digital transformation a road-map for billion-dollar organizations

8/20/2019 Digital Transformation a Road-Map for Billion-Dollar Organizations

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DIGITAL TRANSFORMATION: A ROADMAPFOR BILLION-DOLLAR ORGANIZATIONS

FINDINGS FROM PHASE 1 OF THE DIGITAL TRANSFORMATIONSTUDY CONDUCTED BY THE MIT CENTER FOR DIGITALBUSINESS AND CAPGEMINI CONSULTING

MIT Sloan M A N A G E M E N T



2 © 2011 MIT Center for Digital Business and Capgemini Consulting

Contents



3© 2011 MIT Center for Digital Business and Capgemini Consulting

1 The Study 06

2 Common pressures; different results 08 • Common pressures to begin digital transformation • Different digital transformation speeds and different resultsCase Study: Finding new opportunities for digital transformationacross a hospitality companyCase Study: Digital transformation in India

3 The shape of digital transformation 16 • Transforming customer experience • Transforming operational processes • Transforming business models • Digital capabilities

Case Study: Digital transformation in an international banking groupCase Study: Moving from separate to integrated digital initiatives inan apparel manufacturer

4 Digital technology usage 28

5 Challenges on the road to transformation 34 • Initiation challenges • Execution challenges • Governance challenges

Case Study: Evolving as a value chain orchestrator in mortgagesCase Study: Digital transformation in an international airport

6 How can you make your digital journey successful? 46 • Envision the digital future for your firm • Invest in digital initiatives and skills • Lead the change from the top Case Study: Driving digital transformation across a global media company

7 What is digital transformation maturity? 58

•

The What and the How • Digital Maturity Matrix • How to assess your digital maturityCase Study: Capitalizing on digital opportunities for a business directory

8 Conclusion 65




EXECUTIVE SUMMARY




Digital transformation (DT) – the use of technology to radicallyimprove performance or reach of enterprises– is becominga hot topic for companies across the globe. Executives inall industries are using digital advances such as analytics,mobility, social media and smart embedded devices – andimproving their use of traditional technologies such as ERP– to change customer relationships, internal processes, andvalue propositions. Other executives, seeing how fast digitaltechnology disrupted media industries in the past decade,know they need to pay attention to changes in their industriesnow.

How can senior executives successfully lead digital transformation? While many experts urge companies to get started on the digitaltransformation journey, few tell how to do it. In this report weshare the findings from a global study of how 157 executives in50 large traditional companies are managing – and benefitingfrom – digital transformation. We will describe the elements ofsuccessful digital transformation and show how to assess yourfirm’s digital maturity.

Our research shows that, although large traditional firmsare truly different from digital entrants, many are startingto transform their businesses successfully through digitaltechnology. Specifically,

• Companies face common pressures from customers,employees and competitors to begin or speed up theirdigital transformation. However they are transforming atdifferent paces with different results.

• Successful digital transformation comes not fromimplementing new technologies but from transformingyour organization to take advantage of the possibilities

that new technologies provide. Major digitaltransformation initiatives are centered on re-envisioningcustomer experience, operational processes andbusiness models. Companies are changing howfunctions work, redefining how functions interact, andeven evolving the boundaries of the firm.

• Successful DT does not happen bottom up. It must bedriven from the top.

• Focus on the “how” more than the “what.” The mostsuccessful transformations we have seen focus as much(or more) on how to drive change as on the detailedcontent of the change. A compelling transformativevision, with related engagement, governance and KPIswill allow people throughout the enterprise to identifynew “whats” to meet or extend the vision.

• Successful DT comes not from creating a neworganization, but from reshaping the organization to takeadvantage of valuable existing strategic assets in newways.

• Companies can do much more to gain value frominvestments they have already made, even as theyenvision radically new ways of working.

Despite the hype around innovative digital technologies, mostcompanies still have a long way to go in their digital transformation

journeys. Leadership is essential. Whether using new ortraditional technologies, the key to digital transformationis re-envisioning and driving change in how the companyoperates. That’s a management and people challenge, not justa technology one.




1THE STUDY




Many popular stories of digitaltransformation involve digital start-ups or high-tech firms such as

Amazon, Apple, or Google. Executivesin traditional companies often findthese examples hollow. Big traditionalcompanies, with decades of historyand legacy, are simply different fromthese newer digital entrants. Otherstories focus on exciting initiativesby traditional companies, but areanecdotal and do not show how thosecompanies implemented the change.

These examples may be good triggersfor other companies to take action, butthey give no advice on how or whetherto do so.

With that in mind, MIT Center forDigital Business and CapgeminiConsulting set out investigate the waysin which large traditional companiesaround the world are managing

– and benefiting from – DigitalTransformation. We are working tounderstand how digital technology ischanging the business of large leadingfirms.

Phase 1 of this multi-year study is anexploratory investigation involving157 executive-level interviews in50 companies in 15 countries (seeFigure 1). These companies are large,with typically $1 billion or more inannual sales. We conducted in-depth

interviews to qualitatively explore thenature of the digital transformationphenomenon with real executives inreal companies. To provide balancedperspectives, approximately half ofthe interviewees are business leaderssuch as CEOs, line of businessmanagers, marketing heads, orCOOs, while the other half are IT andtechnology leaders.

Europe

54%

Americas& Canada

30%

Asia Paci c

16%

Pharmaceuticals& Medical

Transport

Manufacturing& distribution

Energy, Utilitiesand Chemical

Telecom,Media, andEntertainmentServices

Government

Retail &Food services

6%

20%

8% 12% 8%

22%

12%

FinancialServices

12%

Figure 1: Interviews cover a broad range of countries and industries




2COMMON PRESSURES; DIFFERENT RESULTS




2.1 Common pressures tobegin digital transformationThe executives we interviewedreport feeling pressure to transformfrom forces inside and outside thecompany. Figure 2 shows that mostexecutives expressed at least moderatepressure to change. Employees areasking why they cannot collaborate

with coworkers the way they canwith fr iends. One executive quotedyounger employees as saying “Comeon. I know the company’s more than100 years old, but our IT capabilitiesdon’t have to match the age of thecompany.” Other employees areincorporating their personal practicesinto their work lives without waitingfor corporate practices to catch up.

According to one CIO, “Officially iPadsare prohibited by our policies. Yet 50

percent of our employees are using them

at work.”

Customers, too, are becoming moredemanding. An airport executivedescribed an “ever-rising tide ofcustomer expectations” for service andconvenience. For a manufacturer/ retailer, “People’s expectations havechanged. They want to be more in charge.They expect that we know them more...their online behavior is developingexpectations and behaviors that they apply

in other contexts as well.”

Nearly every executive (72 percent)cited competitive pressures to change.This relates closely to increases in thepace of business. Respondents ratedthe current pace of business relativeto five years ago as 5.6 on a scale from1=very much slower to 7=very muchfaster. Most indicated the pace willcontinue to increase, leading to furtherpressure to transform their businesses.

While several executives indicatedthis was “the new normal” for their

Executives ratedthe pace of businesscompared to fiveyears ago as

5.6 out of 7**Scale: 1=very much slower than 5 yearsago, 7=very much faster than 5 years ago

High Medium

Customers Competitors Employees

72%

32%

70%

H H

H

M

MM

* Percentage of companies experiencing moderate or high pressure to transform from customers, competition,or employees as mentioned by their executives. Some rms mentioned more than one pressure.

Figure 2: Pressures for change*




industries, others expressed concernthat the acceleration would not besustainable.

Executives on average rated theirinnovation culture at only 4.2 on a7-point scale. Although few companiesstrive to be as high as seven on thescale, none of the executives felt theirinnovation culture was as strong as itshould be.

Some executives expressed other, less

common, pressures. Globalizationis a driver for seven firms. Thesecompanies have a strategic needto expand globally or are facingpressures to generate information andprocess synergies across their globalenterprises. Executives in three firmsmentioned M&A as a pressure totransform.

2.2 Different digitaltransformation speeds and

different results A few companies in our study are usingdigital technologies, old and new, to trulytransform their businesses. However,these companies are in the minority.

Despite internal and external pressures,very few businesses are gaining the fullvalue of technologically-enabled change,even with technologies they alreadyown. Many companies we interviewedtook on the significant effort andexpense of implementing ERP, CRM

or other technology-enabled changes,but obtained only basic levels of valuefrom the investments. They can obtainmuch more value by continuing theeffort – envisioning new capabilities andprocess changes to reap larger returnsfrom their foundational investments.Manufacturers’ ERP systems haveimproved process efficiency and areproviding better financial data forstrategic decisions, but companies havenot yet retrained buyers in how to usethe information in negotiating with

suppliers. Retailers and other servicefirms are gathering detailed informationon buyer behavior, but lack the analyticscapabilities to truly understand thepower of the data. A hospitalitycompany is conducting experimentsin mobile marketing in two differentbusiness units, and building digitally-enhanced customer service apps inanother, but is not conducting a unifieddigital transformation of the customerexperience.

These companies are gaining somevalue from transforming parts of theirbusinesses, but are only part of the waytoward achieving the potential of digitaltransformation. Still others have notyet begun their digital transformation

journeys.

In the following sections, we willdescribe how firms are digitallytransforming, the challenges they arefacing, and the levers executives can useto drive digital transformation.

Executives ratedtheir innovationculture as 4.2 on a7-point scale.




H otelCo is one of the world’s ten largest hospitalitycompanies. The firm constantly strives to improveoperational efficiencies and customer service both withinand across properties. The firm’s loyalty program is thecenterpiece of the company’s approach to understanding,serving, and selling to customers.

HotelCo executives, who have always believed inthe power of technology to improve processes and

increase customer intimacy, see further opportunity for digital transformation.Opportunities exist not only in new technologies such as social media andmobile, but also in the firm’s more traditional areas like transactional IT andanalytics. HotelCo is actively pursuing digital transformation in many areas andis working to innovate further. Because HotelCo experiences organizational andIT challenges common to many large global enterprises, it seeks to take a rational,well-defined approach to its digital transformation init iatives wherever possible.

HotelCo has created opportunities for digital transformation in three areas: onlinepresence, mobile customer engagement, and internal operational processes.

Online: HotelCo continually evolves its online presence. It has integrated thewebsite presence of all its properties on a common platform, enabling marketingacross properties within a market. It also added new capabilities. For example,property managers using the firm’s corporate digital marketing tools can controltheir property content, e.g., events, independently of other properties, while nothaving to build and maintain their own online capabilities. Further extendingonline capabilities, HotelCo has begun to implement social media and mobilemarketing capabilities. Employees actively monitor social media for negativeinformation and can respond. However, organizational questions remain abouthow to improve the response capability as volumes continue to grow: “Whohandles it? Marketing? Product support? Customer support?”

In addition, HotelCo is integrating social media information onto its websites.The website allows user comments on select pages, and the firm is working toextend comments to additional pages. HotelCo is also incorporating third-partysocial media onto the site. For example, tripadvisor.com ratings feed directly intoproperty web pages, despite the initial hesitation of some property managers.“First off, this conversation is happening and most of the customers are nowsavvy enough they’re going to tripadvisor anyway. Let’s bring the content rightto our site, positive or negative. Customers see that and they say ‘OK, well this

Case Study

HOTELCO: FINDING NEW OPPORTUNITIESFOR DIGITAL TRANSFORMATIONACROSS THE ENTERPRISE




is an honest assessment from people like myself….” The marketing people havefound that such content is much more compelling than internally generatedinformation.

Mobile: Realizing that most customers now carry cell phones, HotelCo hasmade mobile a key part of its marketing strategy. The company offers multiplesmartphone apps and is making preparations for a future in which more peopleaccess sites via mobile than from a personal computer.

HotelCo actively engages in mobile marketing. The company realizes thecustomer intimacy it can achieve through mobile because customers reactto messages almost instantly. SMS and WAP sites are a core part of mobilemarketing because of their ubiquity. The different properties are in charge of

their own mobile marketing messages, but the messages are delivered through aunified corporate-level system.

The company is also experimenting with location-based services. Innovationactivities that initially focused on embedded devices and RFID have beenfacilitated by mobile phones. For example, customers arriving at some propertiescan receive mobile coupons for restaurants, shows, and other serv ices in thehotel. Customers can also receive personalized service and information fromdigital displays located around the properties using phones or their loyalty cards.

While mobile and location-based services show promise, they have challenges.The firm is tr ying to balance a tradeoff between the capabilities of location-baseddevices and their potential intrusiveness. For example, when building a digitalcustomer service display, HotelCo opted to ask customers to place their loyaltycards on the device rather than have the device automatically read who they are.

Additional challenges are technological and organizat ional. The firm wants to“support experimentation by all part ies, but also clearly delineate their rolesand scopes.” For example, multiple groups conducting mobile experiments meetregularly to coordinate activities. And the company is starting to examine howit coordinates its use of vendors so that knowledge is not fragmented acrossmultiple digital transformation initiatives.

Internal operations: HotelCo is investigating how to incorporate emergingtechnologies into internal processes. Compared with the device-agnostic policyfor customers, HotelCo aims to use standard devices for internal processes andto make them available only to those employees who need mobile capability fortheir jobs.

The firm is trying to take the same measured process to implementing socialmedia in internal processes as it does in other areas. One obstacle stems fromsecurity and cost: free platforms are not seen as secure, and the firm wants to becareful about investing large amounts of money to in license a secure platformfor an uncertain goal. Another challenge is organizational: who would ownthe internal collaboration process? Until there is a clear internal owner and a




well-defined purpose, the firm is taking a slow approach to widespread internaluse of social media instead of targeted efforts.

The firm is midway through a set of initiatives aimed at rationalizing processesacross the enterprise. When complete, HotelCo will have a set of shared servicesthat are available to all properties, but which can be tailored by properties fortheir own use, much as the onl ine platform is today. IT, while a significantenabler of the firm’s capabilities, remains a challenge as the company changes.For example, the loyalty database is not optimized for multi-channel interactions,making it difficult to integrate information that arrives from, or is sent via,multiple media. Another challenge is integrating information and processes fromacquired companies into the firm’s core IT backbone.

At HotelCo, analytics is “something we do a ton of.” Executives are proud ofthe firm’s ability to understand drivers of customer and operational metrics.HotelCo is now investigating how to move analytics capability further out to theedges of the company. However, executives expressed the desire to make goodchoices about where to apply analytics. Analytics is “absolutely a different wayof thinking… we don’t need every role to do it, but we definitely want the skill sin certain places. “ For example, analytics may enable the firm’s customer-facingemployees to further personalize the customer experience, but executives areaiming to do it in a way that doesn’t disempower those workers.




A sian Paints, India’s leading manufacturer of coatings,has digital ly transformed its business step by step. Thefirm has been able to maintain fast growth and globalizewhile increasing efficiency and reducing its impact on theenvironment.

In the early 2000s, as part of an effort to reduce debtand increase internal efficiencies, the fi rm implemented

an enterprise-wide ERP and advanced Supply ChainManagement system. This helped to create an enterprise-wide platform that wasthe basis for further improvements in sales and customer processes. The changealso l iberated working capital that helped fund acquisitions in emerging markets.

Asian Paints gained further efficiencies by linking subcontractors and suppliers ona B2B portal. In 2003, the firm invested in a CRM system.

In 2010, Asian Paints centralized its order taking process into a single corporatecall center. This change helped the company further improve operationalefficiencies and sustain its growth. In customer-facing processes, the move entailedmuch more than just creating the call center. Retailers were encouraged to placeorders through the call center, where they could receive a more consistent servicelevel than they could through the firm’s 100 local depots. Centralized data alsoenabled delivery of products to large institutional customer job sites, giv ing thecompany a capability that competitors could not provide.

The biggest change resulting from centralizing order taking was in the waysalespeople interacted with retailers. Liberated from routine order collection,the sales team could focus on building stronger relationships. To enable a moremeaningful dialogue between the sales team and each retailer, the companyprovided salespeople with vital customer data in the field using mobile devices. Arollout of tablet devices, which is currently underway, will further mobile-enablethe sales staff.

Asian Paints’ digital transformation also extended to internal production processes.High growth in paint demand creates the need to set up new manufacturingplants every three years. Given the scale and size of these plants, the firm hasbegun to focus on creating highly automated plants. Automation has led to greaterscalability, better quality and stronger safety and environmental protections. Thenew plants are fully integrated from an information management perspective. Datafrom shop floor control systems and automated warehouses are linked seamlesslyto the ERP. This has helped to further sustain the firm’s operational efficiencies.

Case Study

ASIAN PAINTS: DIGITALTRANSFORMATION IN INDIA




In India, Asian Paints has begun to sell services (such as a painted wall) instead ofproducts (a can of paint). The services strategy has benefits beyond new revenues.Selling services helps to ensure that high-end products are applied properly,thereby improving customer satisfaction. Services also help the firm to get closerto the end-consumer, understand core consumer choices, and launch high-end texture finishes. Additionally, having a contractor in a client’s house yieldsinformation that marketing staff can use to understand both customer preferencesand potential demand. Gaining better knowledge of end-customer preferences is ahigh priority for the company, since its business model – operating largely throughretailers – means that customer involvement has been traditionally very low.

The relationship between IT and business executives has traditionally been verystrong. The IT team consists of business graduates with a deep understanding

of the underlying business processes. They act as internal process consultants.Governance is centralized and top down, with a strong executive-levelunderstanding about the importance of standardization and coordination.

Although business executives suggest many digital investments, IT executivesoriginate others such as the firm’s new analytics initiative.

Corporate growth and new technology demands have increased the challenges ofdigital governance. The firm is in the first year of a new portfolio planning process.“We have enjoyed great equity with the business because we have delivered solutions. Buseeing so many projects coming at us, we felt that now we need to establish processes tomatch expectations and resources whilst taking on innovative projects,” says Mr. ManishChoksi, CIO and Chief of Strategy.

Asian Paints’ investment in strong IT capabilities, combined with organizationaland process changes intended to leverage those investments, will serve as afoundation upon which the organization can continuously envision and implementnew forms of digital transformation.




3THE SHAPE OF DIGITAL TRANSFORMATION




The companies interviewed are movingforward with digital transformationat varying paces and experiencingvarying levels of success. Some aretransforming many parts of theirorganizations while others are stilldoing only the basics. Others areencountering organizational issues orother challenges that prevent themfrom transforming successfully.

Analysis of the interviews shows clearpatterns. Executives are digitally

transforming three key areas of theirenterprises: customer experience,operational processes and businessmodels (see Figure 3). Within eachof the three pillars, different elements

are changing. These nine elementsform a set of building blocks for digitaltransformation. Currently, no companyin our sample has fully transformedall nine elements. Rather, executivesare selecting among these buildingblocks to move forward in the mannerthat they believe is right for theirorganizations. The tenth element–digital capabilities – is an essentialenabler for transformations in all areas.

In this section, we explore how

companies in our study areimplementing each transformationalbuilding block. Subsequent sectionsexamine adoption of four keytechnologies and then common

Customer understanding

Digital globalization

New digital businessWorker enablement

Customer touch points

-

Digitally-modied business

Performance management

Top line growth

Process digitization

Digital capabilities

Customer

Experience

Operational

Process

Business

Model

• Un ied Data & Processes• An alytics Capability

• Business & IT Integration• Solution Delivery

• Performance improvement• New features

• Working anywhere anytime• Broader and faster communicatio n• Community knowledge sharing

• Operational transparency• Data-driven decision-making

• Product/service augmentation• Transitioning physical to digital• Digital wrappers

• Digital products• Reshaping organizational boundaries

• Enterprise Integration• Redistribution decision authority• Shared digital services

• Digitally-enhanced selling• Predictive marketin g• Streamlined customer processes

• Customer service• Cross-channel coherence• Self service

• Analytics-based segmentation• Socially-informed knowledge

Figure 3: Building blocks of the digital transformation




challenges that interfere with digitaltransformation. The paper concludeswith a set of key levers seniorexecutives can use to successfullytransform their organizations.

3.1 Transforming customerexperience

Customer understanding

Companies are starting to takeadvantage of previous investmentin systems to gain an in-depthunderstanding of specific geographiesand market segments.

Other firms are exploring socialmedia to understand customersatisfiers and dis-satisfiers. Amortgage executive noted “Welaunched a non-profit real estatecommunity to help our customers. Asan unplanned benefit this helps us tounderstand them better. We launched

special products, such as a special loanoffering for divorced people, followingseveral customer questions.”

In addition, companies are learning topromote their brands more effectivelythrough digital media:

• A medical device firm is l aunchinga social media campaign to promotea radically new class of products inan online community of medicalspecialists. Executives expect

awareness to grow in weeks ratherthan years.

• A media company has teamed withproduct manufacturers for socialmedia-based brand enhancementtied to in-person events.

• After the 2009 economic dow nturn,a financial firm built a set of

educational digital tools aimed athelping clients invest more safely.These tools, while not selling the firm’sproducts directly, aligned closely withthe firm’s reputation for conservatismand safety.

Companies are also building newonline communities to advise andbuild loyalty with clients in medical,real estate or financial servicesproducts. Others are building productsthat improve branding in lifestyle

communities. A consumer sportsequipment manufacturer enablesindividuals to publish their sportperformance to communities and stayconnected with other customers whohave similar interests.

Many firms are building analyticscapability to understand customers inmore detail. Some insurance firms, forexample, are improving their portfoliosand cost structures through analytics-based underwriting and pricing. Othercompanies are conducting analytics-based experiments to drive customerbehavior. In one case, a restaurant firmis actively conducting experimentsin pricing and promotion across a setof franchised stores. The experimentdynamically adjusts product pricesin response to demand, weather,inventory levels, and proximity toclosing time.

Top-line growth

Companies are using technologyto enhance in-person salesconversations. Financial servicesfirms are using tablet-basedpresentations instead of paper-basedslide decks to make sales pitches.Some are going beyond. Insurancefirms are introducing mobile toolsto help sales people and customersengage in analytics-based planning.




A medical device salesforce isreplacing in-person interactions withdigital interactions. When visitinga doctor’s office, a salespersonleaves an iPad with video and otherinformation on new products. Theaim is to get the doctor’s attentionand gain a 10 minute conversationwhen the salesperson returns toretrieve the iPad.

Better understanding helps firmsto transform the sales experience.

Companies are integrating customerpurchasing data to provide morepersonalized sales and customerservice or even to offer customizedproduct packages. One executivecommented “Analytics help us to segmentour clients and to connect SME offeringsand clients in a predictive way.” Ahospitality firm engaged in location-based marketing uses analytics tosend personalized mobile couponsto customers as they near a facilityand can track uptake in real time. Amortgage firm is setting up a CRMstrategy to link customers to local realestate references. This system proposesnew offers in real time via the internet.

Other firms are using concept storesas flagships for their digital sellinginnovations. A mortgage companyoffers investors an integrated processcombining real estate and bankservices with external services, andshowcases the overall process in aconcept megastore. A bank createda concept store in a major city toinnovate customer relationships andoffer a different experience. Customerscould connect their experiences inconcept stores to social communityinitiatives l ike Facebook.

Some firms try to make the life ofthe customer easier, simplifying their

processes through a digital plug-in. A retailer automatically loadsa customer’s last online shoppinglist into its e-commerce site. Thisstreamlines the shopping process,allowing customers extra time tolook at other products. Customerscan then decide whether to use homedelivery or a drive-through servicewith a specific pick-up time. Amortgage company also developed anintegrated multi-channel experienceto help investors set their realistic

expectations quickly. Then, processescan cross-sell or up-sell products.

Customer touch points

Customer service can be enhancedsignificantly by digital initiatives. Fastand transparent problem resolutionbuilds trust for customers. A bankestablished a twitter account to answerclient complaints quickly, helpingcustomers avoid going physically toa branch. This digital initiative also

leveraged an expert community,allowing crowd sourcing with severalemployees and other customers.

Companies with multiple channels tothe customer are experiencing pressureto provide an integrated experience.

A hospitality executive commented “Ithink consumers still respond in the sameway, but consumers are now looking in somany different places that’s it’s now hardto get that message across efficiently.”Many firms, especially in retail andfinancial services, are making stronginroads in integrated multichannelactivity. However, multichannelservices require envisioning andimplementing change across customerexperience and internal operationalprocesses. Many retailers now offerhome shopping with the option toreceive products by mail or in a store.




However, problems remain as,for example, one retail executivedescribed customers being angry thatcustomer service representatives ina store could not access online orderhistory.

Some firms are moving beyond simplemulti-channel models to enable newforms of digital st rategy. A mortgagecompany, for example, is offeringB2C offerings in one channel tocomplement its existing B2B offerings

in another. It supplements themultichannel experience through anew type of s torefront.

Several companies are offering self-service via digital tools. These toolsallow the customer to save time, whilesaving the company money. Classicmobile apps allow bank customers toaccess account information or mediacustomers to have electronic ratherthan paper subscriptions. Many firmsare now offering customer apps toenhance customer touch points. Ina hospitality firm, smart phone appsare linked to the customer’s profile,enabling integration across SMS,apps, and social media efforts. Amedia company offers apps with geo-localization and augmented reality tohelp customers find interesting placesto visit and provide special offers viavouchers and e-couponing.

3.2 Transforming

operational processes Although transformed customerexperiences are the most v isible – andarguably the most exciting – aspectsof transformation, firms are alsorealizing very strong benefits fromtransforming internal processes.

Process digitization

Companies historically have usedautomation to make processes moreefficient and scalable. ERP for examplehas enabled significant efficiency andquality gains in core transactional,financial, and supply chain processes.

An insurance firm has created a centraldigital platform for core claim processesand deployed the model across severalcountries. Employee self-service systems,especially in areas like HR, are also

becoming widespread.

Some firms are going beyond simpleautomation to gain additional benefits.

Automation can enable companies torefocus their people on more strategictasks. A manufacturer has begun tocentralize the HR function, allowingeconomies of scale through self-servicewhile freeing HR people to “focus onenlarging manager skills, rather than countingdays off.” A specialty materials companyhas automated many R&D processes.

Automation allows researchers to focuson innovation and creativity rather thanrepetitive efforts. It also creates streamsof data that can be useful in later datamining efforts.

New technologies are extending this trendof gaining benefits beyond efficiency. Apaint manufacturer has created fully-automated plants that significantly reducelabor requirements, improve productquality and enhance environmental,health, and safety performance. Anapparel company has moved to digitaldesign processes when collaborating withmanufacturing partners. Going digitaleliminates most need to ship physicalprototypes back and forth, reducing theproduct development lifecycle by 30percent. It allows the firm to be muchmore agile, changing designs quickly inresponse to market changes.




Worker enablement

Once-novel technologies such asmobile e-mail, collaboration tools,and video conferencing have nowbecome the norm in many companies.Employees routinely collaboratewith people whom they have nevermet in person, in regions they havenever visited. Mobile devices allowemployees to stay connected with theoffice at all hours and to work fromhome when not able to be in the office.

Individual level work has, in essence,been virtualized – separating the workprocess from the location of the work.

Some companies are starting toexamine new possibilities forvirtualizing individual work processes.

A financial serv ices firm rearrangedits headquarters so that nobody hadan assigned desk, even the CEO.Employees now work from homeone or two days per week and, when

they are in the office, sit near peoplewith whom they are temporarilycollaborating. Meanwhile, the firm’scollaboration and networking toolsallow employees to talk with anyonein the company from whereverthey are sitting. This is setting thestage for further changes related toglobalization.

In a broader sense, digitaltransformation replaces limited one-way vertical communication with

broad communication channels thatare both vertical and horizontal. CxOscan engage in 2-way communicationquickly at scale. Employees cancollaborate in ways that werepreviously not possible. The toolsthat vir tualize individual work,while implemented for cost reasons,have become powerful enablers forknowledge sharing. Salespeople andfront line employees, for example, arebeginning to benefit from collaborative

K n o w l e d g e s h a r i n g

Communicationat scale

Virtualization of work

CxOs

Employees

InternalCrowdsourcing

K n o w l e d g e s h a r i n g

Remote working, Collaborative tools, Knowledge platforms, Cloud Computing

Figure 4: Digital transformation creates a virtuous cycle of knowledge sharing




tools in which they can identifyexperts and get questions answered inreal time. They are also increasinglygaining access to a single global viewof the company’s interactions with acustomer.

Performance management

Performance transparency wasa key highlight mentioned byseveral executives. Executives inmost companies say they are more

informed when making decisions.Transactional systems give executivesdeeper insights into products, regions,and customers, allowing decisionsto be made on real data and noton assumptions. “Instead of simplyrevising last year’s plan, we can use datato make better decisions about how we

prioritize.”This is happening in bothinternal processes and customer-facing processes. The level of detailis also increasing, allowing managersto compare status across sites orreallocate product manufacturingcapacity in ways they could not dobefore. It is also prompting additionaldata gathering and integration asmanagers star t to see the value ofbeing better informed.

Beyond being better informed,digital transformation is actuallychanging the process of strategicdecision-making. Top executives ina medical device manufacturer usedthe company’s existing collaborationtools to extend strategic planningsessions from 12 people to more than300 of the firm’s top managers. Thisenabled better input into the processand better uptake of the vision afterdecisions were made.

3.3 Transforming businessmodels

Digitally-modified businesses

A media executive said: “ We’verealized that if we don’t transform theway we do business, we’re going to die.It’s not about changing the way we dotechnology but changing the way we dobusiness.” It is finding ways to augmentphysical with digital offerings andto use digital to share content acrossorganizational silos. A grocery firm isstaying true to its traditional business,but using digital to t ransform a newgrowth business. “After two years,our e-commerce platform is bringing us

20 percent of our new clients and ourtraditional clients are consuming 13

percent more on average.”

Other firms are building digital orservice wrappers around traditionalproducts. A national post office is

creating a free digital mailbox attachedto each physical mail address thatcompanies can use as a substitute for aperson’s physical mailbox. A businesscredit firm is developing a digitalbusiness for some credit products thatrequires less involvement than theirtraditional high-touch offerings.

New digital businesses

Companies are introducingdigital products that complement

traditional products. A sports apparelmanufacturer started selling GPS andother digital devices that can trackand report on a customer’s workout.Other companies are changingbusiness models by reshapingtheir boundaries through digital. Amortgage company is moving frombeing a link in the value chain to




being a global assembler of investmentproducts. An airport authority isaiming to become the owner of atraveler’s end to end process. It willenable for travelers an integratedmultichannel experience includinginformation on airplane traffic andreservations, duty-free shoppingpromotions and other benefits.

Digital globalization

Firms are increasingly transforming

from multi-national to truly globaloperations. Digital technologycoupled with integrated informationis allowing firms to gain globalsynergies while remaining locallyresponsive. They are, in the wordsof many executives, “becoming morecentralized and decentralized at the sametime.”These companies benefit fromglobal shared services for finance,HR, and even core capabilities l ikemanufacturing and design. Globalshared serv ices promote efficiency andreduce risk. They even promote globalflexibility. One manufacturer can shiftproduction around the globe withonly a few days’ notice in response tointerruptions or excess demand.

For local managers, the pain ofcentralization is balanced byefficiency benefits and ability tofocus on more strategic activities.Local managers, empowered tomake decisions autonomously, alsogain a broader view of the businessthrough centralized data. They havethe freedom to tailor business to theirlocal needs, but the responsibilityto act in the interests of the largerenterprise. Globalization also entailsa different approach to policy: “fewermandates from headquarters, but more

guidelines.”

3.4 Digital capabilitiesDigital capabilities cut across all threepillars. They are a fundamental buildingblock for transformation in customerexperience, operational processes, andbusiness models. Although CIOs andexisting IT departments are leadingdigital initiatives across companies,they hire extra skills or implementseparate units to coordinate digitaltransformation.

Unified Data and Processes

The most fundamental technologyneed for digital transformation is adigital platform of integrated data andprocesses. Large successful companiesoften operate in silos, each with theirown systems, data definitions, andbusiness processes. Generating acommon view of customers or productscan be very difficult. Without thecommon view, advanced approachesto customer engagement or processoptimization cannot occur.

The difficulty of operating without aplatform becomes greater as companiesengage in multi-channel operations.Many companies, for example, cannotlink customers’ activity in stores orbank branches to their activity on theweb or mobile. An executive in onecompany, echoing statements by manyothers, said “data integration is the biggestchallenge in setting up our digital services:

self-services, web-strategy and running partnerships.”

Unified data and process is one reasonthat web-based companies are ableto gain advantage through analyticsand personalization much morereadily than traditional firms. For manytraditional companies, the first step inpreparing for digital transformation




to invest – sometimes heavily – inintegrating data and processes acrossthe enterprise. In this respect, firms thathave already implemented ERP and CRMsystems are a step ahead of others.

Unified platforms can also helpto manage the centralization/ decentralization challenge inglobalization. Hospitality firm propertiescan use centralized platforms to deliverlocally-customized information whilenot having to support the technology.

A media company common technologyplatform allows the firm to share contentat worldwide level, offering media contentdeveloped in one part of the world tobe used easily in other markets andpublishing formats.

Solution delivery

Companies also need the capabilitiesto modify their processes or build newmethods onto the data and processplatform. Solution delivery requireseffective methods and strong skills. MostIT departments have solid developmentmethods in place. However, thosemethods are often geared to well-definedrequirements and mature technologies

but not to emerging digital technologiesand practices. Mobile and social media,for example, often require iterativeapproaches to learn about what will workin the market or workplace. They also usetechnology that is not commonly availablein enterprises. Analytics activitiesoften require specific knowledge andtemperaments that typical IT developersdo not possess.

Some IT departments have establishedspecial units to build emergingtechnology skills and methods. Othershave innovation units to identify how newtechnologies and practices might changethe business. Still others look outside thefirm for help. 78 percent of the companiesinterviewed hire vendors to address largeprojects or those that require advancedtechnologies. Vendor partners can be very

effective, but some executives expressedconcern about over-reliance on vendors. A hospitality executive firm said thatknowledge of key emerging technologiesis spread across silos of external vendors,making integration difficult. Severalexecutives described knowledge gapsthat existed after they ended a vendorrelationship.

* Percentage of companies in each digital platform state among the 50 interviewed for the study

47% 39%

14%

Single integrateddigital platform

Multiple digital platforms

No platform

Figure 5: Digital platform implementation*




Analytics capabilities

Information management and analyticswere highlighted as major goals byexecutives across industries. Several firmsechoed the statement of an executivewho stated “It’s time to harvest the data andturn it into insights.” Combining integrateddata with powerful analysis tools is seenas a way to gain strategic advantage overcompetitors.

Companies are engaging in analyticsat varying levels of intensity. Some are

just beginning to make better use ofthe data available from transactionalsystems. They are making more-informedand better decisions and reacting morequickly to changes in their operations.Companies with integrated data are ableto engage in more powerful analyticsstrategies. An Insurance company is ableto do predictive sales, helping salespeopleto target products that a specific type ofcustomer is likely to buy. A hospitalitycompany and a restaurant firm areusing analytics to target promotionsand conduct pricing experiments. Amedia company is using web analyticsto provide real-time KPIs to customersin order to demonstrate the added-valueof the firm’s products. Several insurancefirms are using analytics to underwritepolicies, enabling better pricing andreshaping the firms’ risk portfolios.However, all executives also mentionedthat building analytics capability wasdifficult, requiring skills and culturechange in addition to investments ininformation technology.

Business and IT integration

Digital Transformation, more thanother business changes, requires strongintegration between technology andbusiness executives. Companies witha history of strained IT and businessrelationships are handicapped when

trying to conduct digital transformation.

These companies often have issuescommon to those that do not govern ITwell, namely complex IT architectures,unintegrated data, and processes that arenot well-enabled through technology.

In contrast, companies with a solid IT/ business relationship are in a solidposition to begin digital transformation.

A bank executive stated: “IT has beenbrought closer to business during the last five

years. It is very important to success becausemany of the important transformations

in our business enabled by technology.” With trust and shared understanding,IT executives can help businessexecutives meet their goals, and businessexecutives listen when IT people suggestinnovations. Where strong relationshipsexist, executives on both sides of therelationship are willing to be flexible increating new governance mechanisms ordigital units without feeling threatened.

In most firms, digital transformationis being led by CIOs. Where therelationship is strong, this approach canbe very effective. At a manufacturer,the CIO is also head of strategy. He ledaggressive investments in technologythat generated tremendous benefits forthe firm (see case study). The CIO of aglobal services firm also manages thefirm’s e-commerce operations and itsinnovation activities. Other companiesplace responsibility for digital in anotherunit or executive who works closely withthe CIO. An apparel firm established anew digital division that works closelywith the existing IT department. Abusiness directory company hired asecond CIO to focus on transformation-related activities, working in concert withthe CIO who focused on keeping thefirms’ existing platform functional.




International banking group BNP Paribas grew rapidly in the past decade byacquiring banks in several countries. The firm is now aiming to solidify itsinternational position, aligning processes at global scale. The group strategy isdefined around three key points: internationalization, process rationalizationand maintaining trust with the customer.

Crisis, regulation and technology adoption by customers and employees arepushing BNP Paribas to consider digital transformation. Executives envision

digital as a way to reshape boundaries, focus on profitable business areas andstreamline middle and back office processes, but BNP Paribas is only part-way throughits transformation journey. The first step of the transformation has focused on reach:creating a multichannel strategy that includes the web as well as emerging technologiessuch as mobile and social media. BNP Paribas is today in a transition phase to reach thesecond step of the transformation: integrating transactions across channels and buildinga conversation with clients via an external CRM and analytics-based tools. BNP Paribasis currently developing a new digital platform leveraging the firms various distributionassets into multichannel processes and tools.

To improve customer experience, the firm launched multiple initiatives. Mobile appsprovide a substitute to using the internet website. The firm increased customer touchpoints via social media, providing customer service on twitter and advertising onFacebook. In 2010, BNP Paribas launched a new branch model. This Concept Storewill help develop new ways of interacting and selling products to the customer via newtechnologies and self-service areas. The firm’s next step is to start a conversation withcustomers on social media. This will require building social-customer knowledge, viaan external CRM, and increasing analytics capability. In 2011, BNP Paribas launchednew mobile bank services in partnership with a telecom operator. This was more than asimple website substitution. It was a switch from traditional business model to a digitalone, with a different cost and revenue structure.

From an operational process point of view, BNP Paribas is still at the beginning of itstransformation journey. The firm is focusing on security improvements and cloudsolutions, which executives see as key differentiators in the industry. The objective ofprocess rationalization will be to have end-to-end digitized processes in an integratedplatform, which could generate international economies of scale.

A group digital committee sponsored by general management elaborates the group digitalstrategy and encourages digital best practice sharing.

BNP Paribas’ next digital objectives are to move into mobility, reach the next level ofcustomer intimacy and develop a strong analytics strategy. Challenges on this road are tostrengthen digital coordination at the group level and to balance digital and physical inthe front-office perspective

Case Study

BNP PARIBAS: DIGITAL TRANSFORMATIONIN AN INTERNATIONAL BANKING GROUP




An apparel company has built its successful business bycombining good products with compelling branding and a setof high-profile celebrity relationships. Its entrepreneurial spirithas led to growth in product silos. The firm spent the pastten years improving internal processes and its connections tomanufacturing partners.

The firm’s entry into digital occurred in three successfulbut disconnected areas. In customer experience, the firm

developed a customized products offering. Customers can go online or work with anadvisor in a store to configure products in exactly the color schemes they wish, andthen receive the products by mail. This process modified existing customer-facingand manufacturing capabilities to deliver a new customer experience. Separately,the company made forays into social media. It built communities around differentcategories of product, allowing customers to communicate with the company andeach other via Facebook and Twitter. It also launched a few digital products meantto augment the lifestyle needs of customers, such as GPS devices for athletes.

In internal operations, the product design area moved from paper-based designprocesses to a fully digital process. Although some designers initially experiencedtrouble in the transition, the process has yielded important benefits. Shippingdigital designs instead of physical prototypes between headquater and suppliers hascut the product development cycle time by months. It also allows the company toadjust designs much more easily in response to manufacturing issues or changesin customer demand. In addition, the firm can use digital designs to promote newproducts to retailers differently, gaining attention and orders much earlier andmaking retailer promotion easier than was possible with a physical design process.

The company has recently recognized the need to begin coordinating its digitalefforts. It has created a digital division to deliver all digital efforts for the firm.This included recruiting key senior executives with experience in different

aspects of digital business management, and building an innovation unit chargedwith identifying new customer and process approaches that cut across the firm’straditional silos. The digital division does more than enable and capture synergiesbetween initiatives. It also opens up new possibilities for taking the firm from aproduct-focused to a customer-centric approach.

Case Study

MOVING FROM SEPARATE TOINTEGRATED DIGITAL INITIATIVES IN ANAPPAREL MANUFACTURER




4DIGITAL TECHNOLOGY USAGE




The interviews asked how four digitaltechnologies – analytics, mobile,social media, and embedded devices– are being used in the enterprise.

All of the executives we interv iewedwere aware of these technologies,although few considered themselvesexperts. Most could describe how thecompany used the technology, or howit might or might not be important inthe future.

Figure 6 shows how often firms

in the study used each digitaltechnology to improve customerexperience and operationalprocesses. Analytics, Mobile andSocial Media are widespread in theselarge organizations, despite theirrelative newness to most industries.

Customer-experience applications ofsocial media are more common thaninternal uses, reflecting awareness ofthe fact that consumers are rapidlyadopting these technologies, andwell as some skepticism about howeffective they will be for internalcollaboration. Analytics, too, is morecommon in customer experienceapplications, reflecting organizations’increasing efforts to target marketingactivities and personalize customerexperience better than in the past.

Mobile is used widely in bothdomains.

Embedded devices are still anemerging technology. Less than one-fourth of companies are using these

Analytics Mobile Social Media Embedded Devices

Figure 6: Applications of digital technology in customer experience and operational process

Note: Percentage of rms using digital technologies in their customer experience and operational processes.

Customer experience

Operational process72%

66%62%

66%62%

52%

24%

14%




devices. Most executives commentedthat they did not yet see applicationsfor the technologies. In the case ofRFID, they mentioned the cost of theRFID tags or the difficulty of usingthem in busy, machine-filled spaces.Many executives did express interestin using embedded devices in thefuture.

Companies varied greatly in the waysthey used the four technologies. Weidentified three levels of usage:

• Substitution is using newtechnology as an alternative orreplacement for substantiallythe same function that theenterprise already performed

with a different technology andprocess. Blackberries and iphonessubstitute for PCs in both internaloperations (email) and customerexperience (web access). Manyemployees use both methodsdepending on their needs at a pointin time. Analytics, in the form ofbasic business intelligence toolsand detailed reporting, substitutesfor similar information sourcesavailable through other methods.Substitution is useful when it

improves performance over, or ismore convenient than, traditionalmethods.

• Extension is significantly improvingperformance or functionality of

Breakthrough

• Basic reporting or BI• Working anytime, anywhere, any device• Employee blogging, internal Facebook• Building access control

• Production / supply-chain optimization• Mobile sales force enhancements• Internal collaboration communities

• Consolidated status monitoring formedical devices

• Deeper customer segmentation• M-Commerce• Pharmaceutical / medical device rm

physician communities• Phones as payment devices

Substitution

• Insurance underwriting transformation• Remote-control mining operations• Social-enabled product development• Automated factories

• Basic reporting or BI• Simple apps• Facebook pages and ads• Cards replace passwords

Extension

• Predictive promotion• Location-based marketing• Social-lead generation• Smart-grid devices

Customer experience Operational process

Figure 7: Applications of digital technologies in the enterprises we studied




a process through technology. A power company and a paintcompany provide full informationto field workers on mobile devices,eliminating the need for workersto spend time in the office at thestart and end of shifts. A pharmacompany’s social media physiciancommunity enables the company tolearn about issues and opportunitiesby allowing doctors to talk with oneanother.

• Breakthrough is fundamentallyredefining a process or functionthrough technology. A paintcompany uses a combination ofembedded devices and analytics tocreate fully-automated factories thatdeliver higher efficiency, qualityand environmental protectionsthan manually-tended factories.

A hospitality firm uses predictive

analytics to engage in location-basedmarketing with its customers.

Figure 7 shows examples of howcompanies are using the four digitaltechnologies. Figures 8 and 9 showthe extent to which each is beingused to improve customer experienceor internal operations. The mostcommon usage of each technologyis in substitution -- Mobile emailreplaces desktop email, Facebookpages and ads substitute for web.

However, companies are makinginroads in each technology. Roughly30 percent of firms are engaging inextension or transformation withMobile, Social, or Analytics. Althoughusage of embedded devices lags theother technologies, some companiesare already extending or transformingtheir processes through these devices.

Analytics Mobile SocialMedia

EmbeddedDevices

8%

18%

40%

2%

4%

4%

6%

28%

22%

16%

14%

36%

Substitution Extension Breakthrough

Note: Chart plots extent of transformation each rm is attaining in operational processes using a particular technology.Many companies had multiple applications of a technology. For each rm, only the most transformative usage is counted.

Figure 8: Use of digital technologies to transform operational processes




Analytics Mobile SocialMedia

EmbeddedDevices

14%

20%

28%

4%

4%

12%

8%

22%

36%

18%

18%

36%

Figure 9: Use of digital technologies to transform customer experience

Substitution Extension Breakthrough

Note: Chart plots extent of transformation each rm is attaining in customer experience using a particular digital technology.Many companies had multiple applications of a technology. For each rm, only the most transformative usage is counted.

The interviews show an interestingtrend toward identifyingtransformative opportunities thatcombine multiple technologies withnew management practices.

• Remote-control mining equipmentand automated paint factoriesinclude both mobile and analyt icstechnologies to improve productionsignificantly.

• Mobile phones are increasinglybecoming seen as embedded devices

for customer-facing applications.

• An apparel company aims tointegrate its social and web-basedmarketing approaches with itsdigital product design capabilitiesand embedded devices in productsto be more responsive to emergingconsumer preferences.

• Concept stores combine multipletechnologies to test or deliver a newbuying experience.




These types of multi-technologysolution are signs of a maturingapproach to digital t ransformation inenterprises. Executives are beginningto envision possibilities that crossorganizational and technologicalsilos – letting the possibilities drivetechnology and organization ratherthan the reverse.




5CHALLENGES ON THE ROAD TO

TRANSFORMATION




What is causing firms to have difficultystarting or benefiting from digitaltransformation?Challenges occur in allthree elements of the transformationprocess: Initiation, Execution, andCoordination .

5.1 Initiation challenges

Lack of impetus

Impetus often starts at the very topof the firm. Executives are justifiablyskeptical of the benefits of emergingtechnologies. The experience ofe-commerce taught many executivesthat a fast follower approach cansometimes be lower risk than apioneering approach. However, thisskepticism can result in bureaucraticinvestment processes that prevent thefirm from engaging in useful digitally-enabled experiments and businesschanges. A manufacturing executivestated: “We’ve always been fairly slow inadopting technology because we more orless have the ambition of not being first...but we have become even slower at thesame time that technology developmenthas been speeding up. So, the gap hasincreased.”

Company performance can also slowthe move to transformation. If thecompany is not experiencing pain, theperceived risk of change may outweighthe potential benefits in the minds ofmany executives. A manufacturer said

“At the end of the day, we don’t want tostay on the edge of the latest trend. It’s notreally our business.”

An other concern issue can be lackof awareness of the opportunities orthreats of digital transformation. Anexecutive in one of the world’s largestfinancial companies said “When Imade a presentation to the board, I

was astonished that none of the seniorexecutives were aware of TripAdvisor.” Executives need not be aware of allchanges in industries outside theirown, but knowing major digitalconsumer services products such asTripadvisor, Facebook, or eBay can bevery useful fodder for envisioning howexecutives might change their ownbusinesses.

Regulation and reputation

Many executives, especially inhealthcare and financial services, arebeing careful about mobile and socialtechnologies because of security andprivacy concerns. In our sample, 47percent of companies stated a highor medium concern over regulatoryimpacts on their potential digitalinitiatives. A lost or hacked mobiledevice can give outsiders accessto confidential data on patients orcustomers. This has reputationalrepercussions well beyond anyregulatory penalties. A financialservices executive said “The last thingthat any of us want to do is put thereputation that we built for more than100 years on the line because someone losta device.” A medical executive had asimilar concern: “We’ve done a good jobof becoming a trusted partner to a lot of

governments and customers. If we violatethat trust, if we have one bad apple, youcan throw the whole thing out the windowvery quickly.”

Companies, especially in financialservices, are taking a slow approachto social media for fear of regulatorysanction. For example, blogs, tweetsand other messages are typicallynot reviewed as carefully as othercorporate communications, but maybe construed as advice by readers. Afinancial company executive said “We




jumped into going ahead with Twitter andYouTube and Facebook without knowingwhat people are actually saying about us.Now we have started to monitor it.”

While these regulatory concerns arereal, they need not prevent companiesfrom moving forward. Two financialservices firms and one medicaldevice firm are already successfullyselling products and services withtablets instead of paper. Severalfirms have implemented tools to

protect confidential information onphones and tablets or to wipe thedevices in case they are lost. Nearlyall of the regulated companies weinterviewed are establishing policiesfor employee use of personal ly ownedor mobile devices and for using socialmedia. Many firms we interviewedare using Facebook and Twitterfor brand building. Meanwhile, aninsurance firm is helping agents buildtheir presence on LinkedIn, and amedical device company plans touse Facebook as a radically new wayto reach the specialists who use itsproducts.

Unclear business case

Healthy skepticism or regulatoryconcerns are legitimate reasonsto be careful when investigatingnew technologies. Certainly not alldigital initiatives make sense for allcompanies (or for all employees in

the company). One CIO, discussingmobile-enabled process changes,said “At the end of the day, we’re stilllooking at value and cost. For some folks,the most cost-effective technology is stillthe desktop.”However, these reasonsshould not prevent companies frominvesting in potentially valuableexperiments or transformations.

Executives in our sample used aset of four methods (see Figure10) to justify investment in digitaltransformation initiatives. Someinitiatives can be justified in thetraditional way, through quantifiedeconomic business cases . Audio andvideoconferencing technologies, forexample, can be justified on travelcost savings or other efficiencies,as could a financial firm’s move toa transformed office environment.Larger process transformations also

can cite clear returns, such as when anapparel firm justified its move to digitaldesign processes through cost savingsand significantly shortened productdevelopment cycles.

However, other investments aretruly bet-your-company, do-or-diepropositions, in which the financialcase is one of survival. Firms facinga burning platform often make largechanges without a strict financialbusiness case. A business directoryservice, realizing their paper-basedmodel was declining rapidly, broughtin a new CEO to lead a radicaldigital transformation. An airportauthority invested heavily in digitaltransformation when governmentsstated that they would withdraw 60percent of public funding within 5years.

However, as with many innovations,digital transformation investmentsoften have less clear business casesthan these examples. Many companiesconsidered their initial forays intoFacebook or Twitter as simpleexperiments built with limited fundingand risk to investigate the potential ofthe new media. Similarly, initial mobileapps or pilot experiments with mobilemarketing have been scoped to limitcost and risk. These experiments are




often funded “below the radar”, usingthe spending authority available to asenior executive.

Other initiatives are funded asstrategic foundation investments thatbuild infrastructure and capabilities tobe used elsewhere. These investmentsrarely go through the rigor ofdeveloping a quantified business case,but rather are undertaken as strategicbets. Collaboration tools and internalknowledge bases, for example, wereoften justified as relatively low cost/ low risk infrastructure investmentsto smooth cooperation and synergiesamong a distributed workforce.However, some foundation investmentsare larger. A manufacturing firminvested in building a shared digitaldivision to provide capabilities andsupport to digital initiatives acrossthe firm. Each new digital initiative

would be funded on its own merits,but the initial investment to set up theshared service was seen as a strategicfoundation investment. Similarly,several firms hired senior executivesor content experts to get started in theanalytics and social media spaces. Thenew leaders must financially justifytheir existence in the future, but theinitial investment was considered ascapability-building.

When enabling larger transformations,executives often use a combination ofapproaches over time. Analytics is aninteresting example. Specific customersegmentation or predictive analyticsefforts can often show a businesscase. Marketing experiments eithergenerate higher sales or they don’t.Insurance analytics either generatea better risk/return profile or theydon’t. However, firms often require

ECONOMIC:

Traditional capitalbudgeting processes

emphasizing measurablecost or revenueimprovements.

BURNING PLATFORM:

“bet the business”investments made inresponse to rapidly

declining performancein the existing

businesses

STRATEGIC FOUNDATIONINVESTMENT:

initiatives undertaken toprovide important

organizationalcapabilities, usuallywithout a quantied

nancial business case

LOW-RISK EXPERIMENT:

investments structuredwith limited size and risk

to learn abouttechnologies,

customers, or potentialcapabilities.

Figure 10: How companies justify their digital transformation investments




an investment in infrastructure –integrating data, buying tools or hiringexpertise – before they can start toconduct more measurable analytic-based experiments. For a restaurantfirm considering analytics, the returnfor hiring new skills and conductinginitiatives was initially unclear, butsenior executives believed it was abet worth making to understandbetter sales trends and start toengage in dynamic localized pricingexperiments.

Regardless of how an initial investmentis justified, the interviews highlightedan important point. The real valueof digital transformation comes notfrom the initial investment, but fromcontinuously re-envisioning howcapabilities can be extended withdigital technology to increase revenue,cut costs or gain other benefits. Initialinvestments, made with or withouta financial business case, becomefoundational capabilities on whichadditional investments can be made.

When it first central ized order takingand implemented an ERP system,executives at the home improvementproducts company did not envisionthe many successful business modelchanges they would be able to add inthe future. But, to their credit, theycontinuously envisioned what else theycould do with their digitally-enhancedfoundation, and earned higher andhigher returns as a result.

5.2 Execution challenges

While a top-level impetus fortransformation is important, it is oftennot enough. Interviewees cited threemissing elements that threatened toprevent them from moving forwardsuccessful ly (see Figure 11).

Missing skills Analytic-based decision-making doesnot always come naturally to peopleaccustomed to using “professional

judgment” or other methods to makedecisions. A grocery CFO lamented“We have all of the information in place,but we can’t get those guys to change theway they work.” Emerging technologiesare another area where skills may bescarce internally, especially in areassuch as mobility and social media.

Firms are filling gaps by hiring expertsor working with vendors. Skills thatare in short supply in one industrycan sometimes be found in others. Arestaurant executive said “We have beenhiring analytics experts from other firms.We give them a chance to play a moresenior role than they could in their previouemployers, where their skills are more

plentiful.” A medical company executivesaid “We missed the boat on social media.We just hired a global CMO to take careof our social media strategy.”Meanwhile,although the executive recognizesthat smart embedded devices will beessential to the firm’s future productstrategy “We have nobody to look intothat.” A hospitality firm, aiming tolimit long-term HR investment whileexperimenting with new technologies,is working with vendors who have theright skills and are willing to work forreduced rates to get a foot in the door.However, it is encountering knowledgeintegration issues as key skills arelocated in different vendors.

Culture issues

Cultural issues can also become abottleneck for digital transformation.

A major cultural issue is related tochanges in jobs due to automationor information empowerment. A




grocery executive mentioned that thefirm’s information-based benefits arereduced by managers who cannotthink differently about how they makedecisions. Other executives find thatthey must work to change the culturewhen empowering front-line workers.Executives shared that these workers,accustomed to taking orders fromheadquarters, needed help to adoptthe idea of using new informationcapabilities to make autonomousdecisions. Meanwhile, previously-autonomous country managers inglobalizing firms often require coachingto grow comfortable working in anenvironment of centralized sharedservices and standardized processes.

One lever for change is to hire newleaders. These people, while bringingnew skills, also bring new vision thathelps change the culture in their areas.

A business directory company, apparelcompany, and restaurant firm have allbenefited from this approach. However,whether leaders come from inside oroutside, senior executives cite a strong

vision and frequent communication asessential for driving culture change.

Labor relations issues are a stickiersource of culture change issues.

A business directory company,even in the midst of a successfuldigital transformation, continues toexperience resistance from unions.In an airline firm, flight employeesembrace digitally-enabled changes, butground employees, fearing job cuts,are strongly resistant. These labor-related culture issues can be overcome.Consider two airport operators fromdifferent countries. Both feel pressureto change from governments, airlinesand customers. One company feels“stuck” in their environment, unable tomove because of a culture that resistschanges. The other operator overcamethese cultural issues. It is now startingto partner with airlines to developinitiatives such as self-service drop-off,common check-in desk, and sellingonline airport-related (as opposed toairline-related) products to customers.

Note: Percentage of rms encountering gaps in skills, IT or culture as mentioned by their executives. Some rms are encountering more than one gap.

MissingSkills

CultureIssues

Ineffective

IT

77%

55%

50%

Figure 11: Organizational gaps in digital transformation




IT DifficultiesDigital initiatives are built on a solidfoundation of technology-enabledprocesses and data, as well as theanalytics, solution delivery andrelationship capabilities to createand extend that platform (see Figure5). Information technology is afundamental part of the firm’s digitalcapabilities. However, many companiesfind their information technologyinfrastructures and capabilities

severely lacking. According to thehead of the disability business for amajor insurer, “We have through thelast 50 years proliferated our IT systemsand applications. We don’t retire systems.We just add on top of them, whichcreates a tremendous amount of expenseand complexity.” Data issues are feltespecially keenly in marketing. Onemarketing executive, echoing thesentiment from many we interviewed,said “It is very difficult to get a goodunderstanding of the customer whencustomer data is spread across so manysystems.”

Beyond technical issues in IT,relationship issues can be difficult.

A history of poor business / ITrelations is a difficult foundation forthe collaborative work required indigital transformation. One businessexecutive said “IT is a mess. Their costsare not acceptable. They propose things in9-10 months where external firms could dothem in 3-9 weeks. We started offshoringour IT, and now our IT guys are tryingto change.” A CIO described how hecommunicates about the possibilities ofdigital transformation, but none of hisbusiness executive peers (interviewedseparately) seemed to find thediscussions credible.

A strong IT/business relationship canbe very helpful in transformation.The CIOs in a hospitality andmedical devices firm have verystrong relationships with othersenior executives, enabling them tosuggest and deliver important digitalinitiatives. A financial services firm hasconsolidated operations and IT undera single senior executive, enabling thefirm to envision and execute processand technology changes in sync.

5.3. Governance challengesBenefiting from transformationtypically requires changes in processesor decision-making that spantraditional organizational or functionalstructures. Transformation, like anymajor organizational change, requirestop-down effort to help employeesenvision a different reality, andcoordination to ensure the firm movesin the right direction.

Incremental vision

While incremental investments canbe effective starting places to builddigital capability, the largest benefits ofdigital transformation come from trulytransforming activities. This requiresa more radical vision – one that offersa view of a different way of working,not just a faster or more efficient one.Unless senior executives establish a

40 percent of thecompanies envisiona radical digitaltransformation




experiments in one site and thenrapidly shares the learning across thecompany. Overly-limited visions candramatically affect the value obtainedfrom each digital transformationinvestment.

Coordination issues

Many firms fail to transform becauseof coordination difficulties acrossbusiness units or processes. Units areable to make progress in their ownareas, but are unable to influencepractices in other units. The paintmanufacturer could not have continuedto benefit from transformation withouttop-down coordination of internaland customer-facing processes. Othersare learning this lesson. A hospitalityexecutive mentioned “We need to startrethinking our strategy. The approach ofthrowing was everything out there andthinking that something is going to stick isnot the way to go.”

An apparel firm, after conductingseparate initiatives in design,

marketing, and direct-to-consumer,is now investing in coordination. Itrecently created a digital division toensure that all of its digital efforts –marketing, production, design andeven digitally-enhanced products – arebeing coordinated. The significantinvestment is expected to pay strongdividends from better customerexperience, stronger knowledge ofrapidly-changing customer preferences,and synergies between internalfunctions.

A further concern ar ises fromcoordination issues between new andtraditional businesses or processes.This channel conflict is real, andcan be very painful for managers intraditional units that lose when newbusinesses gain. It often must beaddressed through an overarchingvision. In a business directory firm,that vision was to have 80 percent ofbusiness online. In a credit firm, thedigital division envisioned as smalland complementary, so that it didnot compete directly with the offlinebusiness.




Facing increasing pressure from competitors, regulatory changes,and customers, Credit Foncier decided to incorporate digitaltransformation into its business model. The firm, one of thetop France’s largest mortgage companies, aimed to augmentits strong B2B capabilities by building a B2C experience thatextended well beyond its traditional boundaries. It wouldorchestrate the entire customer experience of buying a property.This required envisioning a whole new way of operating, and

then taking steps to experiment with offerings and educate both employees andcustomers.

A customer can go online or use a self-service kiosk in the concept “megastore”to learn how much she is qualified to borrow, or investigate what properties sheis qualified to buy. The company can refer her to real estate brokers or providefinancial products as part of the process. When the customer is ready to buy,she returns to the store or website to start the process of obtaining a loan. Atany point, she can talk to an advisor who will help her in the process. The fullexperience is digitally enhanced, including color-coded maps, analyt ics-aidedsuggestions, and even a RFID-based key that the customer can use to save andretrieve her information in the store.

Internally, the entire process is integrated with analytics and a CRM systemconnecting elements of the B2C experience into the firm’s other processes. Thebranch advisor can follow each customer through the process, offering help asneeded. The company augments its existing assets by partnering with other firmsfrom the long-standing web of business relationships that the firm has built inits B2B business. The company also hired new skills to augment its existing staffcapabilities. The project, which was under consideration for 6 years, took 2 years tobe implemented.

While the megastore concept has been successful, and the company is consideringopening a new store in the near future, the company’s focus remains on growingits successful B2B business. The vision for B2C is to augment exist ing B2B offeringsand hedge against competitive pressure in the consumer mortgage space. As theconcept matures, the firm will begin offering other products through the channel.

Case Study

CREDIT FONCIER: EVOLVING AS A VALUECHAIN ORCHESTRATOR IN MORTGAGES




AirCo manages operations for several of a country’s majorairports. Following market evolution, the governmentdemanded that AirCo reduces its dependency on a publicsubsidy that funded more than half of the firm’s operations.The challenge of converting a former government agency to aprofitable company was exacerbated as economic challengesreduced air travel volumes and made airlines more aggressive

in negotiating the fees they paid to AirCo.

To gain new revenues, AirCo is transforming its business model. The firm’s visionis twofold: to gain efficiencies by unifying processes across airports, and to focus onserving end customers instead of only the airlines. Implementing the transformationalso requires engagement to help employees adopt more business-orientedperspectives. According to executives, however, the transformation benefits fromtwo strategic assets: the firm’s ownership of the airports (and thus control of howproducts and services are sold), and the employees’ collaborative culture.

After unifying the management team, AirCo focused on rationalizing andintegrating processes and IT infrastructure. It launched a digital transformationprogram owned by a CIO board that would coordinate and support the digitalprogress of the airports. The objective of the program is to allow the companyairport to follow each customer as she moves through an airport, providing serviceswherever possible.

Customer experience:

The firm envisions increasing revenues from fliers to overcome diminishingrevenues from airlines. It plans to take advantage of a major change in customers’behaviors: travelers are increasingly their own travel agents. In this world ofself-service, the company believes it can help customers to reduce the stress ofgoing to the airport, navigating traffic, checking in, and getting to the right gatethrough the use of a website or mobile apps. Customer apps already exist for thetwo biggest airports of the country, providing both the customer and the companywith information about the trip. The firm supplements its digital services withinformation agents who roam the airport with tablets to support and guide travelers.

AirCo will augment the apps with core business services like car rental, parking,and train tickets. The firm is also developing airline partnerships to provide airlinetickets on the website.

Case Study

AIRCO: DIGITAL TRANSFORMATION INAN INTERNATIONAL AIRPORT




Operational processes:The firm’s biggest operational challenge is to have one digital strategy for all of itsairports. It plans to provide every customer in every airport with the same services.The firm has started its platform consolidation and partnered with foreign airportsto provide more information to travelers. It also made services such as drop-off orcheck-in available to the airlines, taking advantage of the interconnectivity of thefirm’s digital platform.

Digitization of operational processes is also improving the communication betweenemployees. They are able to deliver a better serv ice to the end customer. 75 percentof workers are already using mobile devices as they move through the airport.

The company does not have a social media policy, but has created guidelines. Itencourages employees to be active on Facebook and Twitter. The firm has alsolaunched a collaborative community platform to understand travelers’ experiencesbetter and to be able to adapt its services.

AirCo’s digital transformation journey, currently underway, is seen as critical tohelping the firm reach financial autonomy. Executives started with a clear visionthat leveraged key strategic assets, hired a new CIO, and then created governancemechanisms to improve the chances of success. These leaders also started early tobuild digital engagement with employees to change the firm’s culture. Executivesbelieve the firm is well positioned to implement the remaining elements of thedigital transformation.




6HOW CAN YOU MAKE YOUR DIGITAL JOURNEYSUCCESSFUL?




Successful digital transformationsin our study used a common set ofelements (see Figure 12). Each is alever executives can use to initiate anddrive digital transformation in theirorganizations. Leaders diagnose thepotential value of existing corporateassets and build a transformativevision for the future. Then, theyinvest in skills and initiatives to makethe vis ion a reality. Fundamentalto the transformation is effectivecommunication and governance to

ensure that the firm is moving in theright direction.

These elements work together inan iterative approach – constantlycommunicating and listening tore-envision and further implementnew types of digital transformation.Senior executives drive digitaltransformation through an iterativethree-step process:

1. Envision the digital future for yourfirm.

2. Invest in digital initiatives and

skills.

3. Lead the change from the top.

Customerunderstanding

Customer touchpoints

Top line growth

CustomerExperience

Worker enablement

Performancemanagement

Processdigitization

OperationalProcess

Digitalglobalization

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business

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Iterative Transformation Roadmap

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Sales force

Point of sale & distribution channels

Products &content

Product innovation

Customerknowledge

Culture

Partnershipnetwork

Brand

Digital capabilities

Strategic Assets

Transformative Digital Vision

K P I

Figure 12: Digital transformation framework




6.1. Envision the digitalfuture for your firm

Many digital transformation initiativesfail to capture all of the value availableto them because their vision is nottransformative. Only the top of thecompany can create a compellingvision of the future and communicateit throughout the organization.Successful digital transformation doesnot occur bottom up. The true valueof transformation often comes fromseeing value across silos and thenhelping everyone else see that value.

Identify and diagnose strategicassets

Large companies survive majortransitions not by radically replacingthe old with the new, but ratherby transforming some of theirexisting resources and competenciesfor the new environment. While

this sometimes involves changingleadership or replacing assets, itusually involves reassigning oradapting assets and realigning orre-motivating employees. However,it also requires understanding whentraditional assets and sources ofadvantage no longer provide value.

Digital transformation is thesame. Your company will thrive indigital transformation not by doingsomething completely new, but bytaking advantage of your powerfulcapabilities to gain advantage throughdigitization. But that requiresthoughtful diagnosis: what assets willbe useful in a digitally transformedworld?

Interviewees, without being asked,often identified important assetsthat could help or hinder theirtransformations. These strategic assetsinclude:

• Sales force: A strong source ofcustomer loyalty is the set ofrelationships cultivated by a strongsales force. Digital initiativescan threaten to disintermediatesalespeople, leading to channelconflict. However, digital

transformation can also be used toenhance those relationships, such asa logistics firm that can use demanddata in one part of the world toprovide customers in another partof the world with forecasts of t rendsthat will hit them soon. In additionto sales people, front line employeesoften are an important face tothe customer, as well as havingimportant knowledge about howbusiness is done.

• Point of sale and distributionchannels: Stores are often a strongsource of location-based advantage,even in a digital world. In othercases, firms with a strong warehouseand supply chain capabilities areable to use their distribution assetsto disrupt the advantage of localcompetitors.

• Products and content: Media firmsfind their content is a strongasset that can be reused in digitalenvironments. Product companiesoften find they can build new digitalbusiness around strong products. Anelectronics manufacturer is buildingenergy management solutionsaround its highly successful devicesfor the commercial buildings




market, and a manufacturer ofexpensive long-lived transportationproducts is building services thatdigitally diagnose and help tomaintain those devices.

• Product innovation: A high-techmaterials firm has engineeringcapabilities that few other firmscan match in its niche markets. Ithas the opportunity to use digitaltransformation to connect itsengineers more closely with global

manufacturers. An apparel firm hasworld-class fashion design talent. Ituses digital technology to connectdesigners closer to manufacturers,speeding the design-to-market cycletime while enabling designers tochange designs at will.

• Partnership network: Strongpartnerships can be a key leverfor transformation. Networks ofexclusive or trusted relationshipscan enable firms to combinedifferent expertise and deliverpowerful new operating models. Amortgage company, in switchingfrom a single value chain link to avalue chain orchestrator, benefitedgreatly from its partnership assets.Partners could have refused the ideaout of fear of direct competition,but they cooperated in the projectbecause of years of working togetheron many financial products andtransactions.

• Brand: Companies with a strongbrand are able to leverage it inrelated offerings. Through mobileweb, social media, new digitalbusinesses and other digitalinitiatives these companies canextend and strengthen their brands,building additional points of contactwith customers.

• Customer knowledge: Across theyears, companies had gatheredmore and more knowledge aboutcustomers. Today, some arereaching a point where they canstart envisioning the next step,monetizing this relationship tolaunch new products, enhancecustomer relationships or augmentsales via customer-segmentation.

• Culture: Some firms are able touse culture as a powerful asset.

Executives in a manufacturing firmfound that the company’s historicallyentrepreneurial culture made digitaltransformation easier. Employeeswere willing to embrace operationalchanges and strategic partnershipsas part of the new vision. Anairport authority noted that thenation’s collegial culture made iteasier to engage in transformation.Meanwhile, another airport authorityfound that its unionized culturerestricted change.

Create a transformative vision

Successful digital transformationcomes from envisioning new waysthat digital technology improvesperformance and customer satisfaction,not just trying to find a use for thenew technologies. As we describedearlier, many companies that are doingexperiments in mobile marketing,social media, or analytics find thatthey can be quickly stymied byorganizational boundaries or byculture issues. Often the problemsarise through vision focused ontechnology rather than different waysof operating. More often they arelimited by a vision that is incrementalinstead of transformative.




Start with an overarching vision ofthe what, not the how: “customerexperience transformation” not“mobile marketing” or “social media.”Then support the message throughconsistent communication. Eachspecific element of the transformationcan then be placed in a context ofthe broader vision. This will alsohighlight when issues such as a singlecustomer profile or a coordinatedmessaging approach may beimportant in reaching the vision.

Our interviews showed visionsthat were internally focused,externally focused, or bridging thetwo. Some visions were focused on

specific business units, while othersextended across the enterprise.

Another element of the v ision is therelationship between new and existingbusinesses. Companies in the studyhad visions that included launchingnew businesses, digitally improvingexisting businesses, or creating anoverarching vision for a transformedcompany.

6.2 Invest in digitalinitiatives and skills

Transformation does not happenwithout investment. Digitaltransformation is no different. Theinvestment may be large, and the




business case may not be completelyclear. It may be a ser ies of low-risk experiments that lead to alarger investment. It often becomesa strategic bet that only seniorexecutives can make. As with anyinvestment, digital transformationrequires understanding the needfor investment, managing risk, andmaking the changes necessary tocapitalize on the change. In addition,there is often tremendous value tobe gained from making the most of

investments you have already made.

Find the right skills

Respondents nearly universallydescribed the difficulty of finding theright skills to manage new initiativesor to change work methods. Whilesome were able to reassign or retrainexisting employees for the new vision,most found it necessary to acquireskills from outside.

Find good vendors for technical skills, butcoordinate them. When investigatinga new technology, it is often easierto hire vendors than to hire people.Companies can hire vendors for anemerging technology experiment,and then easily end the contract atthe end of the experiment. However,coordination is still necessary orknowledge will remain stuck invendor silos.

Hire some stars. Analytics skills arebecoming more plentiful, but are notdistributed evenly across firms. Onefirm hired good analytics leadersfrom firms where these skills weremore plentiful. The new people, whowere skilled but experiencing limitedupward growth in their firms, wereable hit the ground running. Thenew hires created initial analytics

capabilities quickly while helpingexisting employees understand what itmeans to work in an analytics-drivenenvironment. An apparel companyhired two senior people who werealready well-versed in social mediamarketing and online commerce,asking them to help the firm buildskills in those areas.

While outsiders can be helpful to jumpstart the change, companiesalso found insiders very helpful. In

particular, it was very useful to putsenior insiders in roles that requiredcoordinating across units and changingcultures. Meanwhile, other firms foundthat they could move junior level fast-risers into roles where their energy andresilience was essential for success. Thehospitality firm moved two relativelyyoung managers into roles in mobilemarketing and digital innovation.These two people oversaw rapidexperimentation in their areas usingvery small staffs and a set of vendors.Both reported to a much moresenior executive who could managecoordination across their units andwith the rest of the firm.

Invest in initiatives that advancethe vision

Very few examples of successfuldigital transformation were fullyplanned in advance. In many cases,executives built basic capabilities for

one need, and then incrementallyadded capabilities. A set of relativelyincremental changes added up to aradical transformation. A medicaldevice firm implemented relativelyincremental digital changes toenable knowledge sharing andvideoconferencing, but then used themto radically transform its strategy-making processes. An apparel firm




conducted digital transformationinitiatives in product design and inmarketing, and is now consideringinitiatives to link the two.

In other cases, radical changes were just the start of even more radicalchanges later. Executives envisioneda radical transformation of thecompany, invested in key initiatives,and then opportunistically madeadditional changes that advancedthe vision. In addition to the home

improvement products and directoryservices companies, a financialservices firm is an example. Radicallychanging its headquarters designcaused people to rethink the way theywork. Instead of working in definedoffices in headquarters, employeesbegan to envision their workhappening independently of location– moving desks as needed, workingon mobile devices, collaboratingvirtually, or working from home. Thenit was only a minor step to improvethe way the fi rm collaborated globally.

As a leader, build a roadmap for yourinitial changes. Make it clear howthe initial roadmap connects to yourbroader vision for the company. Butthen be open to ideas that wil l buildon that foundation for even morechange later on. It requires judgment,but also strategic bets. Not everyidea will be a winner. By promotinga strong vision of a transformedorganization, you put in place aprocess through which smart peoplethroughout the company can help youto implement and extend that visionin the future. But then you must beopen to hearing and sponsoring thoseextensions.

6.3 Lead the change fromthe top

Top-level vision rarely t ranslates tolocal-level action unless reinforcedthrough top-down communication andgovernance. Consistent engagement,backed with appropriate coordination,KPIs, and incentives, make the difficultprocess of transformation possible.

Engage the organization

As in most business transformation, therole of communication is paramountin effecting change and reducingorganizational resistance. Peoplecan be a much bigger obstacle tosuccessful digital transformation thanany complex technology. Successfulcompanies in our study recognizedthis by communicating early theirdigital vision and using technology tomobilize their workforce. There are twomain characteristics of communication

in a digital world that are makingmobilizing the workforce easier andmore impactful than traditionalmethods:

• Moving away from “cascading”information through traditionalhierarchical channels towardenterprise-wide large scalecommunication. On top of traditionaltools such as e-mail, new possibilitieshave been opened up with webcasts,internal social networks or PC-based

video conferencing.

• Moving away from a one-way “broadcasting” model ofcommunication toward offeringpeople in the organization theopportunity to engage in a real




dialogue around the transformation. Wikis, discussion forums, blogs andso on are easy tools to support suchconversations.

Enterprise 2.0 tools are powerfultools to help mobilize and alignthe workforce towards digitalobjectives. Most organizationshave already implemented someof these technologies but are notexploiting them to the full in theircommunication efforts. Successful

organizations have not only created

awareness through communication,but have increased the level oftransparency and trust through thisopen dialogue.

Establish digital governance

Bottom-up digital transformationis rarely successful. With the rightvision and leadership, opportunitiesfrom digital transformation buildon each other to create new ways ofworking that would not have been

possible earlier. However, they require




top-down ambition setting to put theorganization in motion, coordinationto turn disconnected or poorly-considered digital investments intotrue platforms for transformation andmonitoring to ensure that progress isbeing measured and managed.

Ambition setting: Once an organizationhas defined its transformative vision,leaders must translate that vision intoa set of ambitions and targets thatsignal to executives and employees

“what good looks like.” In our study,some of the companies most advancedin their digital transformation hadestablished a clear set of ambitiousKPIs to drive the desired results.

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Digital operationsdeveloped and managedin business units

Digital strategy dened bycentral unit, although localbusiness units can havetheir own strategies

Local business unitsdevelop and manageoperations, but must usesolutions and resourcesfrom dedicated businessunit when available

Digital strategy set by adedicated business unit.

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Local business unitsdevelop and manageoperations, but must usesolutions and resourcesfrom dedicated businessunit when available

•

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Figure 13: Coordination models for digital transformation

One executive stated “There’s anintense focus on the transition to digitalbecause, from the very top, the CEO hasmandated that 20 percent of our sales willbe digital within 5 years. To achieve thatwe will have to change the culture andthe way the organization operates.”In afinancial company, the CMO stated“Unfortunately, digital transformation wasnot a priority of the board a year ago. Wehad 2-3 percent of digital revenue. Now thishas changed and we have set a challengingtarget of 15 percent for all divisions.”

Ambitions need not be only aboutrevenue changes. A home improvementproduct firm sets targets related tohealth, safety and environment, as wellas to scrap reductions in plants.




Central coordination

Silo

Global

Hub

Note: Percent of rms using each coordination model for their digital initiatives.

18%

18%

24%

40%

Figure 14: Usage of digital coordination models in the study

Coordinating mechanisms: Successfulcompanies in our study had strongleadership for digital initiatives. Mosthad to adjust their organizationsto accommodate the new digitalambitions. As the CEO of a digitalbusiness unit explained “We said we’d

find the balance between central andde-central by creating one central role

for coordinating the digital strategy. Weappointed local Chief Digital OfficersCDO in local business units reporting toboth the CEO of the business units and a

CEO of an overall digital business unit.In one of our business units we movedthe CEO to the position of Chief DigitalOfficer. It was a promotion. So the ChiefDigital Officer CDO role is more abusiness role than a technology role.”

We observed in our study that notall the companies use the samestructure. We found four models forcoordinating digital transformation

(see Figure 13). Figure 14 showsthat central coordination is the mostcommonly used model in our study,but all models are relatively common.

We found no single model that clearlyoutperforms others. However, we dosee clearly that companies lackingeffective digital coordination do notget the value possible from theirdigital transformation initiatives.

Monitoring progress through KPIs:Once the ambition is clearly s tated

and the organization structure isaligned, leaders need to ensure thata transparent set of metrics and KPIsare in place to constantly monitorand review progress towards thatambition. As an executive stated“To ensure alignment with our digitalstrategy, we monitor our progress througha transparent scorecard where everyonecan see a quantified assessment of our

progress and take actions against it.”




P RISA is a Spanish-language-based global media organizationwith businesses spanning television, press, radio and educationalpublishing. As with many media organizations, PRISA was facedwith a rapid transition to digital in most of its core businesses,and a move away from more traditional media. According to asenior executive, “We realized early that if we don’t transform theway we do business, we’re going to die. It’s not about changing the wawe do technology but changing the way we do business.” The digital

transformation was mandated from the top of the organization. The CEO, in layingout his vision of the future, demanded that the firm substantially grow its digitalbusiness from less than 1 percent to 20 percent of its sales within a span of a fewyears.

The CEO instituted a radical change for the highly decentralized organizationby creating a centralized digital unit to coordinate and assist in building digitalbusinesses. The appointment of a global Chief Digital Officer from outside theorganization, who reports directly to the CEO of the Group, was a major signal.Senior executives were appointed to the position of Chief Digital Officer in eachdivision, coordinating with the central digital unit. The Chief Digital Officer of eachdivision was responsible for the implementation and coordination of the digitaltransformation of their division. This was a very senior role that had not existedbefore. For example,

The company’s digital transformation was designed around four key pillars:

1. Creating a federated digital organization

2. Creating the next generation digital distribution and monetization platformto ensure that all of their global assets could be shared effectively acrossbusinesses, and new products could be easily created

3. Injecting new digital skills and experience from outside the company

4. Encouraging digital experimentation (e.g. social media strategy) and innovation(e.g. crowd sourced textbooks) in the business lines.

The company monitors the progress of its digital transformation through clear andtransparent performance management scorecards. The digital unit is simultaneouslydriving innovation (an investment model), sales strategy (a P&L model) and servicedelivery (shared service model).

Case Study

PRISA: DRIVING DIGITALTRANSFORMATION ACROSS A GLOBALCOMPANY




Through digital, PRISA faces cannibalization of its traditional business. Thefirm still has profitable traditional activities and there is a temptation to focuson retaining this current business. But the transition is being reinforced incommunication from the top of the organization. For example the top managementat PRISA TV talks about the evolving interactive landscape of digital videotechnologies, not just about the traditional set-top-box model of pay TV. Educationis also moving fast. “It’s not only taking a book and making a textbook that’s digital.It’s reinventing education. It’s defending the old business through the power of digitalopportunities.”

PRISA is engaged in a strategic project with technology partners “to be able to deliverany type of content anytime, anywhere, any device.”This digital platform will be fullycentralized and support information sharing in the group: “It will enable them to

get a South African interview of Christiona Ronaldo for El Pais local, and to publish it inSpain. Of course, the system will preserve some exclusive content for a certain time.” Withthis digital platform, “PRISA will be able to offer a global platform to its customers withone identity -- fifty million customers’ credit cards -- and start giving them a consequentecosystem. No other media companies have yet done that.”

For Mobile, the company faces market issues as executives believe the advertisingmarket is not well educated on the new cost structures. PRISA launchedsome initiatives like an app for El Pais that was recognized as the world’s #1media-related iPad apps in April 2011 ( see http://mcpheters.com/2011/04/05/ imonitor™-releases-list-of-best-publication-apps/).

In Social Media, the firm is doing some experiments. PRISA has been on Twitterfor a couple of years and does some advertising on Facebook. The company hasintegrated its digital products more tightly with social media and intends to usesocial media information to drive content consumption. The company views socialmedia, mobile, and video to be key drivers for future growth.

PRISA also envisions several new business opportunities “So if you’re watching, forexample, a soccer game of Real Madrid and you see players running around, you’re goingto have technology that understands the numbers on the back of the shirts, and it can go upto the database, and then they can say ‘give me the stats on these players’ and pull them uon the right side of screen. That’s an interactive content analytics play. And maybe you catweet about it right there.”

PRISA’s transformation challenges have mainly been around cultural resistance,the differing speeds of transition in each business unit, digital skills building, andallowing for experimentation while keeping the integrity of the unified strategy. Thefirm’s top three challenges for the future are breaking risk aversion, streamliningthe decision making process, and executing technology on pace to support all ofthe needed changes. Digital will also enable PRISA to expand to other Europeancountries and to deepen its Latin American ties.




7WHAT IS DIGITAL TRANSFORMATION MATURITY?




7.1 The What and The HowThe digital transformation frameworkhas many moving parts because muchis required to drive a successful digitaltransformation. However, executivescan think about the figure in terms oftwo main areas (see Figure 15).

The What: The inner boxes,consisting of strategic assets, the ninedigital elements, digital capabilities,and investments, are the shape of thetransformation. They are the specific

set of elements implemented by theorganization, and the resources usedto do so. Together they represent,in essence, the digital intensity of theorganization.

The How: The outer boxes, consistingof digital vision, governance andengagement, are the ways in whichleaders will drive the transformationto a successful outcome. They serveas a form of scaffolding throughwhich leaders can ensure that the

elements of the “what” are builteffectively and that the organization

Customerunderstanding

Customer touchpoints

Top line growth

CustomerExperience

Worker enablement

Performancemanagement

Processdigitization

OperationalProcess

Digitalglobalization

New digitalbusinesses

Digitally-modiedbusinesses

Business Model

Digital Building Blocks

Iterative Transformation Roadmap

D

i g i t a l E n g a g e m e n

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S KILLS INITIATIVES

Sales force

Point of sale & distribution channels

Products &content

Product innovation

Customerknowledge

Culture

Partnershipnetwork

Brand

Digital Capabilities

Strategic Assets

Transformative Digital Vision

THE “WHAT” ISSPECIFIC SET OF

DIGITAL TRANSFORMATION

ELEMENTSIMPLEMENTED BY

THE ORGANIZATIONINCLUDING THE

STRATEGIC ASSETS AND DIGITAL

INVESTMENTS THAT ARE USED TOCREATE THOSE

ELEMENTS.

THE “HOW” IS THEWAY THAT SENIOREXECUTIVES DRIVE

CHANGE THROUGHOUT THE ORGANIZATION.

THIS INCLUDESCREATING AND

COMMUNICATING VISION, ESTABLISHING

GOVERNANCE ANDMEASUREMENT

MECHANISMS, ANDBUILDING A

DIGITAL-READYCULTURE.

K P I

Figure 15: The What and the How of Digital Transformation




has the skills and culture to drivevalue from them. It is, in essence, thetransformation management intensity ofthe organization.

Together, the “what” and the “how”represent the digital maturity of anorganization (see figure 14). They canbe thought about as digital “Style” and“Substance.” Firms that are mature onboth dimensions can drive powerfuldigital transformation that yieldsbusiness value. Unfortunately, many

firms in our study are mature at onlyone, or neither.

7.2 Digital maturity matrix

Figure 16 shows digital maturity as aclassic 2x2, highlighting four different

types of approaches to driving digitaltransformation.

Firms in the lower left are DigitalBeginners . They are doing very littlewith advanced digital capabilities,although they have more traditionaldigital capabilities such as ERP, internetor e-mail. Companies may be in thisquadrant by choice. For example,executives in a specialty chemicalsfirm believe that their B2B customerswill not be interested in social media

or mobile technologies, and thattheir engineering employees are veryeffective with traditional collaborationtools. However, many companies arein this quadrant by accident. They areeither unaware of the possibilities ofnew digital technologies or are starting

• Strong overarching digital visio n

• Good governance• Many digital initiatives

generating business value inmeasurable ways

• Strong Digital culture

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

• No overarching vision• Underdeveloped coordination• Digital culture may exist in silos

• Management skeptical of thebusiness value of advanceddigital technologies

• May carry out someexperimentation

• Immature digital culture

Transformation management intensity

D i g i t a l i n t e n s

i t y

• Overarching digital vision exists,but may be underdeveloped• Few advanced digital features,

though traditional digitalcapabilities many be mature.

• Strong digital governanceacross silos

• Taking active steps to builddigital skills and culture

FASHIONISTAS

BEGINNERS

DIGIRATI

CONSERVATIVES

Figure 16: Digital maturity matrix




some investments without effectivetransformation management in place.

Firms at the top left are DigitalFashionistas. They have implementeda large amount of sexy digital “stuff.”Some of these items may be creatingvalue, but some may not. Whilethe digital fashion items may lookgood together, they may clash withother items, and they rarely generatesynergies. Digital fashionistas aremotivated to bring on digitally-

powered change, but their digitaltransformation strategy is not foundedon real knowledge of how to proceed.

As a result, fashionistas may lookgood, but rarely have much substance– in terms of business value – behindthe sizzle. We see many fashionistasin B2C businesses, where executives(especially the marketing units) believethey must move fast to keep up withthe fast-moving world of consumerelectronics, but do not necessarily havea clear vision for how the elements willcollectively create value. Some firmsare in this quadrant at the enterpriselevel even though digital efforts in silosmay be in other quadrants. This is thecase with a hospitality firm, in whichmarketing and customer service areboth relatively mature digitally, but thetwo are not yet well coordinated.

Firms at the bottom right are DigitalConservatives . These represent thewise old men and women of the digitalworld. They understand the needfor a strong unifying vision and forgovernance and internal engagementactivities to ensure prudent investmentmanagement. However, they aretypically skeptical of the value of newtrends, sometimes to their detriment.Digital conservatives understand wherethe company should be going andhow to master digital challenges, but

they can’t always build organizationalmomentum to carry out an ambitiousprogram. As a result, though aimingto spend wisely, their careful approachmay cause them to miss valuableopportunities that their more stylishcompetitors will pounce on.

Firms at the top right are Digirati .These firms truly understandhow to drive value from digitaltransformation. They combine a strongshared vision for transformation,

careful governance and engagement,and sufficient investment in newopportunities. Through managingthe “how” carefully, they developa digital culture that can envisionfurther changes and implementthem wisely. Through managing the“what” sufficiently, they continuouslyadvance the competitive advantagethey draw from implementing digitaltransformation.

7.3 How to assess yourdigital maturity

Figure 17 shows how companies in ourstudy scored on an initial qualitativeassessment of digital maturity.

What is your digital maturity?Usethe guidelines below to assess yourcompany. Note that digital maturitymay vary across business units,and will usually be different at theenterprise level than within silos.

• Digital intensity: consider howadvanced your digital capabilitiesare relative to competitors, orrelative to rising expectations ofcustomers and employees. Howmuch are you investing in newtechnologies such as mobile,analytics and social media? Areyou launching technology-enabled




business changes such as location-aware marketing or analytics-informed supply chain planning?Digital intensity also depends onyour firm’s IT capabilities and thestrategic relationship between ITand non-business managers, sincemost digital opportunities willhave a significant IT component.

• Transformation managementintensity: consider how carefullyyou are envisioning and

managing the firm’s move intothe digital future. Is the vision

well-articulated and shared?How well are you governing andcoordinating digital investments?How well are you helping theorganization be ready for changes?

Using these guidelines, you can plotyour own organization on the digitaltransformation maturity matrix. Then,if your company is not yet a digerati,take steps to address any weaknesses inyour digital transformation capabilitiesor build a roadmap to maneuver up the

maturity cycle.

Transformation management intensity

D i g i t a l i n t e n s

i t y

FASHIONISTAS DIGIRATI

BEGINNERS CONSERVATIVES

Note: Digital maturity assessments wereconducted by the research team usinginformation from interviews. Vertical andhorizontal lines are located at the mean valueplus ½ standard deviation along each axis.

Figure 17: Distribution of digital maturity




Historically the market leader in local advertising basedon printed directories, Pages Jaunes began to experiencea digitally-induced change in its markets. Individualslooking for business providers were increasingly shiftingfrom paper directories to alternative digital channels intheir search for information. Facing a 10 percent annualdecline in business as its clients (typically SMEs) switched

their advertising spend, Pages Jaunes saw little opportunityfor growth in the business of printed directories. Although Pages Jaunes hadsome significant online activity by 2009, they needed to quickly grow their onlinepresence to counter the decline of the printed directory business, as well as theglobal economic and financial turmoil.

New CEO Jean-Pierre Remy convinced the organization to re-envision its business.Pages Jaunes was not just a provider of directories, but was a trusted name in therelationship business. It disseminated local information to end-users (consumers)and provided local communications services to advertisers. The firm held only a 10percent share of its newly-envisioned market, providing scope for growth. With thisnew vision, the company started to identify new client needs and rapidly captureopportunities to extend its relationship brokering role from paper to the Internet.

Pages Jaunes’ strategy aimed to accelerate the transformation of the business fromhaving roughly 30 percent of its business online to 75-80 percent in 3-4 years.

Elements of the transformation included:

• restructuring the organization into an SME-facing Advertising group and twoconsumer-facing -media groups, focused on Internet & print respectively. A secondCIO was recruited to lead developments around new digital technology whilekeeping the first CIO in charge of the existing, and still critical, IT systems.

• recognizing the value of the relationships built over many years between the firm’ssalesforce and its thousands of clients. The firm committed to keeping as manysalespeople as possible and helping them to learn to sell the firm’s new services.

• substantial effort to change the culture of an erstwhile state-owned company byrecruiting new tech-savvy employees and by instituting KPIs to retain focus onattention and performance.

• educating clients (SMEs) about how digital possibilities could impact their ownbusiness and drive revenues, without losing sight of that portion of its clients’customers who continue to rely on the print channel.

Case Study

PAGES JAUNES: CAPITALIZING ONDIGITAL OPPORTUNITIES




• building content strength online by creating and managing websites for more than100,000 SMEs in France and Spain. The firm is experimenting with social mediapossibilities, 3D applications, and focusing on various other services, includingdisplay, SEM, SEO, direct marketing, coupons, etc. to reach an increasingly onlineaudience.

• building and continuing to enhance a strong online mobile brand presence,reaching number three in the marketplace after Google and Facebook in France.This tactic allows the firm to spend less than before on driving traffic to its sites(search engine marketing).

• leveraging analytics heavily to analyze audience traffic and patterns, to quantifyfor each advertising client the value and impact of products they purchase and to

help clients optimize media spending.

Pages Jaunes’ approach built on an already strong brand, a strong network ofsalespeople who had existing relationships with SME clients, strong investments incontent and therefore the ability to partner (vs. compete) with major search engineslike Bing and Google, and with major content sources like Facebook.

Within two years of this strategic shift, Pages Jaunes earned €1billion from onlinesales at a 50 percent net margin. Online business comprised about 50-60 percent ofits total business, and the firm was well-positioned to reach its goal of 75-80 percentonline business within two years.




Digital technology, which transformed the media industry,is now transforming the rest of the commercial world.Companies in all industries and regions are experimentingwith – and benefiting from – digital transformation.

Whether it is in the way indiv iduals work and collaborate,the way business processes are executed within and acrossorganizational boundaries, or in the way the companyunderstands and services customers, digital technologyprovides a wealth of opportunity to those willing to changetheir businesses to take advantage of it.

The pressure points for change are increasing from manyangles. Globalization is dictating efficient integration of

businesses which can only be achieved through digitalprocesses and collaborative tools. Employees and customersare starting to demand new ways of working. As competitorsand new entrants make digitally-enabled practices a reality inan industry, other firms will need to follow.

Faced with these challenges, what are the key steps seniorexecutives should take to steer their organization?

1. Envision the digital future for your firm.

• What assets will be valuable in a digitally-transformedbusiness?

• How can you transform customer experience? Internaloperations? Your business model?

• How can units work differently – and work togetherdifferently – in a more connected way?

2. Invest in digital transformation initiatives

• Are you getting all of the value out of your previoustechnology and platform investments in ERP, analytics,or collaboration tools? If not, what is necessary to get thefoundations right?

• Where are the key investment areas that will maximize thecontribution to the new vision?

• Can you de-risk some of the investments throughexperimentation and controlled testing?

• What skills are missing in your digital transformationinitiatives? Do you need to hire new executives? Retrainfront-line employees? Partner with another firm to gaincapabilities?

3. Lead the change from the top

• How do you communicate the vision and engage theorganization on a large scale? How do you monitorengagement?

• What process do you have in place to iterate the vision andstrategy?

• How do you coordinate investments and activities acrosssilos? What is the best organizational model to coordinatedigital initiatives in parallel to the core business?

• What KPIs and metrics do you need to put in place tomonitor the progress of your digital transformation towardsyour strategic goals?

• What mechanism do you use to make the necessaryadjustments?

Digital transformation requires skills and influence that onlysenior leaders possess. Create a transformative vision that isclear and compelling to galvanize the organization. Mindfullyconsider what parts of your company should move – and why,and when – to make it implementable. Build digital maturityin two dimensions to increase your chances of success. Thentake actions and monitor progress to turn your vision intoreality.

CONCLUSION




George Westerman , a research scientist in MIT Sloan’s Center for Digital Business(CDB), is also faculty chair for the MIT Sloan executive course Transforming YourBusiness Through Information Technology. George’s research examines the role ofexecutive leaders in driving competitive advantage from digital technology. Georgeis co-author of two award-winning books, The Real Business of IT: How CIOs Create

and Communicate Value, and IT Risk: Turning Business Threats into Competitive Advantage. Prior to earning his Doctorate from Harvard Business School, he gainedmore than fifteen years of experience in innovation and technology [email protected]

Claire Calméjane is a Managing Consultant in the Technology TransformationPractice. She worked for the last 6 years at the Paris office and is currently visitingscientist at the MIT Center for Digital Business, working with the researchers. Shespecializes in Digital Transformation and IT Financial Services. She graduated froma Computer Science Engineering School and holds a Master degree from HEC ParisBusiness [email protected]

Didier Bonnet is a Managing Director and global head of practices at CapgeminiConsulting. Didier has more than 25 years’ experience in strategy development,globalisation, internet & digital economics and business transformation for largemultinational corporations and private equity firms.He has authored several research articles and is regularly quoted in the press e.g., WSJ,FT, the Economist and provides commentary for broadcasters such as the BBC, CNN,Reuters and CNBC.Didier graduated from a French Business School and holds a DPhil from OxfordUniversity. He is based in [email protected]

Patrick Ferraris is the Global Leader of the Technology Transformation practicewithin Capgemini Consulting. With over 20 years of consulting experience, Patrick hassupported large multinational organizations in their digital strategy and transformationwith a focus in Telecom, Media, Internet, Insurance and Transportation. He is analumnus from M.I.T and Ecole Nationale des Ponts & Chaussé[email protected]

Andrew McAfee , a principal research scientist at MIT, studies the ways thatinformation technology (IT) affects businesses. He coined the phrase “Enterprise 2.0;”his book on the topic was published in 2009 by Harvard Business School Press. Hehas also held appointments as a professor at Harvard Business School and a fellow atHarvard’s Berkman Center for Internet and Society. In 2008, he was named the 38thmost influential person in [email protected]

MIT Center for Digital Business and Capgemini Consulting Team members




Special thanks to our other research team members: Greg Gimpel and Mael Tannou.

We would like also to acknowledge the valuable support of a number of colleagueswho have either helped with the data collection or have contributed with their ideasand insights; they are: Emmanuel Rilhac, Vincent Leonetti, Julien Pontault, DeborahSoule, Michael Krauch, Cyril Francois, Martin Hanlon, Kieran Draper, JeromeBuvat.

Last thanks to our point of contacts who facilitated access to their clients and often performed interviews: Eric Lamotte, Peter Lindell, Ravouth Keuky, Jesus Viceira Alguacil, John Varghese, Diego Mackee, David Blackwood, Benoit Pradet, PhilippeDavid, Stanislas de Roys, Mark Hoffland, Eric Kruidhof, Ulf Holmgren, PhilippeBigot, Jari Matula, Adeline Pairault, Sebastien Blot, Sandra Lagrue and others.



Founded in 1999, the MIT Center for Digital Business (http://digital.mit.edu) joins leading companies, visionary educators, and some of the best studentsin the world together in inventing and understanding the business value made

possible by digital technologies. We are supported entirely by corporate sponsorswith whom we work in a dynamic interchange of ideas, analysis, and reflectionintended to solve real problems. The Center has funded more than 50 facultyand performed more than 75 research projects focused on understanding theimpact of technology on business value, and developing tools and frameworksour sponsors can use for competitive advantage.

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About the MIT Center for Digital Business

Capgemini Consulting is the Global Strategy and Transformation Consulting brandof the Capgemini group, specializing in advising and supporting organizations intransforming their business, from the development of innovative strategy throughto execution, with a consistent focus on sustainable results. Capgemini Consultingproposes to leading companies and governments a fresh approach which usesinnovative methods, technology and the talent of over 4,000 consultants worldwide

For more information: www.capgemini-consulting.comFollow us on Facebook: http://www.facebook.com/capgemini.consulting.globalFollow us on Twitter: @CapgeminiConsul

About Capgemini Consulting

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