leading digital transformation: “talk...

Copyright © 2012 MIT CDB and Capgemini Consulting.

“Talk Title” Name Title CDB Annual Conference May 23, 2012

Leading Digital Transformation: A Roadmap for Billion-Dollar Organizations Didier Bonnet George Westerman

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CDB Annual Conference May 23, 2012


WHAT IS DIGITAL TRANSFORMATION?

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The use of technology to radically improve performance or reach of enterprises


KEY FINDINGS

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DIFFERENT RESULTS

BROADLY COMMON

ACTIVITIES

COMMON PRESSURES


COMMON PRESSURES

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“Come on. I know the company's

more than 100 years old, but our IT capabilities don't have to match

the age of the company.”

5.6 / 7 Pace of business relative to five years ago

“It’s hard to imagine the brutality

of the change in consumer behavior”


BROADLY COMMON ACTIVITIES

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BROADLY COMMON ACTIVITIES THE BUILDING BLOCKS OF DIGITAL TRANSFORMATION

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Customer understanding • Analytics-based segmentation • Socially-informed knowledge

Digital Globalization • Enterprise Integration • Redistribution decision authority • Shared digital services

New Digital Businesses • Digital products • Reshaping organizational

boundaries

Worker enablement • Working anywhere anytime • Broader and faster communication • Community knowledge sharing

Customer touch points • Customer service • Cross-channel coherence • Self service

Digitally-modified businesses

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

Performance management • Operational transparency • Data-driven decision-making

Top line growth • Digitally-enhanced selling • Predictive marketing • Streamlined customer processes

Process digitization • Performance improvement • New features

Digital Capabilities

Customer Experience

e Operational

Process e

Business Model

• Unified Data & Processes • Analytics Capability

• Business & IT Integration • Solution Delivery


TRANSFORMATIVE DIGITAL VISION

DIFFERENT RESULTS: DIGITAL TRANSFORMATION LEADERSHIP

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DIGITAL CAPABILITIES

40% OF THE COMPANIES HAVE A TRANSFORMATIVE

DIGITAL VISION

DIGITAL GOVERNANCE • COORDINATION • KPIS

DIGITAL ENGAGEMENT

• SKILLS • MULTI-WAY

COMMUNICATION


EXECUTING ON A TRANSFORMATIVE VISION

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CUSTOMER EXPERIENCE OPERATIONAL PROCESS

NOTE: CHARTS PLOT HOW FIRMS ARE USING EACH TECHNOLOGY IN CUSTOMER EXPERIENCE OR OPERATIONAL PROCESS INITIATIVES. FOR EACH FIRM, ONLY THE MOST RADICAL USAGE IS COUNTED.


SUBSTITUTION, EXTENSION, BREAKTHROUGH

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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 for

medical devices

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

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


TRANSFORMATIVE DIGITAL VISION

DIFFERENT RESULTS: DIGITAL TRANSFORMATION LEADERSHIP

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DIGITAL GOVERNANCE • COORDINATION

• KPIS

DIGITAL CAPABILITIES

DIGITAL ENGAGEMENT

• SKILLS • MULTI-WAY

COMMUNICATION MISSING CAPABILITIES COORDINATION CHALLENGES

REGULATION, REPUTATION,

SECURITY 40% OF THE

COMPANIES HAVE A TRANSFORMATIVE

DIGITAL VISION


DIGITAL TRANSFORMATION MATURITY

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Digi

tal i

nten

sity

Transformation management intensity

CONSERVATIVES • Overarching digital vision exists, but

may be underdeveloped • Few advanced digital features, but

traditional capabilities many be • Strong governance across silos • Taking active steps to build digital

skills and culture

BEGINNERS • Management skeptical of the

business value of advanced digital technologies

• May be conducting some experiments

• Immature digital culture

FASHIONISTAS • Many advanced digital features

(such as social, mobile) in silos • No overarching vision • Underdeveloped coordination • Digital culture may exist in silos

DIGIRATI • Strong overarching digital vision • Good governance • Many digital initiatives generating

business value in measurable ways • Strong digital culture


DIGITAL MATURITY IN OUR SAMPLE

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Digi

tal i

nten

sity

Transformation management intensity

17%

50%

13%

19%

NOTE: DIGITAL MATURITY ASSESSMENTS WERE CONDUCTED BY THE RESEARCH TEAM USING INFORMATION FROM INTERVIEWS. VERTICAL AND HORIZONTAL LINES ARE LOCATED AT THE MEAN VALUE PLUS ½ STANDARD DEVIATION ALONG EACH AXIS. QUADRANTS DO NOT ADD TO 100% DUE TO ROUNDING.


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• Large-sample assessment of relationship between digital maturity and performance

• Benchmarks by industry and geography

QUANTITATIVE STUDY

2012


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HOW CAN YOU DRIVE DIGITAL TRANSFORMATION?

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5.

CREATE A TRANSFORMATIVE VISION OF THE FUTURE

INVEST IN FOUNDATIONAL DIGITAL CAPABILITIES

PROVIDE GUIDERAILS AND GOVERNANCE

ASSESS YOUR COMPANY’S DIGITAL MATURITY

CONSTANTLY COMMUNICATE AND ENHANCE THE VISION

leading digital transformation: “talk...

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