d i g i t a l - deloitte united states · 7.10.2019 · portfolio understand how to prioritize...

1 | Copyright © 2019 Deloitte Digital. All rights reserved.

D I G I T A L

G R A B & G OO C T O B E R 8 , 2 0 1 9

How to organize, operate, and behave for the digital age


Anders Ørding OlsenDeloitte Digital

Lauren CoeHuman Capital

The digital shift

Pitfalls and challenges

Making the leap

Q&A

A G E N D A

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Netflix users have streamed 694,444 hours of video

Uber users have taken 9,772 rides

Youtube users have watches 4,500,000 videos

1,400,000 swipes have been madeon Tinder

…and 46% of male swipes were to the right, but only 14% of the female were as well


For the first time in history, technology is

pervasive enough and cheap enough that

everyone is using it with little or no learning

curve, creating business models and

opportunities that never existed before.

Technology has become ubiquitous and embedded into

everyone’s lives. The explosion of connectivity, data, ease of use,

computing power, accessibility, and the rapid pace of

innovation have made technology a basic necessity.

T E C H N O L O G Y A S A D I G I T A L E R A E N A B L E R

Digital technologies are woven into the fabric of everyday living.

Family and friends stay connected, scheduled, and entertained.

Technology is now necessary for entertainment, health, driving,

socializing, shopping, banking, traveling, learning and dozens of

other personal activities.

T H E D I G I T A L L I F E L I N E

Digital is transforming every business and touches every employee

in a unique way. Some industries are being turned inside out, while

others are benefiting from the expanded capabilities. Marketing,

customer engagement, employee productivity, sales, and many

other business functions are being redefined.

D I G I T A L D I S R U P T I O N I N E V E R Y S E C T O R


Source: Visual Capitalist, Statista –

market cap as of June 21, 2019

T H E L A R G E S T C O M P A N I E S B Y M A R K E T C A P

2006:

2012:

2019:

2001:

#1 #2 #3 #4 #5

$406B $365B $272B $261B $260B

$446B $383B $327B $293B $273B

$406B $376B $277B $237B $228B

$1,050B $920B $778B$943B $546B

Top 5 Publicly Traded Companies (by Market Cap)

…who will occupy the bottom row in the future?


D I G I T A L T R A N S F O R M A T I O N

Business leaders are grappling with

unprecedented change. Growing

connectivity, competition, and

consumer power, disrupt others

before you are disrupted means new

engagements, new products, new

business models, organizations, and

ecosystems. Digital—business—

transformation is the new norm.

The erosion of traditional product-

based advantages is forcing

companies to shift their focus to

customer experience and a new

holistic business strategy. This

requires integrating across the

enterprise to demonstrate value at

each and every touchpoint.

Digital acceleration focusing all efforts

on breaking new ground or quickly

expanding into new space created by a

new category. An exceptional front-

end strategy must be supported by

an exceptional back office, requiring

new expertise, processes and systems,

and potentially a new operating model.

D I G I T A L E X P E R I E N C E D I G I T A L C O R E


Many organizations swirl in an endless loop of ‘doing’

digital things – an illusion of being digital – rather

than making changes to their digital mindset and their

business, operating, and customer models

Leverage traditional technologies to automate existing capabilities. Dabbling with digital. No real change to the organization

Leverage digital technologies to extend capabilities, but still largely the same business, operating, and customer models

Business, operating, and customer

models are optimized for digital

and profoundly different from

prior business, operating, and

customer models

Leverage digital technologies—becoming more synchronized and less siloed—with more advanced changes to current business, operating, and customer models


- Accelerating Digital Innovation Inside and Out, MIT Sloan


Digital leadership and talent development

Build digital leadership skills and talent pool. Develop leaders who can excel in leading in the future of work, source digital talent, and train existing employees.

Innovationculture

Embrace a “succeed fast” approach to innovation that focuses on the end-user and desired outcomes.

Balanced digital portfolio

Understand how to prioritize initiatives and manage the digital portfolio.

Cross-functional collaboration

Break down traditional silos to improve collaboration across business units and functions.

Robust digitalecosystem

Leverage external partners (e.g., startups, tech companies, designers, academia, etc.) and not try to do everything themselves.


T E C H N O L O G Y F O R C E S

H U M A N N E E D SE C O S Y S T E M S


Your consumers do not differentiate across sectors – they want great digital experiences and the expectations are often set far from your industry

Expecting predictive personal relevance, with low effort on their part

Expecting instant, intuitive, seamless experience with a tap

Expecting instant, useful advice relevant to where they are right now

Expecting user-centric and intuitive user experiences


FordPass elevated the Ford customer experience by creating a single mobile platform where owners can monitor their vehicles, find parking spaces or make service appoint-ments, and recently added a new customer loyalty program called FordPass Rewards.

FordPass Rewards provides the most comprehensive loyalty rewards program in the industry. With this program, customers who purchase or lease a new Ford vehicle will receive points they can use toward complimentary maintenance, parts, service or a new vehicle at participating Ford dealerships.

“Only Ford offers complimentary maintenance, rewards, roadside assistance and puts control in your hand” – Elena A. Ford

“We know that an exceptional experience is what today’s customers want and expect and are focused on understanding those expectations so deeply and so continuously that our customers feel that we care at each and every interaction, regardless of where they meet us”

- Elena A. Ford, Chief Customer Experience Officer

+ B E N E F I T C U S T O M E R S , D E A L E R S , A N D F O R D

T H E F O R D P A S S A P P


W H AT N O T T O D O

Unsuccessful transformations are piling

up because these approaches don’t workTry to ‘org

design’ the

way to digital

Focus only on

implementing new

digital technologies

Approach digital

transformation as a

technology

implementation

Isolated victory or

bursts of activity—

then declare digital

success

Hire or buy digital

skills without also

focusing on training

existing talent

Just tell people to be

more agile and

innovative


disagree that their leaders

share results from failed

experiments in constructive

ways that increase

organizational learning

indicated they need to update

their skills at least yearly, with

nearly half of them reporting

the need to update skills

continuously

are dissatisfied with the

degree to which their

organization supports

ongoing digital skill

development

reported biggest challenge

impacting a company’s ability to

compete in a digital environ-

ment is lack of experimentation

more likely (64%) to develop

digital leadership skills if you

are a digitally mature

organization than the least

mature organizations (14%)

of companies aren’t

pushing decision-making

authority needed into

lower levels of the

organization


Learn to develop and try ideas

in short iterative sprints with

empowered teams. Treat digital

initiatives like R&D.

Set bold goals to achieve

factors of 10X impact.

Defeat incrementalism

within your organization.

Acquire and hire edge teams to

bring design thinking, mobile,

digital, creative, and disruptive

ideas.

Ring fence digital teams from

layers of bureaucracy, policies

or other compromises not found

in a start-up culture.

Look for new ideas to solve old

industry issues and customer

problems. Don’t be blinded by the

status quo.

Don’t compromise on the

customer experience. Make

customer value and delighting

the customer the #1 priority.

Design is the new differentiator

in digital. Diverse teams led by

design thinking will create an

amazing impact.

Don’t get distracted by all the

digital shiny objects. Focus on

revenue, key metrics and follow

the money.


Digital DNA (dĭj′ĭ--tl dē′ĕn--ā′) n.

Traits of maturely digital

organizations.

It carries the underlying

instructions, development,

functioning, and replication for

‘being’ digital. traits of ‘being’ digital

Through research we have identified


Nimbleness

Changing mix of traditional and non-traditional stakeholders

Changing nature and types of work

Constant disruption

Constantly changing decision criteria

Continuous ecosystem disruption

Continuously innovating Democratizing

information

Dynamic skill building

Failing forward, learning faster

Flattening and changing hierarchy

Fluidity

Geography agnostic

Customer centricity

Intentionally collaborative

Iterative

Modulating risk & security boundaries

Morphing team structures

Managing multi-modal operations

Shifting decision rights & power

Productive mobility

Real time and on demand

Synchronizing ways of working

How can businesses organize, operate and behave in digital ways?


Organize, operate, and behave as a digital leader in the technology world. Become more customer centric, agile, increase speed to value, build digital leaders, and continuously innovate

To be America’s most digital electric utility, capable of rapid innovation, with a digital ready workforce and organization in synch with the constantly evolving future of work

Leapfrog from a traditional to a digital organization as rapidly as possible, providing the best digital technologies, organization, and readiness to better enable and support the mission

Hyper-personalize the bank’s customer experiences leveraging a digitally-able culture and workforce by enabling everyday customer-centric actions with digital skills and capabilities

Rewire the organization for digital while creating digital leaders and teams that can help the organization continuously transform

Architect and build a function that innovates digital business and operational solutions while enabling the rest of the organization to become more digital

Enable the marketing function to “be” more digital while personalizing customers experiences

DIG

ITA

L A

MB

ITIO

NS

DIG

ITA

L D

NA

Focus on aligning digital technologies with how the org is organized, operates, and behaves—to keep shaping its DNA for everyday readiness

WH

O

A very large global technology innovator

One of the largest electric utilities in the US

A branch of the US Dept. of Defense

A large global bank


How digital are we today?

How digital do we need to become?

How do we get there?

Determine overall digital

maturity and how digital you are

for each of the 23 Digital DNA traits

Create a blueprint of the new DNA

needed to help the organization or

function become more digital

Construct minimum viable changes

(MVCs) that help infuse needed Digital

DNA into your organizational DNA


Digital DNA Capability Report Understand the organisation’s Digital capabilities across the value chain

Understand how global stakeholders innovate in their business models & operations

Benchmark against industry standards & good practice

Digital vision and success stories

Map Digital capabilities

View of current Digital / technological operational pains and priorities

Interviews, workshops and surveys to assess digital maturity

Work with key stakeholders to construct a set of prioritised operational initiatives

Match operational initiatives to growth concepts on the roadmap

Ob

ject

ive

sA

ctiv

itie

s


Client Ideas

Filtering

Idea Proposition

Concept development

Data Insights Ideas

Idea generation

Several prioritised concepts structured as a balanced portfolio

• Deloitte has created the Growth Labs™

methodology to extract the significant

knowledge and creativity across the

ecosystem

• We intend to use the methodology to

discover latent and new ideas for

organisations, making sure all bases are

covered before focusing our efforts

• We have used Growth Labs™ across a wide

variety of industries and organisations with

great success, making our clients more

efficient and unlocking growth


Happier

Sooner

Safer

Better MinimalViable

Change

SoonerFlow: Reduce time to learning & time to market, increase flow efficiency,increase throughput

SaferCompliance: agile not fragile. Continuous compliance.

BetterQuality: Reduce incidents in

production, faster recovery (MTTR), increased resilience

HappierEngagement: happier colleagues

& customers, measured via NPS


Business issueOne of our global automotive clients engaged Deloitte to drive a strategic & digital transformation.

Whilst they continued to succeed in the market, senior leaders recognised to organisation’s challenges

to quickly pivot and take advantage of opportunities as they emerge

To enable the journey, a set of strategic and cultural ambitions were defined that would serve as a

north star throughout the transformation

Our approachWe deployed our Digital DNA survey to approximately 1,500 employees across the company to better

understand their current digital maturity alongside our research-based 23 Digital DNA traits. We

interviewed more than 20 executives to clarify the company’s digital ambition and aspirations

This informed the design of a Digital DNA lab, where 20 middle-managers worked with us to analyse

the findings and help architect a series of minimal viable changes designed to drive needed Digital

DNA into how the company was organised, operated and behaved – everyday

We co-created a digital foundry built of principles of their digital ambitions and the new DNA, to rapidly

develop, prove, and deploy customer-oriented solutions, powered by digital, into the market


Value delivered

Identified the top 3 Digital DNA traits the organisation needed to

drive the most impactful organisational & cultural change

Designed and stood-up a digital foundry comprised of cross-

enterprise initiatives, leveraging the power of digital solutions

Created an operating model and governance structure that promotes

customer centricity and enhances collaborative behaviours

This work was the foundation for an additional project…

We supported the client in designing a LaunchPad to facilitate realizing the ambition of

transforming the organisation in a digital and customer-centric way, bit also rapidly delivering

new businesses to market while accelerating their digital and cultural transformation


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Think Big

Start Small

Act FastStay Human

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www.deloitte.com/us/about for a detailed description of the legal structure of

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Copyright © 2019 Deloitte. All rights reserved. Member of Deloitte Touche Tohmatsu Limited

Contacts

Lauren Coe

Manager

Contact: [email protected]

Anders Ørding Olsen

Manager


Camilla Alm

Director


d i g i t a l - deloitte united states · 7.10.2019 · portfolio understand how to prioritize...

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