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Digital Transformation (DX)DEVON SUMMIT
Martin Vodegel & Angela Barendregt
Q: Is an Agile plus DevOps
Transformation the same as a
Digital Transformation?
Digital disrupters are fast and scale easily.
• Big data and analytics
• Cloud computing and other platform
• Mobility solutions
• Connected devices
• Internet of Things
Digital disruptors that use new technology aim
to deliver three types of customer value:
1. Cost value
2. Experience Value
3. Platform Value
4. Combination of these three types of value
WHAT’S HAPPENING IN THE MARKETPLACE?
TRADITIONAL BUSINESS MODELS UNDER
THREAT
New business models of
digital disruptors driven
by Cost value
New business models
of digital disruptors
driven by Experience
value
New business models of
digital disruptors driven
by Platform value
New business models of
digital disruptors driven by
a combination of these
three
• Online booking sites like booking.com,
Expedia exert indirect cost pressure
• Virtualization (dematerialization) by e.g.
Skype, Kindle
• Netflix enables viewers to self
service
• New Balance is offering
running shoes that are tailored
for your foot
• Eco-system: providing a
standardized toolkit
• Communities such as Twitter
who focus the attention on
what is news
• Adyen
• Apple, Google
From: Digital Vortex
When your Business Model is under threat, you have to engage in a DX yourself
Changed Customer expectations
Google, Apple, Facebook have completely altered the expectations of your customer: your service offering needs to
be available 24/7 and needs to work seamlessly cross channels. Convenience is key.
New kids on the block
Former start-ups such as Uber, AirBnB use digital technologies and business models and disrupt your industry.
There’s no safety in being big
Because we’re living in a connected world, disrupting start-ups can build a huge customer base overnight.
There’s no safety in your current customer base
Loyalty doesn’t come from excellent products/ services but from delighting experiences.
WHY ENGAGE IN A DX?
It’s not a question whether your
market will be sucked in the
digital transformation vortex, but
merely when…
The question you need to
answer is: Do you want to be the
last one in your market?
WHO GOES FIRST?
DIGITAL TRANSFORMATION VORTEX
Source: Global Center for Digital Business Transformation, 2015
#1Technology
Products and Services
#2Media and
Entertainment
#3Retail
#4FinancialServices#5
Telecommunications
#6Education
#7Hospitalityand Travel
#8CPG and
Manufacturing
#9Healthcare
#10Utilities
#11Oil and Gas
#12Pharmaceuticals
ENGAGING DISRUPTORS: YOUR BUSINESS
MODEL
Business Model
A business model describes the rationale of how an
organization creates, delivers and captures value.
• A business model typically doesn’t change overnight, it can
be used to depict strategic organizational change.
• Capabilities that are leveraged to change the business
model are typically defined and elaborated on a more
tactical level.
Organizational Capabilities & Value Definition of DX
A digital transformation is an organizational change that is needed to sustain, or improve the economic performance of a company and in which new technologies are applied and new business models are explored.
• New technologies include:Cloud, Mobile, Social Media, Big data and data analytics (AI).
• New business models are centred around:Cost value, Experience value, Platform value, or a Combination of the three.
ENGAGING DISRUPTORS: BUILDING
CAPABILITIES
VALUE
BUSINESS
PROCESS
TECHNOLOGY
DATA & DATA
ANALYTICS
ORGANIZATION
INNOVATION
CUSTOMER
EXPERIENCE
DIGITAL
TRANSFORMATION
ROADMAP
Digital masters…
• …realize they need to develop their business
models.
• …shape a roadmap that will enable them to carve
out new business models.
• …deploy a combination of capabilities on each step
of this roadmap – they do not build capabilities in
isolation.
PATTERNS IN BUILDING DIGITAL
CAPABILITIES
VALUE
BUSINESS
PROCESS
TECHNOLOGY
DATA & DATA
ANALYTICS
ORGANIZATION
INNOVATION
CUSTOMER
EXPERIENCE
DIGITAL
TRANSFORMATION ROADMAP
ROADMAP CAPABILITIES ON A STRATEGIC
COURSE
Business model 2015
Business model 2020
VALUE
BUSINESS PROCESS
TECHNOLOGY
DATA & DATA ANALYTICS
ORGANI-ZATION
INNOVATION
CUSTOMEREXPERIENCE
DIGITAL TRANSFOR-
MATION
ROADMAP
VALUE
BUSINESS PROCESS
TECHNOLOGY
DATA & DATA ANALYTICS
ORGANI-ZATION
INNOVATION
CUSTOMEREXPERIENCE
DIGITAL TRANSFOR-
MATION
ROADMAP
2018
2016
EXAMPLE OF ROADMAPPING DIGITAL
CAPABILITIES
Agile Transformation
Extend Value Proposition
Customer Centricity
Surprising Service
2016 2017 2018 2020
Business –IT Alignment
PO role
Build better BI function
DEvOps
Pensions
Spike on:
– Branding
– Positioning
– Culture
Individual Service:
Customer Experience
Tailor made advice
through website
Tailor made Service
Mid corporate in FSI on a DX
ZOOMING IN ON 2018
• How can we be more customer centric and at the same time lower our cost levels?
Question - What is the main question to be answered?
• Radically change the company's orientation towards customer centricity• Introduce roadmapping unit aimed at service excellence
• Standardize business processes, increase operational excellence
• Restructure the organization• # hierarchical levels drops
• Customer journey experts with Agile teams
Answers a.o….
VALUE
BUSINESS
PROCESS
TECHNOLOGY
DATA & DATA
ANALYTICS
ORGANIZATION
INNOVATION
CUSTOMER
EXPERIENCE
DIGITAL
TRANSFORMATION ROADMAP
BENEFITS OF AN AGILE TRANSFORMATION
• Value steering based on an
integrated Business and IT
Backlog.
• Governance: improved Business IT
alignment.
• Delegating mandate for decision
making to lower hierchical levels.
• Increase the speed and frequency
of delivery (CD).
• Invest in an improved technical
infrastructure.
• Focus on the primary process and actually connect the people to the voice of the customer.
• New organizational structure including new role descriptions (e.g. for scrum master and servant leader).
• Enabling a culture of continuous improvement and continuous learning.
Goal is to improve the agility of your organization, by improving its processes, technology and people.
Process Technology People
Q: Is an Agile plus DevOps Transformation the same as a
Digital Transformation?
A: …
www.digitaltransformations.nl
WANT TO KNOW MORE?
WHY PROWARENESS?
Transformation experience
• Track record with 100+ organization wide transformations.
• We not only make plans. We are able to implement. Iterative transformation approach, based on organizational feedback.
• We have cocreation capabilities on transformation strategy and transformation roadmap.
Digital Transformation knowledge
• We have most capabilities for Digital transformations available: Digital Transformation Strategy, Data and Data Analytics, Organization, Technology, and Innovation.
• We work extensively with partners to ensure top notch knowledge on Customer Journey and Business Process.
Market knowledge and experience
• Extensive knowledge of Financial Services Industry and Telecom.
• We are able to translate strategical plans into the appropriate actions.