Copyright © 2014 Capgemini Consulting. All rights reserved.

TURNING TECHNOLOGY INTO BUSINESS TRANSFORMATION

LEADING DIGITAL

DR CLIFF EVANS

Video – you ain’t seen nothing yet

https://www.capgemini-consulting.com/video/digital-transformation-we-havent-seen-anything-yet

Copyright © 2014 Capgemini Consulting. All rights reserved.

What Do These Great CompaniesHave In Common?

Copyright © 2014 Capgemini Consulting. All rights reserved.

Dig

ital C

apab

ility

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 MasteryD

igita

l Cap

abili

ty

Leadership Capability

FASHIONISTAS DIGITAL MASTERS

CONSERVATIVESBEGINNERS

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

apab

ility

Leadership Capability

REVENUE GENERATION EFFICIENCY

+6%

Basket of indicators:• Revenue / Employee• Fixed Asset Turnover

+9%

-10%-4%

Dig

ital C

apab

ility

Leadership Capability

PROFITABILITY

% +26%

+9%-24%

-11%

Copyright © 2014 Capgemini Consulting. All rights reserved.

Digital has informed and amplified customer

expectations

Digital is removing traditional constraints in

operations

Digital business models can reorder value chains andcreate new opportunities

BUSINESS MODEL

CUSTOMER EXPERIENCE

OPERATIONS

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

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Create a shared transformative vision of

the digital future

Engage employees at scale to make vision a reality

Fuse IT & business communities to builddigital skills & transform technology platforms

Establish strong digital governance to steer the course

The How: Leadership Capabilities Is What Turns Digital Investments Into Digital Advantage

IT/BUSINESS VISION

ENGAGEMENTGOVERNANCE

Copyright © 2014 Capgemini Consulting. All rights reserved.

Create a shared transformative vision of

the digital future

Engage employees at scale to make vision a reality

Fuse IT & business communities to builddigital skills & transform technology platforms

Establish strong digital governance to steer the course

The How: Leadership Capabilities Is What Turns Digital Investments Into Digital Advantage

IT/BUSINESS VISION

ENGAGEMENTGOVERNANCE

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Copyright © 2014 Capgemini Consulting. All rights reserved.

Vision Sets Direction,Engaged People Make It Happen

FOSTER NEW WAYSOF WORKING

CONNECT THE ORGANIZATION

ENCOURAGE WIDERCONVERSATIONS

• Closing knowledge gaps• Increasing engagement• Solving business issues• Generating new ideas

• Wikis• Microblogs• Social Networks• Video Conferencing

• Executive involvement• Digital champions• Reverse mentoring• Use cases

SCALINGWIRING ADOPTING

New innovation process is creating more innovation, collaboration, and employee engagement across the

company’s business units.

“Communities that are created on the network are free from

geographical, functional or hierarchical boundaries.”

“With executive engagement, you don’t have to mandate activity.”

Copyright © 2014 Capgemini Consulting. All rights reserved.

• New ways of working

• Rethinking infrastructure / replatforming

IT Business Relationship

Digital Platform

Digital Skills • Digital IQ program

Business And IT Leaders Together DriveTransformation Efforts Better Than They Do Apart

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Copyright © 2014 Capgemini Consulting. All rights reserved.

Companies That Build Digital Skills Faster Will Get Ahead of the Pack

PLUGGING THE SKILL

GAP

Innovative Recruitment

Methods

Target Company

Acquisitions

EcosystemPartnerships

Incubating for the Future

Training Programs

Made several Acquisitions

of Mobile, Social and Technology Firms

Gamified their Recruitment Process

Launched a Digital IQ training. Over 20,000 employees trained

in 2 years

Implemented reverse mentoring programs

Launched an incubator program for mobile startups

77% of the companies

highlighted “skills” as the key hurdle

to digital transformation

...YET...

Only 30% of HR functions were

actively involved in digital skills

development

Ecosystem of JVs for core technology

developments

Copyright © 2014 Capgemini Consulting. All rights reserved.

Our Research Has Driven a Number of Firm Convictions Around Digital Transformation

Enablers

The ‘WHAT’

Consumers At The Heart

Data As A New Currency

Digital Across The Value Chain

Open Innovation

The ‘HOW’

Led From The Top

People Engagement

Governance Drives Performance

Experiment & Scale Quickly

+

• Wiring The Enterprise• Building Digital Capabilities