Beyond the Buzzwords• Buzzwords Bingo

– Hitchhiker’s Guide to the Galaxy

• Beyond the Buzzwords – Digital Engineering

• Real world case studies – Smart Cities, Predicative Maintenance, Autonomous Vehicles

& Enterprise of Things

Buzzword Bingo

BrochureWare

WebCommerce

MobileCommerce

eBusiness

Tablet

Social

MultiChannel

Cloud

Internet of Things

Artificial Intelligence

Robotics

WebOptimisation

Big Data3D Print

Wearables

Drones

Sensors

However, Digital is not just about “buzzwords”

6/3/2016 7

Charter 1: The Buzzwords

What is the meaning of Digital?

Digital? = Signal?

“Digital usually refers to something using digits, particularly binary digits.”- Wikipedia

00101010

incorrect term?

Digitalization?

“Digitalization is the use of digital technologies to change a business model and

provide new revenue and value-producing opportunities; it is the process of moving

to a digital business.” – Gartner (http://www.gartner.com/it-glossary)

better term?

Digital Personas?

Digital Trailblazers

Digital Savvy

Digital Innovators

Digitally Stupid

Digitally Disengaged

Digital Immigrants

Digital HoldoutsDigital Voyeurs

Digital NativeDigital Naive

Smart Machine First

Open Innovation

Business Model Experimentation

Gamification

Data Science

Lean Start-up (MVE)Design Thinking

Holacracy

Digital Innovation Centres

Social Analytics

Enterprise Crowdsourcing

Maker Skills

A/B Testing or Canary

Relative Risk Thinking

Customer Centricity (CX)

Digital Hooks?

Tri-Modal?

Digital Workplaces?

Courtesy of Intel© Corporation 2014

Fluid IT• Agile and fluid

• Innovation, brand,

profit measures

• Think continuous

• Think days, weeks

Core IT• Reliable,

compliant, secure

• Think price/performance

• Plan and approvals driven

• Long life-cycles

Digital = Bi-Modal?

Digital Transformation?journey or adventure?

“Digital transformation refers to the changes associated with the application of

digital technology in all aspects of human society.” - Wikipedia

Digital Delivery?bi-modal IT

FluidIT CoreIT (Waterfall)

Digital Maturity?adaptive IT

“Mode 3 is the flexible mapping of business challenges to value streams to

determine the best Mode 1 or Mode 2 tools and skillsets to maximise achievement.”

Digital Differential?adaptive IT

19

Create business structure for rapid fail-fast project to enable innovation

Develop a digital core to differentiate organisation

by leveraging digital engineering + enterprise digital

Evolve the core systems

By deploying and evolving systems of record and enable insight-led access

Mode 2

Mode 1

Digital Harmonisation?gravitational waves

Mode 3

http://lisa.nasa.gov

Digital Mastery?multi-modal IT

fluid IT adaptive IT

DOMAIN OF DISCOURSE

FASTFEEDBACK

SLOW FEEDBACK

NODEDISCOVERY

SYSTEMATIZED(EPISTEMIC & SYSTEMIC

ENTROPY)

WHAT HAPPENED ?BUSINESS INTELLIGENCE

WHAT’S HAPPENING NOW ? REAL TIME

WHAT WILL HAPPEN ? PREDICTIVE

WHAT SHOULD WE DO ? PRESCRIPTIVE

core IT

MATURITYINNOVATION GROWTH

Learn

ing

Culture

s Teach

ing

Cu

lture

s

High Abstraction

Low Abstraction

Complex

Chaotic

Learn

ing

Culture

s Teach

ing

Cu

lture

s

High Abstraction

Low Abstraction

Complex Complicated

Learn

ing

Culture

s Teach

ing

Cu

lture

s

High Abstraction

Low Abstraction

Obvious

Complicated

Ray Arell Emma Langman Huw PriceTom Gilb

CONNECTED INTELLIGENCE

Digital Roles?New roles

fluid IT adaptive IT

DOMAIN OF DISCOURSE

FASTFEEDBACK

SLOW FEEDBACK

NODEDISCOVERY

SYSTEMATIZED(EPISTEMIC & SYSTEMIC

ENTROPY)

ENTERPRISE DIGITALBUSINESS INTELLIGENCE

DIGITAL BUSINESS REAL TIME

ALGORITHMIC BUSINESSPREDICTIVE

AUTONOMOUS BUSINESSPRESCRIPTIVE

core IT

MATURITYINNOVATION GROWTH

CONNECTED INTELLIGENCE

Sponsor

PMOScrum

Master

Therapist Researcher

Experience

Magician

DevOps

Engineer

UX

Designer

Maker

Creative

Infrastructure

Engineer

SDET

Dev

Tester

Product

Owner PM

Ops

Support

Mode 1 - CoreIT

Mode 2 – FluidIT

Mode 3 - AdaptiveIT

Digital Core?tri-modal IT

Enterprise Digital?

“Enterprise digital is the digitalisation of processes, behaviours and interactions,

resulting in an continuously adaptive innovative business model.“

algorithmic & autonomous

1990 2010 soon...2000 now

DIGITAL EVOLUTION TIMELINE

EN

TER

PR

ISE D

IGIT

AL B

LU

EP

RIN

TS

Websites

Digital

Marketing

eBusiness

Enterprise

Digital

Digital

Business

Enterprise

of Things

future...

Autonomous

Business

Robotics

Algorithmic

Business

Big Data

Analogue

Business

Drones

Digital

Lifestyles

Machine

Learning

Quantum

Computing

You are here

Digital Innovation?

“What if we could shut down email for a hour every day? To reduce the digital grid

and to support digital innovation and creative thinking.” dev.botframework.com

EVOLVE A DIGITAL CORE TO OUT-PERFORM YOUR COMPETITORS

Reach into existing systems and build interfaces people learn at-a-glance

Become an insight led organisation

Collapse processes and drive KPIs at all levels and create behavioural change

Take innovation-led ideas to productionisation

EVOLVE CORE SYSTEMS TO UNDERPIN DIFFERENTIATION

• Help run existing systems more effectively and cost effectively

• Reduce cost and complexity

• Infrastructure / development excellence

PROVIDE AGILE CAPABILITY TO INNOVATE AND EXPLOIT DISRUPTIONS

• Enable organisation to embrace innovation, hold off competitive threats and

exploit new opportunities

• Reduce need for Shadow IT by giving businesses a process to address

disruptions

INNOVATION

DIFFERENTIATION

CORE SYSTEMS

AdaptiveIT?multi-modal

6/3/2016 26

Digital Evolutionover revolution

Charter 2: Enterprise Digital

www.hitachiconsulting.com/digitalenterprise

* Hitachi, Evolving the New Reality, http://learn.hitachiconsulting.com/engineering-the-new-reality

Digital

Engineering

(i.e. DevOps)

Hybrid

CloudEnterprise IoT

Virtualization

& Simulation

Collaborative

Robotics

Self-maintaining

Self-healingBig Data

Analytics

Drones

VR / AR

Sensors &

Actuators

Digital Evolution enabled new capabilities:

Digital Engineeringhttps://youtu.be/6-PsPgKLmSA

Pillar 1 – Digital Engineering

• Building adapts to it’s surroundings• Is always ready• Is totally adaptive• Has a clear “enduring need” EARTHQUAKE

ENGINEERING

• Understand ‘enduring needs’ solved by business• Enable it to adapt and innovate• Create corporate agility• Evolve legacyDIGITAL

ENGINEERING

Digital engineering the future“It is what the company needs to support the future”

Digital Business is:

“embedding a new way of thinking into your company to become a permanently adaptive organisation which continually innovates, invents and adapts in response to change”

Our View of Digital Business

Business must create • a permanent change-state, • where disruption can be embraced• and where an end-state is not a goal.

• It is not a transformation project

• It does not have a beginning and an end

• It is not a journey, it is an adventure

• “Answers” to the digital evolution of a firm change continuously

• Like the flu vaccine, it needs constant analysis and changing

• If you do a “digital transformation” with a “start” and an “end”, you will fail

Adaptive businesses grow revenue 37%

faster and make 30% higher profits.

“Organisational agility: How businesses thrive and survive in

turbulent times” The Economist Intelligence Unit

Digital Engineering

Pillar 2 – Digital by Design

Digital by Design - DesignOps

Build

Deliver

MonitorMeasure

Learn

Design

Make

Check

Think

Design

Learn

Desi

gn

Ap

pro

ach

Think

Design Thinking Evolution

DesignOps – The Thinking Segment

Insight

Observe

Desi

gn

Ap

pro

ach

Research

Interpreting

Modelling

ChallengingPredicting

Observing

Insight

Experiment

Hypothesis

Research

Desi

gn

Ap

pro

ach

Experiment

Interpreting

Modelling

Fail fast, fail safely and learn rapidly

DesignOps – The Making Segment

Act

Analyze

Desi

gn

Ap

pro

ach

Deploy

Desi

gn

Ap

pro

ach

Release

Sense

Verify

Sense

Verify

FeedbackAssessment

Analyze

Act

Deploy

Respond

Develop

Continuous Everything (Deployment, Build & Delivery)

DesignOps – The Checking Segment

Divide

Disrupt

Desi

gn

Ap

pro

ach

Pivot

Focus

Enquire

InnovateEvolve

Disrupt

Divide

Experience

Adapt

Pivot

Desi

gn

Ap

pro

ach

Experience

Enquiring

Behaviours

Become a Digital Phoenix by Pivoting and Disrupting

Pillar 3 – Digital Manifesto

Digital Manifesto for Digital Business

Value: Think (Learn over Design)

• Evolution over Revolution

• Engineering over Agility

• Predictive over Continuous

• Intelligence over Things

Value: Make (Deliver over Build)

• Governance over Ownership

• Proactive over Reactive

• Maturity over Mastery

• Value over Product

Value: Check (Monitor over Measure)

• Systemic over Behaviour

• Adaptive over Lean

• Pivoting over Disrupting

• Innovation over Investment

Principles behind the Digital-Manifesto.net

That is, while there is value in the items on the right,

we value the items on the left even more!

Pillar 4 – Enterprise Digital

Enterprise Digital

“The digitalisation process (digital engineering) of:

• behaviours (algorithmic business)

• interactions (autonomous business)

• continuous (prescriptive & predictive)

• adaptive (tri-modal)

• innovative (differentiated & dynamic)

• business models

– digital by default (lean start-up)

– digital by design(ops)."

Exploring the definition of Enterprise Digital

WTF?Charter 3: Real-world case studies

WHAT’S THE FUTURE?

Insert pic of injection

[maybe captain America?]

We need to be different…

Hitachi – Social Innovation

SAFETY

UTILITYENERGY

SMART CITIES

TRANSPORT

RESEARCH

$3.4bnR&D

320,000+people

943Companies

Hitachi is an inspirational companyHitachi Consulting formed to exploit this innovation

Hitachi – Social Innovation

ROBOTICS

AUTOMOTIVE

SYSTEMS

PUBLIC SAFETY

MINING EQUIPMENTSENSORS

SOCIAL INFRASTRUCTURE

IOT PLATFORMS

ROBOTICS

I.T.

INFRASTRUCTUREAUTOMOTIVE

SYSTEMS

WIND TURBINES

MINING EQUIPMENT

RAILWAY CONTROL SYSTEMS

AND TRAINS

WEARABLES

PROGRAMMABLE

CONTROLSWATER TREATMENT

BATTERY SYSTEM

SENSORSMEDICAL

IMAGINGGAS TURBINES

SOCIAL INFRASTRUCTUREPUBLIC SAFETY MEDICAL DIAGNOSTICS

Hitachi – Enterprise of Things

Others

Financial Services

Digital Media and Consumer Products

Automotive Systems

High Functional Materials and Components

Construction Machinery

Electronic Systems and Equipment

Social Infrastructure and Industrial Systems

Power Systems

Information and Telecommunication Systems

US$3.4BINNOVATION BUDGET

Founded in 1910

US $93.4B FY13

970 subsidiaries

Ca. 325,000 employees

#1 worldwide for patent applications in emerging technologies (IoT, Big Data)

#78 in the 2014 FORTUNE® Global 500

Hitachi – Social Innovation

Gartner Symposium 2015

Hitachi Consulting on-stage at every symposium

Published and Referenced by Gartner

Created and published approach and materials

Digital Whitepaper 2 – Dec 2015Digital Whitepaper 1 – July 2015

Hitachi – Enterprise of Things – Case Studies

ENERGY

Smart buildings

Predictive analytics

Remote outage

notification

Smart waste

management

UTILITY

Hazardous materials

emergency response

Equipment

monitoring/control

Water treatment

Water management

VEHICLE

Autonomous Vehicles

Smart parking

Vehicle detection

Mobile payments

EV charging

TRANSIT

Intelligent rail and

transit solutions

Predictive maintenance

Fleet management

Asset tracking

Smart Roads

PUBLIC SAFETY

Video Surveillance

Remote security

monitoring

Emergency response

Smart street lights

Mass notification

INTEGRATED REPORTING AND ANALYTICS: ACTIONABLE INSIGHT

Case Study - Energy - Virtual Power Plant

Virtual Power Plant – Digital Broker

5

9

A virtual power plant is a link-up of small, distributed power stations, like wind farms, photovoltaic systems, small hydropower plants and biogas unitsthat can be switched off, in order to form an integrated network.

WS2

WS1

WS3

WS4

Virtual Power Plant – Predictive Weather

6

0

AB

C

60606060

“There have been some estimates from Cisco that there will be more than 50 billion objects connected to the Internet by the year 2020. Jonathon Wright has often saidthat when we talk about IoT we are talking about hardware -- not software.”

D

Hitachi RailOur operational consultants helped improve engineering productivity to reduce the cost and time of delivering new railway infrastructure

Case Study – Transit – Enterprise of Things

Transportation - Predictive Maintenance

The ‘Digitalisation’ of Smart CitiesHow to emerge successfully from the age of Digital Disruption

Hitachi Smart CitiesAward winning first-of-its-kind ‘Big Data’ platform for Copenhagen on which data collection, integration and sharing is centralised for the entire city

Smart Cities – Enterprise of ThingsAlgorithms to optimize Bimodal Transportation

Smart Cities - Digital MobileBecome carbon neutral as a city by 2025?

Public Safety – Smart Cities

License Plate Reader

(ANPR)

Disparate VMS

Live Face Matching

CAD

Gunshot Sensors

Social

MediaBody Worn

Camera

Drone Detection

Infrastructure and Transportation Safety and Security

Resources and Sustainability Population and Health

Hitachi – Social Innovation The integration of Internet of Things & analytics for a safer, healthier, smarter society

…so long and thanks for all the fish!…technology is stuff that doesn’t work yet