DIGITAL TRANSFORMATION

Pedro LopesOctober 2016

DIGITAL IS MAINSTREAM

Connected Mobile

7 billion people on the planet

and 4 billion of them use a

mobile phone

More than 1.75 billion

consumers have smartphones

On an average day,

smartphone users spend 132

minutes on-line

Social

Facebook has 1.55 billion

users

Every minute there are

278.000 tweets, 2.4 million

items shared on FB, 72 hours

of video uploaded to youtube,

571 new websites and 47.000

apps downloaded from

Appstore

7 billion devices connected

and 50 billion by 2020

Consumers on average

spend over 4 hours a day

online.

40% of consumers are

showing “second screen”

habits when watching TV

DOES IT GET MORE DIGITAL THAN THIS?

Ben Innes and a flight attendant taking a 'selfie' with the EgyptAir A320 hijacker

Shopping Entertain

ment

Learning Exercising Traveling Paying

DIGITAL IS CHANGING OUR LIVES

The Digital is an expression of the life-style and their values.

People connect emotionally with the brands.

THE NEW CONSUMER IS CONNECTED, SOCIAL,

EMOTIONAL, CONVERSATIONAL…

¡A REBEL!

YOUR CUSTOMERS

EXPECT YOU TO KNOW THEM

EXPECT YOU TO DO MAGIC

COMPARE YOU WITH OTHER INDUSTRIES NOT YOUR COMPETITION

ARE MORE LOYAL TO EXPERIENCES THAN TO YOUR PRODUCTS

COMPETITION IS

MOVING

BETWEEN

SECTORS

RETAIL

ENERGY

INSURANCE TELCO

BANKING

AUTO INTERNET

GIANTS

STARTUPS

FROM SELLING BOOKS

TO PLUMBING AND GOAT GRAZING SERVICES

Energy Storage for a Sustainable Home

POWERWALL

WHAT’S NEXT FOR APPLE?

FINTECH:

UNBUNDLING

THE BANKING

INDUSTRY

THE ANTS ARE EATING THE

ELEPHANTS… SLOWLY

SMALL, GLOBAL PLAYERS ARE ERODING THE MARKET INCUMBENTS LEVERAGING THEIR DIGITAL NETWORKS WITH NEW PROPOSALS

ASYMMETRIC VIEW

DIGITAL PLAYERS THINK IN TERMS OF

LIFESTYLES, NOT SECTORS

IN THE DIGITAL WORLD SUCCESS COMES FROM FINDING

ENTIRELY DIFFERENT WAYS TO INCREASE THE VALUE OF

EVERY CUSTOMER EXPERIENCE AND BUSINESS

INTERACTION, NOT JUST DOING THINGS DIFFERENTLY.

BE CREATIVE.

Hijacking your Customers

CREATE AN EMOTIONAL BOND WITH

YOUR CUSTOMERS

GAIN CUSTOMERS TRUST THROUGH REAL CUSTOMER CENTRICITY:

Be present in their lives

Personalized Products and Services

Simplicity and transparency

Antecipate their needs

Convenience and Beauty

CREATE SERVICES THAT ARE PART OF YOUR

CUSTOMER’S DAY TO DAY ACTIVITIES.

THINK OUTSIDE THE SPECIFIC SECTOR AND BE

READY TO PARTNER

FOR THE NEW DIGITAL PLAYERS

TALENT, AGILITY AND FLEXIBILITY

ARE THE KEY SUCCESS FACTORS

AND…

TECHNOLOGY AND BUSINESS

ARE JUST TWO SIDES OF THE SAME COIN

The changing competitive environment and evolving customer expectations are

rapidly reshaping the way traditional players need to deliver value

• Rapid time to market

• Focus on customer experience

• Trial and error – fail fast

• Continuous development

• Innovation

…will require differing approaches Different business needs…

Respond to rapidly changing

customer needs

Disrupt and defend against

disruptors

Engage customers through

multiple channels

Manage costs and drive

efficiency

Reinvigorate flagging brands &

services

Maintain historically successful

offerings

Digital Business

Legacy Business

• Provide operational efficiency

• Manage costs & seek solid business cases

IN THIS DIGITAL JOURNEY, TECHNOLOGY IS THE MAIN

BUSINESS ENABLER

The CIO’s mission is to infuse technology in the business value

chain, transforming IT from a cost center and support area into a

value creator and business catalyst

Capitalize on modern technologies to

gain competitive advantage

and build new capabilities – cloud,

virtualization, SaaS

Align IT with the needs of the

business, using IT to deliver

greater business value Transform the operating model to

cope with the new market

dynamics

Deliver day-to-day services

Optimize technology sourcing

strategy

BUT TODAY’S CIOs FACE A DIFFICULT BALANCING ACT, TO ACHIEVE HIGH

PERFORMANCE THEY MUST MANAGE TODAY, CONTROL COSTS AND DELIVER AT

INCREASING PACE TOMORROW

Adapt to an increasingly changing

workforce

Enhance efficiency, effectiveness,

productivity, by removing complexity

from the IT portfolio

The fourth is culture and talent. A new IT workforce

and sourcing strategy is needed to attract the

necessary digital skills and ensure sustainability of the

new model

The four key components of this transformation journey

The second is the pace of change. This enables

various speeds of delivery to co-exist and be

governed through multiple delivery methodologies.

Good Analytics and Robotics are the enablers

of faster and better products delivered.

The first is the decouplingof systems of engagement

from systems of record through the creation of a

Digital Platform to improve Customer Experience. The

use of everything as a service, a strong

APIfication and IoTstrategy are key in the new

architecture.

The third is flexibilitytrough a streamlined IT

operation model supporting different

delivery speeds and a new approach to security.

Pace of ChangeDecoupling Flexibility Talent

A reference model

Experience Manager

Digital Customer Interaction

Core (Cross-Channels) Capabilities

API

Exposure

Big Data &

Analytics

3rd Party/OTT

TraditionalNetwork

Cloud SDN

Systems of

Engagement

Systems of

Record

(Traditional

OSS/BSS)

Infrastructure

& Network

• Systems of Engagement and

Systems of Records Decoupling

• Experience Led Service Design

• Perfect Digital Customer Interaction

• APIs Exploitation

• Shared Core Capabilities supported

by XaaS

• Digital Services creation &

monetisation

• Virtualised Network and

infrastructure

Back-end as a Services/Decoupling

Layer

Digital Services Enablement

and Data Monetisaton

Decoupling

HUMAN CENTERED DESIGN

AGILE DELIVERY

DEVOPS

For great Customer Experience design

For quick developments that meet

Business’s expectations

To promote collaboration between

Development and Operations

Pace of Change

Ex

tern

al IT

Se

rvic

es

Traditional IT

Corporate Strategy

Legacy IT

IT Strategy

Traditional EAM

Today

BU

Dem

and

Supply

BU

Dem

and

Supply

BU

Dem

and

Supply

Change Run

BU

Corporate Strategy

BU BU

Tomorrow

Multi-Speed IT

Legacy IT

IT Strategy

Transformational EAM

Agile IT

IT Service Brokerage

Ex

tern

al IT

Se

rvic

es

Multspeed IT Model Journey

Adopted from: Point of View „Fast lane IT for the agile enterprise“

Future IT

Service Brokerage

Corporate & IT Strategy

Agile IT

Digital EAM

External IT

Services

Prospect

BU

Service

Assem-

bly

BU

Service

Assem-

bly

BU

Service

Assem-

bly

Flexibility

TalentAutomation

Automation is taking over more routine and manual tasks. In the US alone,

analysts predict that between 40 to 60 percent of all tasks that workers do could be

automated.

Pace of Innovation

New technology is constantly emerging and the pace of adoption is faster than

ever.

65% of kids will end up with jobs that have yet to be created. 2

Rise of Freelancing

43% of the US workforce is expected to be freelancers by 2020.1

A New Generation

In 2015 Millennials became the largest share of the workforce. By 2025, that

number will be 75% globally.3

1 “Intuit Forecast: 7.6 Mln People in On-Demand Economy by 2020,” Intuit press release, August 13, 2015; 2 Cathy N. Davidson, co-director of the annual MacArthur Foundation Digital

Media and Learning Competitions; 3 “Millennials Surpass Gen Xers as the Largest Generation in U.S. Labor Force,” Pew Research Center, May 11, 2015; “Creating a ‘Generation

Connected’ Workplace,” Workforce, May 1, 2015

Building cultures of purpose and the development of employee centric

tools that blend functionality and empowerment is a priority

Career as tours of

duty

Empower your

people

Embrace the

person in your

professionals

Reward and

recognize

regularly

• Employees are treating their careers as a series of “tours”

• Each new employer is a way to establish a self-determined path, build critical skills

and grow outwards

• Employees want to feel inspired to work and focus on what matters to them

• Desired to be essential to the success of the company

• Want to be thought leaders who can make important decisions autonomously

• Employees want to feel assured, open and included

• Consider that work should be a peer experience that is an extension of their social

world

• Being acknowledged, feeling unified and supported with the right tools are all things

employees want in an ideal work environment

• Money isn’t the only payoff

Business leaders are realizing a more liquid workforce can become their new

competitive advantage

Siloed work generally

aligned by business

function (engineering,

sales, marketing,

design, etc.)

Training is ad-hoc, as

needed for a particular

tool or technology (in

which the company

has generally already

invested)

Low levels of

collaboration

Innovation generally

practiced by specific

non-official groups or

‘lone wolfs’ in the

organization

Fragmented workforce

management tools

Static workforce organized

around specific skills and

functions

The Present

The

Future

Project oriented

working groups

emphasizing

collaboration,

agility, and skill

sharing

Increased

expansion of workforce

to external talent

including both formation

contractors and crowd

platforms

Continuous training

as a core

organizational

competency

Failing fast and

iterative; employees

are empowered to

innovate

Consolidated tools and

optimized

workforce

responsiveness

with insightful analytics

Adaptable workforces organized around

projects, with embedded training

THE HUNT FOR THE

DIGITAL CONSUMER

IS ON…

Thank you

pedro.lopes@accenture.com