digital transformation: what to cultivate and what to let go!

A Digital Transformation Journey

Sriram Sabesan

Summer Conference Ottawa 2017

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About

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• Sriram Sabesan• Partner, Conexiam• sriram.sabesan@conexiam.com• 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