The Digital Enterprise Shift: Why it matters, and how you can avoid being sidelined

a d v i s o r smwd

helping you get business improvement from IT investment

The Digital Enterprise shift

Why it matters, and how you can avoid being sidelined

Neil Ward-DuttonFounder, Research DirectorMWD Advisors

Mass interconnectivity drives…

GlobalisationCustomers, partners, suppliers – and competition“Connectedness” is driving sophisticated value chains

TransparencyIndustry regulations, consumer pressure and competition driving openness

Smart, connected marketsEcosystem participants – particularly customers – see the “online world” as the natural place to look for information, services

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Every business is ‘close’ to every other; environments are becoming more unpredictable

Large companies’ lifecycles are becoming ever shorter


Competing purely on price or product is unsustainable. What about customer experience?

Service


Home from home

These companies are setting your customers’ expectations for service and experience

Seamless

“Always”

Open

Here’s what large enterprises are doing already


+++ChannelsVenuesMedia

+++OutsourcingPartnering

Integrate, consolidate,

automate at the core

Processes are often a “cost of doing business”

Minimise cost, maximise

scalability and quality

“One

XYZ”

As more activities are standardised, more value comes from knowledge work


Customer intimacy is about joining dots


Yourcustomer

Customer Journey stage 1



Customer Journey stage n

Customer Journey

stage n+1

Gather intelligence through each customer journey to make future experiences more engaging

Marketing

SalesOperations

Service

Industry evolution has taken us down a challenging path

Your core

Your service centres

Partner A

Partner B

Supplier X

Supplier Y

Enterprises and value chains want to be dispersed, flexible

Great experiences want to be integrated


Customer Experience Excellence runs counter to the status quo for many


“IT Doesn’t Matter”? Frankly, that’s BS

Information storage Information communication, sharing, integration

Optimising individual or team productivity

Optimising enterprise value from knowledge

Old world(Efficiency, scale)

New world (Agility)


Time to wake up and smell the coffee!this is your organisation

Access devices

In the Digital Enterprise… Clouds, connectivity bring increased choice

Consumer technologies and networks are puncturing enterprise technology services

Applications

Platforms


In the Digital Enterprise… Structures and connections are being remade

Control hierarchies Information networks

Work is a place you go Work is a thing you do


Infrastructure usage

Service usage

Product usage

Events

In the Digital Enterprise… Everything can leave an information trail

Relatively cheap, fast, highly scalable

commodity technology

Conversations

Real-time insights, recommendations, optimisations

Commercial ‘data platform’ propositions


Social + Mobile = Opportunity to reshape knowledge work


Image/video capture

Audio/speech capture

Location/orientation

Gestures/signatures

More computing power than the entire Apollo 11 moonshot program!

Notifications/actions

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New pretenders: networks, platforms, ecosystems

© MWD Advisors 2013

Opportunity is everywhere!• Quick, flexible ways to connect people,

information, knowledge, resources• Quick, flexible ways to build operational

capabilities• Ways to get smarter about operational reality

and opportunity, and act on insight quickly and flexibly

In your organisation, work is ripe for reinvention in all six dimensions


Who?

When?Why?

How?

What?

Where?

But… There’s No Such Thing As a Free Lunch


① Choice and disruption. How to prioritise technology investment and application in projects/programs?

② Fast, flat organisations. How to reshape attitudes to information sharing, collaborative working?

③ The need for agility. How to deliver information and technology access while managing cost, quality and risk?

④ Realising new value. How to extract new insights from new data in new ways so you can act on it effectively?

Opportunities come with challenges


• Some areas of business are (or need to be) controlled, structured, predictable; others need to be highly adaptable, even experimental

• Conduct a domain-based analysis of business capabilities and match with appropriate technology strategies

• Accept that boundaries will change over time

A Digital Enterprise is flexible and adaptable.. where it needs to be

“The future is already here – but you should aim to distribute it unevenly”

- Paraphrasing William Gibson


“Design thinking is… the analysis of the relationship between people and products, and of the relationship between people and people… there is an opportunity to transform it from a black art into a systematically applied management approach.”

- Tim Brown, CEO, IDEO

• As the actors of strategy and competition move from individual businesses to platforms and ecosystems, Design Thinking principles should shape your approach

• Take a customer/user-first perspective and explore possibilities from an outside-in viewpoint

• Structure customer-facing work to embrace exceptions and don’t purely chase efficiency

A Digital Enterprise is designed and maintained ‘Outside-In’


“In the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed.”

- Charles Darwin

• Interest in improving levels of collaboration has exploded – with a focus on better sharing of knowledge, driving innovation, supporting distributed teams and building better relationships externally

• Tackle organisational structures, culture and workforce engagement simultaneously – and don’t rely on technology alone

A Digital Enterprise is Open, Collaborative


“A point of view can be a dangerous luxury when substituted for insight and understanding.”

- Marshall McLuhan

• Technology platforms can gather and process more data from more places, more quickly – but increasingly we’re “data rich but insight poor”

• Getting the right insight to the right place at the right time requires serious skills and capabilities

• Empower your people and systems to make sense of and act on operational data

• Link analytics & information management people, technology investments to clear business strategies

A Digital Enterprise is ‘Data-Literate’


In a Digital Enterprise, management systems are digital, integrated


Organisations that can embrace this trend will have a massive Agility Advantage

Systems ofinsight

(information)

Systems ofEngagement

(people)

Systems ofco-ordination

(process)

Systems of record

Core business applications

Work procedures and practices

Corporate communications tools

Management information systems

Analog

Core business applications

Work procedures and practices

Corporate communications tools

Management information systems

Digital Integrated

The management system integration trend is unfolding now

Systems ofinsight

(information)

Systems ofEngagement

(people)

Systems ofco-ordination

(process)

Systems of record


PredictiveAnalytics

Decision management

Social Tasks, Processes, ProjectsCase Management

Social AnalyticsOperational Process Intelligence Collaborative

Decision Making

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• Design thinking for products, services, capabilities, processes– Work customer-/user-first, outside-

in– Bridge organisation silos and

perspectives– Embrace experimentation and

prototyping

• Data literacy– The evolving business value of data

– where can it take you?

• ‘Management’ revisited– Be prepared to reinvent how your

organisation works, to minimise management overhead and maximise collaboration

© MWD Advisors 2013

Ready to face the new reality?Here are your priorities

“The real problem with humanity... is we have Paleolithic emotions, medieval institutions and God-like technology.”

- Edward O Wilson (“the father of sociobiology”)

We’re observing, learning, advising


Business process management (process)

Analytics and information management (information)

Collaboration and social software (people)

BUSINESS COMPETENCIES BUSINESS AND TECHNOLOGY IMPERATIVES, DISRUPTIONS

IN-DEPTH, PRACTICAL FIELD RESEARCH

Big Data

Cloud, SaaS

Mobile/m

obility

Real-time business

Reinventing customer experience

READINESS/ BENCHMARKING

STUDIES,

CASE STUDIES,

SURVEYS,

VENDOR/PRODUCT ASSESSMENTS

ETC.

Value of Knowledge W

ork

The MWD Advisors research landscape

www.mwdadvisors.com 30© MWD Advisors 2013

About MWD Advisors

83

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Active industry research programs – Analytics & Information Management, Business Process Management, Collaboration & Social Software

Years in business, helping organisations drive business improvement and transformation through IT

A European industry technology research and advisory company with…

a d v i s o r smwd

helping you get business improvement from IT investment

Digital technology is the biggest disruptive force in business. Where can it take you?

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The Digital Enterprise Shift: Why it matters, and how you can avoid being sidelined

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