Capgemini Digital Transformation - Beyond the Hype
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Capgemini Digital Transformation - Beyond the Hype

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Capgemini Digital Transformation - Beyond the Hype Capgemini Digital Transformation - Beyond the Hype Presentation Transcript

  • DIGITAL TRANSFORMATION BEYOND THE HYPE
  • 2Copyright © Capgemini 2013. All Rights Reserved The Digital Advantage - Dreamforce_M What do these companies have in common?
  • 3Copyright © Capgemini 2013. All Rights Reserved The Digital Advantage - Dreamforce_M Digital Capability Leadership Capability What is digital mastery? Technology-enabled initiatives in:  Customer Experience  Internal Operations Leadership capabilities including:  Vision  Governance  Engagement  IT-Business Relationships
  • 4Copyright © Capgemini 2013. All Rights Reserved The Digital Advantage - Dreamforce_M Mastering both dimensions is the key to achieving the digital advantage Nike: From Separate Initiatives to Firm-Level Transformation Social Media Digital Product Design Customized Manufacturing Digital Division: Nike Digital Sport 1 2 DIGITAL CAPABILITY LEADERSHIP CAPABILITY  Digital marketing  Digital product innovation/design  Digital commerce (e/m-commerce)  Digital technologies (GPS, mobile, etc.)  Customer analytics FIRM-LEVEL TRANSFORMATION+
  • 5Copyright © Capgemini 2013. All Rights Reserved The Digital Advantage - Dreamforce_M BEGINNERS  Management skeptical of the business value of advanced digital technologies  May be carrying out some experiments  Immature digital culture FASHIONISTAS  Many advanced digital features (such as social, mobile) in silos  No overarching vision  Underdeveloped coordination  Digital culture may exist in silos Four levels of digital mastery DigitalCapability Leadership Capability CONSERVATIVES  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 DIGITAL MASTERS  Strong overarching digital vision  Good governance  Many digital initiatives generating business value in measurable ways  Strong digital culture
  • 6Copyright © Capgemini 2013. All Rights Reserved The Digital Advantage - Dreamforce_M Digital mastery varies widely DIGITAL MASTERS CONSERVATIVES FASHIONISTAS BEGINNERS
  • 7Copyright © Capgemini 2013. All Rights Reserved The Digital Advantage - Dreamforce_M Revenue Generation Efficiency Profitability Market Valuation Digital Masters have significantly better financial performance than their peers +6% +9% -4% -10% Basket of indicators:  Revenue / Employee  Fixed Asset Turnover -11% +26% -24% +9% Basket of indicators:  EBIT Margin  Net Profit Margin -12% +12% -7% +7% Basket of indicators:  Tobin’s Q Ratio  Price / book ratio
  • 8Copyright © Capgemini 2013. All Rights Reserved The Digital Advantage - Dreamforce_M Some industries average higher mastery than others… Average industry digital mastery: Banking Consumer Packaged Goods Insurance Manufacturing Pharmaceuticals Retail High Technology Telecoms Travel and hospitality Utilities
  • 9Copyright © Capgemini 2013. All Rights Reserved The Digital Advantage - Dreamforce_M …but every industry already has digital masters Percentage of firms in each industry by quadrant
  • 10Copyright © Capgemini 2013. All Rights Reserved The Digital Advantage - Dreamforce_M They invest in 100% of the elements of Leadership Capability… Digital Masters have a common Digital DNA  Transformative Vision  Shared Vision  Chief Digital Officer  Shared Digital Units  Investment Committees  Promoting Change  Employee Participation  Investing in Skills  Shared understanding between IT and business executives on role of IT “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” Innovation challenges Digital Year CDOs & Digital UnitChief Digital Officer “The IT Team (...) now work hand in hand with the Creative Media team.” Vision Governance Engagement IT / Business
  • 11Copyright © Capgemini 2013. All Rights Reserved The Digital Advantage - Dreamforce_M Focus Investments on Where they Choose to Excel Digitally Combine Digital Capabilities to Exploit Synergies + Customer Experience Social media Mobile channel In-store Online Unified Processes / Integrated Data Process Excellence Supply-chain Integration Centralized Ordering New business models Customer experience Unified Processes / Integrated Data Analytics capabilities Personalized Customer experience Unified Processes / Integrated Data On-premise Online Digital Masters have a common Digital DNA …and they make strategic decisions on where to excel with digital capabilities
  • 12Copyright © Capgemini 2013. All Rights Reserved The Digital Advantage - Dreamforce_M Frame the Digital Challenge  Understand the Impact  Assess Digital Maturity  Develop Vision & Align Around It Focus Investments  Build a Digital Roadmap  Build Investment Case  Set up Governance Model Sustain the Transformation  Build Capabilities  Align Incentives & Rewards  Measure, Monitor & Iterate Engage the Organisation  Signal the Change  Mobilise at Scale  Evolve Culture & Adapt Work Practices How to drive digital transformation Sustain Frame Engage Focus
  • 13Copyright © Capgemini 2013. All Rights Reserved The Digital Advantage - Dreamforce_M In conclusion DIGITAL MASTERY MATTERS IT MATTERS IN EVERY INDUSTRY ANY COMPANY CAN BUILD DIGITAL DNA TAKE ACTION NOW TO CREATE YOUR OWN DIGITAL ADVANTAGE
  • 14Copyright © Capgemini 2013. All Rights Reserved The Digital Advantage - Dreamforce_M
  • The information contained in this presentation is proprietary. © 2013 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini. www.capgemini.com 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