1. Digital Disruption – Industry 4.0
Transforming Genentech for Digital Economy
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2. Technology evolution through innovation
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Social Media
Analytics
Cloud
Internet of Things Mobile
Cognitive
Evolution of
technologies is
coming at us.
3. That can give an edge for short term
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Cloud Individual technology
can be a point
solution giving a
jump start. But can
not be a strategy.
4. And individual technology is not a competitive
advantage
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Cloud
It’s about confluence
of these technologies
that eliminate the
technology
limitations.
5. Corporates need Digital Strategy
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Rightfully integrating
technologies what
makes most sense to
the business.
Social
6. Why digital transformation nowLow initial investment enabling service model
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Drones:
2007: $100
2013: $700
3D Printing:
(cost averages for
equivalent functionality)
2007: $40k
2014: $100
Industrial
Robots:
2007: $550k
2014: $20k
DNA
Sequencing:
2000: $2.7bn
2007: $10mm
2014: $1k
Solar Power:
(cost per kWh )
1984: $30
2014: $0.16
Sensors :
(3D lidar)
2009: $30k
2014: $80
Smartphone
(model with similar
specifications)
2007: $499
2015: $10
7. $1.5T $30B
/Year
$1.7T $700
M
$5T
01
Logistics
02
Healthcare
03
Electricity
04
Automotive
05
Consumer
7
02
03
04
05
01
7Neeraj Agarwal
Increases 2M jobs
Reduces 10M tons carbon emission
Total Value impact $1.5T
Source: World economic forum
US healthcare savings $30B/year
Reduces hospital admission by 35%
Increases 3.5M jobs
Reduces 16B metric ton carbon emission
Total Value impact $1.7T
1.2M lives saved
Reduces 540M metric ton carbon emission
Total Value impact $700M
Total Value impact $5T
Digital Transformation enables efficiencies for
several industries
8. What is digital disruption
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Changes in
competitive
environment
resulting from the
use of digital
technologies.
S
W O
T
9. What do you do about this disruption – Need
Digital Strategy
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Integrated business strategy
inspired by the capabilities
of powerful, readily
available technologies and
responsive to constantly
changing market
environment
what makes us unique
10. Two types of digital strategies
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Customer
Engagement
Digitized Solutions
Operational Backbone
1. Ideally organizations should pick one of
the two strategies.
2. Operational excellence is the backbone,
required, and not considered as a
strategy in the new era of digitization.
Market Driven Product Driven
Digital Solution Backbone - Enabler
11. Customer engagement – Patient centricity
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Customer
Engagement
Digitized Solutions
Operational Backbone
Serving to the customer life events rather than selling products and
services. In the process identify the technologies that make customer life
easier. And that defines business strategy and technology roadmap.
Market Driven
12. Digitized Solutions – Business Models
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Customer
Engagement
Digitized Solutions
Operational Backbone
Digitized Solutions is to solve specific problems. For
example, Drug Security.
Product Driven
13. Operational Backbone
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Customer
Engagement
Digitized Solutions
Operational Backbone
A great operational backbone is not optional, rather a
must to enable Digital Strategy.
Digital Solution Backbone - Enabler
14. 0201
0306
05 04
Finding the right leadership
01
Enhancing customer experience
02
Engagement of employees
03
Handling competition.
04
Changing company culture
05
Ensuring availability of resources
06
14
Why is digital transformation challenging
Neeraj Agarwal
Digital transformation requires change in employees mind set, and organization design to support the transformational
journey.
15. Bringing it all together – Digital CoC
Technology & Data Strategy
Enterprise-wide agile & dev ops transformation
Digital Reinvention™ through emerging tech
IT operating model and governance
Emerging tech strategy
Digital Business Strategy
Digital growth strategy
Business model innovation
Data monetization
Talent Reinvention
Digital organization design
Digital talent strategy
Cognitive HR
Connected Ops Strategy
Next generation supply chain strategy
Digital operations
Process digitization
1
2 3
4
Customer
Engagement Digitized Solutions
Operational Backbone
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Digital CoC provides leadership in Digital Reinvention. Strategy development, operations excellence and evolving
revolutionary technology roadmap are the primary responsibilities.
16. Digital ReinventionTM
– Operating Model
Organizational design can be around basic principles of operating model
FinishStart
Envision Creation Foundation
DELIVERABLES
Experience & Industry Insights
Digital Reinvention™ Driver Assessment
Envisioned and prioritized Reinvention ideas
Digital Reinvention™ Strategy
Target Operating Model
Pilot Outlines
Pilot Blueprints
Minimum Viable Product / Pilot Assessment
Market Strategy
Operating Model
Capability Strategy & Execution
Foundation project outcomes
On-going Digital Reinvention™ Program
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PREPARE UNDERSTAND ENVISION DESIGN
PROTOTYPE,
PILOT & LEARN
REFINE & CODIFY SCALE LAUNCH
ACTIVITIES
17. Year ‘1
Launch : Digital Transformation
CoC
Initiate : Strategic Roadmap and
Perform Assessment
Year ‘2
Start. Backbone readiness. ERP,
CRM, MES, LIMS systems
upgrades & consolidation
Year ‘3
Start. Preparation for
data platforms
Year ‘4
Start : Aaccelerate strategic
Digital Transformation journey
Year ‘5
Start : Planning for sustaining
model for continuous
improvement
Strategic digital transformation journey
Digital transformation journey is multi-year commitment. A carefully planned roadmap provides flexibility and parallel run for the multiple programs that converges to
achieve a common goal at the end
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18. Digital Strategy:
• Roadmap
• Planning
• Establish CoC
2018
Nexus:
• Revenue Recognition
• Logistics & transportation
• Order routing
2019
Nexus :
• Order scheduling
• Backlog management
• Data platform
2020
Nexus :
• Order management
• Manufacturing ops
• Site transition
2021
Nexus :
• Site transition continue
• Contract manufacturing
2022
MES
- Site upgrade
MES
- Site upgrade
Robotic Process Automation
IoT sensors integration
An illustrative transformational roadmap
Blockchain Product Safety
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19. Consider Exit Strategy Before Initiation
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