitive
Advantage
Analytics Engine
IT/OT bridge
Information TechnologyTHE TAKEAWAY
Learning tool & Culture enabler
Runtime efficiency conscious
Organization Culture
NOT THIS DO THAT
Overwhelmed by Data
Revisit every Decision /
Consensus Driven
Organizational CultureTHE TAKEAWAY
Purpose driven – not pressure driven
Playing for the long game – be comfortable with data
Strategy
NOT THIS DO THAT
Boxed and Controlled
Comfort in Tag line
StrategyTHE TAKEAWAY
Staying true to the Core configurations
Why are we in the business in the first place
Ecosystem
NOT THIS DO THAT
Viewing as Supplier, Creator or
Distributor
Recognizing multi-sided market
Position in Value Network
Think of Adjacent Services
EcosystemTHE TAKEAWAY
Value Network
Multi-sided marketplace
Risk, Security & Ethics
• After hiring risk officers, financial institutions are taking more risks
• Economic gain vs Building Trust!
• Human dilemma experiments & the law!
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Risk, Security & EthicsTHE TAKEAWAY
Risk & Security• Asset Model driving threat model
• Trust over failure
EthicsAdaptive moral compassCompanies need to establish a moral compass
They need a transparent adaptive process to evolve
Impact of Half-Measures!
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Cultivating the practice and letting go!Remember Yoga attitude and Yoga Practice
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What is Digital Transformation?
Digital Transformation is fundamentally a strategy and an operation model, wherein, technological advancements are leveraged to improve the human experiences, operating efficiencies and to evolve the products and services that customers will remain loyal to.
It is the consequence of (a) the ability to handle information in the digital form and (b) using digital technologies to manage the process of creating, capturing and analyzing information to deliver perceptive human-machine interaction experience. There is lot that needs to happen to pull this off.
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Q&A
7/24/2017 38Sketch & Picture Credits: Shreyas, Vidhya, Bing Search Creative Commons
What to Pursue? Lever Aspects AddressedBusiness Process Transformation (BPT)
Right balance of process discipline and instrumentation, phased rolling-in of all parts of the enterprise to build intelligent insights.
Using the same concepts of productivity and efficiency to understand customer behavior and interaction patterns.
Building processes that matches customer and partner touchpoints.
Customer Engagement and Experience (CEX)
Experience is the emotion one feels about how they perceive, the product or service has fulfilled their expectations. It is subjective, ephemeral and qualitative making it hard to measure.
Engagement is the behavior demonstrated by the interactions across touchpoints. It is intentional, measurable and quantitative. A touchpoint is where a human or a system and the enterprise interact.
Correlate insights from business processes to deliver products or services that delights the customers, driving continually increasing revenue.
Product or Service Digitization Creating products or services that is focused on the outcomes the customer wants. It may involve the use of digitization and/ordigital twins to promote effectiveness in the usage of the product or service.
IT and Delivery Transformation Applying the same business process optimization, interaction insights and customer experience driven product development to IT operations of the enterprise. Arriving at consistent agility across IT and other functional areas of the enterprise that is in-sync with the market expectations.
Organizational Culture Achieving transparency in decision making, informed by data; continuously learning to optimize the product and service portfolio; focused on sustainability over cost optimization.
Strategy Choosing unique configurations of the value chain and making decisions to maximize the benefit from employment of concurrent technologies. A deliberate choice to employ the levers mentioned for the benefit of the enterprise.
Ecosystem and Business Model Building and collectively growing the share of customer wallet with partners.
Cultivating a thoughtful approach to attract and retain partnerships that virtuously impacts the brand.
Drives laser clarity about core business focus of each player in the ecosystem.
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References
1. Digital Design of Organizations: MIT CISR: http://cisr.mit.edu/blog/documents/2016/04/21/2016_0401_digitaldesign_rosssebastianbeath.pdf/2. http://cisr.mit.edu/blog/documents/2016/03/10/mit_cisrwp406_designingdigitalorganzations_rosssebastianbeathscantleburymockerfonstadkaganmoloneykrusellbcg.pdf/3. http://sloanreview.mit.edu/article/the-nine-elements-of-digital-transformation/4. http://sloanreview.mit.edu/projects/strategy-drives-digital-transformation/5. https://www.accenture.com/us-en/blogs/blogs-digital-what-is-digital-strategy6. http://reports.weforum.org/digital-transformation/wp-content/blogs.dir/94/mp/files/pages/files/digital-enterprise-narrative-final-january-2016.pdf7. http://www.oracle.com/us/industries/financial-services/efma-digital-transformation-wp-2904165.pdf8. http://www.mindtree.com/sites/default/files/mindtree-thought-posts-white-paper-dynamics-of-digital-transformation.pdf9. https://www.pega.com/insights/articles/top-6-success-factors-digital-transformation-part-1-2 and https://www.pega.com/insights/articles/top-6-success-factors-digital-transformation-part-2-210. http://www.docurated.com/transformation/digital-transformation-blogs-cios11. https://discover.cisco.com/en/us/digital-business/whitepaper/transformation12. http://merage.uci.edu/ResearchAndCenters/CDT/Default.aspx13. http://resources.idgenterprise.com/original/AST-0163997_Gartner_Reprint-Gartner_EA_Tools.pdf (EA tools to integrate with PPM, APM, GRC, IT Fin Mgmt)14. http://www.mckinsey.com/business-functions/organization/our-insights/six-building-blocks-for-creating-a-high-performing-digital-enterprise15. http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/raising-your-digital-quotient16. http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/strategic-principles-for-competing-in-the-digital-age17. Jane McConnell. "The Company Cultures That Help (or Hinder) Digital Transformation". Hbr.org. Retrieved 2017-01-12.18. Rhys Grossman. "The Industries That Are Being Disrupted the Most by Digital". Hbr.org. Retrieved 2017-01-12.19. Digital Transformation: A Roadmap for Billion-Dollar Organization (PDF) (Report). Capgemini Consulting. 2011.20. Jim Lecinski, ZMOT: Winning the Zero Moment of Truth (Google, 2011)21. https://hbr.org/2016/09/know-your-customers-jobs-to-be-done22. http://www.90percentofeverything.com/2009/10/20/just-add-an-egg-usability-user-experience-and-dramaturgy23. https://hbr.org/2016/08/the-30-things-customers-really-value24. http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/how-enterprise-architects-can-help-ensure-success-with-digital-transformations#0 25. Digital Transformation: Strategy to Implementation using Open Group Standards, January 2017, published by the Open Group; refer to: www2.opengroup.org/ogsys/catalog/W17026. First, Break all the Rules! Marcus Buckingham, Curt Coffman, Gallup Press, 199927. How Company Culture Shapes Employee Motivation, HBR, Nov 2015