sample digital strategy 3 - Geoffrey Cann · HOW? Drive digital progress by reporting to Executive quarterly on portfolio by stage (idea to go-live), metrics, successes & learnings

Sample Digital Strategy

Agenda

12345

Project Approach

Digital Strategy – Why? What?

Risks and Concerns

Execution Roadmap and Discussion – Who? How? When?

Next Steps

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A winning strategy* brings together wants, needs and capabilities

ManagementPreferences

Culture, People,Resources,Process

CompetitiveAdvantage

Winning Strategy

Want to do

Need to doCan do

*Crossan, Ivey School of Business


Digital roadmaps and plans may be cast using Roger Martin’s Cascade of Choices •An industry-proven, independent and non-proprietary method for strategic thinking

Goals &Aspirations

Where toPlay

How toWin

CapabilitiesNeeded

ReinforcingSystems


Challenging the orthodoxies Example -- Digital innovations created new “how to win”

• Trade resources need to be on site

• Engineering stamps signal quality

• Project budgeting• Purchase by tender

• Partner with big firms only

• Kit is made to order

• Reduce skill levels on site (IKEA?)

• Process builds quality in, evident

• Manufacturing budgeting• Purchase by manufacturing agreement

• Partner with right firms for the job

• Signature parts 3D printed for the job

From Orthodoxy To OrthodoxyIllustrative


Company Goals & Aspirations – DRAFT

Current• Remain competitive through challenged marketsFuture• Premier company in Canada• “Scale smart”, profitable growth; one of the most

capital efficient companies• International expansion

• Safety, opex & capital efficient, cycle time reduction.

• Keep culture if grow further; stay lean but avoid burnout.

• Leverage data - “single source of truth” (financial, field assets)

• Streamline and integrate .. Reduce spreadsheet, paper and email workflows to improve decisions and reduce mundane and rework

• Automate reporting and complex, repetitive analysis

• Future-proof employees’ careers

Executive Employee Workshops

Employees are excited about change, but worry about capacity and capability.


Company “Where to Play” - DRAFT

• Segment focus

• High quality assets

• Concentrated geography – Canada • Manufacturing focus (producer)

• Private (vs public-listed) – simplifies reporting, compliance, structure

• ”Like” assets for acquisition rare

• Work processes optimized to match

• Supporting technologies struggle to cope with growth• Integrated company vision – very different business &

skills

Current Business Model Challenges to Growth


Company “How to Win” – DRAFT

• “Owner” culture - agile, disciplined, efficient • Strong balance sheet (low Debt/CF)• Economics-driven (> 30% IRR)• Carefully vetted hires; talented “unicorns”• No silos, one ”business unit” (no competition),

one floor • One data platform • Lite processes, low bureaucracy • High trust & knowledge sharing• Humility• Emotionally committed staff

• Attack business challenges & complexity • Near term efficiency via automated invoice approval• Leverage data as an advantage:

• “Integrated single source of truth” vs siloed data • Streamlined data exchange – field/head office/suppliers• Automated info ingestion with acquisitions

• Efficient field operations – apps, cell coverage, mobile• Collaborative work tools (vs unlinked Excel, email)• Best practices• ”Supplier of Choice”

Current Ideas to maintain culture


Company Capabilities & Resources Needed – DRAFT

• Talent “Burnout” - creative problem solving “unicorns” but hard to scale

• Single data platform but field not always in sync • Company-wide data vision, but the platform has gaps• Some legacy systems impose constraints• Low digital awareness amongst staff & concern on

impact to those who do not wish to be digital adopters

• Time and resources to focus on planned change (vs “side of desk”)

• Dedicated, small Digital team – people have business experience, great listeners, high EQ, pragmatic, not necessarily tech background, accountability

• Data governance, integration & collection infrastructure

• Digital opportunities portfolio management (economics, plan)

• Fit for purpose training – simple, easy to use• Right partners (e.g. JV’s, software)• Framework for measurement of success and reporting,

short term successes are key• Incentives for grass root adoption

Current Ideas to maintain culture


Three options for the role of digital in the business model

20202018Bu

sine

ss P

erfo

rman

ce

Status quo. Wait and see, occasional investment.

Scale smart. Enable acquisitions (filter and ingest), integrated data, modernise selective systems, deepen analytics and field connectivity

Transformative platform. Industry leader (class of 1). Single source of truth. All assets on line. Hyper-automation. Aggregator.

12

3

What is management’s preference? Use digital to evolve company by solving for biggest business opportunities & issues?


Agenda

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Project Approach


Risks and Concerns


Next Steps

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WHAT? Prioritize the investable projects

Time to Benefit

Ease

of I

mpl

emen

tatio

n (re

sour

ces,

read

ines

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< 1yr 1-2 yrs > 2 yrs

Diff

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tM

edEa

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Timing Ease Value Solutions

1 Investment 1 1-2 L H Data lake

2 Investment 2 <1 M H Slack, Team

3 Investment 3 >2 H H Facebook

4 Investment 4 1-2 Woocommerce

5 Investment 5 1-2 L H Quickbooks?

6 Investment 6 1-2 M H robots

7 Investment 7 1-2 M H Cloud computing

8 Investment 8 <1 L L apps

Do now

Proof of Concept Monitor

Staged Invest

Illustrative

8

6

5

43

2

1

7

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Agenda

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Project Approach


Risks and Concerns


Next Steps

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Company’s winning strategy aligns needs, wants and can-do’s

ManagementPreferences

Culture, People,Resources,Process

CompetitiveAdvantage

Winning Strategy

Want to do

Need to doCan do

*Crossan, Ivey School of Business

Driven from the top, Accountable Executive has high credibility, strong business acumen, passionate & resilient.

Profitable Growth prepared to execute on future plan

Culture: ”owner” motivated, agile, open-minded.

Scoping of digital opportunities èrequired resources

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WHO? People - Create three roles (one contracted) to drive digital solutions, collaborating closely with IT• Single accountable executive to lead digital, whole of

company view

• Create role “Manager Digital”, reporting to EVP

• Manager Digital drives digital solutions; has business experience, partner mindset, great listener, pragmatic, not necessarily tech background & drives to outcomes

• New role “Data Science” is responsible for guiding the organization to leverage its data resources

• New contracted role “Data Architect” is responsible for setting data standards, leads data integration, solves for data ingestion

• Retain IT leadership under CFO in the current structure

• Manager IT drives IT infrastructure, service delivery and service excellence

• Manager Digital and Manager IT require a highly collaborative working relationship

Manager Digital

EVP CFO

Manager IT

• Digital Strategy• Portfolio Management• Data Governance, Architecture &

Data Lake• Agile Methods & 3rd party

partners• Solutions to overcome barriers• Project Execution – 3-5 projects

and 90 day sprints• Digital Coaching

• Outsourcing contracts• Cyber Security• Networks and infrastructure• Cloud services• Applications Support

Data Science Data Architect(contract)

Collaborative, co-located

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• Communication Plan, enabler to Company’s future business plan

• Engagement - brainstorming, solutions, skill-building / coaching

• Risk management to address barriers (.e.g cyber-security, staged adoption in field, 3rd party contracts & data ownership rights)• Governance: Plan, cross-company portfolio and measure / report success & learnings

• Report short-term wins to build momentum

• To stabilize progress: employees are expected to enable progress (continuous improvement) as part of their jobs; and, periodic employee surveys

HOW? Some process key to successful execution

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HOW, WHEN? Put in place a small number of governance processes to drive the digital agenda.

Artefact Activity Timing Scope Involved

Digital Strategy2 year strategy and roadmap, recalibrate strategy to the business, competitive positioning, digital innovations

biannual Whole of companyEVP led, Manager Digital drive, and Manager IT support

Annual Digital PlanDevelop annual portfolio of project candidates, rank ordered by value, preference, capacity, capability, risk, set budget, align with benefits owner, align with IT plan

Annual, to coincide with annual financial and capital planning cycle

Whole of company, balanced across segments

EVP led, Manager Digital drive, and Manager IT support

Digital Project PortfolioPlan 90 sprint delivery cycles for 3-5 selected projects in the portfolio, in partnership with segments of business. Manage delivery risk. Assess progress and learnings.

Quarterly (not necessarily aligned to financial quarters)

Whole of company for the portfolio, more focused for in-flight projects

EVP led, Manager Digital to drive, digital delivery teams support

Management Oversight Executive team briefing on project portfolio status, achievements, lessons learned, value captured, key portfolio metrics

Quarterly Whole of company for portfolio reviewEVP led, Manager Digital to drive, leadership team involved

Digital ProjectsReview existing projects – what’s on track & learnings. RUFF approach as required. Adjust scope, accelerate, reprioritize, pivot, decelerate, resourcing

Monthly In flight projects Digital Manager to drive, business benefits owner to support

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HOW? Drive digital progress by reporting to Executive quarterly on portfolio by stage (idea to go-live), metrics, successes & learnings

Ideation Focus

Quality of pipeline Idea count Count of digital ideas: measures engagement, opportunityValue of pipeline Cost reduction, revenue gain, variance reductionInvestment value Measures demandStrategy index Alignment to strategic goals (e.g. acquisition ready)

Development Focus

Pipeline management

Conversion count Count of ideas converted to development. Conversion ratioConversion time Time from idea suggestion to development Conversion value Cost reduction, revenue gain, variance reductionStrategy index Alignment to strategic goals

Portfolio Focus

Quality of portfolio Project count Count of projects in flight: measures activityValue of Portfolio Cost reduction, revenue gain, variance reductionInvestment value Measures capital outlayConcentration index Balance of portfolio across whole of company Strategy index Alignment to strategic goals

Project Focus

Project management and value delivery

Project IRR Project planned and actual IRRValue at stake Cost reduction, revenue gain, variance reduction (payout)Time to value Days from idea to proof of concept, proof to trial, trial to go

liveStrategic benefit Alignment to strategic goalsSuccess index Degree to which solution achieves business objectivesMilestones Upcoming milestones and progressLessons learned Key insights gained Project economics Budget, actuals, burn rate

Portfolio Projects

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Agenda

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Recap: Intentions/outcomes, Project Approach


Risks and Concerns


Next Steps

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HOW? Risk Mitigation – Cyber Security Best Practice

• Scope: enterprise IT + field control

• Executive receive regular reports on Cyber Security Risks (eg phishing) & mitigation

• Cyber-security strength benchmarking vs energy peers• Periodic third-party assurance testing

• Integrate cyber-security assessments into acquisitions & third party vendor relationships

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Agenda

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Recap: Intentions/outcomes, Project Approach


Risks and Concerns


Next Steps

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Documents

sample digital strategy 3 - Geoffrey Cann · HOW? Drive digital progress by reporting to Executive quarterly on portfolio by stage (idea to go-live), metrics, successes & learnings