the digital imperative and digital transformation | 9th june 2015

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© Arrk Group 2015 www.arrkgroup.com The Digital Imperative and Digital Transformation Ian Southward 9 th June 2015

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© Arrk Group 2015 www.arrkgroup.com

The Digital Imperative and Digital Transformation

Ian Southward 9th June 2015

© Arrk Group 2015 www.arrkgroup.com

Founded in 1998 and run on a

collaborative, win-win ethic

Core competence is engineering digital

products and platforms using high

performing software engineering

practices delivered through dedicated

distributed teams

We provide dedicated teams to clients as

an integrated part of their own

organisation

We innovate through our SpArrk

Community Programme to drive thought

leadership

Who are We?

150 people, 20 in UK, 130 in Mumbai

We believe in small teams delivering

quickly

We use User Centred Design and Agile

practices to deliver quickly and drive up

quality, communication and transparency

We build “digital self-service” systems to

reduce cost, maximise productivity and

user satisfaction

We focus on financial, Government , the

not for profit and education sectors

We build applications that are digital by

default and deployable in the cloud

© Arrk Group 2015 www.arrkgroup.com

Digital technology offers many advantages

Technology the biggest thing in business

Many organisations struggle to implement change programmes

Organisations that can’t integrate digital technology will limit their impact

Takes Leadership and Capabilities in Digital Technology

The Digital Imperative

9 - 26% more profitable than their industry sector

Generate 9% more revenue than their competition

9% more efficient than their competition

Source: Cap Gemini

© Arrk Group 2015 www.arrkgroup.com

Parking Service

Housing Benefits

Housing Rents

Housing Advice

Pest Control

Licensing

Managing a Council Home

Building Control

Roads, Streets & Traffic Management

Food safety

Update Housing Application

Community Safety and Anti-social behavior

Libraries

Births, Deaths, marriages and NCS/SCS

Housing Repairs

Council Tax

Rubbish and Recycling

Electoral Services

Childcare Services

Planning Services

Trees

Leaseholder Services

Commercial Waste

Streets and Footpaths

Noise Control

Health and Safety

Sports and Leisure

Parks and Open Spaces

Payments

Adult Social Care

Local Government : Services offered

© Arrk Group 2015 www.arrkgroup.com

Reduce Costs, Increase Efficiency

Optimised user experience and channel shift

Improve collaboration across employees

Put data at the heart of user experience

Transparency and e-Democracy

Drive innovation and new ways of working

Digital Imperative in Local Government

8.62

2.83

0.15 02468

10

Face-To

Face

Phone Web

Interaction Type

Expense per

Transaction

© Arrk Group 2015 www.arrkgroup.com

25 on-line questions to measure digital maturity

Measurements across 5 dimensions

Leadership

Execution

Organisation

Customer Experience

Digital Platform

Five levels of Categoristation

Digital Dinosaur

Digital Tortoise

Digital Panda

Digital Tiger

Digital Eagle

Digital Maturity Assessment

© Arrk Group 2015 www.arrkgroup.com

Digital Leadership

•Technology and business together

•End to end Single platform

•Holistic access to services

Technology Vision

Execution Governance

•Top Down •Outcome Based •Future Focused

•Transformative

•Business and IT •Engagement •Rapid Execution

•Digital Skills •Innovate with Partners •Phased and iterative

•Support Pioneering Initiatives •Goals and Measurement •Cultural shift

•Sustain investment

© Arrk Group 2015 www.arrkgroup.com

There is a vision and strategy that clearly defines the importance of the digitisation

39%

42%

19%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

YES

PARTLY

NO

Sample: 363

© Arrk Group 2015 www.arrkgroup.com

Is there organisational level governance for supporting digital transformation?

25%

53%

21%

0% 10% 20% 30% 40% 50% 60%

ENTIRELY

BUSINESS UNIT LEVEL ONLY

NOT AT ALL

Sample: 229

© Arrk Group 2015 www.arrkgroup.com

Rapid, iterative execution is vital

Time to market as short as possible

Design services around the user

Monitor usage and evolve

Deliver front end functionality frequently

Invest in digital skills

Make progress as transparent as possible

Use technology platforms to engage and scale

Strong governance to sustain investment and evolve services

Execution & Delivery

© Arrk Group 2015 www.arrkgroup.com

How do you rate your organisation's ability to identify and execute on its digital capabilities?

14%

19%

26%

30%

12%

0% 5% 10% 15% 20% 25% 30% 35%

GROUNDBREAKING INITIATIVES CONTINUALLY BEING

DELIVERED

FOCUSED AND REGULAR ACTIVITIES TO ENHANCE YOUR

DIGITAL CAPABILITIES

USING IDEAS / INITIATIVES FROM COMPETITORS, REGULAR

UPDATES

AD-HOC UPDATES, NO STRATEGIC PLAN

IRREGULAR / SPORADIC / AS NEEDED, SLOW TO DELIVER

Sample: 146

© Arrk Group 2015 www.arrkgroup.com

Innovation and an entrepreneurial spirit

Connected, Collaborative and Transparent

The most important thing in business is technology

Digital Leadership Roles to drive change

Chief Digital Officer

Think like digital entrepreneurs

Empower, Innovate and Unleash

Organisation (& Culture)

Standardise Versus

Empower

Control Versus

Innovate

Orchestrate Versus

Unleash

© Arrk Group 2015 www.arrkgroup.com

We have 3 “self-forming” communities around themes that emphasise our core capabilities and key trends in our industry

The teams meet every two weeks to discuss and agree topics for research

We publish blogs and white papers, produce videos and produce concepts, working prototypes

The SpArrk Communities have developed a range of collateral and experience with

IOT, Open Source Digital Architecture, DevOps, Automated Testing of Multiple Browsers, ScrumBan, Agile Maturity, Digital Maturity, Agile Forecasting…

http://www.arrkgroup.com/thought-leadership/

Innovative Culture

Digital Platform and Architecture

High Performance Software Engineering

Leading Edge Technologies

© Arrk Group 2015 www.arrkgroup.com

All users

Internal & external audiences

Design from external perspective

Put user and user data at heart of experience

Mobile first

Increase loyalty and create positive brand perceptions

Customer Experience

© Arrk Group 2015 www.arrkgroup.com

Multi-tiered, loosely coupled platform

Holistic front end to access services

Digital by default

Ability to interface with all legacy and 3rd party applications

Leverage scalability using cloud

Leverage open source technology

Use No/SQL (or Big Data) to drive insight

Digital Platform

© Arrk Group 2015 www.arrkgroup.com

Ongoing Process

Vision

Focus

Mobilise

Sustain

• Build Awareness • Create Vision • Align Organisation

• Roadmap • Governance • Fund transformation

• Engage • Cultural change • Deliver rapidly

• Develop skills • Develop capability • Monitor and Evolve

© Arrk Group 2015 www.arrkgroup.com

Is there acceptance that the organisation will change with progressive digitisation?

17%

40%

31%

13%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

YES, WE FULLY ACCEPT THE CHANGES AND HAVE ADOPTED A TRULY

ENTREPRENEURIAL APPROACH AND THINK DIGITAL FIRST

PARTIALLY BUT WE ARE NOT ENTREPRENEURIAL ENOUGH ACROSS

OUR ORGANISATION

PARTIALLY BUT MAINLY SILOED THINKING, WITH LITTLE

COLLABORATION ACROSS THE ORGANISATION

NO AND VERY LITTLE ENGAGEMENT WITH ORGANISATION TO DRIVE

NEW INITIATIVES

Sample: 134

© Arrk Group 2015 www.arrkgroup.com

What challenges exist which would prevent you from implementing digital innovation?

20%

38%

43%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

THERE ARE NO BARRIERS. WE HAVE A SUCCESSFUL PROGRAMME OF ACTIVITY

FULLY SUPPORTED BY THE ORGANISATION

ALL AREAS OF THE ORGANISATION CONSULTED AND SUPPORTED WHERE A

BUSINESS CASE EXISTS

CONTINUAL RESISTANCE FROM PARTS OF THE ORGANISATION WHERE

ANALOGUE PROCESSES AND BUSINESS AS USUAL THINKING PREVAILS

Sample: 127

© Arrk Group 2015 www.arrkgroup.com

Only Just the Start!

Artificial Intelligence

Augmented Reality

Robotics

Wearables

Internet of Things

Sharing Economies

© Arrk Group 2015 www.arrkgroup.com

Download our white papers

‘The Digital Imperative’

Cloud

BYOD

Social Media

Mobile

Putting The User First

http://bit.ly/digital-imperative

http://bit.ly/User-First-WP

Further reading

© Arrk Group 2015 www.arrkgroup.com

Ian Southward [email protected]

07976 124629