The Digital Enterprise Shift: Why it matters, and how you can avoid being sidelined


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We constantly hear industry commentators talk about cloud computing, social business, mobile computing, big data or analytics. We also hear talk about how customers’ expectations are changing and how businesses need to deliver more joined-up, high-quality customer experiences. Often not explained, though, is how all these things are connected – and why the big change vectors driving everything are creating new business-technology capability requirements for enterprises. A shift to a new ‘Digital Enterprise’ operating model, which takes a ‘digital first’ approach to building, improving, linking and managing business capabilities wherever they may be, is happening. Digital Enterprises are fundamentally more economically efficient than others. You can see this as an opportunity or a threat; but you can’t ignore it.

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  • Because everything’s interconnected, customers, partners, suppliers and COMPETITION can come from anywhere.The other thing that’s important to realise is that because each business is so “close” to others, this speeds up the pace of change – ideas spread faster.When traffic volumes get high and cars get close together, you get “bunching” effects – the proximity of one car to another creates systemic behaviour change. Drivers can’t react fast enough to keep traffic flowing smoothly.
  • In 1975, around 17% of the market value of the S&P 500 was attributed to “intangible assets” by firms’ own published accounts; by 2005 this had risen to 80% and is holding steady.The average lifespan of a company listed in the S&P 500 index of leading US companies has decreased by more than 50 years in the last century, from 67 years in the 1920s to just 15 years today, according to Professor Richard Foster from Yale University.Today's rate of change "is at a faster pace than ever", he says.Professor Foster estimates that by 2020, more than three-quarters of the S&P 500 will be companies that we have not heard of yet.
  • Digital transformation started at the edges of businesses, and now it’s seeping into the very core of how organisations workRather like how coffee interacts with a sugar cubeFirst the coffee just colours the outside of the cubeOver time though the coffee breaks down the structure and the cube dissolves.Digital transformation is breaking down established organisational structures and patterns of getting things done.
  • BYODShadow IT redux
  • In 1975, around 17% of the market value of the S&P 500 was attributed to “intangible assets” by firms’ own published accounts; by 2005 this had risen to 80% and is holding steady.
  • These things all used to be known and predictable. Now they’re not – or if they are, you should be looking for ways to change them – to lower costs, increase customer satisfaction.
  • The Digital Enterprise Shift: Why it matters, and how you can avoid being sidelined

    1. 1. The Digital Enterprise shift Why it matters, and how you can avoid being sidelined Neil Ward-Dutton Founder, Research Director MWD Advisors mwd advisors helping you get business improvement from IT investment
    2. 2. Mass interconnectivity drives… Globalisation Customers, partners, suppliers – and competition “Connectedness” is driving sophisticated value chains Transparency Industry regulations, consumer pressure and competition driving openness Smart, connected markets Ecosystem participants – particularly customers – see the “online world” as the natural place to look for information, services © MWD Advisors 2013 2
    3. 3. Every business is ‘close’ to every other; environments are becoming more unpredictable © MWD Advisors 2009 3
    4. 4. Large companies’ lifecycles are becoming ever shorter © MWD Advisors 2013 4
    5. 5. Competing purely on price or product is unsustainable. What about customer experience? Open Service Seamless “Always” Home from home These companies are setting your customers’ expectations for service and experience © MWD Advisors 2013 5
    6. 6. Here’s what large enterprises are doing already +++ Outsourcing Partnering Integrate, consolidate, automate at the core Processes are often a “cost of doing business” Minimise cost, maximise scalability and quality © MWD Advisors 2013 +++ Channels Venues Media 6
    7. 7. As more activities are standardised, more value comes from knowledge work © MWD Advisors 2013 7
    8. 8. Customer intimacy is about joining dots Gather intelligence through each customer journey to make future experiences more engaging Customer Journey stage 1 Marketing Service Customer Journey stage n+1 Your customer Sales Operations Customer Journey stage 3 Customer Journey stage n © MWD Advisors 2013 Customer Journey stage 2 8
    9. 9. Industry evolution has taken us down a challenging path Supplier X Partner B Enterprises and value chains want to be dispersed, flexible Your core Partner A Your service centres Great experiences want to be integrated Supplier Y © MWD Advisors 2013 9
    10. 10. Customer Experience Excellence runs counter to the status quo for many © MWD Advisors 2013 10
    11. 11. “IT Doesn’t Matter”? Frankly, that’s BS Information communication, sharing, integration Information storage Old world (Efficiency, scale) New world (Agility) Optimising individual or team productivity © MWD Advisors 2013 Optimising enterprise value from knowledge 11
    12. 12. Time to wake up and smell isthe coffee! this your organisation
    13. 13. In the Digital Enterprise… Clouds, connectivity bring increased choice Access devices Applications Platforms Consumer technologies and networks are puncturing enterprise technology services © MWD Advisors 2013 13
    14. 14. In the Digital Enterprise… Structures and connections are being remade Control hierarchies Information networks Work is a place you go Work is a thing you do © MWD Advisors 2013 14
    15. 15. In the Digital Enterprise… Everything can leave an information trail Relatively cheap, fast, highly scalable commodity technology Service usage Real-time insights, recommendations, optimisations Product usage Events Conversations © MWD Advisors 2013 Commercial ‘data platform’ propositions Infrastructure usage 15
    16. 16. Social + Mobile = Opportunity to reshape knowledge work More computing power than the entire Apollo 11 moonshot program! Image/video capture Audio/speech capture Location/orientation Gestures/signatures Notifications/actions © MWD Advisors 2010 16
    17. 17. New pretenders: networks, platforms, ecosystems © MWD Advisors 2013 17
    18. 18. Opportunity is everywhere! • Quick, flexible ways to connect people, information, knowledge, resources • Quick, flexible ways to build operational capabilities • Ways to get smarter about operational reality and opportunity, and act on insight quickly and flexibly
    19. 19. In your organisation, work is ripe for reinvention in all six dimensions What? How? Who? Why? When? Where? © MWD Advisors 2013 19
    20. 20. But… There’s No Such Thing As a Free Lunch © MWD Advisors 2013 20
    21. 21. Opportunities come with challenges ① ② Choice and disruption. How to prioritise technology investment and application in projects/programs? Fast, flat organisations. How to reshape attitudes to information sharing, collaborative working? © MWD Advisors 2013 ③ ④ The need for agility. How to deliver information and technology access while managing cost, quality and risk? Realising new value. How to extract new insights from new data in new ways so you can act on it effectively? 21
    22. 22. A Digital Enterprise is flexible and adaptable.. where it needs to be “The future is already here – but you should aim to distribute it unevenly” - Paraphrasing William Gibson © MWD Advisors 2013 • Some areas of business are (or need to be) controlled, structured, predictable; others need to be highly adaptable, even experimental • Conduct a domain-based analysis of business capabilities and match with appropriate technology strategies • Accept that boundaries will change over time 22
    23. 23. A Digital Enterprise is designed and maintained ‘Outside-In’ “Design thinking is… the analysis of the relationship between people and products, and of the relationship between people and people… there is an opportunity to transform it from a black art into a systematically applied management approach.” - Tim Brown, CEO, IDEO © MWD Advisors 2013 • As the actors of strategy and competition move from individual businesses to platforms and ecosystems, Design Thinking principles should shape your approach • Take a customer/user-first perspective and explore possibilities from an outside-in viewpoint • Structure customer-facing work to embrace exceptions and don’t purely chase efficiency 23
    24. 24. A Digital Enterprise is Open, Collaborative “In the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed.” - Charles Darwin © MWD Advisors 2013 • Interest in improving levels of collaboration has exploded – with a focus on better sharing of knowledge, driving innovation, supporting distributed teams and building better relationships externally • Tackle organisational structures, culture and workforce engagement simultaneously – and don’t rely on technology alone 24
    25. 25. A Digital Enterprise is ‘Data-Literate’ “A point of view can be a dangerous luxury when substituted for insight and understanding.” - Marshall McLuhan © MWD Advisors 2013 • Technology platforms can gather and process more data from more places, more quickly – but increasingly we’re “data rich but insight poor” • Getting the right insight to the right place at the right time requires serious skills and capabilities • Empower your people and systems to make sense of and act on operational data • Link analytics & information management people, technology investments to clear business strategies 25
    26. 26. In a Digital Enterprise, management systems are digital, integrated Analog Digital Management information systems Management information systems Corporate communications tools Corporate communications tools Work procedures and practices Work procedures and practices Core business applications Core business applications Integrated Systems of insight (information) Systems of record Systems of co-ordination (process) Systems of Engagement (people) Organisations that can embrace this trend will have a massive Agility Advantage © MWD Advisors 2013 26
    27. 27. The management system integration trend is unfolding now Predictive Analytics Systems of insight (information) Social Analytics Operational Process Intelligence Decision management Systems of record Systems of co-ordination (process) Systems of Engagement (people) Case Management © MWD Advisors 2013 Collaborative Decision Making Social Tasks, Processes, Projects 27
    28. 28. Ready to face the new reality? Here are your priorities • Design thinking for products, services, capabilities, processes “The real problem with humanity... is we have Paleolithic emotions, medieval institutions and God-like technology.” - Edward O Wilson (“the father of sociobiology”) © MWD Advisors 2013 – Work customer-/user-first, outsidein – Bridge organisation silos and perspectives – Embrace experimentation and prototyping • Data literacy – The evolving business value of data – where can it take you? • ‘Management’ revisited – Be prepared to reinvent how your organisation works, to minimise management overhead and maximise collaboration 28
    29. 29. We’re observing, learning, advising The MWD Advisors research landscape BUSINESS COMPETENCIES BUSINESS AND TECHNOLOGY IMPERATIVES, DISRUPTIONS Collaboration and social software (people) © MWD Advisors 2013 Value of Knowledge Work Real-time business Big Data Cloud, SaaS Mobile/mobility Business process management (process) Reinventing customer experience Analytics and information management (information) IN-DEPTH, PRACTICAL FIELD RESEARCH READINESS/ BENCHMARKING STUDIES, CASE STUDIES, SURVEYS, VENDOR/PRODUCT ASSESSMENTS ETC. 29
    30. 30. About MWD Advisors A European industry technology research and advisory company with… 8 3 5,200+ © MWD Advisors 2013 Years in business, helping organisations drive business improvement and transformation through IT Active industry research programs – Analytics & Information Management, Business Process Management, Collaboration & Social Software Research subscribers across the globe 30
    31. 31. @neilwd Digital technology is the biggest disruptive force in business. Where can it take you? Get the free in-depth report at mwd advisors helping you get business improvement from IT investment