Digital TransformationHow To Navigate Your Business in a Digital World

Genesys CX2017 Brussels, June 8 2017Dr. Dirk Vater, Bain & Company

DIGITALIZATION IS CHANGING THE WORLD…

Source: Bain & Company

…AND THE INFORMATION AGE HAS JUST BEGUN

VR/AR

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Videos

2012 2014 2016 2018

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WAIT-AND-SEE APPROACH IS NOT AN OPTION

~4× MORE DEVICES(NUMBER OF CONNECTED DEVICES IN BN)

Source: Cisco; IDC Digital Universe Study; IDATE & UMTS Forum, Ray Kurzweil; Steve Jurvetson; Bain Analysis

CONNECTIVITY DATA PROLIFERATION COMPUTING POWER

~40-FOLD INCREASE(GENERATED DATA IN ZETTABYTES)

EXPONENTIAL GROWTH(COMPUTING STEPS PER SECOND PER $1k)

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CHANGING RULES OF THE GAME –How The Digital Tide Will Impact Companies

10 KEY DIGITAL TRENDS TO TAKE INTO ACCOUNT

DIGITAL ENGAGEMENTAND ENABLEMENT

COLLABORATIVE CONSUMPTION

INTERNET OF THINGS (IOT)

CYBER SECURITY AND DESIGN FOR VERACITY

DATA SCIENCE AND ADVANCED ANALYTICS

AUTONOMOUS ROBOTICS

VISUALIZATION AND AUGMENTED REALITY

ADDITIVE MANUFACTURING (3D PRINTING)

DIGITAL ENGINEERING

MACHINE LEARNING AND ARTIFICIAL INTELLIGENCE

Source: Bain & Company

THINGS NETWORKCLOUD AND ANALYTICS

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CUSTOMER ENGAGEMENT

OPERATIONS PERFOR-MANCE

PRODUCTS AND SERVICES

DIGITAL TIDE IS HIGH: ASSESS WHERE YOU ARE MOST IMPACTED

Impact on the company’s entire value chain

Source: Bain & Company

DIGITAL TRENDS/DISRUPTIONS

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EMBARKING ON DIGITAL TRANSITION –How Companies Can Navigate in a Digital World

Customer Engagement

People & Organization

IT & Technology

Products & Services

Data Analytics

Operations Performance

DIGITAL TRANSITION: YOU HAVE TO DEFINE THE WHAT AND THE HOW

Source: Bain & Company

"What"

"How"

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CUSTOMER ENGAGEMENT: NEW CHALLENGES AHEAD AT THE CUSTOMER FRONT

Source: Bain & Company

EXPONENTIAL INCREASE IN CHANNELS AND MEDIA

UNPRECEDENTED VOLUME OF DATA

BLURRING BORDERS BETWEEN MARKETING

AND E-COMMERCE

NEW WAYS TO BE CREATIVE

ENDLESS POSSIBILITIES TO TEST AND LEARN

SINGLE, DATA-DRIVEN VIEW OF THE CUSTOMER

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HARDWARE/ PRODUCTS SERVICES SOFTWARE/ PLATFORM

• Embedding digital to create new features

• Three dimensions: Physical, Smart, and Connectivity

• Creating new digital services, or digital enhancements to existing services

• Changing business models (XYZ as a Service)

• Expanding into related areas to create software/ digital platforms

• Create value from data generated from current products/ services

PRODUCTS & SERVICES:VALUE PROPOSITIONS GET RESHAPED THROUGH DIGITAL

Source: Bain & Company 10

Traditional Digitized

SERVICESALES

3D-Printing

Distributors,own stores

Direct sales force

Inbound logistics

Phone/ Call Center

E-channel (sales)

BIG DATA

BIG DATA

E-channel (service)

Installed assets

Purchasing

BIG DATA

Service managementR&D

Manufacturing and assembly processes

Outbound logistics

Cyber physical production system(s)

Operations cloud

BIG DATA

Users

Subcontractors

3D-Printing

PRODUCTION

BIG DATA

PROCUREMENT

R&D

SUPPLIER CUSTOMER

OPERATIONS PERFORMANCE:THE ENTIRE VALUE CHAIN IS BEING IMPACTED

BIG DATAField service

DIGITAL ENGINEERING

Source: Bain & Company 11

PEOPLE & ORGANIZATION:KEY FOR SUCCESSFUL DIGITAL TRANSFORMATION

Source: Bain & Company

Organize to accelerate Adapt to a faster pace of change

Embark the entire organization Align capabilities with digital ambition

ORGANI-ZATIONAL

DESIGN

CULTURAL SHIFT & NEW

WAYS OF WORKING

MOBILIZATION & CHANGE

MANAGEMENT

Agile methods

Bottom-up communication

New tools and workspaces

CAPABILITIES& SKILLSETSSense of urgency

Management alignment

Engagement & sponsorship

Organizational emulation

Openness to the digital ecosystem

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Adapted HR

New skills and talents

Training

DESPITE UNCERTAINTY, HANDFUL OF DIGITAL ‘KNOWNS’

Digital has the potential to drive tangible, financial results

Digital innovation is occurring at an unprecedented pace (and accelerating)

Significant risks and opportunitiesremain for everyone

Operations will experience transformational change as a result of Digitalization

One criticalcertainty is that

INACTION ISNOT AN OPTION

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For further information and connection: www.linkedin.com/in/dirk-vater