NOVEMBER 2019

The Bionic Company

1

50−75%Capacity released with digitized shared services

10%Reduction in commercial costs

Increased stock multiplier

50%Reduction in R&D lifecycle time

Asset light growth

2−4xSpeed to market with agile

10%Increase in growth from personalization The Digital

Imperative:

those quickest

to act will win

2-8%Value through dynamic pricing

5-15%Revenue uplift, & costs reduced by up to 40%, with digital Sales

Digital can unlock massive value

2

The company of the future is Bionic

Personalized customer

experiences &

relationships

Bionic

Operations

New offers, services

and business models

Data

& AI

Modular

Technology

Digital Talent

Dynamic

Platform

Organizations

Strategy

and Purpose Human:

Org, Talent,

Ways of working

Technology:

Data and

Digital Platform

Outcomes

… to human designed

Human

operated

Technology/AI

transformedTechnology/AI

augmented

From human operated …

The nature of work is transforming

Types of key outcomes

Shopping assistants

Topic expert

Customer experience:

relationships

Operations:

Remote mining

Business

innovation

Freight

RidesBusiness

Elevate

Self-

driving

Eats Health

Human: Org, Talent, and Ways of Working

Work is

modular

& agile

Dynamic and platform org structure

New ways of working

Jazz Leadership

Digital talent

Ecosystems

Operating system 2.0

Part 1: Modular

core data and tech

architecture

Part 2: Bionic,

scalable processes

Two part

platform

Front-end agile

teams

Boundaryless /

ecosystems

Product teams

Platform org with agile teams, bionic processes

Leadership

Technology: Data & Digital Platform

Next Gen Tech Delivery

Data and AI

Modern Technology Architecture

Technology

and Data

are modular

and agile

DECENTRALIZEDECONOMY

DRIVE IMMENSE CHANGE IN THE WORLD ATLARGE

INTERFACES AI HARDWAREACCELERATORS

DEV-SEC-OPSQUANTUMCOMPUTING

DIGITAL TWINS

OF THE

WORLD IS

DARK90%Light the Dark

Components (chassis,

tires, seats, etc) are

designed to work together

The platform and

interfaces make it work

(APIs)

Enables rapid innovation

of each component

(Microservices)

Platform governance is

critical

Thousands of

flowers

blooming

Silver bullet:

technology

Go one BU

at a time

despite

common

op model

Wait and See

Agile org,

Monolithic

technology

Common “failure modes” in transformation

Building the Bionic Company

Human:

Org, Talent, &

Ways of Working

Technology:

Data & Digital

Platform

Outcomes

Strategy

and Purpose

Building the Bionic Company

Strategy

and Purpose

Start by defining a clear

Strategy & Purpose,

powered by digital

Building the Bionic Company

Strategy

and Purpose

Define and prioritize

key outcomes at the

heart of the company

Technology:

Data & Digital

Platform

“Complete the circle”

with human and

technology enablersHuman:

Org, Talent, &

Ways of Working

Outcomes

Building the Bionic Company

Outcomes

Strategy

and Purpose

Continue to build out

“complete circles” of

holistic outcomes

and enablers

Technology:

Data & Digital

Platform

Human:

Org, Talent, &

Ways of Working

Building the Bionic Company

Strategy

and Purpose

Once the organization is

at a “tipping point”,

commit to bionic

transformation

Drive massive reskilling,

ecosystem integration,

and agile at scale

Human:

Org, Talent, &

Ways of Working

Outcomes

Fully modernize

architecture

Commit to continued

management of data,

APIs, and microservices

Technology:

Data & Digital

Platform

Technology Human

You…building the Bionic Company!

bcg.com

19

Appendix I:BCG case vignettes

20

Leading players have already launched their Bionic Journeys

Personalization Process digitalization

ROI Measurement AI-driven operations

Created real-time hyper-personalized offers based on

anticipated customer behavior

Digitized and optimized E2E processes for support functions

reducing costs by 40%

Developed step-changes of marketing spend by reallocating

spend to highest ROI opportunities

Built suite of tools for optimizing airline ops to transform the

network planning

21

Personalized marketing strategy with Starbucks

Objective

Created real-time hyper-

personalized offers based on

contextual dataOutcomes

Personalized offers based on

AI-based personalization

engineTech

Broke down silos by creating

integrated teamsHuman

Improve companies ability to respond to customers’ need for individualized attention

Impact3× incremental revenue

per customer per year,

of 250M+

Mobile app became one

of the most popular

payment apps in U.S.

22

Process Digitalization with Sanofi

Objective

Automated and digitalized

processes and eliminated

manual workOutcomes

Designed E2E journeys

through customer value

stream mappingTech

Redesigned core processes

with Agile approachHuman

Digitize and optimize E2E processes for support functions

Impact40% cost reduction

driven by

25% FTE reduction

23

ROI Measurement with Diageo

Objective

Identified “quick wins” to

increase efficiency & drive

higher ROIOutcomes

Converted millions of data

points into "common

currency"Tech

Emphasized multidisciplinary

client teamsHuman

Step-change with marketing spend by reallocating spend to highest ROI opportunities

ImpactDelivered £150M+ over

2 years through

increased efficiency

24

Network planning and operations with KLM

Objective

Developed suite of tools

and live dashboardsOutcomes

Network & ops analysis to

quantify changesTech

Promoted frontline staff

embracing toolsHuman

Optimize & digitize airline operations to transform the network planning & ops

Impact27% Reduction in non-

performance cost

32% Fewer PAX impacted

by large delays

Advanced FS are driving immense value by decoupling development – leveraging platform, talent, and agile ways of working

Decoupled

Development

Digital

Core

Innovation

Rapid

Market

Innovation

Outcomes

Power partner

ecosystem

Rapid product

innovation & amazing

customer experiences

Core Platformson demand

Agile Ways of Working

Talent

Iterative delivery

Business-Tech products

Location strategy

Campus Recruiting

EVP, leadership, culture

Top engineering skills

Digital Core Platforms

APIs and Microservices

Real Time Processing

Adapted operating model

DevSecOps, InnerSourceIaaS, PaaS, DaaS