digital strategy transformation solution overview · the second pillar aims to measure employee...
TRANSCRIPT
The better the question. The better the answer.The better the world works.
Digital transformation = implementation of IT systems + culture transformation
April 2018
Page 2
Digital is not just about any one technological advancement. It’s about Cambrian explosions, collisions & convergence within sector
AGRITECH
EDTECH
CLEANTECH
FINTECH
MEDTECH
INDUSTRY 4.0
New Materials HD Imagery Genomics 3D PrintingAutonomous
vehicles
DronesAdvanced
Robotics
Cognitive
Computing
Quantum
ComputingRPA
Blockchain IoTSolar &
StorageSensors Bandwidth
Social & GamingCloud
Computing
Processing
PowerStorage Mobile
Databases
Utilities
Tools
ERP (e.g.GW)
ApplicationsWeb
3270
RPA
Industrial
Internet 4.0Smart
Products
Physical Web
(Augmented Reality)
Data-Driven
Business Models
Application/Industry Clouds Smart ServicesTechnology core & analytics core
IoT
Services
People
ThingsAnalytics
Personal &
Wearables
Connected
Vehicles
Connected
Homes
Smart
Factories
Smart
Logistics
Transportation
Healthcare
Connected
Lifestyle &
Consumer
Smart
Cities
Utilities
Personal
Wellness
Self-Driving
Cars
Car as
Smart Phone
Personal
Education
Healthcare as
a Service
Remote
Surgery
Smart Washing
Machine/Fridge Predictive
Logistics
Drones
Smart
Production
Predictive
Maintenance
Mobility
as a Service
Smart
Station
Smart
Bus
Smart
Grid
Smart
BuildingRoads
Lighting
Waste
Management
Location
Marketing
Lifestyle as
Experience
Page 3
The digital mega-trend creates opportunities and threats up and down the value chain
Threats
It will take 20 years for
cybersecurity skills to catch up with
demand.
Unilever’s CMO estimated a 29% rate of click fraud,
prompting a claim that the industry was wasting $8b–
$10b per year on fake clicks.
Two billion jobs will be displaced by
2050 as a result of technology advances.
Seventy-five percent of
companies in the Standard & Poor’s
500 will be new entrants
by 2027 at the current run rate.
In just 4 years, Airbnb reached the same inventory as
Hilton Hotels, which took them 93 years to build.
Zappos offers $2000 to every
customer service employee who doesn’t buy
into their “delivering happiness” philosophy
after a four-week intensive training program.
A drone capturing and analyzing high-definition video on offshore oil rigs captures more data in 5 days than a traditional
“rope lift” team can capture in eight weeks.
RPA enabling automation 24
hours a day, seven days a week, 365 days a year saves 25%–50% in costs.
Thirty-five percent of new
P&G products come from outside the company via its open innovation
approach.
Opportunities
Page 4
Risk and cybersecurity
Finance, legal and tax
People and organization
Customer experience / MSS
Supply chain and operations
Technology
Strategy, innovation and growth
Streamline the digital
ecosystem
Establish a digital supply
network
Drive intelligent automation of
SC&O processes
Fully enable digital
systems
New Operating
Models
Manage risk as business transforms
Create a more agile
supply chain
Raise and allocate capital to fund digital
transformation
Understand broader risks
of new technologies
Keep pace with increasing cyber
attacks
Automate processes
and controls
Establish a cybersecurity
program
Create a diverse culture of
innovation and ideation
Respond quickly to
market changes
Digitize invoices and documents
Transform knowledge across the
organization
Maximize tax savings from digital initiatives
Balance digital
innovation with IT
maintenance
Re-imaginecustomer
experiences & distribution
models
Deepen customer
relationships and insights
Address legal and
regulatory requirements
Integrate front-office apps with back-end systems
Multi-channel
Marketing / Sales / Service
Re-design the
organization to fit the
digital age
Identify threats and
opportunities
New Business Models & Ventures
Collect intelligence
across touch points
Integrate digital
technologies to empower
people
Our belief is that organizations need to approach digital holistically, rethinking the value chain from top to bottom
implementation of IT systems + culture transformation
Confidential — All Rights Reserved — EY 2018Page 5
When we talk about culture, we mean the way people habitually behave within their daily work
Culture is ‘the way things are done
around here’. It is driven by the
underlying values, beliefs and motives observed through
people’s actual behaviors.
Corporate culture is often given as explicit statements of purpose, values and behaviours. In reality, it’s the implicit, unwritten rules that decide how people choose to behave.
Culture is how people habitually behave
Confidential — All Rights Reserved — EY 2018Page 6
Define purpose to provide direction for your cultural transformation
More engagedemployees
1.4x
10x
Employees are three times as likely to stay
3x
Purpose-led companies outperformed the S&P 500 by 10 times
Purpose-led organizations believe in a clearly defined why. Research has shown that organizations that embody “purpose” see significant, measurable results
Source: The Energy Project (2013); Edelman (2013); Raj Sisodia (2007)
“…the one element that really holds us together as an organization is our unifying desire to improve the bank, little by little, and that is what our Purpose represents. We want this to sit at the heart of our organization and
reflect how we operate and what each and every one of us stands for.” - COO Julius Bär July 2016
Workshops with top leadership team to determine purpose and core desired cultural traits
Engage senior managers across the business to build purpose and cultural traits out
Activate purpose through our program of cultural and operational change and engage the broad workforce
To provide direction for cultural change we will work together with the leadership team to define the purpose and the characteristics of the desired culture to then broaden to an organisational dialogue
Confidential — All Rights Reserved — EY 2018Page 7
Leadership & Sustainability: Involve leadership team and build internal capabilities to make the change happen
Enable the change
Leaders and managers role model behaviors and ways of working
Make the change happen
Through each cycle of sprints, we will build local capability to sustain and expand the roll-
out of the ways of working
WAYS OF WORKING COACHES
CORE PROGRAM
TEAM
OVERARCHING INITIATIVE
TEAMS
WAYS OF WORKING
CHAMPIONS
LEADERSHIP TEAM
TEAM LEADS
DEPARTMENT HEAD
Confidential — All Rights Reserved — EY 2018Page 8
new ways of working aligned with the company purpose
High employee empowerment, involvement and accountability
Improved collaboration and shared ways of working
Increased:
Customer satisfaction
Quality / service
Productivity
Flexibility
Employee satisfaction
Capacity for value adding activities
Systematic approach to problem-solving
Reduced:
► Cost
► Lead and touch time
► Absence due to illness
► Voluntary employee turnover
► Lead time variation
► Customer requests
Achieve
Efficiency and cost
The ultimate effect from Bit by Bit is continuous, sustainable improvements on both the cost and income side, driving profitability.
Culture and employees
Employees experience improved ability to focus on the right things in a more structured way supported by tools and management, giving purpose to their work.
Customers
Customers experience improved service, both in terms of quality and efficiency, with products and service better tailored to their needs.
continuous improvements across the organization
Design of simple, standardized and flexible processes
Customer and customer value as the focal point of all activities
Increased agility and continuous improvement mindset
sustainable results for your stakeholders
Build Drive
New ways of working and the right behaviors aligned with your purpose will ultimately drive performance
Confidential — All Rights Reserved — EY 2018Page 9
1 Actions taken
How many activities have been performed?
The first pillar aims to track the implementation progress and actions takento embed targeted behaviors
2 Behavioral changes
How did the behavior change?
The second pillar aims to measure employee perception of how behaviors have changed and are now lived across the organization. Tracking employee opinion allows the organization to better understand the potential drivers of the behavior
3Business impact
What are the results?
The third pillar aims to measure objective business outcomes of changes in employees behaviors. Tracking the impact provides evidence for reaching the business goals and delivery of strategy
Example measures:
► # of collaboration tools created
► # of trained and coached employees
► # of Leadership workshops held
► Quantity and quality of training and coaching materials
► Defined measurement concept and key KPIs
Example measures:
► Net Promoter Score (client satisfaction score)
► Share of wallet / revenue per customer
► Employee retention rate
► Employee absence rate
► Response time (and rate)
► Process lead and touch time
► Capacity improvement
► Quality (error rate)
Example measures:
► Trust index
► Ways of Working together index
► Stress index
► Perceived collaboration and communication
► Employee engagement index
► Organizational health index
Values and benefits generated can be measured with three types of measurements / KPIs
Measure benefits using three pillars of measurement to create a holistic view
Confidential — All Rights Reserved — EY 2018Page 10
Petr Medvedev,Partner
G360 Gazprom Global Client Service Partner
Tel.: +7 (495) 755 9877