IT Strategy - Digital Masters

7/25/2019 IT Strategy - Digital Masters

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IT Strategy

Assignment

Digital MastersBy

Nishant Dey Purkayastha

PGP/18/153


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Table of Contents

1. Who/What are Digital Masters?....................................1

2. Four Levels of Digital Mastery......................................2

3. How to Become a Digital Master?.................................

3.1 Frami!g the Digital "halle!ge..................................

3.2 Focusi!g #!vestme!t................................................

3.3 Mo$ili%i!g the &rga!i%atio!......................................'

3. (ustai!i!g the Digital )ra!sformatio!......................*

. Digital Mastery at Microsoft..........................................+

'. Digital Mastery at #!fosys...........................................1,

*. "o!clusio!..................................................................12


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1. Who/What are Digital Masters?Digital Masters are companies that use digital technologies to drive significantly higher levels of

profit productivity and performance!

"s per research digital Masters generate # percent more revenue $ith their e%isting physical

capacity and drive more efficiency in their e%isting products and processes! "lso masters are &'

percent more profita(le than their average industry competitors!

)o succeed in digital transformation *+,s and other (usiness leaders must thro$ out the old +)

cost center management style and instead they must focus on using digital technologies and ne$

operational processes and infrastructures to improve the customer e%perience handle governance

and more!

Digital mastery is a com(ination of t$o separate (ut related dimensions !)he first digital

capa(ilities is investment in technology-ena(led initiatives to change ho$ the company operates!

.irms maturing in the second dimension leadership capa(ilities are creating the right conditions

to drive digital transformation throughout the organi ation! 0eadership capa(ilities include the

vision to shape a ne$ future governance and engagement to steer the course and +)/(usiness

relationships to implement technology (ased change!

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2. Four Levels of Digital MasteryDigital Masters represent

e%cellence on (oth digital and

leadership dimensions!

eginners are 2ust at the start of

the digital 2ourney! "s a result

eginners have only (asic

digital capa(ilities! "nd they lag

(ehind their competitors on

multiple measure of financial

performance! .ashionistas are

not $aiting to act! )hey (uy every ne$ digital (au(le! o$ever (ecause they lack strong digital

leadership and governance they $aste much of $hat they spend! ,r they find that they need to

reverse $hat they4ve done so that they can integrate and scale their capa(ilities! "lthough

*onservatives have useful digital leadership capa(ilities e%cess prudence prevents these firms

from (uilding strong digital capa(ilities! )his caution can (e useful (ut it can also create a

governance trap that focuses more on controls and rules than making progress! y focusing on

control and certainty *onservatives find it hard to mo(ili e top management and the rest of the

organi ation to see the (igger pri e that digital transformation can (ring! Digital Masters have

overcome the difficulties that challenge their competitors! )hey kno$ ho$ and $here to invest

and their leaders are committed to guiding the company po$erfully into the digital future! )hey

are already e%ploiting their digital advantage to (uild superior competitive positions in their

industries!

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Digital transformation is moving more rapidly in some industries than in others! *ompanies in the

travel and music industries $ere hit early (y threats from digital competition and have already

undergone profound transformation (ut still have more challenges to face! +ndustries such as

financial services and retail under$ent ma2or transformation due to electronic commerce in the

&666s and are no$ starting to innovate $ith technologies such as social media mo(ility and

analytics! ,ther industries ho$ever have yet to (e hit hard (y fast-changing technologies!

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3. How to Become a Digital Master?)he road to digital mastery can (e (roken do$n into four (road stages $ith each stage having a

set of $ell-defined o(2ectives and a list of activities that need to (e undertaken in order to achieve

those o(2ectives!

3.1Framing the Digital Challenge

B UILD A WARENESS

7nsure that the top leaders understand the need for digital

+ncrease understanding of the potential threats and opportunities of digital

D EFINE THE STARTING POINT

Determine $hich strategic assets $ill help the company e%cel

9nderstand ho$ mature are the company:s digital competencies

C REATE A SHARED VISION

7nsure that the company:s top leadership (een aligned around a vision of the company:s

digital future

3.2Focusing Investment

T RANSLATE THE VISION INTO ACTION

*onvert the vision into strategic goals

)ranslate the digital priorities into a roadmap of digital activities


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B UILD THE GOVERNANCE

Design governance mechanisms to steer the digital transformation

9se strong digital governance to keep the company on track

F UND THE T RANSFORMATION

;ork out the funding mechanisms of the transformation

Design a (alanced portfolio of digital investments

3.3 Mobilizing the Organization

S IGNAL THE A MBITIONS

Market clearly the am(itions and (enefits of digital

7%plain to the employees ho$ digital $ill (enefit them on a day-to-day (asis

E NGAGE THE E MPLOYEES

uild momentum $ith the employees (y co-creating solutions and involve those $ho $ill

(e making the change happen

S ET N EW B EHAVIORS AND E VOLVE C ULTURE

9se digital technologies to encourage culture shift

9se the digital transformation to (reak operational parado%es of the past

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3.4 Sustaining the Digital Trans ormation

B UILD F OUNDATION S KILLS

ave a $ell-structured digital platform

Develop strong +) (usiness relationships

ave a digital competence gro$th roadmap

A LIGN I NCENTIVES AND R EWARDS

"lign incentives re$ards and recognitions to the o(2ectives

M EASURE , M ONITOR AND I TERATE

Develop a management process to measure and monitor the progress of transformation

"dapt the course as needed

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la$ for electronic components density i!e! miniaturi ation> and friendly user interfaces mo(ile

internet performance improvements Moore:s la$ and economy of scale through

deployment of giant datacenters ultimately giving (irth to ne$

(usiness models!

"nticipating the impact of the consumeri ation of +) Microsoft decided to move its focus more on

the consumer:s side and to modify its (usiness model from selling soft$are to renting soft$are!

)his digital transformation of an unprecedented magnitude started Cslo$ly and accelerated as

Microsoft:s organi ation $as $alking its learning curve! Microsoft started to (uild Ccloud

services out of its legacy server products!

+n the same time Microsoft:s organi ation itself evolves from $hat might (e seen as a cooperative

of soft$are editors kno$n as Product Groups competing against each other to a more functional

organi ation $hich allo$s (etter resource utili ation than a divisional organi ationE engineering

teams could produce piece of soft$are in a genuine platform approach i!e! components/artifacts

$hich could (e used in different products! 9ltimately the o(2ective $as componenti ation of

products!

)he organi ation also evolved from a @ perspective! Microsoft gave-up its infamous C=tack

@anking performance revie$! Product Groups also em(race agile development methodology for

continuous delivery! )his has (een possi(le (ecause the incentive frame$ork itself shifted from

individual mercenary style incentive to more team-$ide incentiveE you fail as a team and $in as a

team! )he colla(oration and cross team communication culture also evolved at Microsoft

leveraging availa(le tools as they $ere developed! 7m(racing agile development patterns for

continuous delivery Microsoft is leveraging the telemetry it has em(edded $ithin its code


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accurately monitor and manage cloud services consumption and (ehavior against $orkloads> to

make its solutions evolve! Microsoft:s *7, pretty $ell understood that Microsoft did not need to

o$n the devices to enlarge its cloud services usage (ut that Microsoft could leverage its

competitors: net$ork e%ternalities


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a lot of $ork to do to achieve this transformation! Microsoft transitioned from a high margin I

Clo$ volume to a lo$ margin I high volume positioning! "s Microsoft:s revenue generation

pattern is changing its cost structure needs to change too! +ts previously product oriented sales

force need to (e Cretro fit into cloud solution oriented sales force!

!. Digital Mastery at "#fosysDigital transformation is not only e%pected to (e at the core of all future (usiness activities (ut

+nfosys is also actively em(racing the topic and placing it at the front and center of its go to

market approach! +nfosys plans not only to create value from digiti ation for its clients (ut $ill at

the same time undergo a transformation itself and (ecome a digital master!

)his management has identified several aspectsE

@ene$ its e%isting service and solution offerings

.urther (uild out its +P-(ased assets

Drive innovation initiatives through design-thinking co-creation and strategic partnerships

uild out a strong corporate culture (ased on learning talent and engagement e!g! through

talent management and co-innovation initiatives $ith e%ternal institutions!

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)his is to a certain e%tent a continuation of the e%isting vision for the company! )he timeline to

achieve this is am(itiousE +nfosys plans to have its internal transformation completed (y summer

&61'!

"s $ell as this internal turnaround +nfosys is enhancing its digital transformation offering for

clients! )o this end it has esta(lished dedicated focus and investments for digital transformation

capa(ilities!

Prior to this step the services offered $ithin the +nfosys Digital group focused primarily on

customer e%perience topics (ut no$ they $ill increasingly also address the enterprise core and its

digital ecosystem! +nfosys positions itself as a holistic partner across all areas $ith the aim to

(ecome the 4ne$ age integrator4 of services partnerships products platforms and operations!

+n this conte%t there is also an approach to (ridging the divide (et$een the *M, and the *+,!

)here is a gro$ing need for colla(oration and 2oint decision-making (et$een marketing and +)

departments!

+nfosys is moving in the right direction to (ecome a key partner for its clients in the future digital

space! +t is clearly neither the first nor the only service provider adopting this position (ut it

certainly has the capa(ilities scale and momentum to play in the digital transformation space!

)ime $ill tell if they can (ecome one of the leaders! .or no$ there is $ork left to do to stem the

flo$ of the internal challenges (efore they can aggressively gain market share! Moreover +nfosys

has to (uild out its (rand a$areness and continue to deliver (usiness results - and innovation - for

their clients!

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$. %o#clusio#Digital transformation $ill continue to transform the $ay customers vie$ and interact $ith

enterprises! *ustomers have higher e%pectations for level of service access to information and

product Huality regardless of the line of (usiness or channel! )oday customers e%pect enterprises

to (e fully a$are of their needs and (e smarter in their interactions! *ompanies find it difficult to

navigate disruption! 7ven $hen they em(race the shift it is difficult to change! )hey are often

rooted to their status Huo (y e%isting processes organi ational structures and investments!

0eading organi ations take every customer touch-point as an opportunity to influence engage and

transact $ith the customer $hile laggards remain internally focused on legacy solutions and

measures!

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