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The Challenge of Digital Transformation Help Business Analysts understanding the digital induced TRANSFORMATION and a “change management” way forward. Joep Wijman WijmanCoaching BV IIBA conference, Bunnik 14 November 2017

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Page 1: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude

The Challenge of Digital Transformation

Help Business Analysts understanding the digital induced TRANSFORMATION and a “change management” way forward.

Joep WijmanWijmanCoaching BVIIBA conference, Bunnik 14 November 2017

Page 2: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude

Thesis

They know digital by training and intelligence.

By trade they understand strategy, (IT)governance and processes.

Their role and attitude is change agent.

They operate at the interface of Business and digital technology.

(To-Be) BA-scope: company strategy, culture, people, structure & tasks.

IIBA Digital Transformation 14 November 2017 2

Business Analysts … are the Masterminds and Facilitators

… of digital Transformation:

Page 3: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude

Analogue meets digital …

IIBA Digital Transformation 14 November 2017 3

Page 4: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude

IIBA Digital Transformation 14 November 2017 4

Combined, the 10 largest tech companies have acquired 50 AI companies in the last 5 years, targeting facial recognition startups, chatbots, chip makers, and more.

Convergence

of mega-trends

Page 5: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude

What’s going on really …

IIBA Digital Transformation 14 November 2017 5

… recent rapid adoption and application of artificial intelligence algorithms are changing blue and white color jobs. CB Insights Research Brief 6 October 2017

Page 6: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude

Bottlenecks in moving toward mature digital transformation(MIT Sloan Management Review summer 2015)

IIBA Digital Transformation 14 November 2017 6

Page 7: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude

What enables Digital Maturity?Digital maturity goes beyond technology and is about reshaping your organization to adapt to any change that comes along in a digital environment.

Digitally maturing companies:

Make digital core to their business.

Look far ahead when setting strategy.

Are better able to scale their experiments enterprise-wide.

Create an environment that enables digital maturity.

Cultivate a culture that supports change and attracts talent.

Those not receiving digital development opportunities are at risk of leaving.

Commitment and leadership are required.

IIBA Digital Transformation 14 November 2017 7

MIT Sloan – Deloitte Research Report summer 2017

Only 25% of companies would rate themselves as digitally mature.

Page 8: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude

Recap Digital TRANSFORMATION

IIBA Digital Transformation 14 November 2017 8

Digital: qualifier; adjective; TRANSFORMATION: core/essence; noun. Clear Purpose is decisive.

WEF 4th Industrial Revolution Digital Context:

▪ instant information access allowing unfiltered real time response and reinforcing networking.

▪ Internet & social media: everybody has a voice. Digital is an equalizer!

Digital Transformation:

▪ Business: marketing + innovation + manufacturing & supply chain.

▪ Consumer: online, real time, share, informed, no limits time/geography.

▪ Government & society: the rules of the game and interaction in flux.

Key words: connected, shared, networked.

UBIQUITY, the ground is moving: how to lead and manage change.

Page 9: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude

Example Philips Personal Care case

IIBA Digital Transformation 14 November 2017 9

World’s 1st

personalized 3D printed shaver

The only beard trimmer with a laser guide

A mix of foundation and always on activities, with more effective smaller peak activities

But not yet a digital strategy

Page 10: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude

IIBA Digital Transformation 14 November 2017 10

Coat-rack for cohesion

Source: ALIGNING THE ORGANIZATION FOR ITS DIGITAL FUTUREMIT SLOAN MANAGEMENT REVIEW summer 2016

Outcome

Implement

Sustain

Page 11: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude

Coat-rack for governance of digital transformation

IIBA Digital Transformation 14 November 2017 11

Source: Mobilizing Collective Ambition—How Effective Top Teams Lead Enterprise-Wide Change; Doug Ready ICEDR Forum—Stockholm May 22-25, 2000

Double the business by 2020

Move to Digital Context & Health Tech

Exec Digital Sponsor leading digital strategy, transition & capability

development

Transition Leadership

Team developing integrated digital

roadmaps; build and

implement digital engagement, proposition

and technical

product/service

Categories ( Category Leaders) running and

building (digital) business

Digital

engagement &

accelerators

GrowthWinning tomorrow

through superior insight

CollectivismDeveloping

processes that build cohesion

CompetitivenessWinning today

through superior performance

Collective Ambition

Orientation: doing

Ideology: being

IndividualismEncouraging

independence and entrepreneurship

Accelerate! & Health Tech

Horizon 1

Horizon 2

Horizon 3

Budget rule of thumb: chop off top-down

Horizon 3

Horizon 2

Horizon 1

Page 12: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude

IIBA Digital Transformation 14 November 2017 12

Transformational ChangeThe Leadership Job — Mobilizing Collective Ambition

2.Building

Connectivity

1.Shaping

the Agenda

3.EmbeddingCapability

Big and bold commitments

in the midst of uncertainty to reinvent the business rather than just improve it.

Apps, social media channels etc. initiatives still leave the

legacy business in place.

Without a transformation

of the core—the value proposition, people, processes, and systems that

are the lifeblood of the business—any digital initiative is likely to be a

short-term fix.

Leadership decisions:

▪ Where the business should go

▪ Who will lead the effort

▪ How to “sell” the vision to key stakeholders

▪ Where to position the firm within the digital ecosystem

▪ How to decide during the transformation

▪ How to allocate funds rapidly and dynamically

▪ What to do whenText source: Digital McKinsey February 2017

Page 13: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude

IIBA Digital Transformation 14 November 2017 13

What does this mean for the Business Analyst Prioritize . . . Capabilities into a short list of Key Success Drivers

Analyze . . . Capability gaps against your Ambition

Galvanize . . . The organization into action

-----------------------------------------------------------------------

Our organization’s Collective Ambition Agenda is shaped.

Key Success Drivers have been prioritized.A KSD is an initiative which is paramount (“make or break”) to achieve the Strategic Agenda

Capability Gaps have been identified.

-----------------------------------------------------------

Great start . . . but now the real work begins!

Often our strategies and change initiatives fail due to our organization’s

lack of capability and will to implement and sustain the change.

Change agent & facilitator role

Analytical

role

Page 14: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude

IIBA Digital Transformation 14 November 2017 14

Business Analyst supports Management

MindsetWalking the talk with consistent

behavior

MobilizationResource commitments &

people investments; identify blockers and remove them

MeasurementRelevant individual and organizational

performance measures based on (tomorrow’s) KSD’s (not yesterday’s)

that assess progress

Mechanisms for RenewalEmbedded processes

that continue the journey

MeaningShared understanding of Collective Ambition,

KSD’s and needed change through commitment and dialogue

The Building Blocks of Organizational Capability — The 5-M’s

Page 15: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude

Embedding Organizational Capability

IIBA Digital Transformation 14 November 2017 15

Meaning Mindset Mobilization Measurement Mechanisms for Renewal

KSD1PC/Category level

KSD2PC/Category level

KSD3PC Change level

KSD4Operations level

Organizational Capability — The 5-M’s

Key

Su

cces

s D

rive

rs

Game changing innovation, e.g. Compete against blade by introducing a new hybrid technology – mechanical cutter “’thin as a blade’’ Shimmer that is superior in shaving longer hairs and styling.

New service models, e.g. Digital marketing, Apps

Change mindset & behavior, e.g. Build entrepreneurial mindset & behavior

Operations capability build up, e.g. To enable low volume/high mix production pilot and build knowledge with 3D metal printing, sensors and smart robotics.

Page 16: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude

Change Management: a birds eye overview

IIBA Digital Transformation 14 November 2017 16

Sustained perfor-

mance improvement

and increased capa-

city for continuous

change

=

Perceived need

to change

Commitment to a new

vision of the future

Initial Mindset Change

XX

Business projects owned

by line and employees

Process to overcome

barriers to change

Significant improvements

in performance

Capability to change

X X

X

Changes in formal structure,

systems, processes and people

Embedded Learning

X

Effective communication

of lessons learned

Page 17: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude

Business Analyst: Mastermind and Facilitator of digital Transformation

CIO and IT Staff:

Help business colleagues understand which digital knowledge & skills need to reside in their function and which they can leave to IT.

Communicate in terms of business activities & outcomes.

Partner with business leaders.

Carve out time and create forums for learning digital.

IIBA Digital Transformation 14 November 2017 17

BA-role & attitude:

From analysis to strategy to implementation

Steady rock

Mastermind & change agent

Evangelist & Digital ambassadors

Coaches & Teachers

They know digital by training and intelligence.

By trade they understand strategy,

(IT)governance and processes.

Their role and attitude is change agent.

They operate at the interface of Business and ICT.

BA-scope: company strategy, culture, people,

structure & tasks.

Page 18: The Challenge of Digital - IIBA Dutch · Thesis They know digital by training and intelligence. By trade they understand strategy, (IT)governance and processes. Their role and attitude
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IIBA Digital Transformation 14 November 2017 19