Digital Transformation: It’s 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 Twitter
innovation | 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
Agenda• The digital backdrop - 20 years of a world gone digital• Why the current business landscape is so disruptive
(and what we call the Digital Enterprise Wave)• Digital transformation defined• The 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 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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 ‘01
WordPress – first released May ‘03LinkedIn – launches May ‘03
Flickr – launches Feb ‘04, acquired by Yahoo Mar ‘05 Facebook – launches Feb ‘04
iPhone – announced Jan ‘07, available Jun ‘07
iPad – launches Apr ‘10
Twitter – 1st tweet Mar ‘06, SXSW Mar ’07, Apr ‘07
Instagram – Oct ‘10Snapchat – Jul ‘11
Tumblr – Feb ’07WhatsApp – Feb ‘09
Pinterest – Mar ‘10
20 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 Wave
ride it
or go under!
The Digital Enterprise Wave
The Digital Enterprise Wave
The Digital Enterprise Wave
The Digital Enterprise Wave
1. People and the internet – people’s association and interaction with the web as a mental, social and physical extension of themselves
2. Computing, communications and storage everywhere – the ability to interface with digital technology, data and the web anywhere, anytime on any device
3. The “Internet of Things” – the digital linking of inanimate objects, or “the instrumentation of the physical world”
4. 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
5. 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
6. 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 parameters
World Economic Forum – 6 megatrends
The shift to Digital (Business) - what are we calling it today?
• Enterprise 2.0 → Social Business → Digital Transformation• You need an ESN or social collaboration approach at the heart• Cloud technology drives scale, reduces cost• Mobile technology increases reach, penetration• Analytics increases focus, impact• It’s about much more than technology
Nexus of forces3rd PlatformBig wheel of Disruption
it’s not digital, it’s business
“The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday’s logic.”
Peter Drucker
Total Value Created
IncreaseRevenue
Average Sale £
Sales Volume
Reduce Costs
Churn
Operating Cost
• Deeper understanding of customer needs• Conversation with customers increases
attachment to business
• Increased marketing penetration at lower cost
• Faster lead generation & customer onboarding
• Faster understanding of product and customer problems
• Pro-active customer retention
• Fast information movement and higher levels of collaboration drives efficiency
• Higher employee engagement drives effectiveness
Close link
Digital 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 wait”Lesson 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
http://www.slideshare.net/rwang0/201504-disrupting-digital-business-short
We’re not in Kansas any more
References
Not for reading – just for reference
http://en.wikipedia.org/wiki/Nicholas_Negropontehttp://en.wikipedia.org/wiki/Being_Digitalhttp://blog.softwareinsider.org/2014/02/18/research-summary-sneak-peaks-from-constellations-futurist-framework-and-2014-outlook-on-digital-disruption/screen-shot-2014-02-17-at-6-36-58-pm/http://dionhinchcliffe.com/2015/05/21/how-it-and-the-role-of-the-cio-is-changing-in-the-era-of-networked-organizations/http://www.jaronlanier.com/futurewebresources.htmlhttp://www.themanagementshift.com/ http://www.amazon.co.uk/Leading-Digital-Technology-Business-Transformation-ebook/dp/B00NE6MG0Y/ref=sr_1_1?s=books&ie=UTF8&qid=1416926793&sr=1-1&keywords=leading+digital http://www.slideshare.net/rwang0/201504-disrupting-digital-business-short https://vimeo.com/130722577 http://www.slideshare.net/a16z/mew-a16z/2-Mobile_is_makingtechnology_universal
David TerrarAgile Elephant | techUK | EuroCloud UK
p: +44 (0)1727 866309 m: +44 (0)7715 159423
e: [email protected] w: www.theagileelephant.com skype: david_terrartwitter: http://twittter.com/DT @DT linkedin: http://www.linkedin.com/in/davidterrar blog: http://theagileelephant.com/blog & http://medium.com/@DT
innovation | digital transformation | value creation | (r)evolution
