digital transformation - it’s really all about the business stupid!

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Digital Transformation: Its really all about the business, stupid!

HfS European Service Buyers Summit Cambridge University | March 21 22, 2016 David Terrar | Founder & CXO Agile Elephant | @DT on Twitterinnovation | digital transformation | value creation | (r)evolution


The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn. Alvin Toffler

AgendaThe digital backdrop - 20 years of a world gone digitalWhy the current business landscape is so disruptive (and what we call the Digital Enterprise Wave)Digital transformation definedThe management shift that is emerging (and required)Where are we?

Hang on - can you explain this new digital landscape?

"Move bits, not atoms."

January 1995

Forums Usenet in the 70s, web based forums & bulletin board services start 94 online journals 94 199519961997199819992000200120022003200420052006200720082009201020112012201320142015

Being Digital Nicholas Negroponte moving atoms to bits published Jan 95Wikis Ward Cunningham installs first wiki Mar 95 Blogging term weblog John Barger Dec 97, blog used as noun and verb Peter Merholz Apr 99Wikipedia opens Jan 01WordPress first released May 03LinkedIn launches May 03Flickr launches Feb 04, acquired by Yahoo Mar 05 Facebook launches Feb 04iPhone announced Jan 07, available Jun 07iPad launches Apr 10Twitter 1st tweet Mar 06, SXSW Mar 07, Apr 07Instagram Oct 10Snapchat Jul 11Tumblr Feb 07WhatsApp Feb 09Pinterest Mar 1020 years of a World Gone DigitalThe development of social media, social networks and mobile computing YouTube launches Feb 05, acquired by Google Oct 06 Skype launches Aug 03, acquired by eBay 05, Microsoft May 11

Your business model is under threat!

The Digital Enterprise Waveride itor go under!

The Digital Enterprise Wave

The Digital Enterprise Wave

The Digital Enterprise Wave

The Digital Enterprise Wave

People and the internet peoples association and interaction with the web as a mental, social and physical extension of themselves

Computing, communications and storage everywhere the ability to interface with digital technology, data and the web anywhere, anytime on any device

The Internet of Things the digital linking of inanimate objects, or the instrumentation of the physical world

Artificial intelligence and big data the ability to access and analyze vast and disparate data, along with the ability for computers to make decisions based on this data

The sharing economy and distributed trust digitally-enabled transparency and trust mechanisms that allow direct exchange of goods, services or money between parties outside of traditional establishments such as stores and banks

The digitization of matter 3D-printing and the creating of physical materials on the spot (personalized or on a small scale) based on digitally transmitted parametersWorld Economic Forum 6 megatrends

The shift to Digital (Business) - what are we calling it today?Enterprise 2.0 Social Business Digital TransformationYou need an ESN or social collaboration approach at the heartCloud technology drives scale, reduces costMobile technology increases reach, penetrationAnalytics increases focus, impactIts about much more than technology

Nexus of forces

3rd PlatformBig wheel of Disruption

its not digital, its business

The greatest danger in times of turbulence is not the turbulence it is to act with yesterdays logic.Peter Drucker

Total Value CreatedIncreaseRevenueAverage Sale Sales VolumeReduce CostsChurnOperating CostDeeper understanding of customer needsConversation with customers increases attachment to businessIncreased marketing penetration at lower costFaster lead generation & customer onboarding Faster understanding of product and customer problemsPro-active customer retentionFast information movement and higher levels of collaboration drives efficiencyHigher employee engagement drives effectiveness

Close linkDigital Business Value CreationDepending on the business, the impact of digital transformation will vary but will drive significant value Bottom line = value creation


At the height of its power, the photography company Kodak employed more than 140,000 people and was worth $28 billion. They even invented the first digital camera. But today Kodak is bankrupt, and the new face of digital photography has become Instagram. When Instagram was sold to Facebook for $1 billion, it employed only 13 people. Where did all those jobs disappear? And what happened to the wealth that all those middle-class jobs created? Jaron Lanier

$19 Billion $7.2 Billion

Digital Transformation a definitionDigital transformation is the process of shifting your organisation from a legacy approach to new ways of working and thinking using digital, social, mobile and emerging technologies. It involves a change in leadership, different thinking, the encouragement of innovation and new business models, incorporating digitisation of assets and an increased use of technology to improve the experience of your organisation's employees, customers, suppliers, partners and stakeholders.


Leading Digital

What is your level of Digital Mastery?

- generate 9% more revenue- create 26% more profit- 12% higher market valuation

Digital Darwinism is unkind to those who waitLesson 1 Transform Business Models And EngagementLesson 2 Keep The Brand PromiseLesson 3 Sell The Smallest Unit You CanLesson 4 Know That Data Is The Foundation Of Digital BusinessLesson 5 Build For Insight StreamsLesson 6 Win With Network EconomiesLesson 7 Humanize Digital With Digital ArtisansLesson 8 Democratize Distribution With P2P NetworksLesson 9 Deliver Intention Driven, Mass Personalization At ScaleLesson 10 Segment by Digital Proficiency Not Age

Were not in Kansas any more

ReferencesNot for reading just for reference

David TerrarAgile Elephant | techUK | EuroCloud UK

p: +44 (0)1727 866309 m: +44 (0)7715 159423e: [email protected] w: skype: david_terrartwitter: @DT linkedin: blog: &

innovation | digital transformation | value creation | (r)evolution