leading digital transformation: “talk...
TRANSCRIPT
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“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
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Copyright © 2012 MIT CDB and Capgemini Consulting.
WHAT IS DIGITAL TRANSFORMATION?
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The use of technology to radically improve performance or reach of enterprises
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KEY FINDINGS
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DIFFERENT RESULTS
BROADLY COMMON
ACTIVITIES
COMMON PRESSURES
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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”
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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
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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
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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.
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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
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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
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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
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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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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