ook hoe bw to transform to a digital enterprise using business apps
TRANSCRIPT
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INNOVATE YOUR
ORGANISATIONHOW TO TRANSFORM TO A DIGITAL
ENTERPRISE USING BUSINESS APPS
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Introduction 5
About Pink Elephant 7
Why a Digital Enterprise? 9
Trends 12
Embrace Agile, embrace changes 17
Does your application strategy match your company goals? 21
Responding to process changes 22
Workshop application strategy 24
From application to chain integration 27
Checklist for developing a suitable Business App 29
Portfolio of Pink Elephant Business Apps 30
TABLE OF CONTENTS
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A ‘Digital Enterprise’ is an
organisation that achievescompetitive advantages in its
internal and external activities by
incorporating digital technology
into its business model and strategy
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INTRODUCTION
We are now in the centre of a radical technological shift, in which Business Apps are
upsetting almost every industry. Established players are battling with innovative newcomers
who are turning the market on its head by smart use of Business Apps. Known examples are:
Uber, Airbnb and Knab. To join in and profit from this “App revolution”, organisations
must break away from their traditional modes of thought and fundamentally transform how
they operate and communicate with their customers and partners. All the success stories
have one thing in common: they are all “Digital Enterprises” - organisations that have made
IT part of their core business and thus their strategy.
We can imagine that almost every organisation uses digital technology to a greater or lesser
extent to automate its operating processes. However, it seems difficult to think beyond the
“obvious” solutions and become a true “Digital Enterprise”. With this innovation guide we will
help you to transform your organisation into a “Digital Enterprise” as well.
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TRANSLATING
KNOWLEDGE
INTO RESULTS
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ABOUT PINK ELEPHANT
Pink Elephant is an international knowledge leader in the area of business innovation
and business transformation. By providing consultation and IT services, Pink Elephant
brings out the best in its clients by translating the knowledge and creativity of people
within these organisations into concrete results. Since its establishment in 1980, Pink
Elephant has seen a considerable synergy between company goals, human knowledge and
entrepreneurship and the way in which IT makes an important contribution to enabling
innovation and a distinctive capability to grow the market. Pink Elephant is active in
more than 20 countries and provides Enterprise App Services, IT Services and Education
Services. Company transformation is essential in an era in which changes in the market, to
some extent under the influence of technological developments, follow one another ever
rapidly. The knowledge and creativity present within organisations are often inadequately
utilised because both IT and the operating processes are not flexible enough. Companies
must invest in the new reality of responding quickly and decisively to all changes and in
the increasing demand for knowledge sharing, and must also pay more attention to the
connection between people and IT. Pink Elephant offers the people and the means with
which organisations can take the next step in their company transformation.
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WHY A DIGITAL ENTERPRISE?
Organisations have always relied on technology for making innovations and improving their
productivity, but in recent years we have also seen an explosion of technologies, such as
mobile, social media and big data. In turn, this has provided major new opportunities and
threats for most organisations. In addition, we see that digital technology is frequently used
to automate intensive manual activities. You have probably already been overtaken by new
competitors with a different value proposition for your customers, or perhaps even with a
radically lower cost structure. We will list the most important considerations for you:
Strategy change
To stay successful, organisations should have a large learning capability and the capacity
for organisational change: strategic agility is becoming an increasingly great competitive
advantage. Strategic and organisational agility, however, require an application landscape
that at minimum can adapt with the speed and flexibility that the customer or situation
demands.
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Technological necessity
Internal customers are not satisfied with the quality and responsiveness of IT, since it is
becoming increasingly expensive to maintain, adapt or expand the systems. Organisations
need solutions that can help them remain competitive but they cannot afford to pay too
much for upgrades. If the old systems can no longer keep up it is time to replace them.
By using Business Apps in the transformation to a “Digital Enterprise” you will renew
investments made in the past and gain more flexibility for the future.
A good example of the forward thrusting power of innovation At Delta Lloyd, achievement of cost savings and increasing customer satisfaction were central.
Read how we achieved both goals together with Delta Lloyd in this case.
► Take a direct look at the case of Delta Lloyd here
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FRANK VAN DONK, DELTA LLOYD
“With this Business Appwe are much better able
to serve our customersand clients well.”
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TRENDS
Various trends are visible in the market that lead companies
to decide to transform themselves into a “Digital Enterprise”.
These trends often force the organisation to undertake a
radical transformation of the IT organisation. The use of
Business Apps is a way to accomplish this and to make sure
that these enterprises take the step to become a “Digital
Enterprise”. The most significant trends for transformation
into a “Digital Enterprise” will be presented in this section.
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IT Consumerisation and the arrival of the Millennials
In the coming years the “millennium generation” will enter the labour market. It is now
apparent that many of these young people shine at multitasking and that their work life and
private life frequently overlap. This generation of young workers, also known as “millennials,”
are entering the labour market with completely different expectations to previous
generations. They have grown up in a world where information is within easy reach, needs
are satisfied immediately and where the way of working is continuously becoming better
and faster. Complex and long processes to reach a simple result are also not what they want.
There are two pillars on which new IT should rest: predictability and adaptability. Millennials
are used to a tailor-made technology experience that is based on previous behaviour and
that does not require them to take pains to use it. If you want to be well prepared for the
generation that will take over your workplace and those of your customers within the
foreseeable future, you will have to critically analyse the difference between consumer
technology and your own company technology. You will then have to determine how to
make the gap between these two worlds as small as possible.
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The era of Bimodal IT
According to Gartner Research, we are in an era of Bimodal IT. Bimodal IT refers to having two
IT approaches within one organisation, each designed to develop and supply information
and technology intensive services.
The first approach is traditional and directed toward stability, efficiency and reliability.
The second approach is more experimental, agile and focussed on time-to-market, rapid
application development and very specifically toward close cooperation with business. This
approach explores and develops the next generation of Business Apps and makes it possible
to discover new insights with which competitive advantages can be achieved.
The combination of these approaches is an ideal mix for successful transformation into a
“Digital Enterprise”. This means that the core technology (which supports your key activities)
will be maintained, and new opportunities will be created, resulting in new insights or
service models.
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The “always on” economy
The growth of cloud, mobile, social and big data is bringing about fundamental changes in
the way we do things. These technologies are creating an “always on” economy where people
and companies are strongly connected. At the same time we are producing an explosion of
data. The expectations of your customers and partners are increasing - they expect direct IT
support at the moment they need it.
Organisations cannot afford to wait for long and tedious IT projects with an uncertain
outcome. What is more, they are ready to jump to new technologies. IT landscapes are
complex with large investments in legacy systems. The delivery of new Apps requires
openness and solidarity to ensure seamless integration with existing systems, processes and
data. Simultaneously, Business Apps must be available everywhere and work seamlessly on a
growing number of different devices.
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THE AGILE APPROACH
Teams constantly searching for as
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EMBRACE AGILE, EMBRACE CHANGES
The development of Business Apps requires a fast-paced and iterative development cycle
with high involvement of the most important users. Agile development specifically puts
teams in the position to supply functionalities quickly, with short feedback cycles, and
the opportunity to adjust wishes and demands in the interim. Rapid provision of the first
release of your Business App is only the first step; rapid and frequent updates are essential
to meet the changing demands of your customers, suppliers or partners. Since a first release
is developed quickly, you can provide feedback sooner and make changes as needed as a
result of new insights. The result is a Business App that meets your wishes with a high level of
acceptance from users.
Traditional Agile- Reactive - Proactive
- Focus on control - Facilitating
- Activity-oriented - Results-oriented
- Working for - Working with
- Blame culture - No blame culture
- Hinders change - Anticipates change
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Agile in practice at Pink Elephant
The first step is assistance in the Business Case. Then SMART goals are incorporated with
clear prioritisation in the Business Foundations. Based on this, a solution direction is
selected, together with the customer, and described in the Solution Foundations. This
so-called Feasibility and Foundation phase forms the basis on which the Business App
will be developed. At the same time, workshops will be organised with the customer to
outline the most important functionalities. These form the product backlog, with which the
development of the App can be started. The customer now knows, in outline, what they
can expect, although not in detail. The way in which the App will be developed is described
in the Management Foundations. Think about project set-up, planning, teams, roles,
responsibilities and working arrangements.
Software development
After the Feasibility and Foundation phase, an intensive software development phase will be
started along with the customer’s stakeholders - the Agile project. Work is performed on a
daily basis by a multidisciplinary team, which ensures that progress is monitored and can be
amended in a timely fashion. Work is performed in sprints of fixed length.
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To accomplish this, each sprint starts with a session in which the details of the sprint are
set. Prioritisation is applied, and the development team promises to deliver the “Must Have”
functionalities. During the sprint, a daily stand-up takes place, in which the project team
updates one another on the status of the project and any incidents that need to be fixed.
Actions are implemented immediately. Daily testing by the customer, various demonstrations
and a look-back at the end of the sprint, evaluating how the sprint went and what can be
improved, making sure that work is done efficiently and that the team itself improves during
each sprint. As a result of making the demonstrations open to all interested parties, the
support base of the App is increased. This approach ensures a high degree of transparency
and a high frequency of delivery. The client thus retains complete understanding of the
direction being taken and has the opportunity to help guide it.
Want to know more about Agile?
In the white paper “Pink Agile Framework” we discuss the most frequently used methodologies
and how these contribute to optimising company and information processes.
► Directly download the white paper
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DOES YOUR APPLICATION STRATEGY
MATCH YOUR COMPANY GOALS?
The greatest challenge for companies is to become an end-to-end “Digital Enterprise”. Many
organisations have different departments or even regions with all kinds of loose applications.
As a result it is not always clear which systems support the current operating strategy.
However, keep in mind that the new client, the digital client, expects a completely consistent
and holistic experience. This requires companies to think differently about the way in which
they are organised. Rationalisation of your applications landscape can be a solution for this.
At this time, various organisations are in the process of rationalising their applications
landscape. The insight that this creates will make it possible to match the application
strategy to the company goals. In addition, this will create an overall view, which can result
in cost savings for the organisation. Specifically, applications with a common functionality
are recognised, so that superfluous applications can be shut down, which in turn will yield
decreased maintenance and management costs. The flexibility will also increase, so that you
can again respond to new developments.
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RESPONDING TO PROCESS CHANGES
The use of Gartner’s Pace Layered Model provides an answer to the frequently asked
question within organisations: how do you make sure that you can respond quickly to
process changes and at the same time, take measures to bring new Business Apps into
production in a controlled manner? Bringing new Apps into production in a controlled
manner often means working according to rigid procedures. However, this can be lethal for
innovation. The Pace Layered Model provides measures by which, despite rigid procedures,
you can still make room for innovative adjustments.
SYSTEMS OF INNOVATION
SYSTEMS OF DIFFERENTIATION
SYSTEMS OF RECORD
- New competitive advantage
- Current competitive advantage
- Unique processes
- Standardisation
- Operational efficiency
- Compliance
Better ideas
Everyday ideas
New ideas
Gartner’s Pace Layered Model
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Pace Layered Model
The core of the Pace Layered Model is thinking based on a three-layer model, wherein the
strategic focus differs for each layer.
1. Systems of record: applications that support stable operating processes and do not
change much. The initiative for these often lies with IT.
2. Systems of differentiation: applications that support processes with which, internally or
externally, distinctions from competitors are made. These change more frequently and are
usually not available for off-the-shelf purchase on the market.
3. Systems of innovation: applications that are used for innovation or transformation
processes. Here, the rate of development is essential. The initiative for this often comes from
the specific business line.
In practice, we see that this model shows where the needs of the business lie in terms of IT.
Do you want to differentiate your company with an innovative application that provides a
direct competitive advantage, or do you just need a stable application that only supports the
operations process? Relating to Bimodal IT, point 1 fits with the traditional approach, whereas
points 2 and 3 illustrate a typical Agile approach.
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Application strategy workshop
To provide you with insight into how the alignment is controlled between your company
goals and your applications strategy, Pink Elephant has developed a workshop. During this
workshop, among other things, the Business Model Canvas and the Pace Layered Model will
be used to gain important insights. Here we can find out how your business architecture
seems to be structured, which value propositions will be supported, which customers this
relates to, and how the cost structure will look. A logical consequence is to zoom in on
the relevant information architecture. Here, for example, we look at what information—
expressed in KPIs—is necessary to determine whether the business goals are achieved.
The following questions will be presented at this workshop:
• How does your application architecture look now based on the Pace Layered Model?
• What value proposition is supported?
•
What values should your applications add to the enterprise?
• How does your cost structure look?
Once you have completed this half-day interactive workshop, you will have an insight into
the opportunities that you could now take advantage of and the starting point for your
application strategy.
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WHAT IS YOUR APPLICATION STRATEGY?
Join our application strategy workshop!
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FROM APPLICATION TO CHAIN
INTEGRATION
Agility is essential for an organisation to remain competitive. Changes in the environment
result in changes in the operating processes and the supporting IT systems. We are coming
from a situation in which a large part of the IT budget is used on integration. Technologies
work side by side here and are not interconnected. New applications result in a complex
applications landscape when there is no connection between the technologies. Therefore
it is important to integrate new applications seamlessly into the existing applications
landscape. In the integration of various systems, care must be taken to ensure that they
function as a whole and that chain integration takes place, which is crucial for becoming an
end-to-end “Digital Enterprise”.
Chain integration can be the ideal method for companies in various sectors to achieve short
turnaround time, higher quality and lower costs. The fact that different parties in the chain
are linked to one another creates a community. It makes companies able to work together
virtually, with each having its own responsibility as a central focal point and each using its
own systems.
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CHECKLIST FOR BUSINESS APPS
What questions can you ask before youstart with your first Business App?
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CHECKLIST FOR DEVELOPING A SUITABLE
BUSINESS APP
Choosing and developing the right Business App appears to be problematic for many
organisations. This happens because there are a large number of providers, the possibilities
are endless, and successful implementation of an application is a separate matter. The art
lies in using the correct functionality that supports and strengthens the operating process,
out of all the possibilities available. A Business App can only deliver added value for your
organisation if you look for a partner who will translate your operating ambitions and goals
into a suitable Business App. What is perhaps even more important is that you make sure that
this App is also positioned correctly within your organisation.
To help you with this, we have created a handy checklist that you can consult before you start
with the development of your first Business App.
► Download this checklist directly here!
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PINK BUSINESS APPS PORTFOLIO
Pink Elephant aspires a transparent and lasting partnership to bring about a company
transformation into a “Digital Enterprise”. Through mutual confidence and cooperation, we
will help you to break free from your traditional operating processes. We challenge you to
think differently, creatively and outside of the box. As a result you will be able to gain new
insights and competitive advantages.
Business Apps
Pink Elephant translates your company ambitions and goals into suitable Business Apps.
And perhaps even more importantly, we make sure that these Apps are positioned correctly
within your own organisation. In this way we make sure that technology and the strengths
of your people are combined in order to ensure that we provide the very best experience for
our customers. The management consultants of Pink Elephant guide their clients in building
an Enterprise Information Architecture, up to and including successful implementation.
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Industry Solution Frameworks
By using Pink Elephant Industry Solution Frameworks, a broad scale of experience is
optimally utilised in tasks. The experience in the development of Business Apps, the range of
previously developed frameworks, and the technology employed make it possible to create
a new Business App within a short time, to expand an existing one, or to connect this with
other systems.
Legacy Modernisation
Almost every organisation still has legacy systems and databases in–house which support
and automate processes that are critical to operation processes. These applications are
expensive to manage and maintain. In addition, knowledge of outdated technologies is
becoming scarcer and above all, impedes innovation and “agile” business management.
This does not mean that these systems should be replaced immediately. Pink Elephant
helps organisations modernise these legacy systems by adding an integration layer. This
integration layer acts as a central site where systems and data are managed. This results in
added value as several technologies are invoked for one application.
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Get IT?Do you get IT?
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