Explaining the current digital landscape as the Digital Enterprise Wave, ride it or go under. Stop thinking business as usual. Start thinking digitally - design thinking, business model innovation, digital inside and out. Any org structure will work, but you need to change the culture, empower your people and encourage the right behaviours. Then some recommendations of how to do it, where and how to start.

1. Organisational Principles for
Digital Collaboration
David Terrar | Founder & CXO – Agile Elephant | @DT on Twitter
Enterprise 2.0 SUMMIT | 26 November 2014
Driving Business Value

2. Organisational Principles for
Digital Collaboration

3. Organisational Principles for
Digital Collaboration

4. Organisational Principles for
Digital Collaboration

5. Agenda
• Business is changing:
– the current landscape
– the Digital Enterprise Wave
• Why organisational change?
• Using Digital & Social tools - How do you create value?
• How do you establish your Digital Thinking?
• What do you need beyond Digital capability?
• Why bother?
• Who should be involved?
• What are the key recommendations?

6. Hang on - can you explain
this new digital landscape?

7. January 1995
"Move bits, not atoms."

11. Your business model
is under threat!

12. The Digital Enterprise Wave
ride it
or go under!

13. Infrastructure
Connectivity
Internet
WiFi
3G & 4G
Human Factors
Entrepreneurship
Crowdsourcing
Millennials
Economic
Outsourcing
Offshoring
Low cost

17. The Digital Enterprise Wave

18. The Big Shift
Cloud Social Mobile

19. The Digital Enterprise Wave

20. Emerging Technologies
Big Data & Analytics
Internet of Things
3D Printing
Artificial Intelligence

21. The Digital Enterprise Wave

22. “Business as Usual” Thinking
Point Social Media Solutions
Siloed Communities
Lack of Integration
Legacy Systems of Record
Business as Usual

23. The Digital Enterprise Wave

24. We need “Digital” Thinking
Digital and Social inside and out
Business Model Innovation
Systems of Engagement
Design Thinking

25. McKinsey 7 “S” Model
Strategy
Skills
Structure
“Shared
Values”
Staff
Hard Systems
Systems
Style
Soft Systems
 Integrates “hard” and
“soft” business
systems in a
structured way
 “technology neutral”
 Includes employee
engagement
 Proven approach
 Especially useful for
lessons in managing
major change

26. The Digital Enterprise Wave

27. Why organisational change?
• The evidence is mounting – to make digital
truly work change is necessary
• The key is change of Mind-set and Culture
• I worry about some current thinking on
organisational structure….
• We need “Evolution not Revolution!”

31. A Team-Based, Flat Lattice Organization
• Fairness to each other and everyone with whom we come in
contact
• Freedom to encourage, help, and allow other associates to grow
in knowledge, skill, and scope of responsibility
• The ability to make one's own commitments and keep them
• Consultation with other associates before undertaking actions that
could impact the reputation of the company

32. checks and balances to ensure
accountability, transparency and honesty

33. Hierarchy - Wirearchy
taking responsibility individually and collectively
rather than relying on traditional hierarchical status
http://wirearchy.com/what-is-wirearchy/

35. Organisational Change
• It’s not about changing the org chart – many
structures will work
• It is about mind-set and values:
– accountability, transparency and honesty
– checks and balances
– fairness
– freedom to encourage, help, collaborate
– taking responsibility individually and collectively
– empowering employees

36. Total Value
Created
Bottom line = value creation
Increase
Revenue
Average Sale £
Sales Volume
Reduce Costs
Churn
Operating Cost
• Deeper understanding of customer needs
• Conversation with customers increases
attachment to business
• Increased marketing penetration at lower
cost
• Faster lead generation & customer
onboarding
• Faster understanding of product and
customer problems
• Pro-active customer retention
• Fast information movement and higher
levels of collaboration drives efficiency
• Higher employee engagement drives
effectiveness
Close
link
Digital Business Value Creation
Depending on the business, the
impact of digital transformation
will vary – but will drive
significant value

37. Five distinct
social collaboration ambitions

39. Establishing your Digital Thinking
Strategy
Skills
Structure
“Shared
Values”
Staff
Hard Systems
Systems
Style
Soft Systems
 Integrates “hard” and
“soft” business
systems in a
structured way
 “technology neutral”
 Includes employee
engagement
 Proven approach
 Especially useful for
lessons in managing
major change

40. Strategy
© Simon Sinek - https://www.startwithwhy.com/

41. Structure
• Information flow must be fast and pervasive
• You must streamline decision making
• Faster time to market
• New teams, cross functional teams

42. • One of the largest bookmakers in the UK
• 80 year old company undergoing a major culture
shift
• Adopting a lean start up model
• Product teams include people who used to be in
marketing, IT, product management
• 4-6 week new product cycles
• Touch the customer within weeks – used to be 2
years

43. Systems
• Fast reaction time to important information
• Old processes & practices must be replaced
(and that’s not easy)
• New technology, but easy to deploy and use
• Digital and social at the heart of the business
process and creating value

44. Staff
• Must be on board
• Supported by management at all levels
Gallup State of the Global Workplace:
 Worldwide, actively disengaged employees
outnumber engaged employees by nearly 2-1

45. Skills
• Understand the new policies
• Know what’s expected of them
• Know how to operate the new systems

46. Style
Digital Taylorism Open, Good for All

47. Shared Values
• Go back and find your “why”
• Ask “what’s in it for me?” at all levels
• Focus on benefits for all
• Look beyond shareholder value

49. Leading Digital

50. Four Level of Digital Mastery

51. Digital Mastery by Industry

52. What is your level of Digital Mastery?
- generate 9% more revenue
- create 26% more profit
- 12% higher market valuation

53. Who should be involved?
• Top Management, the C-Suite - essential
• Engaged employees – essential
• IT/the CIO – connect to the legacy
• Learning/proving by doing - essential
• Good outcomes for all - essential

54. with
Winners Of The 2014 Groundswell Awards
(Business-To-Employee Division)
Atos "Journey to Collaboration" / Zero emailTM program
• 76,000 employees now collaborating
• Sharing knowledge and expertise through 7,500 purpose built
communities
• 30% active users posting 10 collaborative notes per week/per
user
• Better knowledge sharing leads to faster response times and
more wins
• Reducing response time in some cases from 2 days to 45
minutes
• Operational efficiency gains by reducing internal e-mail overload
by an average of 60%
• Saving an average of 2 hours a day per employee

55. Key recommendations?

58. Key recommendations?
• Revisit your business model
• Revisit your value proposition
• Pilot, but in an area where there is
measurable business benefit
• Learn and adapt
• Roll out, bringing everyone with you
• Ensure everyone shares the benefits

59. References
http://en.wikipedia.org/wiki/Nicholas_Negroponte
http://en.wikipedia.org/wiki/Being_Digital
http://www.capgemini.com/resources/transform-to-the--power-of-digital
http://www.zdnet.com/examining-the-digital-workplace-in-2014-7000026781/
http://postshift.com/author/lee/
http://www.technologytransformation.com/High%20Perfomance%20Projects.htm
http://www.bonkersworld.net/organizational-charts/
http://en.wikipedia.org/wiki/Valve_Corporation#mediaviewer/File:Valve_logo.svg
http://thenextweb.com/shareables/2012/04/21/valves-new-employee-handbook-is-as-inspiring-as-the-games-it-makes/
http://www.gore.com/en_xx/aboutus/culture/
http://www.johnlewispartnership.co.uk/about/our-constitution.html
http://wirearchy.com/what-is-wirearchy/
http://blog.medallia.com/customer-experience/ceo-top-pyramid/
http://www.ibm.com/smarterplanet/us/en/centerforappliedinsights/article/social_insights.html
http://socialbusinessjourney.com/2014/02/25/social-business-cookbook-soft-version-for-all-culture-hackers/
https://www.startwithwhy.com/
http://www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspx
http://www.amazon.co.uk/Leading-Digital-Technology-Business-Transformation-ebook/dp/B00NE6MG0Y/ref=sr_1_1?s=books&ie
=UTF8&qid=1416926793&sr=1-1&keywords=leading+digital
http://www.businessmodelgeneration.com/canvas/bmc
https://strategyzer.com/value-proposition-design
Not for reading – just for reference

60. David Terrar
Agile Elephant | techUK | EuroCloud UK
p: +44 (0)1727 866309
m: +44 (0)7715 159423
e: david@theagileelephant.com
w: www.theagileelephant.com
skype: david_terrar
twitter: http://twittter.com/DT @DT
linkedin: http://www.linkedin.com/in/davidterrar
blog: http://theagileelephant.com/blog
& http://medium.com/@DT
innovation | digital transformation | value creation | (r)evolution