digital business transformation · 2018-09-13 · one definition of the digital business...

© CGI Group Inc. CONFIDENTIAL

Digital Business TransformationWhy ? What ? How ?

Kim Andersen

1-11-2017

2

Agenda

Voice of Client in Nordics

What is Digital Business Transformation

How do you take on Digital Business Transformation

Examples of Digital Transformation

2

1

3

4

Closing5


What is Digital Business Transformation

One Definition of the Digital Business Transformation

Digital Business Transformation is Organizational

Change through the use of Digital Technologies

and Business Models to Improve Performance.

4

Michael Wade

IMD Professor of Innovation and Strategy

Digital Business Transformation conseptual framework

June 2015

CGI’s Tilgang til Digital Strategi og Transformation

fokuserer på alle tre områder af transformation.

Digital ændrer tankegangen i organisationer

Når vi skærer digital transformation ind til benet er teknologi kun en del af svaret. At realisere et løfte om digital

transformation kræver ændringer på tværs af tre områder; Organisation, Forretningsmodel og Teknologi.

5

Forretningsmodel,

Driftsmodel & Proces

Teknologi

Organisation,Kultur, &

Mennesker

Ændre spillereglerne

• Optimér kundeoplevelsen på tværs af

alle kontaktflader

• Træf beslutninger baseret på indsigt

• Forøg innovation og samarbejde

• Skab nye markedsmuligheder, produkter

og services.

• Udforsk nye forretningsmodeller

• Tænk udefra-og-ind, lav partnerskaber

• Vær sparsom og simplificer

• Øg hastigheden og bliv agil

Udnyt ny teknologi

• Flyt til realtids løsninger

• Automatiser mest muligt

• Anvend ny teknologi

• Udnyt teknologiens muligheder og drag fordel af åbne platforme

Forander organisationen

• Evaluer dit lederskab

• Revider strukturer

• Juster risikovilligheden

• Moderniser kultur og miljø

• Aktiver de nysgerrige medarbejdere

• Træf beslutninger på baggrund af

indsigt

• Tilskynd innovation og samarbejde


Listening to the Voice of Our Clients

CGI Clients’ global insights –

Nordic comparison

CGI’s Voice of Our Clients programIn 2017, we conducted globally 1300 in-person client interviews, whereof 200 in the Nordics as part of our annual Voice of

Our Clients program to listen to their perspectives, refine our thinking, inform our investments, and evolve our strategy to

lead them as their partner and expert of choice.

10 Industries Nordics

Consumer

Intensive

32%

Banking

Communications

Retail & Consumer

Asset

Intensive

24%

Risk &

Investment

Intensive

44%

Insurance

Health

Oil & Gas

Transportation

Government

Manufacturing

Utilities

21%

3%

16%

12%

9%

2%

5%

16%

3%

13%2 3 3

5

9

12

1316

16

21Oil & Gas

Utilities

Communications

Transportation

Insurance

Health

Banking

Retail & Consumer

Manufacturing

Government

2017 Nordics client interviewsIn the Nordics, we interviewed 200 clients, whereof 37% were Business Leaders and 63% IT Leaders.

Number of interviews Client Management Level

37% 63%

IT LeadersBusiness Leaders

55%

27%

18%

C-level Ops level Management Other Exec.-level

1024

144

1327

200

Global Nordics

2016 2017

Industry Trends

Which industry trends are having the most impact on your organization?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

New delivery models / Agile

Use of analytics to innovate

Increasing business model changes

Lack of suitable technology

Growing collaboration and interoperability

Growing use of digital technologies (Advanced Analytics,Robotics, etc.)

Cost pressures slowing responses

Need to respond to regulatory demands

Growing cyber risk

Becoming digital organizations to meet customer expectations

Nordics Global

Actions to address regular reformsFor several years, clients have cited regulatory reforms as a top industry trend.

What actions is your organization taking to respond?

0% 10% 20% 30% 40% 50% 60% 70%

N/A

No answer

Business model changes

No Action

Need to respond to regulatory requirements


Increasing investments in mergers and acquisitions toaccelerate growth

Increasing investments in geographic expansion to accelerategrowth

Cost or budget pressures slowing response

Increasing investments in new products and services

Nordics Global

Business prioritiesWhat are your organization’s top business priorities?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%


Growing use or experimentation with digital technologies(Analytics, Automation, etc.)



Develop innovative new service and solutions to drive newrevenue streams


Need to modernize

Addressing cyber risk

Applying analytics for insight or optimization

Becoming digital to meet customer expectations

Nordics Global

IT priorities

What are your organization’s top IT priorities?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%


Talent challenges



Growing use or experimentation with digital technologies(Analytics, Automation, etc.)




Need to modernize

Becoming digital to meet customer expectations

Nordics Global

Overall IT budget changeIn order to implement your organization’s IT priorities: In terms of your overall IT budget, do you plan to

increase or decrease spending year over year?

0% 10% 20% 30% 40% 50% 60% 70%

Decreasing

Flat

Increasing

0% 5% 10% 15% 20% 25% 30% 35%

> 10%

8% to 10%

5% to 7%

2% to 4%

Flat (1% to -1%)

-2% to -4%

-5% to -7%

-8% to -10%

< -10%

Nordics Global

IT priorities spending trends

What is driving the spending trends in your IT budget?

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Delivery of innovative new products or services to market



Growing use digital technologies (Analytics, Automation, etc.)

Respond to regulatory drivers

Delivery of new products or services




Need to modernize

Nordics Global

Innovation investments, last year

What have you invested in innovation over the last year?

0% 10% 20% 30% 40% 50% 60% 70% 80%

Protect the Bank

Approach TBD


Innovation to drive new services to market

Operational improvement

Experimention of digital technologies



Need to modernize


Nordics Global

Innovation investments, next 3 years

Looking ahead to the next 3 years, in which areas does your organization plan to invest in innovation?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Approach TBD



Innovation to drive new services to market

Operational improvement

Experimention of digital technologies


Need to modernize



Nordics Global

Organizational structure for digital & innovation

How is your organization structured to test and learn new ways of working for digital transformation and/or

innovation purposes?

0% 10% 20% 30% 40% 50% 60% 70%

New digital leaders

N/A

Governance improvements

Applying analytics to optimize the business

Approach TBD

Grassroots innovation

Adoption of agile or new collaboration

Digital within lines of business

Partner externally

Separate digital team

Nordics Global

Digital transformation challenges

Describe any significant challenges your organization faces in implementing its digital transformation strategy?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Partner externally

Lack of strategy

Becoming digital organizations to meet customerexpectations

Regulatory Challenges

New digital leaders

Applying analytics to optimize the business

Growing cyber risk and / or cyber initiatives

Budget or funding challenge

Change slowed by technology and agility constraints

Culture, talent or digital employee challenges

Nordics Global

Digital transformation – stage of journey

Stage in Journey Automation – digitizing paper-based processes

Stage in Journey Digital only – creating digital-only channels and experiences

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Investigating

Proof of concept (POC)

Transformation in progress

Transformation largely achieved

Not for us

Nordics Global

0% 5% 10% 15% 20% 25% 30% 35%

Investigating




Not for us

Nordics Global

Digital transformation – stage of journey

Stage in Journey Robotics – digitizing to reduce need for most human interactions

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Investigating




Not for us

Nordics Global

Stage in Journey Artificial Intelligence – real-time machine learning

0% 10% 20% 30% 40% 50% 60% 70%

Investigating




Not for us

Nordics Global

Remarks, Global vs. Nordics

• Business priorities closely inline 1. Becoming Digital Org

2. Nordic: Growing collaborations and interoperability vs. Global: Apply Analytics

3. Nordic: Apply analytics, Global: Growing cyber risk

• IT priorities globally equal1. Becoming Digital Org

2. Need to modernise

3. Nordic: New delivery models / Agile, Global: Apply Analytics

• IT Budgets in Nordics shows growth • (Nordic 65% grows IT budget while globally 49%)

21

0% 20% 40% 60% 80%

Decreasing

Flat

Increasing

Nordics Global

Remarks, Global vs. Nordics

• Innovation investments in 3 year perspective highlights data driven business/analytics

• How to organise Digital and Innovation type of way of working? Common approach globally.1. Separate digital team

2. Partner externally

3. Digital within lines of business

• Challenges on digital transformation in Nordics seen close to global view, except budgeting where difference is higher:

• Culture & talent challenges (Nordic 79% / Global 81%)

• Change slower due to technology and agility constrains (Nordic 68% / Global 72%)

• Budget and funding challenge (Nordic 41% / Global 51%)

• Path to Digital first thinking is global phenomenon and largely in same stage

• RPA and AI/Machine learning is seen more interesting in the Nordics than globally• In RPA 39% are investigating and 23% working with POC´s in the Nordics

• In AI 59% are investigating and only 11% working with POC´s in the Nordics

22


¨How do we take on Digital Business

Transformation

A Business Transformation is Digital when it is built on a foundation for Digital Technology

The following technologies are most significantly associated

with digital transformation:

• Analytics tools and applications, including ‘big data’

• Mobile tools and applications

• Platforms upon which to build shareable digital capabilities,

like cloud solutions and app marketplaces

• Social media tools and applications

• The Internet of Things, including connected devices and

‘smart’ networks

• Robotics (RPA) and artificial intelligence (AI)

24

Together these digital technologies,

often cumulatively referred to as the

Internet of Everything (IoE), is having a

profound effect on how organizations

and industries are transforming, often

as a result of new technology-enabled

business models.

Target of the Digital Business Transformation is to improve Performance and

Productivity

The combination of organizational change and digital

technologies has the potential to improve performance in

multiple areas:

• Increased revenues

• Improved efficiency

• Reduced costs

• Faster and more successful innovation

• More effective knowledge collection

• Sharing and use, enhanced customer engagement and

customer service

• Sustained protection against digital disruption

25

These performance improvements

are quantifiable because they can be

measured and reported. The

quantifiable nature of many digital

technologies, such as connected

devices, big data, and social media is

a key enabler of digital business

transformation.

Karakteristika for en digital virksomhed

Drivers

Inside-out

1. Forretningsprocesser og deres gennemførelse kan spores – digitale fodspor.

2. Forretningsregler - kan spores elektronisk.

3. Løsninger, tekniske eller funktionelle - kan udskiftes

Outside-in

4. Kunder, partnere og leverandører kan interagere – menneskeinteraktion er en differentiator

5. Antallet af samtidige udførelser af en proces kan skaleres.

6. Slutbrugeroplevelsen er ikke altid stramt afhængig af tilgængeligheden af internet – eller telefonforbindelser eller den anvendte type enhed.·

7. Nøgletjenester altid tilgængelige for kunden, samarbejdspartneren eller leverandøren.

Outside-out

8. Produkter og tjenester opdateres løbende – som følge af indsigter

9. Influent baseret påvirkning af formidlingskanaler

10. Relevansbaseret produkt og service tilgang – baseret på kundeindeks.

26

Implikationer

1. Tid - konceptet til den faktiske løsning

- skal være i størrelsesordenen uger

eller måneder.

2. Når en proces er understøttet på

mere end en måde- tvinger ikke

brugeren til at ændre adfærd

3. Data - skal afstemmes og holdes

synkroniseret. Market fit og løsnings fit

kræver en dyb forståelse af demografi

af kunder, partnere og leverandører.

4. Opgraderet infrastruktur- og

sikkerhedsproblemer

5. Støttefunktioner skal ændre måden

hvordan ressourcer vurderes -

supportfunktioner bliver katalysator for

transformation

CGI’s Tilgang til Digital Strategi og Transformation

fokuserer på alle tre områder af transformation.

Digital ændrer tankegangen i organisationer

Når vi skærer digital transformation ind til benet er teknologi kun en del af svaret. At realisere et løfte om digital

transformation kræver ændringer på tværs af tre områder; Organisation, Forretningsmodel og Teknologi.

27

Forretningsmodel,

Driftsmodel & Proces

Teknologi

Organisation,Kultur, &

Mennesker

Ændre spillereglerne

• Optimér kundeoplevelsen på tværs af

alle kontaktflader

• Træf beslutninger baseret på indsigt

• Forøg innovation og samarbejde

• Skab nye markedsmuligheder, produkter

og services.

• Udforsk nye forretningsmodeller

• Tænk udefra-og-ind, lav partnerskaber

• Vær sparsom og simplificer

• Øg hastigheden og bliv agil

Udnyt ny teknologi

• Flyt til realtids løsninger

• Automatiser mest muligt

• Anvend ny teknologi

• Udnyt teknologiens muligheder og drag fordel af åbne platforme

Forander organisationen

• Evaluer dit lederskab

• Revider strukturer

• Juster risikovilligheden

• Moderniser kultur og miljø

• Aktiver de nysgerrige medarbejdere

• Træf beslutninger på baggrund af

indsigt

• Tilskynd innovation og samarbejde


Examples

Forretningsmodel

DIN VIRKSOMHED DINE KUNDER

Internet

of Things

Mobility

Security

Big Data

Analytics

Machine

Learning

HOME

ReadTracker PORTEFØLJE

ReadTracker is a system that detects whether a sent

printed matter have been opened by the receiver. Post

Distributor goes thus from being a supplier to being an

active partner to their clients whether they are distributing

direct mail or ads.

The trend towards digitalization is catching on in every

industry. It is creating new business models with new

added value for your customers

EXIT

CGI Beacon Platform

Digital

Customer

Insight


Internet

of Things

Mobility

Security

Big Data

Analytics

Machine

Learning

HOME

…

PORTEFØLJE

CGI Beacon er en cloud-based platform for mobil Apps, der trigger

kontekstbevidste budskaber til slutbrugeren og muliggør brugen af

real-time data til forbedring af kundeoplevelsen.New value-added services to

their customers via iBeacon

and mobility

Posti is the first in the world to

integrate beacon technology for

indoor parcel tracking.

Enhance customer experience

by implementing processes to

faster boarding, less wait times.

EXIT

Video Analytics

www.affecto.com/video-analytics

Digitalize the physical

http://www.affecto.com/video-analytics

Computer Vision

+

Machine Learning

+

Real-time Analytics

Video Analytics =

digitalize the physical

Affecto video analytics and other sensing technologies improves the

customer/audience/citizen experiences and brings operational

benefits to your industry

Capture new insights from your customers and operations to enable

tomorrows’ customer experience with our video analytics capabilities

get new insights from video analytics

HOTEL

SEGMENTATION

Know your visitors and

use it to provide

targeted content.

BEHAVIOR ANALYSIS

Understand visitor

interests and sentiment.

PRODUCTION ANALYSIS

Improve quality

assurance and

predictive

maintenance.

OPTICAL CHARACTER

RECOGNITION

Create personalized

experiences or optimize

manual processes.

Capabilities

How we use our capabilities to deliver valuecapabilities use cases value

• Capabilities

• Object

recognition

• Edge detection

• Optical character

recognition

• Facial analytics• Age

• Gender

• Ethnicity

• Head position

• Emotion / sentiment

• Facial expressions

• Attention time

• Value phenomena

• Sensing people

• Abnormal

behavioral

analysis

• Sensing objects

• Production

analysis

• Sensing OOH

Use cases

• Public

• Safety

• Vehicle tracking

• Traffic monitoring

• Zoning based on segmentation

• Targeting Tourists

• Behavioral analysis

• B2C

• Segmentation

• Behavioral analysis

• Campaign performance

• Sentiment analysis

• Targeted marketing

• Fraud

• Industrial

• Defect detection

• Predictive maintenance

• Work site compliance

New KPI dimensions

• Customer satisfaction

• Revenue

• OPEX

• Quality

• Safety

• Compliance

Video analytic examplesDefect Detection Capture Interest

Customer Segmentation

W W W.SIGHTCORP.COM

FACE ANALYSIS

by : Dr. Roberto Valenti

Chief Technology Off icer @ sightcorp

Object trackingW W W.SIGHTCORP.COM

INTERACT

INTERACT

Affecto Video Analyticswhat defines us

We don’t just deliver technology, we deliver value

We build partnerships, not clienteleVideo analytics and enabling technologies is in our blood

Steering member for machine vision & neural networks projects across 3 universitiesWe are hackers, T-shapers, data scientists, machine vision experts, machine learning experts and students for life

Specialize in delivering custom solutions

No canned services, no canned contentWe build custom neural network models & algorithm pipelinesWe get the needed training material, we create models and we train them

Open source by default

World class solutionsKeep your costs under control

We meet your needs through the 3 F’s

Fixed out of box servicesFlexible across deployment needs, technologies and servicesFocus to meet special purpose and performance needs

Privacy

Affecto’s sensing solutions complies

with the EU General Data Protection

Regulation (GDPR).In engineering we have followed Privacy by Design principles.

Data collected can’t be traced back to a specific individual.

Forretningsmodel


Internet

of

Mobility

Security

Machine

Learning

HOME

Big Data

Analytics

Recognizing the importance of quality, availability and

reliability of data essential for success. Processes must be in

place to manage data as an asset.

CGI Analytics Center of

Excellence CoEProcesser

Turning data into insights

Time is money. Turning static workflows into streamlined,

flexible, standardised processes can therefore help you

save money.

PORTEFØLJE

EXIT


Closing

42

Ikke alle Digitale

Transformationer er

ens

…at stille de kritiske

spørgsmål

Transformér

CORE

Organisation

Forretningsmodel

Teknologi

Forbedre

CORE

Operationel

forenkling og

effektivisering

Kritisk beslutning

“Hvad skal vi gøre

med kernefor-

retningen”

Non CORE

Restruktu-

rering

Løbende

forbedringer

2

Opdag

Omgivelser

Miljø

Konkurrence

Marked &

Trends

Kriser

Turnaround eller

Hurtigt

Finansielt Boost

Hvor skal

forretningen

positioneres?

Ambition

Virksomhed

Performance

& Position i

Markedet

1

Kritisk beslutning

“Hvordan vækst

skal drives”

Innovation

Kommerciel

opdatering

Nye

forretnings

kombinationer

3

Markeds

Ekspansion

The Digital Business Tranformation Journey

Digital business transformation kan

motiveres af en række faktorer:

• Fra forbrugere, der er bedre

informeret end nogensinde før,

og er aktivt på udkig efter

forbedret service, lavere priser

og højere niveauer af kvalitet

• Fra konkurrenter med

forbedrede tilbud, bedre

engagementsmodeller eller

lavere priser

• Fra nye teknologier, der

muliggør nye muligheder

Hvorfor ?

Følgende kategorier kan

transformeres:

• Forretningsmodel - hvordan du

tjener penge

• Struktur - hvordan du er

organiseret

• Folk - de mennesker der arbejder

for dig

• Processer - hvordan du gør ting

• IT-kapacitet - hvordan du styrer

oplysninger

• Tilbud - dine produkter og

tjenester

• Samarbejdsmodeller - hvordan

du engagerer dig med vigtige

interessenter

Hvad ?

En digital agil forretning har

behov for følgende egenskaber:

• Hyperawareness - evne til at

genkende fremtidige

tendenser, der vil påvirke en

organisation

• Informeret beslutningstagning -

Evne til aktivt at analysere

information, der kommer ind

gennem hyperbevidsthed.

• Hurtig udførelse i en

kombination af hastighed og

implementering -

responsfunktion, der

inkorporerer mulighed for

løbende finjusteringer

Hvordan?

Digital Business

Transformation is -

Organizational

Change through

the use of Digital

Technologies and

Business Models to

Improve

Performance.

Michael Wade

IMD Professor of Innovation and

Strategy

Digital Business Transformation

conceptual framework

June 2015

CGI offers IT and Business transformation services- everything starts from ideas leading to innovations

Urgency to change Urgency to change

…on a transformed, modern

digital platform

…by building a digital

businesses…

Drive growth…

Increasing run cost of legacy

platform

Investments to “Change”

challenged

Revenue under

pressure

Current State

Future State

Digital Transformation accelerated byCGI Innovation“As-a–Service”

Modell

VIP

Meeting

DigitalDay

Digital Spark

Service Design Studio

Prototype Factory

TestFactory

Ramp-Up

Evaluate High-End

Consulting

IoT

Platform

Design

Thinking

Centers of

Excellence

Spark

Room

VOC

1000

Agile

SAFEDevOps

CGI or 3rd

party IPsCSAP

Change

Management

CGI end-to-end innovation framework provides you

right services , capabilities and skills for succesful innovation

45

Strong Foundation

• CGI Dream

• Core Values

• Vision & Mission

• CGI Management

Foundation

Client Proximity

• Metro Markets

• Industries

• Clients (Strategic & Target)

• Contract Vehicles

End-to-End Services

• High-end IT and

Business Consulting

• Systems Integration

• IT and Business Process

Outsourcing

Enabling Solutions

• IP

• Global Delivery Network

• Methodologies

• Strategic Partnerships

Right Talent• Learning Agility

• Consulting Skills

• Technical Expertise

• Industry Knowledge

• Breadth of Competencies

• Relationship Builders

• Talent Managers &

Developers

Our innovation and transformation services provides you ...

Our commitment to youWe approach every engagement with one objective

in mind: to help clients succeed

digital business transformation · 2018-09-13 · one definition of the digital business...

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