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Copyright © 2014 Capgemini Consulting. All rights reserved.
Leading Digital Transformation has become
an imperative for organizations
Copyright © 2014 Capgemini Consulting. All rights reserved.
What Do These Great Companies
Have In Common?
Copyright © 2014 Capgemini Consulting. All rights reserved.
Dig
ital C
apabili
ty
Leadership Capability
The DNA Of Digital Masters
The What:
Using digital technology to transform the customer
experience, operational processes and business models
The How:
Successful transformations depend as much
on how firms manage digital transformation than solely on
implementing new technologies
Copyright © 2014 Capgemini Consulting. All rights reserved.
4 Levels Of Digital Mastery
Dig
ital C
apabili
ty
Leadership Capability
FASHIONISTAS DIGITAL MASTERS
CONSERVATIVESBEGINNERS
• Many advanced digital features (such as social, mobile) in silos
• No overarching vision
• Underdeveloped coordination
• Digital culture may exist in silos
• Strong overarching digital vision
• Excellent governance across silos
• Many digital initiatives generating business value in measurable ways
• Strong digital culture
• Management skeptical of the business value of advanced digital technologies
• May be carrying out some experiments
• Immature digital culture
• Overarching digital vision exists, but may be underdeveloped
• Few advanced digital features, though traditional capabilities may be mature
• Strong governance across silos
• Active steps to build digital skills and culture
Copyright © 2014 Capgemini Consulting. All rights reserved.
* Average performance difference for firms in each quadrant versus the average performance of all large firms in the same industry for the 184 publicly-traded companies in our sample
The Time To Act Is Now: Digital Masters Have
Significantly Better Financial Performance
Basket of indicators:
• EBIT Margin
• Net Profit Margin
Dig
ital C
apabili
ty
Leadership Capability
REVENUE GENERATION EFFICIENCY
+6%
Basket of indicators:
• Revenue / Employee
• Fixed Asset Turnover
+9%
-10%-4%
Dig
ital C
apabili
ty
Leadership Capability
PROFITABILITY
% +26%
+9%-24%
-11%
Copyright © 2014 Capgemini Consulting. All rights reserved.
The Time To Act Is Now: Every Industry We’ve
Studied Already Has Digital Masters
Copyright © 2014 Capgemini Consulting. All rights reserved.
BUSINESS
MODEL
CUSTOMER
EXPERIENCEOPERATIONS
Digitally-modified businessCustomer Understanding Process digitization
New digital businessTop Line Growth Worker enablement
Digital globalisationCustomer Touch Points Performance management
The What: Building Blocks Of Digital
Capability
Copyright © 2014 Capgemini Consulting. All rights reserved.
• Identify Strategic
Assets
• Transformative/
Think Big
• Intent and Outcome
• Evolve over Time
• Connect the
Organization
(Wire)
• Encourage
business Use
Cases (Adoption)
• Foster New Ways
of Working (Scale)
• Rethink IT/
Business
Relationship
• Build Digital Skills
• Digital Platforms
• Digital
Committees
• New Digital Roles
• Shared Digital
Units
The How: Leadership Capabilities Turn
Digital Investment Into Digital Advantage
IT/BUSINESS VISION
ENGAGEMENTGOVERNANCE
Copyright © 2014 Capgemini Consulting. All rights reserved.
Digital Masters Create Dedicated Governance to
Drive Transformation
28%
29%
40%
27%
29%
50%
15%
22%
16%
14%
0% 10% 20% 30% 40% 50% 60%
We don’t have any formal governance practices around Digital Transformation
A cross-functional innovation group thatevaluates the business impact of emerging
technologies
A cross-functional steering committee to makestrategic decisions and allocate resources
Dedicated digital leadership roles in differentunits
A dedicated senior leadership role withresponsibility across all digital initiatives
Non-masters
Digital Masters
% of respondents
Copyright © 2014 Capgemini Consulting. All rights reserved.
Sustain the Transformation
• Build Foundation Skills
• Align Incentives & Rewards
• Measure, Monitor & Iterate
Frame the Digital Challenge
• Build Awareness/Understand
Impact
• Know your Starting Point
• Craft Vision & Align Top Team
Focus Investments
• Translate Vision into Action
• Build Your Governance
• Fund the Transformation
Mobilize the Organization
• Signal your Ambitions
• Earn the Right to Engage
• Set New Behavior &
Evolve Culture
Digital Transformation Is A Job For Now…and
CDOs Can Help Accelerate Those Transformations
Copyright © 2014 Capgemini Consulting. All rights reserved.
Digital Technology Will Remain The Endless Agitator Of The Business World
Augmented Reality
Robotics Artificial Intelligence
Sharing Economies Wearables
3D Printing
You Ain’t Seen Nothin’ Yet
Thank you!
Follow us on twitter at:
@GWESTERMAN
@DIDIEBON
@AMCAFEE
@CAPGEMINICONSUL
#Leadingdigital
Or visit our website at:
www.leadingdigitalbook.com