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Digital  Transformation:  
Risk  and  Maturity  Assessment
Mark	
  Pedersen
Risk  Appetite
•What	
  is	
  the	
  Risk	
  Appetite	
  of	
  your	
  organisation?
Understand	
  
Context
Assess	
  
Symptoms
Review	
  
Maturity
Curiosity Acceptance Selection Transformation
Indicators
Awareness	
  of	
  the	
  
trend	
  toward	
  digital	
  
but	
  not	
  seeing	
  the	
  
relevance	
  to	
  this	
  
organisation.	
  
Acceptance	
  that	
  the	
  
organisationneeds	
  to	
  
adopt	
  a	
  digital	
  posture	
  
but	
  not	
  sure	
  where	
  to	
  
start.
A	
  pilot	
  project	
  is	
  being /	
  has	
  
been	
  selected; or	
  an	
  initial	
  
pilot	
  failed	
  and	
  the	
  initiative	
  is	
  
starting	
  over	
  from	
  scratch
A	
  successful	
  pilot	
  project	
  has	
  
been	
  completed	
  and	
  broader	
  
DT	
  activities	
  are	
  now	
  underway
Focus	
  of	
  Risk	
   Mitigation
External	
  risks	
  of:	
  
• Disruption,
• disintermediatio
n	
  
• decline	
  in	
  value	
  
of	
  services
Internal risk:
• inability	
  to	
  pivot.
Internal	
  risks:
• Unclear	
  objectives
• Organisational
tension
• Lack	
  of	
  capability
External	
  risks:
• Competitor	
  moves	
  
first
Internal	
  risks:
• Unsuitable pilot
• Organisational change	
  
management
• Unmanaged	
  technical	
  
risks
• Morale	
  impact	
  of	
  
(second)	
  failure
External	
  risks:
• Competitor	
  moves	
  first
• Reputation	
  impact	
  of	
  
failure
Internal	
  risks:
• Unscalable methodology
• Change	
  fatigue
• Technical risks	
  in	
  legacy	
  
systems
External	
  risks:
• Maintenance	
  customer	
  
satisfaction	
  (and	
  
reputation)	
  
Case  Study:  NDIS
•Primary	
  delivery	
  platform:	
  
mobile	
  devices
•User	
  profile:	
  
–limited	
  experience,	
  accessibility	
  
highly	
  important
•Integration	
  requirements:	
  
–business	
  data	
  workflows	
  integrated	
  
across	
  Siebel,	
  SAP	
  and	
  .NET	
  web	
  
interface
•Solution	
  maturity:	
  
–no	
  previous	
  experience	
  with	
  
individual	
  client	
  facing	
  solution
•Security:	
  
–highly	
  important
•Reputation	
  risk:	
  
–extreme
Risk  Clusters
•Architecture
•Integration
•Performance
•Reliability
•Compatability
•Security
Technical	
  Risks
Symptoms
• Numerous	
  
work	
  arounds
• Poor	
  scalability
• Frequent	
  
dropouts
• Limited	
  device	
  
support
• Loss	
  of	
  
sensitive	
  data
Technical	
  Risks
Culture  trumps  Process
Cucumbers	
  get	
  more	
  pickled	
  than	
  brine	
  gets	
  cucumbered.
Risk  Clusters
• Architecture
• Integration
• Performance
• Reliability
• Compatability
• Security
• Organisational
Culture
• Customer	
  
Engagement
• Delivery	
  Speed
• Delivery	
  Quality
Technical	
  Risks Culture	
  &	
  Process	
  Risks
Symptoms
• Numerous	
  
work	
  arounds
• Poor	
  scalability
• Frequent	
  
dropouts
• Limited	
  device	
  
support
• Loss	
  of	
  
sensitive	
  data
• Solutions	
  rejected	
  by	
  
stakeholders
• Significant	
  rework
• Limited	
  delivery	
  
windows
• Late	
  defect	
  discovery
• Cost	
  blowouts
Technical	
  Risks Culture	
  &	
  Process	
  Risks
•Real	
  world	
  engagement	
  reveals	
  
unexpected	
  use	
  cases….
Risk  Clusters
• Architecture
• Integration
• Performance
• Reliability
• Compatability
• Security
• Conceptual	
  Design
• Organisational
Responsivenss
• Reputation	
  
• Market	
  share
• Organisational Culture
• Customer	
  Engagement
• Delivery	
  Speed
• Delivery	
  Quality
Technical	
  Risks Culture	
  &	
  Process	
  Risks Product-­‐Market	
  Fit
Symptoms
• Numerous	
  
work	
  arounds
• Poor	
  scalability
• Frequent	
  
dropouts
• Limited	
  device	
  
support
• Loss	
  of	
  
sensitive	
  data
• Poor	
  value	
  delivery
• Lack	
  of	
  awareness
• Difficulty	
  pivoting
• Negative	
  headlines
• Displaced	
  by	
  a	
  
disrupter
• Solutions	
  rejected	
  by	
  
stakeholders
• Significant	
  rework
• Limited	
  delivery	
  
windows
• Late	
  defect	
  discovery
• Cost	
  blowouts
Technical	
  Risks Culture	
  &	
  Process	
  Risks Product-­‐Market	
  Fit
How	
  would	
  you	
  rate	
  your	
  
Digital	
  Transformation	
  
maturity?
• Jonathon	
  Wright,	
  Director	
  of	
  Digital	
  Engineering,	
  Hitachi	
  
UK
• Digital	
  Transformation	
  keynote
• WinOps workshop
• @	
  DigitalMothershipSymposium
• Thurs	
  9	
  June,	
  10am	
  – 5pm
• Collective	
  Campus,	
  20	
  Queen	
  St
• Register	
  via	
  EventBrite
THANKS!
mark.pedersen@kjr.com.au
@mark_j_pedersen
www.kjr.com.au

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Digital transformation maturity and risk

  • 1. Digital  Transformation:   Risk  and  Maturity  Assessment Mark  Pedersen
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9. Risk  Appetite •What  is  the  Risk  Appetite  of  your  organisation?
  • 10. Understand   Context Assess   Symptoms Review   Maturity Curiosity Acceptance Selection Transformation Indicators Awareness  of  the   trend  toward  digital   but  not  seeing  the   relevance  to  this   organisation.   Acceptance  that  the   organisationneeds  to   adopt  a  digital  posture   but  not  sure  where  to   start. A  pilot  project  is  being /  has   been  selected; or  an  initial   pilot  failed  and  the  initiative  is   starting  over  from  scratch A  successful  pilot  project  has   been  completed  and  broader   DT  activities  are  now  underway Focus  of  Risk   Mitigation External  risks  of:   • Disruption, • disintermediatio n   • decline  in  value   of  services Internal risk: • inability  to  pivot. Internal  risks: • Unclear  objectives • Organisational tension • Lack  of  capability External  risks: • Competitor  moves   first Internal  risks: • Unsuitable pilot • Organisational change   management • Unmanaged  technical   risks • Morale  impact  of   (second)  failure External  risks: • Competitor  moves  first • Reputation  impact  of   failure Internal  risks: • Unscalable methodology • Change  fatigue • Technical risks  in  legacy   systems External  risks: • Maintenance  customer   satisfaction  (and   reputation)  
  • 11.
  • 12. Case  Study:  NDIS •Primary  delivery  platform:   mobile  devices •User  profile:   –limited  experience,  accessibility   highly  important •Integration  requirements:   –business  data  workflows  integrated   across  Siebel,  SAP  and  .NET  web   interface •Solution  maturity:   –no  previous  experience  with   individual  client  facing  solution •Security:   –highly  important •Reputation  risk:   –extreme
  • 13.
  • 15. Symptoms • Numerous   work  arounds • Poor  scalability • Frequent   dropouts • Limited  device   support • Loss  of   sensitive  data Technical  Risks
  • 16. Culture  trumps  Process Cucumbers  get  more  pickled  than  brine  gets  cucumbered.
  • 17. Risk  Clusters • Architecture • Integration • Performance • Reliability • Compatability • Security • Organisational Culture • Customer   Engagement • Delivery  Speed • Delivery  Quality Technical  Risks Culture  &  Process  Risks
  • 18. Symptoms • Numerous   work  arounds • Poor  scalability • Frequent   dropouts • Limited  device   support • Loss  of   sensitive  data • Solutions  rejected  by   stakeholders • Significant  rework • Limited  delivery   windows • Late  defect  discovery • Cost  blowouts Technical  Risks Culture  &  Process  Risks
  • 19.
  • 20. •Real  world  engagement  reveals   unexpected  use  cases….
  • 21.
  • 22. Risk  Clusters • Architecture • Integration • Performance • Reliability • Compatability • Security • Conceptual  Design • Organisational Responsivenss • Reputation   • Market  share • Organisational Culture • Customer  Engagement • Delivery  Speed • Delivery  Quality Technical  Risks Culture  &  Process  Risks Product-­‐Market  Fit
  • 23. Symptoms • Numerous   work  arounds • Poor  scalability • Frequent   dropouts • Limited  device   support • Loss  of   sensitive  data • Poor  value  delivery • Lack  of  awareness • Difficulty  pivoting • Negative  headlines • Displaced  by  a   disrupter • Solutions  rejected  by   stakeholders • Significant  rework • Limited  delivery   windows • Late  defect  discovery • Cost  blowouts Technical  Risks Culture  &  Process  Risks Product-­‐Market  Fit
  • 24. How  would  you  rate  your   Digital  Transformation   maturity?
  • 25. • Jonathon  Wright,  Director  of  Digital  Engineering,  Hitachi   UK • Digital  Transformation  keynote • WinOps workshop • @  DigitalMothershipSymposium • Thurs  9  June,  10am  – 5pm • Collective  Campus,  20  Queen  St • Register  via  EventBrite
  • 26.
  • 27.