didier bonnet oracle open world presentation on #leading digital - capgemini consulting - digital...

TURNING TECHNOLOGY INTO BUSINESS TRANSFORMATION

LEADING DIGITAL ORACLE OPENWORLD ‘14

DIDIER BONNET KEYNOTE

30TH SEPTEMBER ‘14

Copyright © 2014 Capgemini Consulting. All rights reserved.

2011

Define ‘Digital mastery’

“Leading Digital” Was Born

Out Of 3 Years Of Research

2011 Digital

Transformation

Framework

Define

“Digital Mastery”

50 Companies

160 Interviews

Performance/

Sector Maturity/

DNA

500 Companies

2013 Digital

Transformation

Execution

Uncover execution

Challenges

>2,500

Companies RESEARCH

OBJECTIVES

RESEARCH

THEMES

2011 Digital Transformation

Framework


Performance


Execution

FASHIONISTAS

DIGITAL MASTERS

CONSERVA

TIVES BEGINNERS


Digital Transformation \ di-jə-təl tran(t)s-fər-ˈmā-shən\ (1) the use of digital technology

to radically improve the performance and/or reach of a company.

What Is Digital Transformation?


Leading Digital: Why Should You Care?

Inflection point: Digital technology will

radically change the way we do business


Are you ready for it?









Few firms are demonstrating digital mastery,

but those who do are racing ahead


Digital transformation

is not an arcane art
















Time to start pursuing digital mastery is now.

The longer you wait, the tougher it will become





Firms that do not

adapt will fall behind






Time to start pursuing digital mastery is now.

The longer you wait, the tougher it will become


What Do These Two Companies

Have In Common?

“Be the first company to be fully digital end to end”

“From a physical-intensive model to a knowledge and technology-intensive one”

WHAT HAVE THEY DONE?

• Engaging customers with social

• Fusion of online and instore experience

• Unifying data globally

HOW HAVE THEY DONE IT?

• Governing cross-channel consistency

• Engaging employees

• Developing new skills

• Strengthening IT-Business relationships

“Digital has been a catalyst for everything in the company”

Angela Ahrendts, CEO

WHAT HAVE THEY DONE?

• Real time view of operations (1.0)

• Automation of processes & machinery (2.0)

• Intelligent mining model (3.0)

HOW HAVE THEY DONE IT?

• Developed a radical digital vision

• Invested in cultural change

• Developed new competencies

• Strong governance & execution

“Our business in the past was related to physical labor

today our business is more related to knowledge and

technology”

Marco Antonio Orellana Silva, CIO


What Do These Great Companies

Have In Common?


Dig

ital C

apabili

ty

Leadership Capability

The DNA Of Digital Masters

The What:

Using digital technology to transform the customer

experience, operational processes and business models

The How:

Successful transformations depend as much

on how firms manage digital transformation than solely on

implementing new technologies


4 Levels Of Digital Mastery

Dig

ital C

apabili

ty


FASHIONISTAS

DIGITAL MASTERS

CONSERVATIVES BEGINNERS

• Many advanced digital features (such as social, mobile) in silos

• No overarching vision

• Underdeveloped coordination

• Digital culture may exist in silos

• Strong overarching digital vision

• Excellent governance across silos

• Many digital initiatives generating business value in measurable ways

• Strong digital culture

• Management skeptical of the business value of advanced digital technologies

• May be carrying out some experiments

• Immature digital culture

• Overarching digital vision exists, but may be underdeveloped

• Few advanced digital features, though traditional capabilities may be mature

• Strong governance across silos

• Active steps to build digital skills and culture


Source: “The Digital Advantage: How digital leaders outperform their peers in every industry” G. Westerman, M. Tannou,D. Bonnet, P. Ferraris, A. McAfee, MIT Center for Digital

Business and Capgemini Consulting, Nov. 2012.

Mastering Both Dimensions Is The Key

Firm-Level

Digital

Transformation

1. DIGITAL CAPABILITY

2. LEADERSHIP CAPABILITY

Social Media Digital Product

Design

Customized

Manufacturing

Digital Division:

Nike Digital

Sport

• Digital marketing

• Digital product innovation/design

• Digital commerce (e/m-commerce)

• Digital technologies (GPS, mobile, etc.)

• Customer analytics

+


* Average performance difference for firms in each quadrant versus the average performance of all large firms in the same industry for the 184 publicly-traded companies in our sample

The Time To Act Is Now: Digital Masters Have

Significantly Better Financial Performance

Basket of indicators:

• EBIT Margin

• Net Profit Margin

Dig

ital C

apabili

ty


REVENUE GENERATION EFFICIENCY

+6%

Basket of indicators:

• Revenue / Employee

• Fixed Asset Turnover

+9%

-10% -4%

Dig

ital C

apabili

ty


PROFITABILITY

% +26%

+9% -24%

-11%


The Time To Act Is Now: Every Industry We’ve

Studied Already Has Digital Masters


Digital has informed and

amplified customer

expectations

Digital is removing

traditional constraints in

operations

Digital business models can

reorder value chains and

create new opportunities

BUSINESS

MODEL

CUSTOMER

EXPERIENCE OPERATIONS

Digitally-modified business Customer Understanding Process digitization

New digital business Top Line Growth Worker enablement

Digital globalisation Customer Touch Points Performance management

The What: Building Blocks Of Digital

Capability


There Are Clear Patterns In How And Where

Digital Masters Invest In Digital Capabilities

BUSINESS MODEL

CUSTOMER-FACING PROCESSES OPERATIONAL PROCESSES

Social Media Internal

Collaboration

Mobile Channel

Customer

Experience

Process

Digitalization

Data Integration

Sensors

Analytics


Four Interventions That Together Change

The Customer Value Equation

Design

customer

experience

from the

“outside-in”

Increase

reach

& engagement

with smart

digital

investment

Put customer

data at the

heart of the

experience

Seamlessly

mesh the

digital and

the physical

experience

• Forensic understanding of customer behaviour

• Segment: Journeys / Personae

• New Digital Channels

• Reach & engage where it matters

• Make customer experience and personalisation more scientific

• Harvest and enrich data

• Old & new matter

• Omni channel integration


Operations: The Less Visible Competitive Advantage

People

To Break Traditional

Operational Constraints…

Process

Technolog

y Information

Using Digital

Capabilities… To Get To The “Hidden,” Digital

Operational Advantage

Knowledge Coordination

Pager Risk

Time Distance

Orchestrating

or AND

Unleashing

Controlling

or AND

Innovating

Standardizing

or AND

Empowering

• Process & Productivity

Improvement

- Cost / Quality / Safety

• Better Employee Collaboration

- Connected & Empowered

• Better Decision Making

- Agility & Responsiveness


THE COMPETITIVE LANSCAPE

IS IN PERPETUAL MOTION

Globalized Competition

Falling Barriers To Entry

Access Vs. Ownership Of Assets

Blurring Industry Boundaries

Everything Connected

FIVE ARCHETYPE

CHOICES

Re-inventing

Industries

Substituting Products

& services

Crafting New

Digital Businesses

Reconfiguring

Delivery Models

Rethinking

Value-Propositions

Challenge Your Business Model Before

Someone Else Does


Create a shared

transformative vision of

the digital future

Engage employees at scale

to make vision a reality

Fuse IT & business

communities to build

digital skills & transform

technology platforms

Establish strong digital

governance to steer the

course

The How: Leadership Capabilities Is What

Turns Digital Investment Into Digital Advantage

TECHNOLOGY VISION

ENGAGEMENT GOVERNANCE


Evolve The

Vision Over

Time

Identify

Strategic

Assets

Define A Clear

Intent And

Outcome

Create A

Transformative

Vision

• Industrial Internet –

marriage of industrial

engineering and Big

Data analysis

• Sales team customer relationships were high value

• Shift to sell digital services not books

• Fully digital end-to-end

• Align same experience

across channels

worldwide

• 1.0: Real time operation

• 2.0: Full automation

• 3.0: Human free mines

Only the senior-most executives can

create a compelling vision of the future


Vision Sets Direction.

Engaged People Make It Happen

FOSTER NEW WAYS

OF WORKING

CONNECT THE

ORGANIZATION

ENCOURAGE WIDER

CONVERSATIONS

• Closing knowledge gaps

• Increasing engagement

• Solving business issues

• Generating new ideas

• Wikis

• Microblogs

• Social Networks

• Video Conferencing

• Executive involvement

• Digital champions

• Reverse mentoring

• Use cases

SCALING WIRING ADOPTING

New innovation process is creating

more innovation, collaboration, and

employee engagement across the

company’s business units.

“Communities that are created on the

network are free from geographical,

functional or hierarchical

boundaries.”

“With executive engagement, you

don’t have to mandate activity.”


MULTIPLE MECHANISMS

TO SUIT CULTURE & REACH GOVERNANCE GOALS

COORDINATION

• Prioritizing

• Synchronizing

• Aligning

SHARING

• Capabilities

• People

• Processes

• Technology

• Information

KEY MECHANISMS

Digital Leadership

Roles

Shared Digital

Units

Digital Governance

Committees

SHARED DIGITAL UNIT

Unit/

Region/

Brand

Unit/

Region/

Brand

Unit/

Region/

Brand

Unit/

Region/

Brand

Strong Digital Governance Keeps

The Company On Track


• New ways of working

• Rethinking

infrastructure /

replatforming

IT Business

Relationship

Digital

Platform

Digital

Skills • Digital IQ program

Business And IT Leaders Together Drive

Transformation Efforts Better Than They Do Apart


Sustain the Transformation

• Build Foundation Skills

• Align Incentives & Rewards

• Measure, Monitor & Iterate

Frame the Digital Challenge

• Build Awareness/Understand

Impact

• Know your Starting Point

• Craft Vision & Align Top Team

Focus Investments

• Translate Vision into Action

• Build Your Governance

• Fund the Transformation

Mobilize the Organization

• Signal your Ambitions

• Earn the Right to Engage

• Set New Behavior &

Evolve Culture

Digital Transformation Is A Job For Now:

The Digital Transformation Compass


Digital Technology Will Remain The Endless Agitator Of The Business World

Augmented Reality

Robotics Artificial Intelligence

Sharing Economies Wearables

3D Printing

You Ain’t Seen Nothin’ Yet

Thank you!

Follow us on twitter at:

@GWESTERMAN

@DIDIEBON

@AMCAFEE

@CAPGEMINICONSUL

#Leadingdigital

Or visit our website at:

www.leadingdigitalbook.com

https://twitter.com/gwesterman





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http://leadingdigitalbook.com/

didier bonnet oracle open world presentation on #leading digital - capgemini consulting - digital...

Technology

digital mastery

digital end

use of digital technology

digital oracle openworld

business transformation

capgemini consulting

business copyright

inflection point