The Future Is Always Beginning Now – Keynote presentation of Mr. Premkumar Seshadri, Executive Vice Chairman and Managing Director, HCL Infosystems Ltd. on ‘Deciphering Digital Disruption – Gear up for a Digital Leap’ at HCL IDC CIO Conclave on 6th April 2016 at Swissotel The Stamford, Singapore.
Mr. Premkumar has highlighted that Digital Disruption is real. We have to redesign the way we work, market and sell. Its Strategy, not Technology that drives Digital Transformation.
2. 2
What do Organizations in these three groups have in common?
National
Sugar Refining
GROUP [A] GROUP [B] GROUP [C]
Among Fortune 500 in 2014,
but not 1955
Among Fortune 500 in 1955,
but not in 2014
Among Fortune 500 in both
1955 & 2014
DEAD SURVIVORS ENTRANTS
3. 3
Average life span of fortune 500 companies is reducing drastically
AverageAgeofCompanyatdeath
Average expectancy of a Fortune 500 company has
declined from around 75 years half a century ago to less
than 15 years today, and heading towards 5 years
Source : American Enterprise Institute (AEI), 2014
6. 6
Are you reading the SIGNS ??
UBER
CALIFORNIA
USD 62 BN
XIAOMI
CHINA
USD 46 BN
AIRBNB
CALIFORNIA
USD 25 BN
PALANTIR
CALIFORNIA
USD 20 BN
SNAPCHAT
CALIFORNIA
USD 16 BN
DIDI KUAIDI
CHINA
USD 16 BN
FLIPKART
INDIA
USD 15 BN
SPACEX
CALIFORNIA
USD 12 BN
PINTEREST
CALIFORNIA
USD 11 BN
WE WORK
NEW YORK
USD 10 BN
LUFAX
CHINA
USD 10 BN
DROPBOX
CALIFORNIA
USD 10 BN
THERANOS
CALIFORNIA
USD 9 BN
ZHONG AN
HONG KONG
USD 8 BN
SPOTIFY
SWEDEN
USD 8 BN
DJI
CHINA
USD 8 BN
STRIPE
CALIFORNIA
USD 5 BN
STEMCENTRX
CALIFORNIA
USD 5 BN
SNAPDEAL
INDIA
USD 5 BN
OLA
INDIA
USD 5 BN
WHO IS
GOING TO
BE YOUR
NEMESIS !!
7. 7
Waves of Digital Disruption
1995+
Music
Photography
Video Rental
…
2020+
All safe havens will be
subject to digital
disruption
…
2005+
Print Media
TV
Travel
Teal-Estate
HR
…
2015+
Finance
Healthcare
Automotive
Real-Estate
Retail
Education
Telco
…
PERIPHERY UTILITY TOUCHING LIFE INVADING LIFE
8. 8
It’s a MASSIVE Disruption
And a Remarkable Opportunity
You have to Respond, React, Re-think & Re-skill
Digital Maturity Equals
According to Accenture and MIT, Higher Levels
More Profitability
26%
More Growth
9%
Higher Market
Valuations
9%
9. 9
HOW WE WORK, MARKET & SELL
Planning Strategy
Marketing Communication
Product Design
Customer Service
Vision
Sales & Marketing
Connected in Real-time
Customers Led and
Adjusted on the Fly
Engaged Leadership
Technology driven
We have to Re-Think
Old Ways New Ways
10. 10
Technology is the Biggest Play for Organizations Today
Every Company is a
TECHNOLOGY Company
10
11. 11
Do we know what it means?
88%
Are undergoing
Digital Transformation Efforts
12. 12
Elements of Digital Transformation
Source : MIT Sloan & Cap Gemini Research
Customer Understanding
• Analytics-based segmentation
• Socially-informed knowledge
Process Digitization
• Performance improvement
• New features
Digitally-modified business
• Product/ service augmentation
• Transitioning physical to digital
• Digital wrappers
Customer touch points
• Customer services
• Cross-channel coherence
• Self service
Performance management
• Operational transparency
• Data-driven decision-making
Digital globalization
• Enterprise Integration
• Redistribution decision authority
• Shared digital services
Top line growth
• Digitally-enhanced selling
• Predictive marketing
• Streamlined customer processes
Worker enablement
• Working anywhere anytime
• Broader & faster communication
• Community knowledge sharing
New digital business
• Digital products
• Reshaping organizational
boundaries
• Unified Data & Processes
• Analytics Capability
• Business & IT Integration
• Solution Delivery
Digital Capabilities
Customer
Experience
Operational
Process
Business
Model
13. 13
Three steps Organizations should undertake to survive and thrive in
the new era
Assess and select the right
DIGITAL PLATFORM
Design and execute the plan for
building TALENT PLATFORM
Digital Strategy drives digital maturity. Put in place a
central ARCHITECTURE to determine ownership,
accessibility, ownership, compliance, privacy,
security, and other risk
Deploy the right next generation PLATFORM tools
and seamlessly integrate them with the legacy
systems. Digital platforms are developed with an
eye on transforming the business
Smart digital organizations build skills to realize
the strategy. Consider customers, citizens, vendors
and partners as extensions (and digital
accelerators) of the talent platform
Define & Implement an enterprise
wide DIGITAL STRATEGY
Group A - American Motors, Studebaker, Detroit Steel, Maytag and National Sugar Refining
Group B - Boeing, Campbell Soup, Deere, IBM and Whirlpool.
Group C - Cisco, eBay, McDonald’s, Microsoft and Yahoo.
All the companies in Group A were in the Fortune 500 in 1955, but not in 2011.
All the companies in Group B were in the Fortune 500 in both 1955 and 2011.
All the companies in Group C were in the Fortune 500 in 2011, but not 1955.
Respond- You are willing to change and invent the new
React - Companies that avoid risk-taking are unlikely to thrive and likely to lose talent. As employees across
all age groups want to work for businesses committed to digital progress.
Re-Think - It is the strategy and not technology that drives digital Transformation
Re-Skill - Maturing digital organizations build skills to realize the strategy.
Digital maturing organizations are able to generate more profits. Digital agenda is led from the top. That is what you see from the numbers here.
So many of us are undergoing it, do we know what we are doing. Only 25% have clear understanding of Digital understanding.
Capgemini and MITSloan discovered that digital transformation is unfolding in three key areas: 1) customer experience, 2) operational processes and 3) business models. he study also identified nine elements that defined each of the three pillars. Successful enterprises pursuing digital transformation incorporate several elements, in their own way, as the building blocks for technology, process, and business model investments.