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Digital transformations are essential to survive and thrive in the contemporary digital economy. But how do you know that you are laying a solid foundation on which to build your digital business? Do you have the right strategy, people, and operations in place to not just withstand, but to adapt and grow with unpredictable future conditions?
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Conviction, Alignment, AgilityThree Keys to Getting and Staying on the Right Side
of the Digital Divide
•Equip leaders with empirical data•Connect theory to practice •Turn experience into practical advice
Apigee Institute’s promise
We see something big happening
The world is becoming programmable
20
08
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E
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E
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E
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E
20B
10B
3x
3x
$20T13.8%
PCs
Smartphones
Tablets
Smart TVs
Wearables
Internet of Things
What happens when digital capabilities diverge?
Average score deploying apps, using data analytics, and operating APIs today:24 out of 30
Average score deploying apps, using data analytics, and operating APIs today:14 out of 30
Survey of executives in 200 large companies across 30 industries, May 2013.
Digital Leaders
53%
Digital Laggards
47%
6
A “digital divide” that is real now…
81%
71%
63%
53%
19%
29%
37%
48%
High Confidence in much stronger competitive position over next 5 years
Digital Impact on enterprise KPIs that’s big in next 12 months & increasing a lot over 5 years
Segmentation on strength now deploying apps, operating APIs & using data analytics
Outperformance past 12 months on revenue/margin, satisfaction, share, new
products
“Digital Leaders” “Digital Laggards”
Efficiency & time to market
Customer satisfaction
Revenue
…and that promises to grow
Strong outperformers on this KPI + chose as a top area for digital impact going forward
Big digital impact next 12 months + increasing great deal over next 5 years
Digital Laggards
Digital Leaders 78%
Digital Laggards
Digital Leaders
13%
50%
Digital Laggards
Digital Leaders
13%
64%
Why?
Digital Leaders are turning conviction…
Relevance of trend to
competitive position over next 5 years
Smart, connected devices
Apps & network effects
Instrumentation & data insights
Platform strategy & digital ecosystems
53%
25%
40%
43%
53%
24%
45%
56%
Extremely Not at all
43%
17%
39%
48%
46%
15%
45%
41%
…into a case for change and plan of action…
Compelling vision
Executive priority
Project priority
Strategy for creating value
with apps, APIs & analytics
Digital Leaders
Digital Laggards
34%
6%
53%
43%
Digital Leaders
Digital Laggards
31%
3%
48%
39%
Digital Leaders
Digital Laggards
33%
6%
52%
39%
Digital Leaders
Digital Laggards
35%
6%
50%
43%
Survey of executives in 321 large companies across 26 industries, Sept-Oct2 013.
Strongly Agree Agree
…with the alignment and agility to make it
happen
How?
Blueprint for alignment and agility
• Deploying apps• Operating APIs • Using data
analytics
• Alignment between• Marketing & IT• Right ROI criteria for
digital investments• Connecting digital to
enterprise KPIs
Y X
Alignment: In a programmable world, digital experiences win
Alignment: Digital experiences are everybody’s job
Digital Laggards Digital Leaders
DigitalAssets
PhysicalAssets Density
Depth
Velocity
DigitalAssets
PhysicalAssets Density
Depth
Velocity
Agility: Three ROI criteria, together in the toolbox
0.75 1.00 1.25 0.75
1.00
1.25
"Ad hoc"
Neither Satis-faction nor Effi-
icency
Competitive benchmark
NPV, Satisfac-tion, Efficiency
Real options, Satisfaction, Ef-
ficiency
Average score on digital ROI decision-making
Av
era
ge
sc
ore
on
co
nn
ec
tin
g d
igi-
tal t
o K
PIs
Options-based strategy:
• Certainty impossible
• Change inevitable
• “Fail or scale”
Options-based financials
• Project scenarios
• Quantify what-ifs
• Build to re-purpose
Case study #1
“…All teams will henceforth expose their data and functionality through service interfaces. All service interfaces, without exception, must be designed from the ground up to be externalizable. That is to say, the team must plan and design to be able to expose the interface to developers in the outside world. No exceptions. Anyone who doesn’t do this will be fired.”
Jeff Bezos CEO, Amazon
Agility: Aligning investment criteria with enterprise KPIs
Efficiency & time to market
% of digital assets
externalizable
Satisfaction / Share
Scale of digital ecosystem
Revenue / Margin
% of profit in sector
MarketLeadership
KPI
Digital ROI
Pattern
In a programmable world, this race is on in every sector
Partner Integration
Open Innovation
Wearable Electronics
Gaming Consoles
Smart Appliances
Smart Sensors
Smart phones
Connected Cars
Tablets
Kiosks
Your Digital Assets
Thank you
We would love your feedback!
Don’t forget to fill out the session’ssurvey – found in the session details
on the conference app
#iloveapis
