ensuring digital transformation success · why errol ashwell ? backed by an entire career of...

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ENSURING DIGITAL TRANSFORMATION SUCCESS ••• Errol Ashwell •••

INDUSTRY RALLYING CRIES

CONTENTS

WHY DIGITAL ? ............................................................................................................................................................................. 2

WHAT CAN GO WRONG ? ........................................................................................................................................................... 3

THE DIGITAL TRANSFORMATION / INDUSTRY 4.0 REALITY ....................................................................................................... 4

WHY ERROL ASHWELL ? .............................................................................................................................................................. 5

APPENDIX A: ERROL ASHWELL – CV .......................................................................................................................................... 6

APPENDIX B: DIGITAL TRANSFORMATION EXPLAINED ............................................................................................................. 7

APPENDIX C: DIGITAL AND INDUSTRY 4.0 TERMINOLOGY ....................................................................................................... 9

Go Digital ! Digitalise ! Digital

Transformation !

Industry 4.0 !


WHY DIGITAL ?

THE DIGITAL OPPORTUNITY “US$100 Trillion by 2025: The Digital Dividend for Society and Business”

• The World Economic Forum announced on 22 January 2016 that, according to their research, the combined value to society and industry of the digitalisation that is already occurring in every industry could generate upwards of US$ 100 Trillion over the following 10 years. Their research also suggests that the pace of change could accelerate.

• Best known in technically-oriented industries as ‘Industry 4.0’, it is estimated that at US$ 100 Trillion, Digital Transformation is one of – if not the – largest financial opportunities worldwide.

• Who does not want a share of that?

THE OUTCOMES AND BENEFITS OF ‘GOING DIGITAL’ What a successful Digital Transformation achieves is to create business value; and competitive advantage; and future-proof the organisation against competition from younger companies and hot-shot start-ups. Digital Transformation and Industry 4.0 enable you to Make Smart Products; Create Smart Environments; and better Engage with Customers.


WHAT CAN GO WRONG ?

ALARMING DIGITAL ROLLOUT FAILURE RATE Global research from McKinsey®, Prophet/Altimeter® and others shows that “only about 30% of companies are capturing value from Industry 4.0 at scale today”. Many digital rollouts fail outright or are caught in ‘Pilot Purgatory’. Reasons for the alarming 70% failure rate are quite clear from the research:

• MEAGRE DIGITAL LITERACY AND LACK OF ALIGNMENT AT EXECUTIVE LEVEL “Meagre digital literacy; politics; egos; and fear are the main obstacles to achieving the collaboration and solidarity needed within companies to make the necessary changes. Many senior executives aren’t fully fluent in what digital is, much less up to speed on ways it can change how their businesses operate or the competitive context.”

“Executives who aren’t conversant with digital are much more likely to fall prey to the ‘Shiny Object Syndrome’: Investing in cool digital technologies (which might only be relevant to other businesses) without a clear understanding of how they will generate value in such executives’ own business models.”

• LACK OF STRONG DIGITAL LEADERSHIP A Digital Transformation is a strategic business endeavour. As such, it must be owned by the Board of Directors and led by the C-Suite. Digital success demands strong top-down leadership; driving organisation-wide buy-in and commitment; with leadership remaining accountable for success or failure throughout.

Without strong digital leadership, there is often a widespread failure to recognise that successful Digital Transformation is not about Technology; but all about People, Processes and changing Corporate Culture.

• A TECHNOLOGY-FIRST APPROACH Without strong, informed, digital leadership from the Board and CEO, “many companies; and CIOs in particular; fall into fall into the ‘Technology Trap’: They start with a tech-first approach and miss the purpose of what digital transformation is all about.” A tech-first approach often fails to track back to business value. Such approaches are most-often led by vendors and/or staff that do not have a full understanding of the organisation’s business objectives and challenges.

• FAILURE TO CHANGE CORPORATE CULTURE Corporate Culture is the biggest impediment to Digital Transformation: “When it comes to digital transformation, many companies say the hardest part is changing the culture itself. They often do a great job signposting new corporate values, like innovation and agility. They may even pour millions into expensive technology initiatives. At best, they get poor adoption rates. But often the worst happens: Nothing changes.”

“The organisation is a macrocosm of people. Too often leaders continue to mistake the pursuit of digital innovation as separate from the people agenda, which inevitably fails to drive the outcomes they seek. The value created by any organisation is rooted in human contribution. Its transformation therefore needs to be viewed in that way.”

• INCREMENTAL / PARTIAL APPROACH = HIGH RISK OF LOSING COMPETITIVE ADVANTAGE “The unrecognised truth is that taking an incremental or partial approach to digital transformation comes at a tremendous cost. The widely reported ‘retail apocalypse’ is an obvious example. Over the last 25 years, nearly all retailers worked hard, but slowly, to launch to e-commerce websites and mobile apps. They tried to balance conflicts between physical and virtual stores, creating expensive loyalty programs that gathered customer data. But their incremental approach was often too little, too late.”

In the U.S., for example, retailers didn’t fully anticipate the speed with which Amazon and Walmart would enter their markets with advanced digital capabilities for serving shoppers. Dozens of chains, including Toys R Us and Payless Shoes, were forced into bankruptcy by online competitors. In South Africa, Edcon has had to close 150 of its outlets; while Massmart is closing its DionWired chain and 11 Masscash outlets.


THE DIGITAL TRANSFORMATION / INDUSTRY 4.0 REALITY

“DIGITAL TRANSFORMATION “DOES NOT ARRIVE IN A BOX” What Digital Transformation is all about is creating value. What a successful Digital Transformation demands is to think value-backward, not technology-forward. A focus on key value drivers and a compelling Digital / Industry 4.0 vision are crucial. Digital success requires people-centricity, not tool-centricity. Backed by top-management support, Digital Transformations need to focus on capability building and be informed by a clear business leadership mind-set.

A Digital Transformation is a strategic business endeavour and its success demands a strong top-down leadership approach with organisation-wide buy-in and commitment. As such, Digital Transformation must be owned by the Board of Directors; led by the C-Suite; managed by cross-functional, collaborative groups; and co-executed by an entire eco-system of internal and external players. Corporate leadership remains accountable for success or failure throughout.

IMMEDIATE ACTION IS AN IMPERATIVE In the 15th edition of its Global Risks Report, the World Economic Forum warns that: “The world cannot wait for the fog of geopolitical and geo-economic uncertainty to lift. Opting to ride out the current period in the hope that the global system will ‘snap back’ runs the risk of missing crucial windows to address pressing challenges. On key issues such as the economy, the environment, technology and public health, stakeholders must find ways to act quickly and with purpose within an unsettled global landscape.”

SOUTH AFRICAN DIGITAL ADOPTION LAGGING A number of recent reports from global research companies – including McKinsey® and PWC® – agree that South Africa is lagging behind the rest of the world with respect to Digital Transformation and Industry 4.0. And the gap appears to be widening. This is obviously not good news and is an urgent call to action for South African businesses: ‘Going Digital’ is no longer a nice-to-have, but a have-to-have strategic imperative. There is nothing to be gained – and everything to lose – by waiting or delaying necessary change. Delaying implementation or adopting an incremental (toe-in-the-water) approach is extremely high-risk as is can wipe out competitive advantage. As many examples world-wide have shown, the consequences of being overtaken by a better-digitally-enabled competitor can be dire – if not fatal.

With Digital Transformation, the benefit of early-mover advantage truly applies and significant local and international competitive advantage can be realised. McKinsey® global research confirms that “companies that embrace digital will outpace their peers financially and benefit from greater profitability and higher revenue growth”.

Printing and Publishing – One of the first industries to realise the substantial benefits of Digital Transformation


WHY ERROL ASHWELL ?

Backed by an entire career of digitalisation successes, I offer a range of specialist Digital Transformation services to complement the organisation’s internal capability and capacity; thereby helping to ensure success.

In a poll conducted by SUSE®, when asked what aspects are holding back their company when it comes to Digital Transformation, the top reasons offered by respondents were:

1. Lack of resources and in-house skills (30%) 2. Security concerns (20%) 3. Too many solutions to understand which one is best for the organisation (20%) 4. Lack of focus from top management (19%) 5. No digital transformation strategy across the company (11%)

I help senior leadership successfully overcome all of these issues by offering the necessary experience, specialist expertise and capacity. As an external resource, I am totally independent (’vendor-agnostic’) and objective – and I am not subject to in-house politics or other distractions. Whether it is Digitalisation of a specific process; or Digital Transformation of a division or entire organisation; I can help you to realise your expectations.

PROFESSIONAL SERVICES TO ENSURE SUCCESS My specialist professional services are fully customisable to suit client needs, and typically include…

• EXECUTIVE BRIEFINGS / KEYNOTES o For example: Digitalisation; Digital Transformation; Industry 4.0; Enabling Technology.

• BOARD MEMBER AND SENIOR EXECUTIVE INTERVIEWS o As preparation for further engagements: To ascertain individual digital literacy, beliefs, desires,

aspirations, goals, biases and attitudes towards Digital Transformation within the organisation.

• FACILITATION OF LEADERSHIP ALIGNMENT WORKSHOPS o One or two-day customised workshops especially for leadership and senior staff. o Ensure that your entire board and senior team are ‘on the same page’ and buy-in to the strategy;

objectives; actions needed; and the way forward. o Deliver the knowledge and confidence needed to embark on Digital Transformation or Digitalisation

Project; armed with the understanding that success can be ensured.

• BUSINESS PROCESS ANALYSES o Facilitating interviews and meetings to determine how and what Digitalisation can be used to improve

specific processes and/or business units. o Results feed into overall Digital Transformation projects plans.

• IMPLEMENTATION PROGRAMME DEVELOPMENT o Assistance with the development of the overall Digital Transformation Implementation Plan.

• PROJECT KICK-OFF WORKSHOPS o Similar to the Leadership Alignment Workshops as described above, but aimed at employees (and

possibly selected external parties) who will be primarily responsible for executing the activities called for in the Digital Transformation Implementation Plan.

• IN-PROJECT ACTIVITIES o Technology and Vendor Research. o Request for Proposal/Quotation (RFP/RFQ) Preparation; Adjudication; Recommendation. o Progress Assessment and Feedback to Leadership.

If you want to be sure that your business will successfully realise the benefits of the digital promise, do not hesitate to contact me. I have been helping organisations to ‘go digital’ for my entire career. It’s what I do.

Errol Ashwell | ErrolAshwell.com | [email protected] | +27 (0)82 888 0636

https://errolashwell.com/

mailto:[email protected]


APPENDIX A: ERROL ASHWELL – CV

ERROL ASHWELL Thought Leader | Businessman | Consultant Facilitator | Writer | Speaker | Presenter

BUSINESS EXPERTISE AND STRENGTHS

• Developing transformational business strategies, underpinned by process digitalisation and enabling technologies.

• Leadership | Go-to-Market Strategy | Consulting | Sales | Marketing. • Leading and motivating people and business partners. • Ensuring execution and achievement of objectives and business targets. • Excellent communication, presentation and facilitation skills.

KEY EXPERIENCE

TECHNOLOGY • Digital Transformation and Digitalisation • Enabling and Collaboration Technologies • Data Management and Digital Workflows • CAD | CAM | BIM | Visualisation | CRM

LIFE PHILOSOPHY Founder ErrolAshwell.com August 2019 – Current • Vendor-agnostic consulting practice helping business leaders implement

successful digitalisation projects and realise effective digital transformation.

Director Modena OneSolve Centurion, South Africa June 2014 – July 2019 • Helping clients to realise competitive advantage through digitalisation that

enables collaboration, efficiency and effectiveness.

Managing Director Evolve Opportunity Development Sandton, South Africa November 2011 – February 2014 • Go-to-market strategies; marketing communications; opportunity generation;

sales skills; CRM and marketing automation.

Managing Director Autodesk Africa Centurion, South Africa April 1996 – October 2011 • Leading and building the Autodesk business in sub-Saharan Africa. • Developed the Autodesk brand into the most recognised, respected and

most-widely adopted across the entire design and engineering field in Africa.

Digitalisation and Communication Consulting Early Career, Various Companies, South Africa 1973 – 1996 • Digitalisation in the electronic engineering and test industry. • Pre-press digitalisation in the printing industry in South Africa. • Developing innovative presentation and communications programmes. • Introducing Computer Aided Design to businesses across South Africa.

“Life’s biggest rewards come from making a positive difference

in the lives of others”

WORK PHILOSOPHY “What doesn’t get measured

doesn’t get done”

MOST PROUD OF Evangelising Enabling Technology • To help, enable and uplift people – not

simply replace them with automation.

Being a Pioneer • Proving to hundreds of organisations that

digitalisation drives competitive advantage and bottom-line results.

• Helping establish a culture of professional presentations in South Africa.

Writing a Meaningful Book • Capturing 40+ years of experience. • How to Realise the Promise of Enabling

Technology.

https://www.amazon.com/Enabling-Competitive-Advantage-Realising-Technology/dp/0620708735/ref=sr_1_1?s=books&ie=UTF8&qid=1474460029&sr=1-1&keywords=errol+ashwell

https://www.amazon.com/Enabling-Competitive-Advantage-Realising-Technology/dp/0620708735/ref=sr_1_1?s=books&ie=UTF8&qid=1474460029&sr=1-1&keywords=errol+ashwell


APPENDIX B: DIGITAL TRANSFORMATION EXPLAINED

We are entering an era in which an organisation’s biggest competitors are no longer the traditional players in that industry. New digital players have arrived, while some older businesses are beginning to ‘go digital’. The ability to adapt to this new norm requires a change in how organisations fundamentally approach; operate; and do business.

This fundamental change – known as ‘Digital Transformation’ – is essential to enable survival, agility, competitive advantage and increased business value in this new digital world. McKinsey® global research confirms that “companies that embrace digital will outpace their peers financially and benefit from greater profitability and higher revenue growth.”

“WHAT IS DIGITAL TRANSFORMATION?” This is a difficult question to answer succinctly, yet meaningfully. Let’s start with some examples of what it is NOT.

Digital Transformation is NOT:

• Implementing the latest operations technology (OT).

• Implementing new CNC or 3D printing machines.

• Implementing enterprise resource planning (ERP) technology.

• Implementing cloud-based technology and services.

• Implementing customer relationship management (CRM) technology.

• Implementing the latest 3D design and engineering (CAD/CAM/BIM) technology.

• Implementing the latest finance and accounting technology.

• Implementing an eStore.

• Implementing the latest quality, supply chain, maintenance or project management methodologies.

• The highly publicised – and politicised – ‘Fourth Industrial Revolution’.

Digital Transformation may well include some or all of the above. But individually, these tend to be ‘islands of automation’ – and the concepts are not new: Most were in common use 15 or more years ago.

YES, OKAY, BUT WHAT IS IT? Digital Transformation IS:

• About People and Processes far more than it is about Technology.

• About improving business and organisational activities, processes, competencies and models.

• About dramatically improving customer and employee engagement and experiences.

• About underpinning people and business processes with appropriate digital data and digital workflows.

• About enabling and promoting communication and collaboration.

• About making people more efficient and effective.

• About converting all relevant data from manual / analog (analogue) to digital.

• About integrating Operational Technology (OT) with Information Technology (IT).

• About embracing the advances and advantages offered by the emerging ‘Industry 4.0’ technologies.

• About eliminating ‘islands of technology’ by digitalising all interconnecting processes.

• About creating an eco-system that effectively integrates the organisation with its customers, its stakeholders, its workforce and its suppliers.

In essence: Digital Transformation is about underpinning people and business/technical processes with digital workflows – to dramatically improve overall communication, collaboration, effectiveness and efficiency. It is a fundamental change in the way that a business delivers value to its customers/clients and its stakeholders.


“BUT WE ARE DOING WELL – WHAT ARE WE MISSING?” You probably already have the three classic elements of a successful business, namely excellent People; efficient Processes; and the latest in operations and/or IT Technology. But most often, each functional/business unit has its own People, Processes and Technology – i.e. business silos.

What most businesses are missing, are the digital workflows to successfully integrate functional departments, business units, suppliers and customers together into a cohesive, more efficient and effective eco-system. In other words: Out with silos (whether intentional or not) and in with Digital Transformation.

From this …

To this …

“BUT WHY DO WE NEED DIGITAL TRANSFORMATION?” The reality is that if businesses are to survive in South Africa, we do not really have much choice. If we do not accept and adapt to the way that technology is impacting our lives and businesses, we will lose our relevance when competing with more advanced companies or countries. It is imperative that we understand and embrace Digital Transformation.

“But we have invested in the latest technology; we do not need more technology. Why do we need to change the way we do business?” There is a simple answer:

• At the low end: To survive.

• At the high end: To gain significant competitive advantage – locally and internationally. To increase revenues and profitability.

Digital Transformation is no longer a nice-to-have: It’s a have-to-have if businesses want to survive and thrive in a world very different from the past.


APPENDIX C: DIGITAL AND INDUSTRY 4.0 TERMINOLOGY

GO DIGITAL The terms related to ‘going digital’ are often misused and confused and, unfortunately, this often leads to serious misunderstandings and delays in moving forward. The following terms are key:

Level 1: ‘Analog’ (‘Analogue’) The catch-all term used to describe the old/non-digital way of doing things.

Level 2: ‘Digitisation’ The activity of changing analog information into digital data. In other words, capturing digital data so that they can be stored and processed using a digital computer. For example, ‘digitising’ a paper map or hand-written records.

Level 3: ‘Digitalisation’ The activity of changing from manual processes to the use of digital technologies and workflows within a given process or work environment. For example, ‘digitalisation’ of design process and/or machining process workflows.

N.B. The terms ‘Digitisation’ and ‘Digitalisation’ are especially open to being confused and misused!

Level 4: ‘Digital Transformation’ Digital Transformation is used to describe broad and permanent changes to the entire organisation that result in a fundamental change in the way of doing business and delivering value to customers and stakeholders.

INDUSTRY 4.0 The much-discussed and highly-politicised ‘Fourth Industrial Revolution’ (4IR) is still a promise of things to come – and more about changes in society than individual organisations. However, in business we cannot proactively implement a concept that may happen – or bet our business on hoping that it will happen. On the other hand, we can – and should – intentionally and proactively implement ideas, processes and technologies that exist today; and that we trust will continue to develop and support us along our Digital Transformation journey.

In the industrial space, ‘Industry 4.0’ is the label given to a specific form of Digital Transformation that departs from traditional ways of working, to embrace the use of those elements of the 4IR promise that are real; currently available; and practical to implement today.

Billions of whatever currency you care to name are being spent in the ongoing development of the different Industry 4.0 technologies, including: The Internet of Things (IoT); Robotics; Virtual Reality (VR); Augmented Reality (AR); Artificial Intelligence (AI); Cloud Computing; Smart Sensors; 3D Printing (of just about anything); Digital Twins; People-Enabling Technologies; and many more.

This highlights a key attribute of Industry 4.0: It is not a single

product; nor a single solution; nor is it available from a single vendor! It is also not an event, but an ongoing journey.

Every Industry 4.0 journey is different, based on the requirements of the specific enterprise. It involves hundreds, if not thousands of different components and processes, supplied and implemented by dozens of vendors.

ensuring digital transformation success · why errol ashwell ? backed by an entire career of...

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