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IBM Systems Consulting
Digital Transformation Strategy
Stefan Idzig
IBM SloveniaThessaloniki, 07.04.17
© 2017 IBM Corporation 2
The Agenda
The emerging challenges of Digital Transformation
The Digital Transformation Strategy
Digital Transformation Technologies and Capabilities
Success Stories
Key Value Proposition & Next Steps
IBM Systems | 3
of CEOs feel technological disruption
is making them reassess strategic
direction
“We see the business models changing as a result of the
creative use of new technologies.”
-Eelco Blok, CEO, KPN, Netherlands1
of global business leaders say that a
substantial part of their revenue is at
risk from technology shifts252%
67%
Technology is the most important
external influence among the C-Suite
today
Source: 1) IBM Institute for Business Value, Redefining Competition, Insights from the Global C-suite Study – The CEO Perspective, 2015Source: 2) Harvard Business Review Analytic Services, The Ecosystem Equation: Competing in the Connected Economy, 2016
© 2017 IBM Corporation 4
New technologies are here to stay and companies are
solid in their investments
IBM Institute for Business Value Study - Thinking out of the toolbox – Digital Operations Revolution Q10. How important are the following technology trends to your company’s business strategy?Q13/Q15. Which of the following digital operations initiatives have received the greatest level of investment over the past 3 years? Next 3 years? Select up to 3.
Investment levels reflect early stage of maturity curve
Foundational technologies are
still being put in place. Cloud,
Big Data, and IoT are top areas
of investment—both yesterday
and tomorrow.
Drones, location technologies,
and robotics are still in early
days.
High performers are more likely
to have invested in Big Data
over the past three years.
Among the top three areas of
investment, Healthcare is most
likely to have invested heavily
in cloud (63%), Industrial in Big
Data (51%), and Consumer
Products in IoT (45%) over the
past three years.
Big Data has been a top
investment in APAC (53%). Select up to 3 for each time period
Cloud
BD&A
IoT
Mobile
Social
M2M
Cognitive
Additive
Drones
Location
Robotics
Investment levels reflect early stage of maturity curve
Foundational technologies are
still being put in place. Cloud,
Big Data, and IoT are top areas
of investment—both yesterday
and tomorrow.
Drones, location technologies,
and robotics are still in early
days.
High performers are more likely
to have invested in Big Data
over the past three years.
Among the top three areas of
investment, Healthcare is most
likely to have invested heavily
in cloud (63%), Industrial in Big
Data (51%), and Consumer
Products in IoT (45%) over the
past three years.
Big Data has been a top
investment in APAC (53%). Select up to 3 for each time period
Top investmentsTop technology trends
Big Data and Analytics
Location technologies (RFID)
Cognitive computing
Collaboration & social technologies
Machine-to-Machine connectivity
Cloud computing
Mobile technologies & applications
Internet of Things
Drones
Additive manufacturing (3D printing)
Robotics
34%
34%
30%
28%
27%
20%
22%
19%
16%
5%
“Highly important responses”
First Tier
Second Tier
Third Tier
35%
© 2017 IBM Corporation 5
Digital Transformation business initiatives center on
innovation and growth
IBM Institute for Business Value Study - Thinking out of the toolbox – Digital Operations Revolution Q9. Which business initiatives do you expect to be of greatest importance to your firm over the next three years?
Increasing innovation, entering new markets and customer responsiveness – all growth stories – are top-ranked business initiatives
for the coming years
© 2017 IBM Corporation 6
Some industries are leaping ahead, while others
consternateDigital transformation industry maturity at a glance
IBM Institute for Business Value Study - Thinking out of the toolbox – Digital Operations Revolution Q10. How important are the following technology trends to your company’s business strategy?Q17. How mature are your applications of digital operations in the following areas today?
© 2017 IBM Corporation 7
Business leaders are turning to IT to capitalize on
revenue disruption, but is IT ready?
Source: 1) IDC CIO Sentiment Survey, 2015
Perception of the IT Infrastructure Executive1
What I Really DoWhat LOB Leaders Require Me to Do
Innovator 41%
Operator 28%
Innovator 25%
Operator 41%
© 2017 IBM Corporation 8
The Agenda
The emerging challenges of Digital Transformation
The Digital Transformation Strategy
Digital Transformation Technologies and Capabilities
Success Stories
Key Value Proposition & Next Steps
© 2017 IBM Corporation 9
What is Digital Transformation?
Leadership capabilities
Digital capabilities
Customer experience
Operational processes
New business models
© 2017 IBM Corporation 10
The Digital Transformation Strategy Engagement
considers a Hybrid IT approach that supports the current
and future business missions
Social
Cloud Enabled
Analytics
Mobile
Enterprise IT
Fundamentals
Optimized Systems
Service Predictability
DevOps
Business Objectives and Imperatives
© 2017 IBM Corporation 11
What is the best way to develop an effective Digital
Transformation Strategy?
Identify and understand key business risks and opportunities presented by digital
technologies, industry trends and competitive disintermediation risks
Understand key business priorities and initiatives
Identify and confirm key strategic digital transformation initiatives
Define measureable success factors for chosen digital transformation initiatives
Assess strategic intent and commitment from business to address/exploit digital
transformation opportunities
Identify, confirm and assess current and future state requirements for IT, people
and process to achieve strategic digital transformation initiatives
Perform current-future state gap analysis identifying and prioritizing key actions
and initiatives needed to close exposures
Develop and manage to a structured roadmap of execution to manage digital
transformation
© 2017 IBM Corporation 12
Digital Transformation Strategy Structure and Timeline
12
1 week
Finalize workshop
logistics and timeline
Complete IT
environment
questionnaire
Complete Business
Objectives
questionnaire
Complete IT provider
relationship survey
Collect and analyze
discovery documents
Conduct an
engagement kick-off
with client IT leadership
team
Review workshop
objectives, approach
and timeline
Distribute discovery
documents to the client;
including
− IT environment
questionnaire
−Business objectives
survey
−IT provider relationship
survey
Plan workshop date
Begin planning
workshop logistics
Analyze workshop
outcome and IT
department direction
Produce project
recommendations
based on
observations and
analyzed data
Create an IT
roadmap for
improvements
based on IT
capabilities needed
for transformation
Produce an
executive-level
report
Present report to
client IT leadership
team
Determine
immediate next
steps
Elevate Prepare Assess Recommend
1 day 2 hrs +1 day 1 week
Week 1 Week 1 Week 2 Week 3 Week 3 or 4
Analyze
Client responsibilities are highlighted in red
Conduct workshop
with client IT
leadership team
− Provide IBM thought
leadership on digital
transformation
− Review business’
objectives and
imperatives
− Discuss IT implications
of business’ imperatives
− Conduct IT Capability
Assessment
− Prioritize projects that
will close any IT
capability gaps
© 2017 IBM Corporation 13
Key elements within Digital Transformation Strategy –
Business Understanding, Alignment and Assessment
Direction
Business Objectives Questionnaire
IT Provider Relationship Model
IT Environment Questionnaire
© 2017 IBM Corporation 14
Digital Transformation Strategy – Readiness & Maturity
© 2017 IBM Corporation 15
Digital Transformation Strategy Roadmap
Workshop information is
synthesized into a sequenced
set of executable projects that
form an 18 – 24 month
roadmap
The consultant will highlight
project dependencies
All projects will be clearly
cross-referenced to the
business’ digital
transformation objectives and
imperatives
Projects will be summarized
in a single-page view of the IT
transformation vision
The final report will include an
executive summary that the
CIO can use in discussion
© 2017 IBM Corporation 16
The Agenda
The emerging challenges of Digital Transformation
The Digital Transformation Strategy
Digital Technologies and Capabilities
Success Stories
Key Value Proposition & Next Steps
© 2017 IBM Corporation 17
Hybrid Cloud – Cloud orchestration
© 2017 IBM Corporation 18
IBM Watson IOT Platform edge analytics general
architecture
© 2017 IBM Corporation 19
IBM Watson Cognitive Rental Car Service
© 2017 IBM Corporation 20
The Agenda
The emerging challenges of Digital Transformation
The Digital Transformation Strategy
Digital Technologies and Capabilities
Success Stories
Key Value Proposition & Next Steps
© 2017 IBM Corporation 21
A DTS engagement provides executive-level IT insights in
a business context, identifying projects for early action
Cloud Readiness example
Deliverables
Workload Analysis Possible Alternate Solution Options
TCO Analysis for Possible Options
Identifying the best solution
Recommended Architecture
© 2017 IBM Corporation 22
Digital Transformation Strategy Values –
Optimized Systems Example
© 2017 IBM Corporation 23
Digital Transformation Strategy Values - ExampleBank in SEE The Bank, all through its history of business operation, has held leading positions
within the country's banking industry in rendering export and import payment services and financing foreign trade transactions
Client Needs
Client created Business Strategy for 2016-2020
IT was requested to create IT Strategy aligned with Business Strategy
BU Leader (Audit) requested assessment from E&Y to create an understanding
where IT is
The Bank was chosen as a “Innovation Sandbox”.
Fragments from Business Strategy
Reach new level of Business-IT relationship model
Change IT service management from traditional model to new business oriented
model
Improvements in IT resources and capacity management
Development process standardization and unification
Consider different sourcing models
© 2017 IBM Corporation 24
The Agenda
The emerging challenges of Digital Transformation
The Digital Transformation Strategy
Digital Technologies and Capabilities
Success Stories
Key Value Proposition & Next Steps
© 2017 IBM Corporation 25
Digital Transformation Strategy Values
The Digital Transformation Strategy helps clients align their IT goals and objectives
with the emerging trends of global business transformation
Delivers a fact-based approach to developing an IT department better able to
support future business workloads
Identifies and prioritizes wider IT changes required for ongoing IT value and
effectiveness
A manageable set of targeted IT infrastructure improvement projects, optimizing
use of IT resources
Improved efficiency and effectiveness of IT resources
© 2017 IBM Corporation 26
Digital Transformation Strategy Values – Example: How
was DTS delivered
• Our message to client: we will help you in assessment of your readiness for the
transformation and will provide recommendations how to increase your maturity level
• We received and processed preliminary information about business strategy and IT
technologies and processes in the company
• We arrange first meeting with business people to discuss companies business strategy
• We delivered two-days workshop where we assessed business-IT relationship model,
projects portfolio, IT domains (Enterprise, Applications, Infrastructure, IT Service
Management, some Analytics and Cloud)
• We had separate discussion with Innovations Department
• We were closely working with IT managers to create final report
© 2017 IBM Corporation 27
Digital Transformation Strategy Values –
Example: Project results
• We created 2 presentations with results – for Business and for IT – and document with
report
• CIO delivered our outcomes and recommendations to the Board of Directors
• The major result in report was project “roadmap” recommended for consideration
• Based on the project roadmap we created prioritized list of projects
© 2017 IBM Corporation 28
IBM Systems Consulting
It is an integral part of IBM Systems Lab Services
Our mission:
• helps clients solve IT issues by engaging early and creating actionable plans
• helping clients successfully plan, build and operate an efficient, highly available IT infrastructure
© 2017 IBM Corporation 29
Performance works together with IBM Consulting Team to help IT
Leaders plan, design and implement infrastructure to accelerate the
Digital Transformation in a Cognitive Era
Helping Clients understand how to deploy their IT infrastructure to maximize business
outcomes.
Having proven expertise that is derived from a combination of business and extensive
practical technical experience, leveraging proven tools and methodologies.
Exploiting the true value of the IBM assets and defining solutions to help reach business
and IT goals and deliver business value.
Helping Clients solve their IT issues by engaging early in their planning cycle, facilitating
the creation of actionable plans with business and IT executive stakeholders
Working with Clients to plan, build, and operate an efficient, highly available IT
infrastructure that can meet current and emerging workloads
© 2016 IBM Corporation 30
Next Steps for Digital Transformation
Strategy