enterprise digital labs

1

Enterprise Digital Lab: Your way to Enterprise Digital Transformation!

Agenda

Enterprise Digital Lab: An Overview

Enablers for creating an Enterprise Digital Lab

1

2

2

Conclusion3

A Digital Enterprise is one that leverages customer, contextual and enterprise data and use new-age technologies to drive exponential business impact

3

DIGITAL ENTERPRISE

Customer Targeting & Engagement

Supply Chain Optimization

Workforce & Partner

Enablement

Digital Products & ServicesRisk ManagementOperational

Excellence

AREAS OF IMPACT FOR AN ENTERPRISE

CRM Data Partner Data Warehouse Data

Weather/ Seasonality

Data

Natural Resources Data

Traffic Data

Digital Platform

Digital Business Process / Operations

Loyalty Program Data

Point-Of-Sale Social Media App Usage Data

On-board Systems Data

Process-Related Data

Corporate Updates & Notifications

Contextual Data Customer Data Enterprise Data

Modern IT

Virtualization Hybrid Cloud Sensors Mobility Enterprise Security Analytics Platform Software Defined Network

Zinnov recommends the following four steps for all traditional enterprises that are undertaking the digital transformation journey

• Learning industry best practices • Determining key enabling

technology•Understanding internal and

external data sources• Strategies, initiatives and

activities of digitally native enterprises & start-ups

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• Evaluating current state & desired state of business initiatives and prioritizing them in terms of:• Business Impact:

Benefits and Risk• Ease of

Implementation: People, Structure & Technology

• Determining a step-by-step map for creating a digital enterprise:• People • Processes • Infrastructure • Ecosystem Connect

• Part by part implementation of digital solutions incrementally and iteratively along with the required IT infrastructure for those solutions

KnowledgeBuild EDT knowledge base and understand

possibilities

Digital PriorityAssess business & digital

priorities

Organizational Readiness Establish a step-by-step

framework for digital readiness

Implementation Implement digital

solutions incrementally and iteratively

1 2 3 4

To facilitate this digital transformation, enterprises are increasingly setting up Digital Labs/Hubs in geographies with rich product capabilities, such as the Bay Area (US) and Bangalore (India)

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US (Bay Area, NY, Seattle) Bangalore

Large number of product companies, a developed and mature ecosystem, abundance of fresh as well as installed talent pool, and a widespread

start-up culture has resulted in several traditional enterprises setting up their digital labs in the Bay Area

Increased globalization of tech enterprises, a booming start-up landscape, proliferation of new-age technologies, availability of digital skillsets (due to the presence of product companies as well as institutes such as the IISc.) are

the collective force behind centers setting up digital hubs in Bangalore

13 acquisitions

300+% CAGR in Headcount

USD 80 MN Annual

Investment*

Launched in Feb, 2015 to create analytics-driven personalized shopping solutions and omni-channel

experience

Note: Estimated annual investment

Reasons for setting up digital labs include developing digital capabilities to serve millennial customers better, fostering and implementing new ideas, and building and disseminating digital culture throughout the organization

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• Started in the Bay Area with the USD 300 MN acquisition of Kosmix; acquired more new-age start-ups such as OneRiot, Grabble, Set Direction, Social Calendar, Adchemy, Stylr, etc.

• Predominant focus is on Omnichannel retailing and expansion of web services• Walmart also caters to its global e-commerce platform from its Bangalore center

• Set up lab in the Bay Area by partnering with Sapient Nitro in 2013• Focus areas include Mobility, Digital Shopping Services, Online Search and social media development• Employees range across the spectrum of designers, data scientists and marketing experts (Cartwheel

is one of their marquee products)• Focus on collaboration with start-ups and VC firms

• Investing USD 100 MN to set eight new labs worldwide, including those in Bangalore and NY for enabling clients work

• Focus areas include design, mobile and digital marketing• "Our researchers are developing capabilities to harness the value of data to help clients create

personalized experiences, while designers are working with clients to develop the design that makes a difference in business outcomes“ - Bridget van Kralingen, VP, Global Business Services

In accordance with this market trend and its 4-step EDT roadmap, Zinnov recommends setting up an Enterprise Digital Lab within the traditional enterprise to provide the catalysis necessary for effective digital transformation

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Characteristics

an Enterprise Digital Lab turnsdigital transformation initiatives into a

program that can be repeated within the organization. It provides the necessary

people, processes, technology and infrastructure for digital initiatives packed

into a short time frame.

It liaisons with different BUs and functions of the organization to understand their

digital requirements and initiatives

Sales & Marketing IT Enterprise

Digital Lab

CMO

Supply Chain BU 1

CIO CDOSupply Chain

HeadCXO /

BU Head

CEO


Workforce & Partner

Enablement

Operational Excellence


Risk Management

Digital Products &

Services

BU 2

CXO / BU Head

Enterprise Digital Lab: Structure

Why is this structure recommended?

• Digital Team is cross-functional and effective in breaking siloes• Results in standardized digital initiatives across all Business Units and consistent

brand messaging• More responsive to changes in market as it is a separate entity in the organization

• Direct and clear view of the organization’s goals and objectives as the CDO directly reports to the CEO

• Rapid dissemination of digital best practices across the organization• Separate digital budget allocated

Note: Digital Horizontals such as Workforce & Partner Enablement, Operational Excellence and Risk Management have a one-to-many relation with different functions and BUs. For instance, depending on the requirement, the Risk Management division of the Enterprise Digital Lab can report to Supply Chain function or a BU.

The EDL is led by the Chief Digital Officer, who directly reports to the CEO

GE operates with a CDO-led structure

Agenda



1

2

8

Conclusion3

We have identified four key enablers critical for setting up an EDL

Technology

9

People

Processes

Ecosystem Connect

C

A

B

D

• Introduce Digital Roles • Hire and acqui-hire talent from digital hotspots• Foster Product Development Capabilities• Create Alternative Technical Career Paths

• Implement• Distributed Agile • Scaled Agile Framework

• Implement Multi Speed IT• Introduce New Age Technology and Tools

• Establish partnerships with:• Cutting Edge Technology Companies• Service Providers with a Digital DNA• New Age Start Up• Universities with Digital Focus

In order to create the EDL, several new roles and responsibilities need to be created

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Chief Digital Officer

Digital head who drives end-to-end strategy, design & implementation of the digital roadmap to help traditional businesses transform

• Technology & Business Expert• Collaborative skills (with CIO & CMO)

Skills Required

Data Scientist Examines and analyses breadth and depth of data from multiple sources using analytics platforms, in order to derive actionable insights

• Data Analytics• Platform Expertise

Data Visualizer

Presents data in a lucid and understandable manner for employees, partners, customers, etc. in order to help them notice trends and patterns

• UI/UX• Multimedia (Audio & Visual) Skills

Product Engineer

Helps in the development of the digital solution incrementally and iteratively• Software Product development• Agile Methodologies

Solution Architect

Defines the architecture required to implement solutions to meet digital requirements while ensuring alignment with the enterprise architecture

• Mobility• Software Product development

DevOps Enables collaboration between development and operations staff through all stages of the development lifecycle of the digital solutions

• Software Product development• Agile methodologies

Scrum Master Helps the digital team in adopting Agile methodologies better, which are required for the iterative and incremental development of digital solutions

• Software Product development• Data Analytics

• Mobility• UI/UX

Product Manager Strategizes, assigns and drives the development of digital solutions

• Software Product development• Agile Methodologies

• Business Knowledge• Communication Skills

Responsibilities

People

A well-defined team structure also needs to crystallized, along with an extensive Digital L&D initiative

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People

Close Collaboration

SMAC-skilled technologists

User Experience

Experts

Other Skills- REST APIs, Linux, etc.

SCRUM Master,

DevOps and other Agile

roles

CEO

Chief Information Officer Chief Digital Officer

Cross-Functional

Digital Strategy Team

Digital L&D Team

Digital Effectiveness Monitoring

Team

1 Define• The HR, BU Leaders, CDO & the CIO should Define &

design L&D structure collectively• Determine course structure and focus areas keeping

in mind business requirements, existing & required talent, presence of CoEs

• Ascertain Delivery model: On-the-job, External Training, Formal (Live Classroom, e-Learning)

2Allocate Dollars

• Allocate budget to the L&D program• Budget could come from the HR, the CDO, the

business or a combination

3Spread

Awareness• Actively spread organization-wide awareness on the

purpose of the program and its goals

4 Implement• Sample workshops include those on Agile

frameworks, customer relevance, tools such as R & SAS, domain knowledge, digital career path, etc.

• Deploy innovative learning (gamified learning, exchange programs with product companies)

• Popularize e-Learning tools & real-time knowledge-sharing platforms

5 Assess• Assess success for program as well as employees• Metrics for program evaluation include alignment

to business, employee development plan, faculty evaluation, budget utilization, etc.

• Metrics for employee evaluation include appraisals, training hours, courses taken, new skills developed

Create and integrate the Digital Operations first (focus on Bottomline), then think of redefining value proposition (Topline)

With time and increasing digital maturity of the enterprise, the role of the CDO needs to evolve into one that caters to both topline and bottomline focus (depending on the business model)

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People

Path 1

Path 3

Path 2

Custom Path

Path 1

Enhance, extend & reshape the value proposition with increase in customer base & satisfaction and Digital Products & Services, then focus on integrating Digital Operations

Path 2

Build new set of capabilities around transformed Operational model (Bottomline) and Value Proposition (Topline) in a lock-step

Path 3

Depending on the business priority and market, reach the EDT goal with iterative steps between Operations model (Bottomline and Value Proposition (Topline)

Custom Path

Valu

e D

eliv

ery

Focu

s (B

ottom

line)

Value Proposition Focus (Topline)

Enhance Extend Redefine

Crea

teLe

vera

geIn

tegr

ate

Note: Map from Persistent Systems

Case Study: A seismic shift in vision, culture and roadmap led by the CDO, has transformed the “Starbucks Experience” from a simple brick & mortar one to a remarkable digital one

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Responsible for Starbucks’ core digital businesses, including mobile payments, web, card, loyalty, e-commerce, Wi-Fi strategy, & the Starbucks Digital Network

Adam Brotman: The man behind Starbucks’ digital revolution Roles & Responsibilities

Evolution of the Chief Digital Officer’s role at Starbucks Collaboration between the CDO and CIO

Adam BrotmanCDO, Starbucks

“Online world gives us the opportunity to build an authentic relationship with our customers in new, interactive and scalable ways. But there are still no shortcuts or different rules just because that relationship is built up over time over digital touch-points vs. the offline world. You still have to be responsive, authentic, and, in our case, the best online barista in terms of our tone, pace, and mix of posts”

Future Roadmap: Extending Starbucks’ customer loyalty program to other companies thereby creating a digital wallet

Latest Endeavor: Allow customers in one undisclosed geographic test market to start placing pickup orders from the Starbucks app later this year

2008 2009 2012

Starbucks Digital Ventures group created

Lead by the then CIOSeparate from IT and

Marketing, but collaborated closely

with both

The roles SVP & GM created for Digital Ventures

Charter: Web, mobile, social media, e-commerce,

Wi-Fi, Starbucks’ digital network & emerging store

technologies

The role of CDO createdCharter: Digital Ventures, Global Digital Marketing, Starbucks Cards & mobile payments and loyalty. The last three functions were previously managed by three separate groups

Unofficial (monthly) & official (quarterly) Digital Scrums held between the Digital and the IT team, chaired by the CDO and CIO both

Agenda includes whiteboard sessions to create the next opportunities for better customer experience

Daily collaboration between the CDO and CIOFrequent visits to the store managers by the CDO & CIO together

Weekly review of the digital roadmap by the digital & IT team collectively

Moved from a waterfall disjoint model of digital technology delivery through separate centers of excellence to an agile model of Tiger or SWAT teams which are a lot more

collaborative and innovativeThe CDO, CIO and CSO collectively work for Starbucks’ rapidly evolving digital strategy &

report to the CEOHeadcount Digital: 110+ IT: 760+

People

Bay Area, New York City and Bangalore have the highest concentration of Digital talent owing to the presence of product companies, top universities and a booming startup culture

City Legend

HighMedium-to-High

Medium

Low

Companies with digital / innovation labs

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San Francisco Bay Area

New York City

Toronto

London Stockholm

Prague

Bangalore

Shanghai

Beijing

People

TescoTarget

Walmart

JCP

WalmartMcDonaldsJ P Morgan

NestleTargetKohl’s

American EagleCapital One

Big Data, Machine Learning & NLP218 K

Mobility312 K

User Experience Design220 K

2013 2020 2025 2030

Global EDT Talent Pool*

1250K1850K

2850K

750K

Note: *Contains major EDT talent hubs, i.e. USA, UK, India and China

The Digital Talent is radically different from the typical IT talent in terms of skills, approach, business-acumen and compensation structure

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People

Digital Talent IT Talent

• Strong computing skills (esp. Natural Language Programming, Machine Learning, Artificial Intelligence) in addition to JavaScript, HTML5, C++, etc.• Strong background in Statistics

• Adept at Java, Python, C, C++, HTML, etc.• Knowledge of statistics not required

• Have a Product approach• Adept at Agile, Kanban, etc.• Work in short cycles

• Follow Agile or Waterfall• Have long project cycles

• Domain expertise/ business acumen is a must-have• Cross-functional working

• Domain expertise/ business acumen is nice-to-have• Work in silos

• Usually Masters degree from top universities such as Stanford, IITs, IISc, King College, CMU, etc.• A substantial fraction also has a PhD.

• Computer Science graduates from Tier1 or Tier2 engineering colleges

• Startups and Tech Mafias such as Apple, Facebook, Google, etc.

• Typically spread across service providers

• Compensation is high. The median* for the following experience levels are:• Entry: $ 90K• Mid-Career: $ 112K• Experienced: $ 112K (Goes up to $ 300K )

• Compensation is lower. The median* for the following experience levels of a Software Engineer:• Entry: $ 70K• Mid-Career: $ 80K• Experienced: $ 90 - 100K

Skillset

Approach

Business Knowledge

Education

Talent Concentration

Compensation

Note: *US specific

Enterprises need to deploy innovative strategies to acquire and hone this talent

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People

Aqcui-Hire & Strategic Acquisitions

Bought 80% stake in BlinkBox, 91% stake in We7 & Mobcast

Acqui-hired Lucky Sort; retained Big Data Visualization Team; Lucky Sort was shut down

Incubation

Accelerator to partner with tech start-ups through an

Incubator Program

$100M fund to invest in Digital Commerce Startups

Geo-Presence

Set up a Digital Lab in Bay Area to leverage the ecosystem

Increasing number of digital initiatives from

Bangalore

Innovative Recruitment

Loreal’s website “Reveal” has gamified its recruitment

process, lets visitors communicate with employees

and participate in real-life problem-solving cases

Digital L&D Employee Exchange Program

Investment in Digital Training

Presence of a structured Digital

Career Path

The HR should be involved with the business in creating & implementing well-defined

digital training

Employee Exchange Programs should be launched with

product companiesE.g.: P&G with Google

Corporate buy-in to ensure investment in digital training

programs

A well-structured Digital TCP* with its own rewards

Acqu

isiti

on o

f D

igita

l Tal

ent

Dev

elop

ing

&

Reta

inin

gD

igita

l Tal

ent

Note: *Technical Career Path

They also need to create a well-structured Technical Career Path for their digital employees

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People

Implementation & Maintenance Development/Design & Ownership Conceptualization

Developer Senior Developer Technical Lead Architect -> Senior Architect -> Chief Architect

• Fixes small bugs & does small-scale implementation

• Works with the UI/UX designer with the Project Manager acting as liaison

• Undertakes module ownership and process design responsibility of the module

• Undertakes overall ownership of most of the system; does short-term decision-making

• Hereon, can decide to be a Manager or an Architect

• Complete ownership of the entire system with all decision-making power at the process design and conceptualization level (which framework to choose, etc.)

• With progressive seniority, the breadth of responsibilities increase. Senior Architect is responsible across products whereas the Chief Architect is responsible across the BU

Business Analyst

• Operates & maintains pre-defined statistical models

• Develops statistical data models and analyses them using regression, K means clustering, etc.

• Ownership increases with progression to Principal role

Senior Business Analyst

• Creates cloud-based analytics platforms• Develops algorithms for data modelling, simulation

& optimization• Designs experiments, generates business insights

and visualizes results

Note: Some of the tools commonly used include SCOPE, R, JMP, SQL, WEKA, MATLAB, SAS, Mahout, Scikit-learn, etc.

Note: Some of the tools commonly used include JavaScript, HTML5, CSS3, Angularjs by Google, etc.

Anal

ytics

Engi

neer

ing

Principal Business Analyst

Illustrative

Future TCP Model - Model*

Companies will need to develop and enhance the technical career path for their digital talent to expedite digital implementations

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People

Quick time to market is leading the wave of change

• High Level Understanding of the Technology Stack Areas • Depth of understanding in one area of the stack such as mobility or

application framework etc.• Distinct roles for development, quality assurance within a single

stack area

Data

O.S / InfrastructureMobility

App Framework

UI/ UX design , development, integration, deployment, validation & monitoring

Data migration, mining, modeling, storage & analytics

Private or hybrid cloud development, customization, testing & maintenance

Horizontal/ Vertical specific app design, build ,roll out & support

O.S/ Infra Mobile Data ….

Illustrative

Current TCP Model - T Model

Traditional Model

Traditional Model

Mobility

OR

Data

OR

OS/Infrastructure

OR

App Framework

• High Level Understanding of the Technology Stack Areas • Depth of understanding in at least two areas of the technology stack

such as Data as well as App framework• Amalgamation of development and quality assurance roles to

support continuous integration which is imperative for digital implementation

O.S/ Infra Mobile Data ….

New

Age Digital M

odel

OR

UI/ UX design , development, integration, deployment, validation & monitoring

Data migration, mining, modeling, storage & analytics

Private or hybrid cloud development, customization, testing & maintenance

Horizontal/ Vertical specific app design, build ,roll out & support

Note: Model is currently being implemented at Persistent Technologies

Tech Stack Tech Stack

Successful implementation of TCP requires a comprehensive approach that tackles the challenges inherent at each stage of TCP maturity

19Note: *Individual Contributors

HR Groundwork Pilot Role Models ScalabilityInstitutionalization & Growth

To create policies regarding Digital TCP to ensure a good launch

To spread awareness, exposure and create processes to enhance Digital TCP

To create the core members of Digital TCP to ensure quick wins and demonstrate value in this path

To inspire the workforce by interaction with successful people in Digital TCP (in and outside the org.)

To design processes around ICs such that the Digital TCP model keeps growing

Communication - Basic

To create general awareness about Digital TCP among the broader workforce

Communication - Advanced

To provide better understanding of Digital TCP to targeted workforce who are inclined towards it

Societal Acceptance

To create awareness and increase acceptance among employees’ peers/family about the roles & responsibilities of an IC in the company and the value it generates

1 2 3 4 5

6B6A

7

People


Technology

20

People

Processes

Ecosystem Connect

C

A

B

D

• New Roles & Responsibilities• Digital Talent: Acquisition and Development• Digital Skillsets• Technical Career Path

• Distributed Agile• Scaled Agile Framework

• Multi Speed IT• New Age Technology and Tools

• Platform Partnership• Service Provider Partnership• Start Up Connect• University Connect

The process should be executed incrementally and iteratively using Agile methodology

Prioritized EDT solutions should implemented in an iterative and incremental manner

People

Tech

Implementation Complete

Digital Solution 1

Digital Solution 2

Digital Solution 3

Digital Solution 4

Implementation in process

Agile methodology is used in the development of the digital solutions

Digital Priorities

Update Product Backlog

AGILE DEVELOPMENT

Create Sprint Backlog

Prepare People, Technology & Org

Structure feature by feature

Implement Digital Solution incrementally and iteratively

feature by feature

Sprint Review

Working Solution

Prioritized bucketlist of

features, bugs and development work

by the Product Manager

A list of prioritized features to be

built for the next sprint

Digital Capabilities should be augmented

incrementally to enable the implementation of the

feature being currently built

Review for early warning of broken/

incompatible features

Incremental execution of prioritized digital solutions

Process

21Continuous Tracking

Processes

Enterprises should adopt frameworks like Scaled Agile Framework (SAFe) for implementing Distributed Agile

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Processes

Key Drivers for Distributed Agile in EDT Solution Development

• Barriers to communication and collaboration

• Misunderstood Requirements

• Differences in standards, processes and tools

• Cultural differences and/or insensitivity

• Lack of common ownership• Lack of trust, coordination

and visibility across geographies

Best Practices for adopting and implementing Distributed Agile

Fostering cross-pollination and face-to-face real time communication

Tools for platform integration, sprint & release planning, real/near time team communication, reporting and security

Using collaboration tools (with real-time feedback) for scrum artifacts such as product backlog, sprint backlog, burndown reports, etc.

Remote pairing for common resource ownership

Proxy product owner for each geography

Some Effective Agile Tools

Case Study: The Scaled Agile Framework has proved to be successful in large-scale Agile adoption (1/2)

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Processes

SAFe: Critical for EDTScaled Agile Framework (SAFe): Enterprise level Agile Implementation

Agile estimating, planning and Agile Release trains

Tackles architecture, integration, funding, governance and roles at scale

Continuous value flow and lightweight business cases

Increased speed to market while keeping budget and resources static

2

1

3

4

Companies that follow SAFe

Case Study: The Scaled Agile Framework has proved to be successful in large-scale Agile adoption (2/2)

24

Processes

Program Execution Alignment Code Quality Transparency

Core Qualities of SAFe, a proven, publicly-facing framework for applying Agile practices at enterprise scale:

01

02

03

Enterprise-Scale ImplementationAllows large-scale incremental and iterative development of digital solutions irrespective of geographically dispersed teams

Facilitates OptimizationUnlike most other frameworks available, SAFe is not limited to the judgment of the user for optimization across cost efficiency, quality and speed

Alignment & QualityEffective in alignment of IT objectives with Business goals while maintaining emphasis on code quality across all teams

BUSINESS RESULTS

Increase in

employee

engagement

20-50%

increase in

productivity

30-75%

faster time

to market

50%+

defect

reduction

Credit Leffingwell et al. © 2014 Scaled Agile Inc.


Technology

25

People

Processes

Ecosystem Connect

C

A

B

D





Enterprises need to adopt Multi Speed IT in order to cater to rapidly changing digital requirements

26

Technology

Speed = Slowest

Speed = Faster

Speed = Fastest

Service

Integrate

Access & Expose

Consume

Data Backend Service ESB/SOA Service

Curated Data(Internal/ External)

Standardized API Layer & Management

IP Apps Consumer AppsEnterprise Products

Partner Services

Web Mobile Point of Sale Partner Devices & Things

Note: Credit: Persistent Systems

Rapid development environment to speed up development process, coupled with full-coding Integrated Development Environment for flexibility

Allows continuous integration & feedback Business participates in application

development while IT supports them (& ensures compliance)

Browser-based dev. environment Aggressive time-to-market Adaptable to

constant change

Tools such as Apigee and Mulesoft integrate legacy systems with cloud & SaaS apps, Business Management software (SAP, Salesforce), etc.

The API Layer effectively exposes the data to developers and partners

API-led connectivity enables legacy system access, unlocks data value & reduces legacy service disruptions

Legacy System Integration

Agile Speed

New Age technology and tools are imperative for laying the foundation of a Digital Enterprise

27

Technology

UI Frameworks MVC Pattern Data Visualization

Web Apps Native Apps App Dev. Platform

StandardsMobile First Design

User

ExperienceApp

Framew

ork

Web Services Security & Identity Management

Open APIs Mean Stack

Middlew

are

Data Storage Data At Scale Data to Insights ETL

Cloud Deployment OS

Data

OS/

Infrastructure

Project Management

Enterprise Scale Programs

Automated Configuration Management

Cont. Integration

Automated Unit Testing

Alerts & Monitoring

Code Repository Version Control

DevOps

Agile

PROCESSES & TOOLS

• Understanding mobile users• Time Space constraints• Touch, Location, Proximity sensors• Mobile Design Patters

Fundamentals: Virtualization & Tenancy Models

Software Defined

Note: Digital tech map from Persistent Systems


Technology


28

People

Processes

Ecosystem Connect

C

A

B

D




Enterprises need to establish partnerships across the ecosystem in order to leverage their talent, technologies, expertise and services

29

Partnerships

Service Providers

University Connects

Platform Partners

StartUp Connect

1 2

43

Partnerships

List of shortlisted analytics platform companies with

whom Persistent can partner for EDT

Platform Partners: It is critical for enterprises to build platform partnerships in order to leverage their capabilities

30

Initial platform company inclusion criteria

• Offer advanced analytics functionality as a stand-alone product that can be deployed and used separately from other BI or business applications

• This product must be vertical agnostic

• Generate at least $2 million in total advanced-analytics-related software license revenue annually, or have more than 1,000 active deployments

Organizational capabilities

Innovation potential in-house

Ecosystem Connection Strategy

US Market Understanding

Platform capabilities

Functionality of product (feature sets and capabilities)

Customer Experience/ Product Reliability

1

2

3

1

2

Partnerships

Note: Platform Partnership framework from Persistent Systems

Zinnov recommends the following framework for selecting platform partners

IBM, SAP and Salesforce.com are some of the best platform partners across Analytics, Mobile App Development and Collaboration

3131

Partnerships

2

3

1

Mobile Application

Development Platform (MAPD)

Advanced Analytics Platform

(AAP)

Collaboration Platform

SAS, a leader in AAP, provides a wide range of advanced analytics (predictive analytics, optimization,

forecasting, text analytics, simulation, etc.) to yield insights for

solutions for risk management, customer intelligence, retail & other

domain-specific offerings

SAP, a leader in MAPD, provides development & services for user-

centric mobile apps for employees, partners and customers on an

integrated, open, standards-based platform*

Salesforce is a Collaboration Platform leader in both Platform Capabilities and Organizational

Capabilities

Note: *Development of apps across People Productivity, Processes, Analytics, Consumer (Loyalty, e-care, etc.), Custom Mobile Apps (transformative) & Partner Apps

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Service Provider Selection

Framework

Scaled Agile Framework

Product Development Capabilities

Platform Partnerships

Solution Accelerators

Global Footprint

Digital DNA

This parameter would measure the number and effectiveness of the

Solution Accelerators of the service providers

This parameter would evaluate whether or not the service provider has a geo-

presence in the desired geographies, or its proximity to the same

This parameter would evaluate the presence and effectiveness of Scaled

Agile Network

This parameter would measure the presence and capabilities of the platform

partnerships the service providers has

This parameter would measure the Product Development capabilities of the

service provider

This parameter would be used to measure the capability of a service provider to

deliver agile units of digital work

Service Providers: It is also critical to engage with niche Service Providers with product development capabilitiesPartnerships

Zinnov recommends the following framework for selecting service providers

Digital and Traditional Service Providers vary vastly in their digital capabilities, processes and platform partnershipsPartnerships

Parameter Digital Service Providers Traditional Service ProvidersService maturity Service maturity

Digital DNA Focused on delivering agile units of work with digital speede.g.: More focus on creating APIs rather than IT modernization

Delivery through multi speed. Focus on IT modernization as well as delivering agile units of work with digital speed

Solution Accelerators

Strong PES capabilities around solutions accelerators (both vertical specific & agnostic )

Moderate focus on solution accelerators. Larger focus on services as compared to solutions.

Global Footprint Primary presence in the Bay Area, New York and Bangalore due to concentration of skill sets in these areas

Wide spread global presence due to non-dependency on emerging skill sets

Scaled Agile Framework

Dynamic adoption of distributed and SAFe amongst product and IT teams

Gradual transformation towards agile, primarily standard waterfall model in existence at large

Platform Partnerships

Leverage Product/ Platform players in 360 degree partnerships – To “Sell with“ & “Sell through”

Traditional revenue sharing “ Sell with “ strategy observed with technology players

Product developmentcapabilities

Significant non-linear revenueContinuous integration, rapid prototyping and incremental developmentMature business models (Outcome based etc.)

Inconsequential non-linear revenue Leverages waterfall or spiral methodologiesTraditional business models (T&M, Fixed Price etc.)

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34

Persistent, Symphony Teleca, Epam and ThoughtWorks exhibit high product capabilitiesPartnerships

Niche vendors such as Persistent Systems, Symphony Teleca & EPAM, specializing in Product Development capabilities are the most suitable for

forging partnerships for EDT

Note: Symphony Teleca’s capabilities have been evaluated taking into account Symphony Teleca’s acquisition of ADITI

Leads the pack in People Capabilities, IP/Solutions & maturity of services

Leads the pack in Business Model and also has mature services

Leads the pack in Alliances forged and Clients

Though not evaluated by GSPR, it exhibits product capabilities & works with clients across several verticals

Zinnov’s Global Service Provider Rating 2014 evaluates the service providers according to their ISV-Enterprise Software capabilities

Startup Connect: A holistic approach needs to be adopted by enterprises to engage with startups

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Partnerships

2

3

5

Drive the internal change

Create an Internal Marketplace

Connect with startups across the entire value chain

Partner with existing startup facilitators41 • Facilitate interaction between startups and

internal teams• Promote and incentivise Intrapreneurship• Ideate, Build and Execute on new ideas

Acquire Targets

• Create a network of accelerators focussed on emerging technologies

• Align your CoEs with accelerators to provide startups with the soft and hard infra

• Create a marketplace for startups to connect with and be mentored by business units

• Validate the startup ideas/products by deploying them in the organizational digital workflow

• Partner with industry initiatives such as NASSCOM-10k, Productnation etc

• Partner with MNCs existing accelerator programs

• Connect with university incubation programs

• Make strategic acquisition of growth stage/Mature companies

• Buy IPs to grow non linear revenues• Partner with startups for a joint GTM

strategy by providing SI services on top of products

Set up an accelerator (Grants4Apps) for Operational Excellence and Customer Targeting & Engagement EDT horizontals

GE, Mayo Clinic, Abbot, UnitedHealth Group, etc. have partnered with Digital Health Accelerator Rock Health

Acquired Cellfire to boost omni-channel

Intrapreneurship to create value within the organization

Has created an internal marketplace for startups

Startup Connect: Target has recently launched its Accelerator Program in Bangalore in order to compete with retail giants such as Amazon and Walmart

36

Partnerships

TARGET ACCELERATOR

PROGRAM

Preliminary Stage Shortlist Stage

Pool of 159 Indian Tech

Startups

Helps online retailers & other merchants use 3D modeling & offers

a 360-degree view of products

Helps some of India’s online retailers leverage

social conversations

Personalized search results and highly accurate recommendations

Arrests website bounce rates & increases customer engagement

Facilitate social recommendations

Two-way communication with mobile users by offering a two-way messaging inbox

in the app

Nurture Stage

Specially designed space for 4-month immersive program

Help them generate ideas by providing them access to mentors, tools, resources & operational support

Provide up to USD 30,000 in funding Also to help Target identify potential M&A targets

at early, cheap valuations

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2

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5

Name: Target Accelerator Program

Aim: To compete & catch up with Amazon & WalmartLabs fasterLocation: Bangalore

Focus Areas: Search, Content, Data, Social, Mobility, 3D Imaging, Omnichannel, Digital Marketing and Supply Chain

Year of Establishment: 2014

Startups for the next batch include Twiddly, Whodat’s Spaces, Wazzat, Torch & Visarity

“ At Target, innovation is core to our culture and strategy and we are always looking for new ideas to enhance the shopping experience of our guests. We are in discussions with a variety of partners and start-ups for a Target India Accelerator program..”

- Beth Jacob Ex- CIO

University Connect: It is also critical to establish connects with universities with rich digital profiles

37

Partnerships

PEOPLE INFRASTRUCTURE & PROGRAM ENGAGEMENT OTHERS

40% 30% 20% 10%

Professor Rating: 20%Parameters to be considered include:WIP (to be added

Student Profile Rating: 20%Parameters to be considered include:• Related Research

Propensity• Available Skillsets

Infrastructure Rating: 15%Parameters to be considered include:• Relevant Digital Labs &

Tools• Relevant Digital CoEs/

Cells

Program Rating: 5%Parameters to be considered include:• Related course program

Finance Considerations Rating: 15%

Amenability to desired Engagement Model: 5%

Mindshare Rating: 5%Parameters to be considered include:• Related digital

publications & Papers

Partnership Rating: 5%Parameters to be considered include:• Existing related

partnerships with other companies

List of shortlisted universities for partnership

Zinnov recommends the following framework for targeting & selecting universities

Partnered with UA’s Culverhouse Data Analytics lab for data

analytics, providing collaboration and research across government,

industry and academia to help companies anticipate and solve

critical problems

University Connect: Enterprises are increasingly partnering with universities for researches in the digital arena

38

Partnerships

Key DriversNarrow skills gap by building talent for new digital skillsets

Create branding in universities fresh talent pool

Leverage cutting edge technology & research

professors

Industry Examples

Academic Initiative collaborations with more than 1,000 academic

partners to design and teach curriculum to undergraduates and

graduates on big data and analytics skills

Develop curriculum in data science and analytics, focused on

real-world problem areas, in addition to the research on

solving industry issue

Based on identified needs of customers drawn from Infosys’s engagement with enterprises

across industries

Samsung has partnered with University of California, San

Francisco (UCSF) to set up a digital health innovation lab

University Connect: Operational Excellence and Customer Targeting & Engagement are the primary focus areas of university researches across the globe

39

Partnerships

Key Universities with research focus on enterprise digital transformation

EDT Horizontals Sample Universities Sample Research Areas

Operational Excellence

• Analytics for genetics & proteomics & preventive healthcare using medical wearable devices

• Predictive analytics for pharma & finance verticals


• Wearable Device to predict & notify (to family) the risk of falling in elderly patients & send automatic alerts to family

• Wearable vapor sensor being developed for continuous disease monitoring for diabetic patients

Note: Workforce & Partner Enablement and Digital Products and services are very low focus areas for universities

Risk Management

• Skills to collect, analyze, and interpret data in the Risk modeling

• Large Scale Analysis of Forensic Data for Event-Based Representation and Discovery


• Focus on Supply Chain Management Analytics

Illustrative

Research Propensity

Agenda



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Conclusion3

Setting up an EDL might look challenging, and you might face with several questions…

41

CORPORATE BUY-IN

CHANGEINFRASTRUCTURE

TALENT

“ The HR is not aligned to the Business “

“ HR tools and processes are not in place for Digital talent “

“ How should I get corporate buy-in ? “

“ How do I get budget allocated for digital initiatives? “

“ How do I modernize my IT and where do I begin? “

“ Should I build or buy the required tools for building an EDL? “

How do I manage Change Management ?

“ How do I realign my organization in order to a smooth transition? “

…however, success stories across verticals reinforce the fact that times are changing, and it is imperative to transform rather than perish!

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There are numerous industry examples of enterprises that have jumped at the opportunity to transform digitally, only to reap benefits

• Starbucks Digital Ventures created to improve customer experience & engagement via mobile payments, web, card, loyalty, e-commerce, Wi-Fi strategy, & the Starbucks Digital Network

• Nike is at the forefront of digital transformation through its digital tools for making product designs and manufacturing simpler, digital products to track workouts and share them with friends online and receive customized advice from coaches, and the Nike+ platform

• Southwest Airlines has bolstered its customer experience as well as back-end operations by leveraging digital technologies such as a new suite of customer contact and workforce optimization to improve customer satisfaction using predictive analytics, social media analytics for customer targeting, and collaboration with NASA to improve airline safety using Machine Learning skills

Thank You

@zinnov

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