Digital Transformation - Beyond the Hype #DF13
 

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While there is increased recognition of digital’s role, the challenge remains for many to translate it into business value through innovation and competitive advantage. They are caught struggling ...

While there is increased recognition of digital’s role, the challenge remains for many to translate it into business value through innovation and competitive advantage. They are caught struggling for pace, and risk falling into the chasm between initiation and termination of transformation initiatives. Didier Bonnet's shares Capgemini Consulting's insight at Dreamforce '13 into the results of the landmark study with MIT on transformation trends, along with insight from an expert customer panel that will share experiences on how they address these challenges. This is the slide deck accompanying the session in San Francisco.

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  • Full Name Full Name Comment goes here.
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  • Thank you Discerning Digital. We appreciate the feedback.
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  • Nice work Didier and Capgem, we particularly like the 'How to drive digital transformation' slide. Fantastic!
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  • Thanks for the feedback Sajid. We will pass it on to Didier Bonnet who is delivering this presentation at Dreamforce today. Happy to speak with any business that needs support with digital transformation.
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  • It is very informative and scientific presenation with grid and research. Would you augment 'Principles of Internet' at SlideShare?
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Digital Transformation - Beyond the Hype #DF13 Presentation Transcript

  • 1. DIGITAL TRANSFORMATION BEYOND THE HYPE
  • 2. What do these companies have in common? The Digital Advantage - Dreamforce_M Copyright © Capgemini 2013. All Rights Reserved 2
  • 3. What is digital mastery? Digital Capability Leadership Capability Technology-enabled initiatives in: Customer Experience Leadership capabilities including: Vision Internal Operations Governance Engagement IT-Business Relationships The Digital Advantage - Dreamforce_M Copyright © Capgemini 2013. All Rights Reserved 3
  • 4. Mastering both dimensions is the key to achieving the digital advantage Nike: From Separate Initiatives to Firm-Level Transformation 1 1 DIGITAL CAPABILITY Digital Product Digital Product Design Design Social Media Social Media Customized Customized Manufacturing Manufacturing + 2 2 FIRM-LEVEL TRANSFORMATION LEADERSHIP CAPABILITY Digital Division: Digital Division: Nike Digital Sport Nike Digital Sport      Digital marketing Digital product innovation/design Digital commerce (e/m-commerce) Digital technologies (GPS, mobile, etc.) Customer analytics The Digital Advantage - Dreamforce_M Copyright © Capgemini 2013. All Rights Reserved 4
  • 5. Four levels of digital mastery FASHIONISTAS Many advanced digital features (such as social, mobile) in silos No overarching vision Underdeveloped coordination Digital culture may exist in silos DIGITAL MASTERS Strong overarching digital vision Good governance Many digital initiatives generating business value in measurable ways Strong digital culture BEGINNERS CONSERVATIVES 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, but traditional capabilities may be Strong governance across silos Taking active steps to build digital skills and culture The Digital Advantage - Dreamforce_M Copyright © Capgemini 2013. All Rights Reserved 5
  • 6. Digital mastery varies widely FASHIONISTAS BEGINNERS DIGITAL MASTERS CONSERVATIVES The Digital Advantage - Dreamforce_M Copyright © Capgemini 2013. All Rights Reserved 6
  • 7. Digital Masters have significantly better financial performance than their peers Revenue Generation Efficiency Profitability Market Valuation +6% +9% -11% +26% -12% +12% -4% -10% -24% +9% -7% +7% Basket of indicators: Revenue / Employee Fixed Asset Turnover Basket of indicators: EBIT Margin Net Profit Margin Basket of indicators: Tobin’s Q Ratio Price / book ratio The Digital Advantage - Dreamforce_M Copyright © Capgemini 2013. All Rights Reserved 7
  • 8. Some industries average higher mastery than others… Telecoms Travel and hospitality High Technology Average industry digital mastery: Retail Pharmaceuticals Banking Consumer Packaged Goods Insurance Utilities Manufacturing The Digital Advantage - Dreamforce_M Copyright © Capgemini 2013. All Rights Reserved 8
  • 9. …but every industry already has digital masters Percentage of firms in each industry by quadrant The Digital Advantage - Dreamforce_M Copyright © Capgemini 2013. All Rights Reserved 9
  • 10. Digital Masters have a common Digital DNA They invest in 100% of the elements of Leadership Capability…  Transformative Vision  Shared Vision “Digitising P&G will enable us to manage the business in real time and on a demand-driven basis. We’ll be able to collaborate more effectively and efficiently, inside and outside the Company” Vision Chief Digital Officer    CDOs & Digital Unit Chief Digital Officer Shared Digital Units Investment Committees Governance  Promoting Change  Employee Participation  Investing in Skills Engagement IT / Business Innovation challenges “The IT Team (...) now work hand in hand with the Creative Media team.” Digital Year  Shared understanding between IT and business executives on role of IT The Digital Advantage - Dreamforce_M Copyright © Capgemini 2013. All Rights Reserved 10
  • 11. Digital Masters have a common Digital DNA …and they make strategic decisions on where to excel with digital capabilities Focus Investments on Where they Choose to Excel Digitally + Combine Digital Capabilities to Exploit Synergies Customer Experience In-store Online Social media Mobile channel Unified Processes / Integrated Data Process Excellence Supply-chain Integration Customer experience Centralized Ordering New business models Unified Processes / Integrated Data Analytics capabilities Personalized Customer experience Online On-premise Unified Processes / Integrated Data The Digital Advantage - Dreamforce_M Copyright © Capgemini 2013. All Rights Reserved 11
  • 12. How to drive digital transformation Sustain the Transformation Frame the Digital Challenge Build Capabilities Align Incentives & Rewards Measure, Monitor & Iterate Understand the Impact Assess Digital Maturity Develop Vision & Align Around It Sustain Engage Engage the Organisation Signal the Change Mobilise at Scale Evolve Culture & Adapt Work Practices Frame Focus Focus Investments Build a Digital Roadmap Build Investment Case Set up Governance Model The Digital Advantage - Dreamforce_M Copyright © Capgemini 2013. All Rights Reserved 12
  • 13. In conclusion DIGITAL MASTERY MATTERS DIGITAL MASTERY MATTERS IT MATTERS IN EVERY INDUSTRY IT MATTERS IN EVERY INDUSTRY ANY COMPANY CAN BUILD DIGITAL DNA ANY COMPANY CAN BUILD DIGITAL DNA TAKE ACTION NOW TO TAKE ACTION NOW TO CREATE YOUR OWN DIGITAL CREATE YOUR OWN DIGITAL ADVANTAGE ADVANTAGE The Digital Advantage - Dreamforce_M Copyright © Capgemini 2013. All Rights Reserved 13
  • 14. The New t al Digi rs te Mas The Digital Advantage - Dreamforce_M Copyright © Capgemini 2013. All Rights Reserved 14
  • 15. About Capgemini With more than 125,000 people in 44 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2012 global revenues of EUR 10.3 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model. Learn more about us at www.capgemini.com www.capgemini.com The information contained in this presentation is proprietary. © 2013 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini.