Why is Everyone Talking about Innovation?demo.idg.com.au.s3.amazonaws.com/cio/summit2015/perth/Why is … · customer engagement points market Use ICT as a work/ business tool, follow

Why is Everyone Talking about Innovation? Emilie Ditton

Executive Director, A/P Energy Insights and Vertical Markets

Follow me @editton

Agenda

Transformation is here

How is IT responding

What do you need to do to get there

Final thoughts

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 2

Disruption with Technology at the Heart

3 Source: IDC, 2015

Businesses will be able to transform:

How they engage with customers

The speed at which they deliver

their products and services

How they innovate

Their resiliency

The reliability of their operations


Transformation in Finance


Transformation in Government

© IDC Energy Insights Visit us at IDC-ei.com 6

Transformation in Mining


Transformation in Health

IDC’s 2015 C-Suite Survey


9

Operational

efficiency

IT and operations are

looking for new ways to

operate and deliver

services that are leaner

and faster.

Sales &

Marketing

As CxO’s invest in sales &

marketing initiatives, line of

business buying centers

focus on customer

experience

Customer

Engagement

To drive market expansion,

new solutions and

innovations drive the rise of

the technology CxO

Cost

Savings

Executives are looking

to remove fat from

internal systems,

processes, teams

Source: IDC Asia/Pacific C-suite Barometer 2015 (N=300 in AU)

1

2 2

4

Business Priorities Are Changing New business models

Competition

Changing consumption

patterns

New regulations

Requirements for

responsiveness

10

4

3

2

Consumer Buying Patterns

New Business Models

Q: What are your CEOs top business concerns, other than meeting financial goals?


CEO Concerns

28.5% Escalating Costs of Operations

11.9%

14.8% New Government

Regulations

10.5%

CEO challenges are a market reality

11


CEO challenges

① ‘Save to invest’ is key for the CEO

② 3rd platform mash-ups and IoT are top new idea seeding grounds

③ 3rd platform use case and experience

④CX is #1 priority for many DX-led initiatives

⑤Security

IT implications

12

44%

OPTIMISERS

FOLLOWERS

OPPORTUNISTS

The Changing Role of IT

ICT will drive

productivity

gains/

optimise

business

processes

19%

FOLLOWERS

19%

CREATORS

14%

DISRUPTORS

4%

Change the

business,

create new

workflows,

customer

engagement

points

Use ICT as a

work/ business

tool, follow

footsteps of

the

mainstream

market

ICT will create

new areas of

opportunity,

enabling entry

to new market

spaces

ICT will disrupt

our industry,

create new

challenges

and re-

think/re-do

20142015

The advantage technologies

13 Source: IDC Asia/Pacific C-suite Barometer 2015 (N=300 in AU)

1.Cloud

2.Mobility

3.Robotics

4.Security

5.Social

1.Security

2.Mobility

3.Cloud

4.Social

5.Big data/analytics

CIO office’s alignment with the C-suite

14

Source: IDC Asia/Pacific C-suite Barometer 2015 (N=300 in AU); ICT priority list goes beyond these top 6

CIO office’s

time/resources/budget

share of wallet

Organization’s top ICT priorities

20%

45%

16%

19%

Governance

Vendor

m’ment

IT ops

Innovation

Building better management tools

Building a more secure IT environment

Develop innovation cells to harness IT

to gain competitive advantage

Better management of suppliers and

develop a stronger contract

management framework

Enhance infrastructure to cater to new

technology/business process

transformation requirements

19%

11%

10%

8%

7%

15

1. Complexity

17.2% of respondents struggle with

growing complexity in their IT

environment/user requirements

2. Thought Leadership

15.2% see a lack of thought

leadership in their CIT strategy and

roadmap

3. Lack of IT Budget

13.4% have a lack of IT budget on

comparison with the business

requirements that are being

supported

4. Skills

12.9% experience a lack of

required skills to effectively execute

IT

5. Regulation

11.8% experience governance and

regulatory limitations and

restrictions

6. Technology Understanding

11.1% report a lack of

understanding of new technologies

Challenges Associated with Leveraging IT?


What does Digital Transformation

Journey Look Like?


Managed

Digital Transformer Opportunistic

Digital Explorer

Ad Hoc

Digital Resister

Repeatable

Digital Player

Optimized

Digital Disrupter

17

Source: IDC, Digital Transformation Maturity Model, 2015

IDC’s Digital Transformation MaturityScape .

Managed

Digital Transformer Opportunistic

Digital Explorer

Ad Hoc

Digital Resister

Repeatable

Digital Player

Optimized

Digital Disrupter

No coordinated

strategy

Counter threats

Opportunistic

Aware of the need

Project based

execution

Creating a

repeatable

experience

Consistent but not

innovative

Digital Transformation is the approach by which enterprises drive changes in their business models and ecosystems by leveraging digital competencies

Integrated approach

Digitally enabled

products & services

delivered on a

continuous basis

Remakes existing

markets

Creates new

markets to its own

advantage

Most Organizations Are Just Beginning their Digital Transformation Journey


64% of Organizations are “Digital Explorers” or “Digital Players”

14%

32% 32%

14% 8%

Digital Resister Digital Explorer Digital Player Digital Transformer Digital Disruptor

Source: IDC MaturityScape Benchmark: Digital Transformation, 2015; n= 317 IT and LOB Executives, March, 2015

The Transformer Level

14%

12%

16% 15%

12%

LeadershipTransformation

Omni-ExperienceTransformation

InformationTransformation

OperationsTransformation

WorkSourceTransformation

19

Work Needs to be Done On All Fronts

Source: IDC, Digital Transformation Operating Model Benchmark, 2015; n= 317 IT and LOB Executives, March, 2015

LeadershipTransformation

Omni-ExperienceTransformation

InformationTransformation

OperationsTransformation

WorkSourceTransformation

20

Addressing the gaps with Digital Transformation

Develop a vision for the digital

transformation of the business

Leadership Transformation

Attract and grow loyalty with customers

Omni-Experience Transformation

Leverage information for

competitive advantage

Information Transformation

Make business operations more responsive and

effective

Operating Model Transformation

Transform the way talent is

accessed, connected and

leveraged

WorkSource Transformation

Source: IDC Digital Transformation MaturityScape, 2015

21

An innovative Customer Experience example…a

digital disruptor

Source: CxO conversations, 2015

Inspire Customers with Personalized Experience

Shopping journey starts in any channel

Connected glass shopping wall

Triangulate customer, product, and employee

Interactive fitting rooms

22

Mine data to better understand customer base

Build personalized programs for highly profitable guest

Streamline operations and guest check in experience

Information as a Competitive Advantage

23

Leading an “Outside-In” Business Environment

Empower at the Edge Mindset

Culture that is Not Afraid to Fail

Looking Disruption Straight in the Eye


And if Done Right…This is Your Organization

Information Your greatest competitive differentiator 3

2 Omni-Experience Self adapting to customers changing needs

4 Operating Model Rapidly responding to changing conditions

5 WorkSource Ecosystem-based

1 Leadership Dispersed throughout enterprises and ecosystems

Publically experiment with new technology

Challenge the norms of the business model

Be willing to make a bold bet when the time is right

25

The new disrupting the old…from 2nd to 3rd platform

26

It’s the beginning of a new battlefield

The new

disrupting the

new

The new

disrupting the

new

[email protected]

@editton

www.idc.com

Emilie Ditton

Executive Director, A/P Energy

Insights and Vertical Markets

IDC Australia

Thank you!

28

Summary

A New Efficiency Standard

New competition and new business/operating

models are the new normal. Agility and flexibility

key.

Rise of the tech CxO

Digital transformation is a must-do for all as new

digital capabilities and LoB personas push IT into

new unchartered territories.

Secure & Customer

Focused

The CIO office needs to evolve to a modern IT

mantra where agility and security can co-exist

in harmony. IT delivers a cloud-enabled

platform , enables a data- and analytics-centric

enterprise and thrives on secure Customer

experience

4 6 8 1

0

Agility is the table stake

New competition and

new operating models

Rise of the tech CxO in digital transformers

(ie. creators) and digital disrupters (ie.

disrupters)

Digital transformation

The Digital Journey from

resister to ……

CIO’s job is….

1. Regulatory compliance, governance

and security

2. Innovation

Flexible, secure, reliable, agile, innovative

Digital Transformation is Multi Faceted and Accelerated


Leadership Transformation


Information Transformation

Operating Model Transformation

WorkSource Transformation

Digital

Explorer

Tell me about

outage

restoration, let me

show you



Digital

Transformer

Allow me to manage

what you sell me/us

and what I/we sell you

The ability to continually attract

and grow loyalty with customers,

partners, and employees by

creating interactive experiences.


Operating Model Transformation The ability to make business

operations more responsive and

effective by leveraging digitally

connected products/services,

assets, people and trading

partners.

“Digital

Transformer” Providing

distributed energy

resources to

customers

“Digital Explorer”

Use condition

monitoring to

improve asset

management

Disruption, Changing Expectations, New

Business Models & Technology Change


Shift to the

very big and

very small

New industries

Facebook

New

competitors

New business

models

Taxi industry

Uber Hotels industry

Air BnB

Relationship

between

technology

and

performance

Customer

expectations

Changing

nature of value

generation

Documents

Why is Everyone Talking about Innovation?demo.idg.com.au.s3.amazonaws.com/cio/summit2015/perth/Why is … · customer engagement points market Use ICT as a work/ business tool, follow