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Digital Business Edge
In the next 45 minutes …

Humanity will:
• Send 9 billion emails
• Buy $3.6 million on
Amazon.com
• Listen to 2,745 hours
of music on line
• Spend 624 years on
Facebook alone
• Download more than
18,000 apps
• Conduct 90 million
searches on Google

Copyright © 2014 Accenture All rights reserved.
A digital business uses technology to innovate, capture and create
new sources of growth and results.
Digital (adj.) increasing information intensity and
connectedness of customer and business
resources.

Digitize (verb) applying technology to customer
and business resources.

Digital Business (noun) an organization that
incorporates digital technology to create
revenue and results via innovative strategies,
products, processes and experiences.

Copyright © 2014 Accenture All rights reserved.
Becoming a Digital Business is different from digitizing marketing or
operations
New &
New

Being Digital
Combining new
technology with
new operations

Digital Business

Results
Today
Digitize Marketing
or Processes

Efficiency
Copyright © 2014 Accenture All rights reserved.

Feeling Digital
Applying new
technology to old
operations

New &
Old
Digital information and connections commoditize products and
disrupt traditional value chains.

Supplier

Copyright © 2014 Accenture All rights reserved.

Produce

Sales &
Distribution

Customer
Digital Creates dynamic services based concentrated value
chains.
Supplier

Customer

Produce

Services

Sales &
Distribution

Customer

Customer

Produce

Produce

Services

Customer

Services

Supplier

Supplier
Sales &
Distribution

Sales &
Distribution

Customer

Supplier

Copyright © 2014 Accenture All rights reserved.

Sales &
Distribution

Services

Produce
What does it mean to digitalize the business?
Online
Catalogue

Electronic
Commerce

Customer
Interaction

Customer
Experience

Digital
Premium

Digital

Demand Generation and Fulfillment

Multichannel

Marketing

Connected

Relationships and Development

Standalone

Efficiency

Copyright © 2014 Accenture All rights reserved.

Engagement
Executives find themselves at a cross roads when it comes to
digital.

Digital
Business

Digitize
Marketing

Copyright © 2014 Accenture All rights reserved.

Digitize
Processes
Digital Business Principles and Imperatives

Principles
• Put Outcomes over
Processes

• Start and Finish
Outside-In
• Build Platforms

• Organize for Change

Copyright © 2014 Accenture All rights reserved.

Imperatives
• Customer Experience
• Cross Channel
Excellence

• Operational Simplicity
• Execution Agility
Outcomes over Processes

Copyright © 2014 Accenture All rights reserved.
Start and finish from the outside-in
Outcomes
Mobile & Social
Solutions

Information
& Processes

Analytics
& Big Data

Digital
Business

Cloud
Platforms

Digitized
Processes

Infrastructure

Copyright © 2014 Accenture All rights reserved.

Current
Capabilities
Build Platforms
Many from
Many

Many are the
same

One out of
many

Local
Flexibility

Many out of
one

Digital
Premium

Digital
A Business Platform is the collectionParticipation

of resources that integrate, manage
and apply information Technical
and
automation to digitalConsolidation
outcomes.
These resources adapt to multiple
experiences without rigid
Technical
specialization
Implementation

Business
Functions

Standardized
Operations

Shared
Services

Business
Platform

Adapted from Ross and Weill, Enterprise Architecture as Strategy. Harvard Business School Press. 2006.
Page 72.

Copyright © 2014 Accenture All rights reserved.

Digital
Agility
Digital Business Principles and Imperatives

Principles
• Put Outcomes over
Processes

• Start and Finish
Outside-In
• Build Platforms

• Organize for Change

Copyright © 2014 Accenture All rights reserved.

Imperatives
• Customer Experience
• Cross Channel
Excellence

• Operational Simplicity
• Execution Agility
These principles and imperatives define a digital business
roadmap
Digital Business
Digital Marketing
Digitize Processes
Customer
Experience

• Increase access to sales
and service channels
• Reduce negative
outcomes

• Add analytics based
contextualization
• Increase digital and
personalized marketing

• Innovate products into
information services
• Raise customers human
ability and capacity

Cross
Channel
Excellence

• Consolidate channel
operations
• Deliver same response
regardless of channel

• Establish omni-channel
consistency
• Raise contact center
skills and efficiencies

• Contextually aware
customer service
• Second moment of truth
support and service

Operationa
l simplicity

• Identify “Prime Value”
Processes.
• Consolidate similar
services and functions

• Automate processes and
activities
• Consolidate information
and systems

• Design from the
customer’s perspective
• Build business and
technology platforms

Execution
agility

• Consolidate information
& management systems
• Implement an active
reuse program

• Close the sales, service
and product gaps.
• Separate supporters
from creators

• Lead from outcomes and
transparency
• Upgrade governance
and management

Copyright © 2014 Accenture All rights reserved.
Becoming a Digital Business is different from digitizing marketing or
operations
Digital
Digitize Marketing

Revenue

Business

Digitize
Channels

External
Focus

Digitalize
Business
Models

Digitize
Operations

Digitize Processes

Internal Focus
Copyright © 2014 Accenture All rights reserved.

Margin
Three Recipes for Digital Business Success
Where will you write the digital future of your organization?

Product
+ Connections
= Service

Blackboard:
Digitizing Internal
Operations

Copyright © 2014 Accenture All rights reserved.

Service
+ Information
= Experience

Whiteboard:
Digitizing External
Marketing

Experience
+ Platform
= Outcomes

Tablet: Creating New
Value Propositions

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HPMC 2014 - Digital business edge - Accenture

  • 2. In the next 45 minutes … Humanity will: • Send 9 billion emails • Buy $3.6 million on Amazon.com • Listen to 2,745 hours of music on line • Spend 624 years on Facebook alone • Download more than 18,000 apps • Conduct 90 million searches on Google Copyright © 2014 Accenture All rights reserved.
  • 3. A digital business uses technology to innovate, capture and create new sources of growth and results. Digital (adj.) increasing information intensity and connectedness of customer and business resources. Digitize (verb) applying technology to customer and business resources. Digital Business (noun) an organization that incorporates digital technology to create revenue and results via innovative strategies, products, processes and experiences. Copyright © 2014 Accenture All rights reserved.
  • 4. Becoming a Digital Business is different from digitizing marketing or operations New & New Being Digital Combining new technology with new operations Digital Business Results Today Digitize Marketing or Processes Efficiency Copyright © 2014 Accenture All rights reserved. Feeling Digital Applying new technology to old operations New & Old
  • 5. Digital information and connections commoditize products and disrupt traditional value chains. Supplier Copyright © 2014 Accenture All rights reserved. Produce Sales & Distribution Customer
  • 6. Digital Creates dynamic services based concentrated value chains. Supplier Customer Produce Services Sales & Distribution Customer Customer Produce Produce Services Customer Services Supplier Supplier Sales & Distribution Sales & Distribution Customer Supplier Copyright © 2014 Accenture All rights reserved. Sales & Distribution Services Produce
  • 7. What does it mean to digitalize the business? Online Catalogue Electronic Commerce Customer Interaction Customer Experience Digital Premium Digital Demand Generation and Fulfillment Multichannel Marketing Connected Relationships and Development Standalone Efficiency Copyright © 2014 Accenture All rights reserved. Engagement
  • 8. Executives find themselves at a cross roads when it comes to digital. Digital Business Digitize Marketing Copyright © 2014 Accenture All rights reserved. Digitize Processes
  • 9. Digital Business Principles and Imperatives Principles • Put Outcomes over Processes • Start and Finish Outside-In • Build Platforms • Organize for Change Copyright © 2014 Accenture All rights reserved. Imperatives • Customer Experience • Cross Channel Excellence • Operational Simplicity • Execution Agility
  • 10. Outcomes over Processes Copyright © 2014 Accenture All rights reserved.
  • 11. Start and finish from the outside-in Outcomes Mobile & Social Solutions Information & Processes Analytics & Big Data Digital Business Cloud Platforms Digitized Processes Infrastructure Copyright © 2014 Accenture All rights reserved. Current Capabilities
  • 12. Build Platforms Many from Many Many are the same One out of many Local Flexibility Many out of one Digital Premium Digital A Business Platform is the collectionParticipation of resources that integrate, manage and apply information Technical and automation to digitalConsolidation outcomes. These resources adapt to multiple experiences without rigid Technical specialization Implementation Business Functions Standardized Operations Shared Services Business Platform Adapted from Ross and Weill, Enterprise Architecture as Strategy. Harvard Business School Press. 2006. Page 72. Copyright © 2014 Accenture All rights reserved. Digital Agility
  • 13. Digital Business Principles and Imperatives Principles • Put Outcomes over Processes • Start and Finish Outside-In • Build Platforms • Organize for Change Copyright © 2014 Accenture All rights reserved. Imperatives • Customer Experience • Cross Channel Excellence • Operational Simplicity • Execution Agility
  • 14. These principles and imperatives define a digital business roadmap Digital Business Digital Marketing Digitize Processes Customer Experience • Increase access to sales and service channels • Reduce negative outcomes • Add analytics based contextualization • Increase digital and personalized marketing • Innovate products into information services • Raise customers human ability and capacity Cross Channel Excellence • Consolidate channel operations • Deliver same response regardless of channel • Establish omni-channel consistency • Raise contact center skills and efficiencies • Contextually aware customer service • Second moment of truth support and service Operationa l simplicity • Identify “Prime Value” Processes. • Consolidate similar services and functions • Automate processes and activities • Consolidate information and systems • Design from the customer’s perspective • Build business and technology platforms Execution agility • Consolidate information & management systems • Implement an active reuse program • Close the sales, service and product gaps. • Separate supporters from creators • Lead from outcomes and transparency • Upgrade governance and management Copyright © 2014 Accenture All rights reserved.
  • 15. Becoming a Digital Business is different from digitizing marketing or operations Digital Digitize Marketing Revenue Business Digitize Channels External Focus Digitalize Business Models Digitize Operations Digitize Processes Internal Focus Copyright © 2014 Accenture All rights reserved. Margin
  • 16. Three Recipes for Digital Business Success Where will you write the digital future of your organization? Product + Connections = Service Blackboard: Digitizing Internal Operations Copyright © 2014 Accenture All rights reserved. Service + Information = Experience Whiteboard: Digitizing External Marketing Experience + Platform = Outcomes Tablet: Creating New Value Propositions