Learn about Digital Disruption and why Business As Unusual is the New BAU.
These insights were presented by Sumit Bhattacharya, Executive president – Strategic Businesses and Marketing, HCL Infosystems Ltd. at the Pune CIO Klub, 2016.
3. 3
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
DROPOUTS SURVIVORS ENTRANTS
What Do the Enterprises in Groups A, B & C Don’t Have in Common?
4. 4
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
Meanwhile, startups are achieving multi billion dollar valuations in less than the average
tenure of a Fortune 500 CEO (4.6 years)
The Slippery Lifespan Slope of Fortune 500 Companies
5. 5
And Provide a Remarkable Opportunity
You have to Respond, React, Re-think & Re-skill
Digital Maturity Equals
According to Accenture and MIT, Higher Levels
Profitability
26%
Growth
9%
Market Valuations
9%
Digital Disruption Has or Will Impact Every Business
6. 6 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
Building Blocks of Digital Maturity
7. 7
So When We Said Machines Will Soon have Human Capabilities…
You Smiled….Right?
Machine Incapable
Uniquely Human Capabilities
1. Autonomous Mobility & Fine
Motor Control
2. Language & Complex
Communication
3. Pattern matching &
unstructured problem solving
Machine Intelligence Capabilities 2016
Interacting With the Physical World
• Fine & gross motor control
• Vision & other senses
Language
• Voice Recognition
• Natural language Processing
• Creating Narratives
Problem Solving
• Answering unstructured queries
• Rule base analysis
• Pattern recognition and classification
9. 9
Notable Disruptors 2: The End of Email?
Helping companies replace email
500,000 people using the platform daily
Spending over 10 hours per person
Observed reduction in emails (50-80%)
Fingers Crossed !
10. 10
Notable Disruptors 3 : Acorns –
The One-button Digital Investor
• DIY investment tool
• Simple mobile application – connects
to debit & credit cards – monitors
what is spent
• Invests the change to the nearest
dollar amount
• In a portfolio of investment products
• Users only need to select their
appetite for risk – Low, Medium or
Aggressive
11. 11
Notable Disrupters 4 : From Agriculture to Digi-Culture
• Increased yields to feed a rapidly growing global population
• Accurate planting prescription customized for each field
• Evaluates more than 20 data layers including soil type, topography and
environment
• Identify the best seed selections and the best variable planting rates to
maximize yield
• Convergence of big data, farm management & freemium economics
• Helps farmers track and report metrics like heat accumulation, rainfall
and soil composition
• Crop health monitoring, variable seeding prescriptions, inventory
management, soil composition data and rainfall tracking made simple
• Multiple pricing models – Free standard package, Advanced monitoring
for $500 per year, and Advanced monitoring and prescriptive planning
package for $500 + $8.50 per acre of farmland
• Used by over one-third of American farms
15. 15
Why Is it Business As Unusual?
• Digital Convergence and Disruptive Technologies are creating a Business As
Unusual reality in buyer behaviour, transactions and expectations
• For business enterprises the New BAU is either an Opportunity or a Threat
• For most CIOs the pressure to rapidly align to the New BAU is an additional
challenge to their Old BAU tasks and responsibilities
• This is especially true in mid-market enterprises where the availability of
adequate IT resources, budgets and skill-sets can create serious constraints
16. 16
The New BAU : The Multi-hatted CIO’s Multi-Pressure Points
DIGITAL DISRUPTER CIO HAT
IoT
Chief Community Officer
Chief Device Officer
Chief Intelligence Officer
Chief Capacity Officer
Chief Appliance Officer
ENTERPRISE PRESSURE POINTS
SOCIAL MEDIA
MOBILITY & BYOD
ANALYTICS
CLOUD
BUSINESS GOAL ENABLEMENT
• Top & Bottom Line Growth
• Customer Experience Enhancement
• Accelerate Time-2-Market
MANAGE IT CHALLENGES
• Increase Infrastructure Agility
• Reduce Cost-2-Serve
• Reduce IT Cost
CIO HAT
Chief Community Officer
17. 17
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, compliance, privacy, security, and
other risks
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
Digital Disruption’s 3-Step Tango
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.
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.